Sunday, June 7, 2009

Negotiation – Last Installment

The last few weeks have (hopefully) been instructive regarding negotiations. We have talked about the two different kinds of negotiations, the appropriate planning measures to take, common problems encountered during negotiations, and some other ideas that I hope you found valuable.

For this last installment, I want to talk about a few more things that can plague an otherwise peaceful pursuit. The difficulties that arise when there appears to be personality differences in play.

1) Escalation – Either you or your counterpart is getting caught up in the heat of the moment. One of you feels like you are losing and become difficult to deal with or you find yourself in some kind of a bidding war with another individual.

  • The best thing to do is refer back to your BATNA and your walk awayprice. Were they set fairly? Did your team all agree with them? Can a good case be made for changing them? If not, STICK WITH IT! Walk away if things are not working out in a fair manner. These were set when things were clear JUST for this reason.


2) Bias – It seems that the other side is not being reasonable in their interpretation of the situation. They are looking at things narrowly and do not seem interested in your point of view.

  • Concentrate on understanding THEIR point of view. Try your best to understand it as thoroughly as they do. It may be that they are right OR it may be that once you understand it you can point out an error in their thinking, but they will be FAR more likely to listen to you if they know that you are listening to THEM! And when they do start listening, be careful to be respectful, factual, and authentic in explaining your side. Explain WHY you feel your perspective is reasonable. If you explain, for instance, that NO new widget has ever met the sales prediction in its first year of production, then your sales department might understand that an extra warehouse may not be needed.

  • Engage a third party for their opinion. It can be a colleague (so long as they don’t know what side you are on) or an independent third party.

  • Make sure that you are being realistic in your expectations.

3) Safety - I can’t over-emphasize the role that creating safety plays in a negotiation. Be humble (not arrogant) and respectful throughout. Do not offer things that YOU wouldn’t take. Don’t take it personal or make it personal. It may even BE personal, but if you act like it is, then you are on a road to nowhere.
  • If things get to be too much, suggest a break. If a break is impractical, suggest a moderator.


As far as last minute thoughts go:


  1. Make sure your goals for the negotiation are aligned to the organization’s goals.

  2. Make sure you understand your BATNA and walk away price.

  3. Do your best to estimate what the other side has at stake.

  4. Create safety using THE SCORE.

  5. Conduct your negotiations in a way that ADDS to your reputation and credibility


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