Archive for May, 2008

Demands & Deadlines: Your Two Best Friends

Friday, May 30th, 2008

Out Of Time To NegotiateBy Dr. Jim Anderson

All too often when we are negotiating both in real life and in business, demands and deadlines show up. Since most of us have never been trained on how to deal with these issues, we tend to do the easiest thing: panic. May I suggest a different approach: ignore them.

Unless you are actively involved in a hostage negotiation, you probably won’t be handed a list of demands. Instead, they will show up in more subtle ways. Casual statements like “This is a must have” or “I really don’t have any flexibility on this issue” are the nice way of saying “this is a demand” in polite company. Instead of panicking, great each veiled demand as an old friend. The other side has just revealed a point that is important to them. The actual demand does not matter that much, what really matters is the reason for the demand. If they say they they need the delivery by Friday, then forget the demand and focus on why they need the delivery by then. Who is waiting for the delivery? Why do they need it then? Every demand is a step in the right direction because you now have a better idea about what key points the eventual solution must address.

Same thing goes for deadlines. If the other side says “we’ve got to wrap this up by 10 pm or we’ll have to walk” then the question is why? What is their best alternative? What is so special about 10 pm? Why not continue tomorrow? Remember that most deadlines are garbage and the other side may be using them as part of a fairly poor attempt at moving the deal to a close. Ignore the deadline and move on. If they are interested in doing a deal, they’ll end up ignoring it also.

If you end up giving into one or more of their demands or meeting one of their deadlines, make sure that you get something for it. Tit-for-tat. Make sure that the other side does not see you as being weak and giving in. Instead, keep the give and take balanced through the negotiations.

It’s All About Power

Wednesday, May 21st, 2008

You Have The Power To Negotiate Well
One of the big challenges to doing a good job of negotiating is that often you don’t feel in control of the situation — you believe that the other side has all of the power. This of course is not true, because if it was then they would not be preparing to negotiate with you. They would just tell you what to do and you would do it. See? Now doesn’t that make you feel better?

So here’s a secret: power is not real. It only exists in your mind and so it is what you think it is. If you think that you are powerful, then you are. If you don’t think that you are powerful, then you won’t be. Sales people have known for a long time that negotiation is a process of information discovery. During this discovery process you learn what your sources of power for this particular negotiation are.

A long time ago, a researcher named Dr. Chester L. Karrass discovered that power is simply a state of mind. Those who think that they are powerless will negotiate weakly even if in reality they do have power. Those who think that they have power will negotiate from strength even if they really don’t have any power.

The take away here is to get yourself in the right state of mind BEFORE you start to negotiate. Once you start the negotiations make sure that you keep your ears open so that you can discover your real sources of power. Then go out and make it happen!

Let’s Get Physical

Thursday, May 15th, 2008

Physically Prepare To Negotiate Well
This might fall into the “duh” category; however, you would not believe how many times even the most experienced negotiators forget that before you negotiate, you must be mentally and physically in the right place. This is just a fancy way of saying that you have to be very comfortable to negotiate. Physical and mental comfort as you negotiate is vastly underrated as a strategy.

Negotiating starts with being relatively comfortable. I shouldn’t have to say it, but it’s good to remember that you shouldn’t negotiate the day after a loss in the family, you should wear comfortable clothes, whatever you do don’t wear clothes that will make you feel inferior, (ladies especially) should not wear uncomfortable new shoes.

In his book Negotiate and Win, Dominick Misino tells the story about a negotiating team responded to a domestic-type dispute in a suburban neighborhood. A man had barricaded himself in a house for some trivial reason and was refusing to come out. No weapons had been seen and there was some question among the police officers as to whether the man was really barricading himself in the at all. The negotiator said “I can deal with this easy.” It was an early fall afternoon in the Northeast, one of those gorgeous 70 degree days just before the leaves start changing colors. The negotiator figured that he’d have the guy out in a few minutes and get back in time to know off early for dinner. Except that the person in the house turned out to be pretty serious about not coming out. And he turned out to have a weapon that no one had known about. The afternoon turned into the evening and the evening into nighttime. The temperature dropped to 50 degrees and then dipped to 45. The negotiator, still in shirtsleeves, froze body parts off. By the time the man in the house finally agreed to come out, the negotiator was almost suffering from hypothermia.

He should have known better! Let all of us accidental negotiators learn from this and make sure that we’ll be comfortable no matter how long the negotiations go on.