How to Negotiate with a Liar

Leslie  John

Article | Harvard Business Review | July–August 2016

How to Negotiate with a Liar

Abstract

People, including negotiators, lie every day, so when you're trying to make a deal, it's important to defend against deception. The best strategy, says the author, is to focus not on detecting lies but on preventing them. She outlines five tactics that research has shown to be effective: encourage reciprocity. You can build trust and prompt other parties to disclose strategic information by sharing information yourself. Ask the right questions. Negotiators often lie by omission, keeping mum about relevant facts, but if directly asked, they are more likely to respond honestly. Watch for dodging. Don't let your counterparts sidestep your questions—write them down in advance, take notes on the answers, and make sure you get the information you're seeking. Don't dwell on confidentiality. Studies show that the more you reassure others that you'll protect their privacy, the more guarded and apt to lie they become. So be nonchalant when discussing sensitive topics. Cultivate leaks. People often reveal information unwittingly, so listen carefully for any slips and try indirect approaches to gaining information.

Keywords: Negotiation Tactics; Negotiation Participants;

Format: Print

Find at Harvard Register to Read

Citation:

John, Leslie. "How to Negotiate with a Liar." Harvard Business Review 94, nos. 7-8 (July–August 2016): 114–117.

Firms are increasingly giving consumers the vote. Eight studies demonstrate that when firms empower consumers to vote, consumers infer a series of implicit promises—even in the absence of explicit promises. We identify three implicit promises to which consumers react negatively when violated: representation (Experiments 1A–1C); consistency (Experiment 2), and non-suppression (Experiment 3). However, when firms honor these implicit promises, voting can mitigate the disappointment that arises from receiving an undesired outcome (Experiment 4). Finally, Experiment 5 identifies one instance when suppressing the vote outcome is condoned: when voters believe that the process of voting has resulted in an unacceptable outcome. More generally, we show that procedural justice plays a key mediating role in determining the relative success or failure of various empowerment initiatives—from soliciting feedback to voting. Taken together, we offer insight into how firms can realize the benefits of empowerment strategies while mitigating their risks.

Email mking@hbs.edu for a courtesy copy.

Back to the Roots is a startup with a social mission to “undo food”—to reconnect people to where their food comes from. In late 2017, they are contemplating their next move. Back to the Roots has an eclectic portfolio of products, including ready-to-grow (e.g., gardens in a can) and ready-to-eat (e.g., cereal) products, and they are being courted by two major players in each category. With an award-winning snack bar in their hands, they are now debating whether they should delve further in to the ready-to-eat category. It is a competitive space and they wonder if they are ready to launch yet another new product and, if so, what this move would mean for their ready-to-grow product line.

Case | HBS Case Collection | December 2018 (Revised September 2019)

Fishbowl: Scaling Up

Leslie K. John

Fishbowl is a social media app that allows professionals to connect with other relevant professionals both within their company and across industry. Unlike many other social media apps, on which users typically present idealized portraits of themselves, on Fishbowl, people get real. Fishbowl prides itself in being a "safe space" that allows users to feel comfortable interacting with candor - whether to ask difficult questions in order to give and get advice, or just to vent or crack jokes. A key part of the user experience is the ability to post anonymously. But to ensure relevance of posts, when a user signs up, Fishbowl verifies their identity by requiring them to provide their full name, employer email address, LinkedIn account and contact list. Fishbowl has several hundred thousand users and is now looking for ways to monetize the platform. As such, founders Loren Appin and Matt Sunbulli face a mission-critical decision: should they integrate employers into the platform? Although formally integrating employers would provide a much-needed revenue stream, at the same time Appin and Sunbulli worry that doing so could destroy the user experience. Is formalizing employer relationships antithetical to the safe space they have created?

Keywords: communication technologies; interpersonal communication; talent and talent management; customer value; value chain; entrepreneurship; business model; advertising; Growth and Development Strategy; Marketing Strategy; Product Marketing; Two-Sided Platforms; Consumer Behavior; Network Effects; Emotions; Motivation and Incentives; Trust; Software; Technology Adoption; Technology Platform; Communications Industry; Employment Industry; Media and Broadcasting Industry; Technology Industry; Telecommunications Industry; United States;

Citation:

John, Leslie K. "Fishbowl: Scaling Up." Harvard Business School Case 919-013, December 2018. (Revised September 2019.) (Email mking@hbs.edu for a courtesy copy.) View Details

Cite View Details Educators Purchase

Faculty & Research

How to Negotiate with a Liar

Abstract

Citation:

About the Author

More from the Author