How to Break Impasse in Negotiation
Chapter 7
How to Break Impasse in Negotiation
Key Point：
 1、to learn to identify the causes of impasse
in negotiation
 2、to build a correct attitude towards the
impasse
 3、to know the strategies that may prevent a
negotiation from falling into impasse
CASE
This is a claim negotiation between Mr.Ren and a manager of Germany
company. Chinese party asks a claim of 11million Marks, the German
can only accept 3 million. The gap is large and this is a Marathone
negotiation. To break the impasse, Mr. Ren suggests a trip to DaMing
Temple in beautiful Yangzhou.
“This is a temple to remember a great Buddhist monk in Tang Dynasty, he
has been to Japan six times and blind for speading Buddha dharma
for six times, his name is Jianzhen. Japanese and Chinese will never
forget him.” Mr. Ren introduced. “Maybe you are interested why
Janpanese have so much investment in China. That’s because
Japanese are familiar with Chinese, and they know Chinese focus
much on relations and friendship.”
CASE
Then he smiled to tne Germany manager, “We have cooperated for many
years, we are not only business partners, but also friends, aren’t we?”
The Germany manager was moved. The car was drived to the meeting hall
directly, and the negotiation goes on.
“Let’s talk frank. How much could you compensate us? We Chinese pay
much attention to friendship. We don’t want you lose your bowl for
this claim. On the othe hand, please think for us, China is poor, we
have to give compensation to 10,000 constructors because of the
defect of the machines!..”
Finally, the German compensated 8 million Marks. The Germany manager
said although he gave the money, he felt comfortable.
How to Break Impasse in Negotiation
Structure of the chapter





7.1. Why does Impasse Arise?
7.2 Conquer the Fear of Impasse
7.3 Avoid provocation
7.4 Don’t make things worse
7.5 Other means of dispute handling
7.1. Why does Impasse Arise?


7.1.1 Causes of impasse
7.1.2 How to handle impasse?
7.1.1 Causes of impasse





Position conflicts
Coercion (强迫)
Communication barriers
Negotiators quality lack
Little ZOPA
Position conflicts



Two men were quarrelling in a library. One wants the window open and the
other wants it closed. They bicker back and forth about how much to leave
it open: a crack, halfway, three quarters of the way. No solution satisfies
them both. The librarian enters. She asks why he wants the window open:
“To get some fresh air.” She asks the other why he wants it closed: “To
avoid the draft.” After thinking a minute, she opens wide a window in the
next room, bringing in fresh air without a draft.
In this case, the two men were insisting on their own positions and no one
was willing to give in. In the conflict, the more one insists, the less the other
concesses. Actually the “real interest” has been ignored and to maintain the
self “face”, no one is willing to give in, but tries to force the other to concess
by strong will. Finally, it is not a negotiation, but “will contest”.
Thus, getting entangled in position conflicts is an ineffective negotiation
form. The two parties ignore the real potential interest, and agreement is
reluctant to make. Even more, the emotion of the two parties may be hurt,
and negotiators may face big loss. While in fact, position conflicts is the
most common impasse and one of the common mistake that negotiators
make.
Coercion



Coercion is destructive to negotiation for it means unequal
and unreasonable. It is adverse to the principle of “equlity”
in negotiation.
Do you have impasse example because of coercion?
(youth revolt)
In negotiation, impasse happens because the stronger
party uses coercion is common. While, for the other party,
sometimes, he has to maintain the nation’s or the
enterprise’s honor besides economic benefits, so the more
pressure he feels, the more decisive he is. Then the
impasse forms and difficult to break.
Communication barriers
Types of communication




Verbal communication
Mainly refers to the language we use in our
daily life, including spoken as well as written.
Nonverbal communication
People communicate via other means, such
as spatial arrangement, temporal
arrangement, Kinestics, etc. This type is
called nonverbal.
What do the following mean?






Silence
Hand gestures
Net words: CUL, LOL, AFK, BBL, ASAP, F2F, IMO,
JAM; GG, JJMM, 88, frog, dinosaur, cups,3q…
“我公司是中国二级企业，⋯⋯”
In communication, the Japanese always say “Hi,
Hi…”
Game: transmission
Negotiator’s quality lack




Experience
Attitude and habit
Knowledge
Strategy and skill
Little ZOPA

You have attracted by a red car valued
100,000 Yuan. You have 80,000 only, and
you are willing to pay 80,000 to buy a car at
most. After bargaining, the seller could give
5% discount at most. No one makes
mistakes here, this impasse could not be
overcome for little ZOPA.
7.1.2 How to handle impasse?

Recently two of my sons were squabbling over some apple
pie, each insisting that he would have the larger slice.
Neither would agree to an even split. So I suggested that
one boy cut the pie any way he liked, and the other boy
could choose the piece he wanted. This sounded fair to
both of them, and they accepted. Each felt that he had
gotten the square deal.
Setting up an objective solution to
Make both of the two parties feel fair
Another example





Have you watched the movie “Tokyo Trial”?
In July, 1945, Chinese judge Mei, Ruao was authorized to take part in
Tokyo Trial. The seating became a problem. The president of the court
is in the middle, and because of the big effect that US in WWII, there is
no question that American judge will take the right seat next to the
court president. Who would take the third seat that on the left of the
court president rised serious conflicts among judges from other
countries.
Judge Mei realized he is the representitive of China, for the country, he
has to strive for the third seat. However, at that time, China is not
strong enough, if there is no reasonabe and fair means, others could
definitely refuse. And other judges faced the same problem, no on
wants to concess.
Then, Judge Mei suggested: We could arrange the seating by the
sequence of signing the Surrender Document. Facing the objective
suggestion, no others could give a better solution.
Actually, the sequence is US, PRC, Soviet Union, Canada,… So
Judge Mei was arranged the third.
7.1.2 How to handle impasse?





There is an department trying to set up a shopping center in suburb. The place it
favored was owned by Zhangqiao Government.The department offers 1million to
open a shopping center, Zhangqiao Government asks for 2 million. After
negotiation, the formor offers 1.2m at most, the latter asks 1.8 at least. The two
parties face an impasse.
The government wants to sell more money and build a factory to solve the
problem of unemployment because the farmers have to leave their ground. The
department wants to save money on purchasing the ground, but enlarge the
center.
To penetrate the surface, there is common interest. The government wants to
solve unemployment and keep the society stable, while the department needs
sellspersons for larger scale. They find a win-win solution quickly.
Program 1: Deal done by 1.2m, while the shopping center should provide a
position for each family when it opens.
Program 2: Zhangqiao government becomes a shareholder by the ground. After
the shopping center setting up, a part of it should be provided for farmers for
business.
Concerning the real interest
7.1.2 How to handle impasse?




The example of Peace Talk between Egypt and Israel
At first, Israle announced to occupy SINAI Penninsula,
while Egypt refused decisively.
What is the BATNA?
Benefits for Israle, Egypt and America: keep Sinai
Penninsula as a non-military area.
Finding constitutions: when one refers to a constitution
Program which satisfies his own interest and considers the
Other party’s interest, he holds the initiative of negotiation.
7.1.2 How to handle impasse?
Others
 (1) Keeping it fluid
 (2) Seeking easy escape routes
 (3) Shifting the topic
 (4) Adjournment strategy
In negotiation we try to be sympathetic, sometimes
the third party may help, and sometimes we
could be “strong” to maintain indipendence and
honor if necessary.
Case of “Never teach a grandmother how to boil egg”.
(you’d better, you must, I advice, if u…, We…,)
7.2 Conquer the Fear of Impasse


Read the Case and try to analyze the
situation according to what you have learnt
P191-192
7.3 Avoid provocation



Some of these deadlocks are purely
temporary, others can be permanent.
Why does impasse occur?
constitution of provocation
7.4 Don’t make things worse



get the argument away from the why
questions to the how questions
what to do and what not to do
Make things happen for you by asking open
questions
7.5 Other means of dispute handling



7.5.1 Mediation
7.5.2 Arbitration
7.5.3 Litigation
Tips to break the deadlock






Go back to information gathering and build understanding to generate
additional options. There may be an underlying issue that is not being
addressed.
Try to discover the barriers to effective negotiating. Make a direct
appeal to the other party. For instance, “Can you tell me why we are
having so much trouble finding an acceptable solution?”
Agree not to agree for the time being. Create time to reflect on the
problem and resume negotiations later. Ask if more information is
needed.
Inform the other party of the consequence of failure to reach a
negotiated solution.
See if the other party is willing to try out one of the proposed solution
for a period of time.
Call in an outside party to act as a conciliator, a mediator or an
arbitrator.
Summary


1. In this chapter we mainly introduce the reason why an
impasse appear and how to manage it. In fact, we should first
of all to prevent it from happening; but if it comes, it’s not
necessary to be excessively worried or even give up the
negotiation. What we can do is to take useful steps to impel
negotiation to continue.
2. The main strategies of re-starting a negotiation include the
following: avoiding, adjournment, litigate, arbitrage and so on.
This chapter discusses how they are used under different
situation.
Key words



1. Impasse
2. Adjournment
3. Arbitrage