Multiple, Simultaneous Equivalent Proposals in Business Negotiations: Leveraging for Advantage
In the world of negotiations, finding a mutually beneficial agreement can often be a challenging task, especially when multiple issues are at play. However, a strategic approach called Multiple Equivalent Simultaneous Offers (MESO) has been found to be highly effective in such situations.
The MESO strategy works by presenting two or more equivalent offers simultaneously, giving the other party a choice among several balanced packages rather than a single option. This approach, as suggested by management research, can facilitate agreement and enhance mutual satisfaction [1][2][3].
One of the key benefits of MESO is its ability to create value through flexibility. By offering multiple equivalent packages, negotiators can tailor proposals to the counterpart’s preferences, often uncovering creative trade-offs across issues that maximize joint gains [1]. This not only improves negotiation outcomes but also reduces the risk of impasse and increases the chances of finding a compatible agreement that both parties find appealing.
Moreover, allowing the other party to choose among the offers can increase their satisfaction and sense of control in the negotiation, which helps build goodwill and trust. This sense of fairness can be particularly important in complex negotiations, such as salary negotiations, where ensuring essential components like base pay retain value is crucial [1][2].
The use of MESO in such negotiations can help ensure that key interests are not diluted. For example, in a salary negotiation, an offering party might present three equally valued offers: $80,000 per year with two weeks' vacation and 30% travel, $75,000 per year with three weeks' vacation and 25% travel, and $65,000 per year with four weeks' vacation and 5% travel [3].
Preparation is key when employing the MESO strategy. Negotiators must identify several proposals that are equally valued and present them to the other party [3]. This approach not only makes the negotiator appear more flexible but also collects information about the other party’s preferences, thereby increasing the odds of reaching a mutually beneficial negotiated agreement [3].
The evidence supports that MESO negotiation is an effective strategy, but it is used far too infrequently. The article "Why You Should Make More Than One Offer" first published in the Negotiation newsletter, and the special report "Dealmaking: Secrets of Successful Dealmaking in Business Negotiations" from Harvard Law School, provide valuable insights into this strategy [2][3].
In conclusion, the MESO negotiation strategy is a powerful tool for negotiators aiming to increase efficiency, expand the deal pie, and build collaborative relationships. By fostering value creation through choice and simultaneous consideration of trade-offs, MESO offers a more collaborative approach to negotiations, making it an invaluable strategy in today's complex business environment.
References: [1] Medvec, V. H., Galinsky, A. D., Leonardelli, A., & Claussen-Schulz, M. (2010). Making More Than One Offer. Negotiation. [2] Negotiation. (2010). Why You Should Make More Than One Offer. Retrieved from https://www.negotiation.org/resources/newsletters/2010/july-2010/why-you-should-make-more-than-one-offer [3] Harvard Law School Program on Negotiation. (n.d.). Dealmaking: Secrets of Successful Dealmaking in Business Negotiations. Retrieved from https://www.pon.harvard.edu/dps/portfolio/dealmaking-secrets-of-successful-dealmaking-in-business-negotiations/
- In complex business negotiations, the Multiple Equivalent Simultaneous Offers (MESO) strategy can be effective, as it presents multiple balanced packages to the other party and fosters a sense of fairness, enhancing mutual satisfaction.
- Employing MESO not only increases negotiation outcomes and reduces the risk of impasse, but it also collects useful information about the other party’s preferences, thereby increasing the odds of reaching a compatible agreement.
- Preparation is crucial when applying the MESO strategy, as negotiators must identify several proposals that are equally valued and present them simultaneously, ultimately making the negotiator appear more flexible and increasing the chances of a successful, mutually beneficial agreement.
