Archive for the ‘issues’ Category

How Do You Deal With The Rest Of The Iceberg During A Negotiation?

Tuesday, January 6th, 2009
When Negotiating, It's Important To Deal With Unstated Issues In Order To Be Successful

When Negotiating, It's Important To Deal With Unstated Issues In Order To Be Successful

As the captain of the Titanic, Edward John Smith, did a fairly good job of looking out for the parts of icebergs that were above water. What got him in the end is when the Titanic hit a part of an iceberg that he couldn’t see because it was below water. In negotiating, all too often we can fool ourselves into thinking that we know all of the issues that are being negotiated. How wrong we are…

When we negotiate with the other side of the table, the issues that are really being negotiated are often a lot more subtle than those issues that were listed on the agenda at the start of the negotiations. In fact, the issues that originally appeared to be big issues, more often than not turn out to not be all that big of a deal after all.

The things that we often spend the most time talking about, services, goods being sold, and price are of course important. However, the clever negotiator realizes that these are only the tip of the proverbial iceberg.

As a negotiator you need to realize that there will be a large collection of issues that need to be addressed but which will never get written into the final contract. What are these issues you ask? Simple – they are personal issues that the other side holds dear. Neither side can make these personal demands out loud during the negotiation; however, if you don’t address and resolve them, then you won’t be reaching an agreement.

If these personal negotiating issues are so important, then what are they so that we can start to look for them? They take many different forms during each negotiation and you are going to have to do some digging to find the ones that relate to your current talks, but here are some examples for you to keep your eyes open for:

  • Personal Schedules: “I need to get this negotiation completed by tomorrow because my wife wants to go visit her mother this week.” Both sides of the table have schedules that they need to meet and this can influence the negotiations.
  • Internal Organizational Issues: “My boss has been fired and I now work for someone who has a different agenda.” The world is a dynamic place and even as a negotiation goes on, things change. These changes can impact the direction that the negotiation is heading in.
  • Physical Health: “I’ve got a pounding headache.” We need to be constantly reminding ourselves that negotiating has a physical side to it. How either side is currently feeling can have a significant impact on how the negotiations progress.
  • Social Status: “I need this negotiation to be successful so that I can show my boss that I’m valuable to the company.” A negotiation does not occur in a bubble – it has visibility and has impacts. Both sides of the table want to be seen in a favorable light when the negotiations are over.
  • Workload: “I am already swamped and I need to be careful to not take on any more work.” This is the curse of the modern workplace – too much to do and never enough time to do it. You need to watch the other side to determine if they are dragging their feet because they fear an increase in their workload.

These types of personal issues are a critical part of every negotiation. If you can remain sensitive to these types of issues and are prepared to help the other side find a way to deal with them, then you will be that much closer to successfully concluding the negotiation.

Have you ever been involved in a negotiation in which a personal issue became a big deal? When did you first discover that there were non-agenda issues on the table? Did you have your own personal issues that needed to be addressed? How did this all turn out? Leave me a comment and let me know what you are thinking.

Deal + Negotiation = Contract (or the Four Modes To Get You There!)

Friday, July 11th, 2008

There Are Four Different Modes To Each Negotiation

Too many people look at a negotiation in a negative way. They sigh, and instantly become tired whenever the prospect of entering into a negotiation shows up. What they are missing is that a negotiation is not necessarily a contest. When there is a deal to be done or a contract to be signed then negotiation skills are required.

The secret to getting the best deals from your next negotiation is to realize that just like the different roles that you have to play as a skilled negotiator, there are four modes of negotiating that arise during each negotiation session. If you can learn to recognize these modes and come up with ways to deal with them, then you’ll know how to deal with them. Here are brief descriptions of the four modes, let’s see how many you recognize:

  • The Cooperative Mode (Both Win): During this phase, both parties realize that there is a better deal available to both of them if they are both willing to take the time and make the effort to look for it. They will know that they have found it when both sides have increased their profit and/or their satisfaction without harming the other side.

  • The Competitive Mode (Defending Your Interests): During this phase you are locked in a competitive battle with the other side. There will be a winner and a loser and you’ll be darned if you are going to be the loser! During this phase, you should say as little as possible because information is power and you don’t want to give too much power to the other side.
  • The Organizational Mode: This is very much like the “channeling” that mystics do for folks who have passed on to the spirit world. The other side is really representing their organization and because of this their hands are tied on some matters. When they say “No” it may not be the other negotiator that is saying it, but rather his/her organization that is saying it. During your preparation for negotiation make sure that you know the other side’s organizational structure and what pressures they will place on their negotiator.
  • The Personal Mode: The ultimate goal of any negotiation is for both parties to walk away feeling satisfied. What it’s going to take to satisfy the other side may lie buried beneath the actual issues that are being discussed. Your job as a negotiator is to be aware of your “satisfaction issues” and to uncover the other side’s.

There you have it. You’ve probably seen all four of these modes in play during your past negotiations; however, you may not have seen yourself in these modes also. Knowing that they exist and molding your reactions to them will help to make you a more successful negotiator.

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