Manufactured Deadlines as a Negotiating Tactic

Each presidency, the news cycle makes a big deal about Congress voting to increase the debt ceiling.

Each side takes a hardline negotiating stance resulting in an uproar across the country due to each party’s use of the deadline as a negotiating tactic. This is sometimes called a “manufactured crisis” and is used to pressure the other side to make concessions. In the music and entertainment business, it’s used similarly.

Often, parties will tell you if you don’t sign by the end of the week we’ll need to move on and they do that to take away the most valuable asset you have which is time. The psychological impact that the “fake” deadline can cause often pushes the other party into signing a contract that they haven’t had the time to have properly reviewed.

Here are some common uses of manufactured deadlines in contract negotiations:

• Creating a sense of urgency: Setting a deadline can instill a sense of urgency and compel parties to act quickly. When negotiations reach a stalemate or a party is hesitant to make a decision, a manufactured deadline can motivate them to take action rather than risk losing a favorable deal.
• Exerting leverage: By imposing a deadline, one party can gain leverage over the other. If the opposing party believes that time is running out, they may be more willing to make concessions or accept terms that they would otherwise resist.
• Facilitating decision-making: Negotiations can sometimes become protracted due to indecisiveness or an excessive amount of information. A manufactured deadline can help streamline the decision-making process by forcing parties to prioritize their concerns and focus on key issues.
• Setting expectations: A deadline can serve as a benchmark for progress and communicate expectations to the parties involved. It provides a framework for the negotiation timeline, ensuring that both parties are aligned and have a shared understanding of the pace and direction of the process.
• Escalating commitment: By creating a deadline, negotiators can foster a sense of commitment and encourage parties to invest time, resources, and effort into reaching an agreement. This psychological effect arises from the sunk cost fallacy, where individuals feel more compelled to continue negotiations and reach a deal as the deadline approaches.
• Overcoming inertia: Negotiations can sometimes suffer from inertia, with parties being reluctant to make decisions or compromises. A manufactured deadline introduces a catalyst for action, helping to break through the inertia and push negotiations forward.
• Testing the other party’s resolve: By establishing a deadline, negotiators can gauge the other party’s commitment and determination to reach an agreement. If the opposing party is willing to work towards meeting the deadline, it can signal their seriousness and desire to finalize the contract.

However, it is important to note that the use of manufactured deadlines should be approached with caution. Employing them too frequently or excessively can erode trust, breed skepticism, and potentially damage the long-term relationship between the parties. Effective negotiation strategies involve striking a balance between leveraging deadlines and maintaining a cooperative and collaborative environment for reaching mutually beneficial agreements.