Negotiation Space

Everyday Negotiations In Business and In Life: -- Observations -- Tips -- Insights -- Techniques

Monday, February 8, 2010

Negotiation lessons from the China-US relationship

The United States’ relationship with China has always been important and newsworthy. There is a long history of cooling and warming of diplomatic and political relations. Currently, the public rhetoric between both countries has become heated over public disagreements on major issues like Iran, cyber-spying and Tibet.

The Sunday Los Angeles Times presented a very insightful editorial: Back and Forth with Beijing (http://www.latimes.com/news/opinion/editorials/la-ed-china7-2010feb07,0,2603153.story ) This opinion piece lays out various disagreements between the U.S. and China, and how both sides have dealt with these.

The editors write the following:

“The United States and China are prone to misunderstandings, and serious, long-standing disagreements between the two countries over issues such as Taiwan and Tibet were never going to be resolved overnight -- nor will they be resolved in the near future. ... The United States frequently alternates between carrots and sticks in its foreign policy, and neither works all that well by itself. The relationship with our biggest competitor -- and, not incidentally, biggest debt collector -- is a long-term endeavor that requires maturity and nuance on both sides. Mutual respect may not succeed at first, but posturing and public scolding are almost always ineffective.”

There are several negotiation lessons that can be gleaned from the way the United States and China deal with each other:

• Some issues are too complex to be resolved immediately
• Mutual respect is always advisable
• Culture affects how issues are perceived
• Be careful of what you say publicly
• To negotiate successfully, you have to be willing to concede on certain issues and hold firm on others
• In any negotiation, there are both carrots and sticks. Learn which works best for each situation.
• Disagreements do not end negotiations

And finally:
• Negotiation is a process that requires learning and adjustment from both sides

What lessons can you draw from the U.S.-China relationship?

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Friday, February 5, 2010

Negotiating Deadline -- Friend or Foe?

Deadlines force action. It is no accident that many US taxpayers file their annual tax return on April 15th each year (the deadline imposed by the US government). Many Christmas presents are purchased on December 24th. Many political lobbyists get their bills passed just before adjournment.

Deadlines are part of life.
We readily accept many deadlines that are part of our daily lives. Work starts at 9AM and stops at 5PM. The doors on the airplane close at the scheduled time (sometimes). Bills are due on the 10th of the month.

We respond to many of these daily deadlines almost without awareness. Deadlines pressure us into making an "either-or" choice. You can choose to accept the deadline, or ignore it and live with the consequences.

Be Skeptical of Deadlines
Professional negotiators are skeptical of deadlines. Some deadlines are real. Some are not. Sometimes deadlines can be negotiated. Sometimes they can not. Good negotiators find out.

Many deadlines are not as real as you might think they are. Hotels will let you stay beyond their 12:00 checkout time without a charge. That proposal you are submitting is due on the tenth of the month, but may be accepted on the eleventh. The offer that was set to expire on the first of June is usually available on the second of June. All probably can be negotiated.

There are Risks!
Of course, in any negotiation there is a risk in not believing a deadline. The more you know about the other party and their organization the better you will be able to determine if a deadline is real or not. If it is important to you, you need to test the firmness of the deadline.

Remember that time is power.
The more time you have available to you in your negotiation the more negotiating power you have -- and the better the opportunity to use that time to arrive at a more favorable agreement. More favorable for both sides.

Most of us go into a negotiation with a self-imposed weakness. We are always aware of the time pressures on ourselves. This knowledge makes us less effective than we could be. What we should concentrate on are the deadlines that constrain the other party. If you have deadlines, there are probably deadlines on the other side too.

Three questions that will help you.
These three questions will help guide you out of the 'Deadline Trap'.

1. What self-imposed or organization-imposed deadlines am I under that make it harder for me to negotiate?

2. Are the deadlines imposed on me by myself, or my organization, real? Can I negotiate an extension with my own people.

3. What deadlines are putting pressure on the other party and their organization? Can I use their deadlines to my advantage?

Be wary and skeptical when a deadline is impacting your ability to negotiate the best agreement. Time limits have a way of hypnotizing us. We tend to accept them even when we should not. That is why you should put a deadline on any offer you put on the table during a negotiation. It may help motivate the other side to make the decision you want.

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Silver Screen Negotiations

Plenty of negotiations go on in Hollywood every day: between screenwriters and directors, producers and actors, agents and studios. And, there are many negotiations portrayed in the movies.

A few months ago, here on Negotiation Space, we talked about the movie Endgame. Endgame dealt with the secret negotiations to end apartheid in South Africa.

As the weekend approaches, why not watch a movie with a negotiation theme? See if the negotiator does it right. What negotiation strategies and tactics are being used? Are these portrayals at all accurate?

Following is a short list of movies that show negotiations taking place.

The Negotiator (1998) A negotiator takes hostages when he is wrongfully accused, entangling him in a negotiation with another famous negotiator.

Inside Man (2006): A bank robber, a cop and a power broker match wits to resolve a dangerous situation.

Proof of Life ( 2000) In an attempt to resolve the kidnapping of one of its executives in a South American country, the company calls in a negotiator.

Air Force One (1997) Should an American president ever negotiate with terrorists?

The Taking of Pelham One Two Three (original 1974, remake 2009) A subway is taken hostage by terrorists and the transit police are forced to negotiate in order to save lives.

12 Angry Men (1957) A jury holds deliberations to decide the fate of an 18-year old boy who may face a death sentence.

Do you have a favorite movie about negotiation? Please add to our list.

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