Steven G. Blum

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One More Such Victory and We shall be Ruined

August 19, 2013 By Steve

Be careful what you wish for. How often in life do we achieve a victory only to decide that we would have been better off without it? Game theorists speak of a winner’s curse When I was a boy, my father would challenge me by asking, “Are you sure you want that?” My grandfather was heard on several occasions to mutter, “God help you when you get what you want.” There is no guarantee that attaining a goal will lead you to a good outcome.

The Greek King Pyrrhus of Epirus led an army that suffered irreplaceable casualties in defeating the Romans at Heraclea in 280 BC and Asculum in 279 BC during the Pyrrhic War. In both of Pyrrhus’s victories, the Romans suffered greater casualties than Pyrrhus did. However, the Romans had a much larger supply of men from which to draw soldiers, so their casualties did less damage to their war effort than Pyrrhus’s casualties did to his. He is often quoted as having said “Another such victory and we shall be utterly ruined.”

As a young lawyer, I saw case after case that could be described as Pyrrhic victories. People in difficult disputes would turn to their attorneys for advice about how to proceed. Being lawyers, they would recommend litigation: “We’ll sue the bastards.” By the end of that process, often years later, the loser of the lawsuit was bitter and impoverished. In many cases, so was the so-called winner. One can almost imagine the winning litigant, upon hearing the verdict, declaring, “One more such victory and we shall be utterly ruined.”

If you look carefully, you will see examples of Pyrrhic victories all around you – situations where someone can accurately say, “I won,” yet must acknowledge that winning actually took him in the opposite direction from what he was trying to achieve.

An American officer describing a small hamlet in Vietnam said, “It became necessary to destroy the town to save it.”

The apocryphal surgeon who declared, “The operation was a success but the patient died.”

A technology company that maintains high prices for its product but, in doing so, fails to achieve the overwhelming market penetration necessary for the format to succeed.

The lesson for negotiators is straightforward. From the beginning of your preparation, start to figure out what you are actually trying to achieve. Dig deeply below your opening positions and explore what underlying interests you are trying to meet. Understand what would truly be a “good outcome” for you and work backwards in an attempt to bring it to fruition. “What do you really want?” is invariably the essential question in any negotiation.

 

Filed Under: Negotiation

About Steve

Steven G. Blum has been teaching in the Department of Legal Studies and Business Ethics at the Wharton School of Business of the University of Pennsylvania since 1994.

In addition to teaching semester-long courses for undergraduate and MBA students, Mr. Blum has taught in Wharton Executive Education programs, lectured and consulted widely, and frequently leads seminars and educational forums. Mr. Blum has five times won the William G. Whitney Award for outstanding teaching.

He holds the degrees of Masters of Laws and Juris Doctor. He also earned a Masters Degree from the Harvard Graduate School of Education, and the Specialization in Negotiation and Dispute Resolution from the Program on Negotiation at Harvard. In addition to teaching and consulting, Steven maintains a practice of law and is a registered investment advisor. He has a strong research interest in the area of ethics and fiduciary duty. His book entitled Negotiating Your Investments was published by Wiley in April 2014.

Negotiating Your Investments: Use Proven Negotiation Methods to Enrich Your Financial Life (Hardcover)

Investing is best understood as a series of negotiations. The ability to conduct that bargaining with skill and confidence is worth a fortune. Read More

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