According to conventional wisdom, small talk in negotiation builds rapport and gets both sides a better deal in the end. But in fact, the question of whether to engage in small talk can be highly context-specific. New York City investment bankers, for example, tend to be far less likely than Texas oil executives to engage in small talk at the outset of a negotiation.
So, rather than adopting a blanket rule when deciding whether to engage in small talk in negotiation, be responsive to the context.
Consider the location of the interaction—your office, their office, or somewhere else? Because you have more control over the pace and substance when meeting on your turf, you should be more willing to use small talk to build rapport. If you’re meeting in their territory instead, look for context clues: Does your counterpart ask whether you’d like some coffee or immediately direct you to your chair? The former situation is clearly more conducive to small talk than the latter; in fact, trying to engage in small talk may irritate your counterpart in the second scenario. Also consider body language: Are you sitting together on a couch, or is your counterpart sitting at his desk with you across from him? Again, the former scenario invites small talk; the latter does not.
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