Archive for the ‘strategy’ Category

Single vs Team Negotiation: Which Is Better?

Thursday, December 11th, 2008
Sometimes It Takes A Team To Complete A Negotiation Successfully

Sometimes It Takes A Team To Complete A Negotiation Successfully

Sorry – that’s a trick question. Most of the time when we talk about negotiating skills, we talk about how you can improve how YOU negotiate. However, in the real world, negotiations are often done by teams of negotiators.

The reasons for this are fairly simple: negotiations more often than not can take a long time and just the physical strain of active negotiating can wear a single person down quickly. Additionally, often special subject matter knowledge is required in order to hammer out specific issues and no one person posses all of that information. It takes a team to negotiate well.

There is, of course, one additional reason for preferring to negotiate using a team instead of a lone individual. During a negotiation so much is happening that a single individual is often hard pressed to stay on top of all of it.

Using a team for your negotiations allows you to use a group of people to capture all that is occuring. You can also use the team to jointly review what has transpired and make better decisions.

There are several reasons for not wanting to use a team as a part of a negotiation process. Here are three of them:

  • Requires Coordination: When you are the sole negotiator, once you know what you want to accomplish and how you are going to make it happen, then you are set. However, if you have a team of negotiators, then you need to make sure that everyone on your team REALLY understands what the goals are. This can be a challenge to do, especially if your goals change during the negotiation.
  • Sharing Information: In order for a team of negotiators to work together successfully, they need to all be aware of the same information. This will require that all information about the negotiation be collected, shared, and reviewed prior to the start of the negotiations. This can be a challenge under the best of circumstances and if the team is geographically distributed then it becomes even more difficult.
  • Showing Disunity: In the end, negotiating is all about power. Having team members become confused or showing disunity will reduce your power and increase the other side’s power.

With all that being said, you would think that nobody would ever use a team to perform a negotiation. However, you would be wrong. There are a number of compelling reasons why teams should be used more often for negotiatons than they currently are:

  • Better Coordination: Using a team allows you to distribute the tasks of negotiating among team members. This means that documents that need to be produced or facts that need to be checked can be done in parallel to the negotiations and this will speed the process up and reduce confusion.
  • More Experts: A single negotiator can only provide his / her expertise to the negotiations. A team can provide a much broader collection of experts and this should help the discussions move much faster.
  • Moral Support: Since a negotiation can continue for a long time, it’s easy to become disheartened if it appears as though an agreement will never be reached. If you are working with a team, it will be must easier to “keep a stiff upper lip” and not give up.
  • Listen Better: One set of ears can only hear so much. In fact, not only can multiple ears simply hear better, but they can also hear things differently which might help the negotiation move along faster.
  • Plan Better: A plan that is created by a single negotiator is as good as that negotiator. A plan that is created by multiple negotiators is often much better because it reflects the different inputs of multiple people.

What has your experience been: do you do better when you negotiate by yourself or when you negotiate as part of a team? When you are on a team, what role do you play? Which type of negotiation more often leads to a successful outcome? Leave me a comment and let me know what you are thinking.

7 Ways To Be Successful In A Negotiation

Wednesday, October 22nd, 2008
Successful Negotiating Requires Clear Goals

Successful Negotiating Requires Clear Goals

If only there was some magic formula for being a successful negotiator. You know what I’m talking about, some process that if you followed it from start to finish you could always be assured that you would “win” a negotiation. Well, as we’ve discussed in the past on this blog, the concept of winning a negotiation is a bit unclear. Rather we like to say that you want to come away from the negotiation feeling satisfied. Oh, and since a negotiation takes place between people who are infinitely complex and difficult to fully understand (yourself included), there is no way that any fixed formula is going to yield successful results every time. Rather, you need to be flexible and adapt your negotiating style to the current negotiation.

George Ross, who is Donald Trump’s master negotiator, has come up with seven goals for how you can better your odds of succeeding in almost any negotiating situation. Considering how successful George has been, it sure seems like it might be worth the time to listen to what he has to share with us. That being said, here are the seven goals that you can keep in mind in order to be a successful negotiator:

  1. I Want To Find Ways To Get More Out Of This Negotiation: The act of negotiating is a process of discovery for both sides. If you are able to distance yourself from narrowly focusing on just one point in the negotiation (price) and open your mind to all of the possibilities, then you will have a much better chance of being satisfied by the outcome of the negotiation.
  2. Learn, Learn, Lean (About The People On The Other Side Of The Table): Why are they there? What do they want? Almost without fail what you think are the answers to these questions turn out to be wrong. The only way that you are going to learn about the people who are sitting across from you is to start asking questions. Draw them out of themselves and who knows what valuable information will be revealed?
  3. Where Is The Bottom Line?: At the end of the day, this is the critical question that all negotiators need to find an answer to. The other side has a minimum amount that they MUST get out of the negotiations and you have a maximum amount that you are willing to give up as a part of the negotiation. George calls the gap between these two amounts the “zone of uncertainty”. Establishing the outline of this zone is what good negotiators do best.
  4. What Are The Constraints For This Deal?: You have constraints put on you, the other side has the same. These constraints can be limits on the amount of time that is available to negotiate, how much decision making authority each side has, etc. Discovering what constraints the other side is dealing with can help move you towards a deal much quicker.
  5. Connect With The Other Side: It is one of the great truths of life that we all like others who are most like us. What this means is that you need to find out as much about the other side of the table as quickly as you can. Once you have done this, you can start to interact with them in a way that they will most positively respond to.
  6. Understand The People Who Make Up Your Side Of The Table: Nobody negotiates alone. You have a collection of people on your side while you are negotiating. They may not be in the room with you; however, they are the ones whose support allows you to be there and they all have a stake in the outcome of the negotiations. They may not all agree with the posture that you are presenting to the other side of the table, but it’s your job to hid any internal differences and present a single unified face.
  7. Discover What Is “Fair And Reasonable”: This poor phrase has been so overused by both sides of the negotiating table that it can often be ignored. However, don’t do this. At the end of the day both sides of the table are searching for a deal that they believe is fair and reasonable. Unfortunately, we all define this slightly differently. Your job as a negotiator is to question and probe the other side of the table in order to find out how they define fair and reasonable. Then you will need to make sure that the deals that you propose to the other side meet this criteria so that they won’t be rejected.

Do you agree with all of the goals that are on George’s list? Can you think of something that needs to either be added or dropped off? Which one of these goals did you use in your last negotiation? Which one do you think is more important than all of the others? Leave me a comment and let me know what you are thinking.

Does Your Body Language Mumble?

Monday, September 1st, 2008

Learn to spot what the other side's body language is telling you during a negotiation

Ah body language, the secret communications channel that we couldn’t turn off if we wanted to. When we are negotiating it’s important to remember that your body is giving off all sorts of signals that you may or may not want it to be sending. I’m not sure if you can prevent your personal body language from stuttering or mumbling like you can your spoken words, but the good news is that you are not the only one talking this way. The other side is also giving you many clues as to what they are thinking and what their next move might be. If you are attuned to watch for and read the other side’s body language, then you just might find yourself in the driver’s seat for this negotiation. Let’s see if we can decode some of the messages that are being sent your way:

  • Key point: it’s when there is change in someone’s gestures that we should take notice. When they start to make a new gesture, that indicates that they have just started to feel someway. Don’t get hung up by individual gestures, rather focus on groups of gestures – they are the ones that are really telling you a story.
  • Our (and their) attitude is formed by initial interaction with people. We quickly form an attitude of openness or attitude of defensiveness. Keep your eyes open and pick up on these initial body gestures when you first meet the other side.

Let’s talk about some single gestures. Remember, don’t fret about these if you see them individually, it’s when you see them in groups that they are really sending you a message:

  • Cooperation & agreement: Gestures that expose the body imply trust, communicate “yes” , obvious and meant to be seen. Arms away from the body or over the head are a good example of this.
  • Slow & deliberate gestures: Open hands: show a willingness to meet the situation. Uncrossed arms and legs are another good example of this.
  • Moving forward: in negotiations we really like to see these gestures because they indicate that we’re going to make some progress – Hands on hips , feet apart. Often the signs of a high achiever, or a go-getter who wants to reach a negotiated agreement.
  • Hands on chest , this is a way to reinforce sincerity
  • Rubbing palms , shows both eagerness & expectancy
  • Appraisal & interest: there are a lot of ways to show this, one of the more common is when the head is tilted.

  • Hand to cheek gestures: Chin in hand, finger along bottom , evaluating what we are saying: interest, calm evaluation; Stroking the chin , making a decision about what you are saying
  • Interest In The Conversation: more interest , leaning forward you , I’m with you; less interest , leaning back, away from you.
  • Confidence: good eye contact, steepling with fingers , higher up from lap, more confidant (up by the eyes , too confidant!), hand in packet w/ a finger out , confidence, hands laced behind the head , confidence, legs crossed also means they are feeling quite smug.

There you have it – a laundry list of body gestures that you can look for during your next negotiation. Remember that the other side is probably going to be focused on the actual steps in the negotiation and may not be working to pick up on your body language. If so, you’ve just found a great advantage that just might help you to come out ahead!

Have you ever observed someone’s body language during a negotiation and then used that information during the negotiation? Has your body ever given away information that you wished that it hadn’t? Leave a comment and let me know what you think.

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NASA’s Guide To Negotiation Goal Setting: Aim For The Moon!

Friday, August 15th, 2008

Successful negotiating requires you to set high goals that can be achieved

What does it take to be successful in a negotiation? Long before you start doing any of the standard negotiation preparation tasks, you need to take just a moment and decide where you are aiming to get to. Although it sounds simple, all too often we enter into a negotiation with only a vague understanding of what it’s going to take in order for us to be able to walk away with a feeling of success.

There is a danger to setting an overall goal for the negotiations – how will we feel if we don’t achieve it? Really smart social scientists have been studying things like this for a long time and they’ve learned that setting such a goal will do two things for us: it will form an internal commitment to achieving the goal and it will set us up to feel a sense of ego loss if we end up not achieving it.

Sounds dangerous doesn’t it?

A critical point that you need to realize is that everything that happens at the negotiating table is part of a feedback loop. The feedback that you receive while negotiating will either alter or reinforce your sense of being able to achieve your goal. Those smart scientists have discovered that we respond to the feedback that we’re getting in the following ways:

  • Our expectations of being able to achieve our goal go up after a negotiating success and, of course, they go down after a failure.

  • If we think that we control our own success or failure, then our expectation are even more likely to to go up and down.
  • BIG successes lead to a sense of being able to accomplish our goal; BIG failures leads to a feeling of never being able to accomplish our goal.
  • If your goal is either too easy to get to or too hard to achieve during the negotiations, then you won’t feel much of anything – either success or failure.

If all it took to achieve your overall goal in negotiating was to have a highly placed goal, then we’d all be able to be successful each time we sat down to negotiate. However, life doesn’t work out that way. The reason for this is because of the other side of the table – they are actively working against you!

The other side of the table has a specific set of tactics that they use to bring you down and lower your feeling of being able to accomplish your goal. Their tactics have names such as the Bogey, the Krunch, and the Nibble. If you had no defenses against these tactics, then the other side would win each time. That doesn’t have to be the case and next time we’ll start taking these tactics apart and showing you how you can turn them to your advantage when they are used against you!

Do you always enter a negotiating session with a clear goal in mind? How do you set this goal (or does someone else always set it for you?) Have you ever felt like you were on a rollercoaster during a negotiation: feeling like you were going to achieve your goal one minute and then feeling like it was unreachable the next? Leave a comment and let me know.

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Testing The Waters: Does The Other Side Really Mean That?

Friday, August 8th, 2008

A firm position set by the other side can often be overcome during negotiations

Just a little over 20 years ago, I found myself in the middle-east on a business trip. The folks that I was traveling with decided to go down to the bazaar after dinner to see what was available. While shopping I happened upon an old man who was selling (fake) Rolexs. When I asked him how much one was, he told me $20. As I reached into my pocket to pay him, one of my traveling companions stopped me and in a quiet voice said “He doesn’t really mean it, negotiate with him.” It turns out that he was right – I ended up getting the watch for $10. Just in case you are wondering, yes, it does not pay to purchase fakes because that watch stopped working two weeks later.

This same situation often happens during business negotiations. The other side will state that one of their positions such as a firm price or position is non-negotiable. What do you do now? The last thing that you want to have happen is for the negotiations to end badly. You’ve got to find out if this is really the case or if they are just saying that as part of their negotiating strategy. The WRONG thing to do is to charge right at them and offer them a lower price / different position.

Instead, what you want to do is to “test” just how firm the other side’s position is. Just because they say that it’s immovable, doesn’t mean that it really is. Testing means that you need to change the nature of the deal. Take the firm item and add some additional pieces to it. Change the quantities that you are talking about. Change the delivery time: make it longer or shorter. What you want to do is to mix in items that are not fixed with the ones that are fixed and then go back and negotiate the bottom line. What you may find out is that what was once fixed, is no longer so!

Now this is not the only approach that you can take. Depending on how the negotiations are proceeding, there are four alternative steps that you could take:

  1. Try walking out – this may make them chase after you and offer to revisit their “firm” position.

  2. Charge on and keep on talking as though you never heard them state that it was a firm position. Note that this approach is extremely dangerous if they call you on it.
  3. Protest to a higher power – bring the other side’s boss into the negotiation and complain. Once again this can be dangerous if the boss is the one who told them that the point was firm.
  4. Finally, reduce the size of the deal being discussed by determining if there are some things that you can do yourself.

So what do you think – is there ever a case where something is really, really, firm and non-negotiable? Have you tried any of my suggestions in the past and did they work for you? Even better, has anyone tried to get around one of your firm points during a negotiation?

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