- What self-imposed or organization-imposed deadlines am I under that make it harder for me to negotiate?
- Are the deadlines imposed on me by myself, or my organization, real? Can I negotiate an extension with my own people?
- What deadlines are putting pressure on the other party and their organization?
Tag archive: pressure
Negotiating Deadlines
Deadlines force action. It’s no accident that tax returns are filed on April 15, that Christmas presents are bought on December 24th, or that political lobbyists get bills passed just before adjournment. We accept many deadlines that are part of our daily lives—work starts at 9AM and stops at 5PM, airplanes leave at their scheduled time, bills are due on the 10th of the month.
We respond to many deadlines almost without awareness. Deadlines pressure you 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. Sometimes they are real and sometimes they can be negotiated.
Many deadlines are not as real as you might think they are. Hotels will let you stay beyond 1PM without charge. Bids due on the tenth may be accepted on the eleventh. The offer that was to expire on June 1 is usually available on June 2. Newspaper reporters miss their deadlines, but I’ve yet to run into a blank column in a newspaper.
Of course, when you are negotiating, 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.
Remember—time is power. Most of us go into a negotiation with a self-imposed weakness. We are always aware of the time pressure on ourselves. That 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 person. These three questions will help guide you out of the deadline trap:
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Scrambled Eggs - How To Defend Against Disorder
It is wiser to simplify matters than to confuse them. "Scrambled Eggs" does the opposite. It deliberately mixes things up for tactical reasons. Scrambling can be used to forestall a deadlock, make the other person work harder, force through a last-minute demand, or retreat from a prior concession. Sometimes it is used to determine how well the other party keeps his or her wits under pressure.
Negotiations should be conducted in a orderly fashion. The Scrambler knows that disorder can also work.
The Scrambler takes advantage of the mistakes people make when they are confused. Suddenly apples can't be compared to apples, and cost comparisons become impossible to make.
It takes self-confidence to stop a scrambler. These steps help:
1. Have the courage to say, "I don't understand."
2. Keep saying "I don't understand" until you do.
3. Insist that matters be discussed one at a time.
4. Recognize that you do not have to talk about things as the Scrambler want you to. Start in your own way and get the Scrambler going down your line of reasoning.
5. Remember scrambling can backfire. The Scrambler can become as confused as you are.
6. Watch for the mistakes you are sure to make when confused.
Your key defense is to never negotiate an issue until you understand it. Practice and courage help unscramble the Scrambler.
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Re-Negotiate Your Agreements
Re-Negotiate Now
Times change. What once made good business sense, now no longer works. Effective negotiators are now reviewing past agreements to determine which need to be re-negotiated to bring them back into balance.
Re-negotiating is a central premise in the Asian culture – China in particular. When a Chinese organization makes an agreement, it usually is an agreement ‘for now.’ The agreement simply paints a picture of a fixed point in time--today. As things change, the Chinese expect the agreement to change, regardless of what is written on the paper called ‘the contract.’
Think about it. This makes a lot of sense. It is a very practical approach you should take into your negotiations.
Over time, facts and knowledge change. You now know more than you did when you made the agreement. Use this knowledge now to make it a better agreement.
Negotiating pressures, power and expectations also change over time. How does this impact your agreements? What needs to be changed now to bring the agreements back into equilibrium?
It is a wise negotiator that builds contingence plans into all of their agreements.
Relationships change. Hopefully you now know the other party much better than you did when you made the initial agreement. How does this impact your ability to re-negotiate a better agreement for both sides?
Today most of us face a tough economy. Costs have changed; now is the time to re-negotiate prices and terms. The original ‘work sharing’ formula for your teaming agreement is not actually happening – it is time to re-negotiate. Changes and modifications need to be made to existing agreements to enhance value for both parties.
It is important you survive and continue to prosper. Your success depends on your skill and ability to negotiate to keep existing agreements in place, and when necessary, to re-negotiate profitable alternatives.
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You Have Negotiating Pressure
The current economic climate is creating pressure on most negotiations. Uncertainty prevails and many decisions are being delayed. Now is the time for you to stop and analyze your current negotiations. Identify and clearly understand the pressures you are having to respond to --- from all kinds of different sources.
Buyers are being asked to bring costs down. Salespeople are being asked to increase volumes and margins. Manufacturing people are being asked to increase plant efficiencies and productivity. Engineers and managers are being asked to do more with less. There is not a day that goes by that we don't hear about another downsizing.
Now, more than ever, please remember that in any negotiation there are pressures and problems on BOTH sides. Yet it is human nature to immediately focus on our own problems and pressures and forget about the other party. Don't fall into this trap!
Take the time to fully analyze all of the potential problems and pressures on the other party. If you don't know, invest some time to do some investigative work and find out. Your analysis will provide clues to ways you can come to agreement. Just by recognizing the other party also has certain problems and pressures increases your negotiating power, and strengthen your negotiating position.
Think about your negotiation. You know your needs (your pressures). The other party has needs too, which they feel as their pressures. Ask yourself, "What's on their sheet?" Try to use the negotiating process as a tool to help you find opportunities for a Both-Win solution -- an agreement that takes the pressure off both you and the other party.
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Your Negotiation Challenges
Negotiation is one of the most difficult jobs a person can do. It requires a combination of diverse traits and skills. The process of negotiating demands good business judgment and a keen understanding of human nature. There is no other area in business where the alchemy of power, persuasion, economics, motivation, and organizational pressures come together in so concentrated a fashion and so narrow a time frame. But – nowhere is the return on investment potential so high!
Today economic pressures around the world are causing organizations to put more pressure on their negotiators. In other words—you!
Buyers and supply management professionals are being asked to cut costs and increase efficiencies. Sellers and marketing professionals are being asked to increase volumes and increase margins. Engineering, system analysts, IT professionals, manufacturing managers, and HR managers are being asked to do more with less. There is a lot of negotiating going on!
Here are some of the key attributes good negotiators exhibit:
1. An ability to negotiate effectively with members of their own organization and win their confidence.
2. A willingness and commitment to plan carefully; know the product/project, the rules and the alternatives; and the courage to probe and verify information.
3. Good business judgment; an ability to discern the real bottom-line issues.
4. The ability to tolerate conflict and ambiguity—it comes with the negotiating process.
5. The courage to commit oneself to higher targets and to take the risks that go along with it.
6. The wisdom to be patient—to wait for the story to unfold.
7. A willingness to get involved with the other party and their organization— to understand all the various personal and business issues.
8. A commitment to integrity and mutual satisfaction.
9. An ability to listen with an open-mind.
10. The insight to view the negotiation from a personal standpoint—discover the hidden personal issues that could affect the outcome.
11. Self-confidence based on your knowledge and your planning.
12. A willingness to use experts and an understanding of how a team might be valuable in the negotiation.
13. A stable person; one who has learned to negotiate with oneself and to laugh a little; one who doesn’t have too strong a need to be liked so they can feel free to disagree when the need arises.
Research shows us that skilled negotiators create better agreements. But we are not born with these skills, it takes training, practice and persistence. Be confident in your ability to negotiate. You have the tools and skills to create good, long-lasting agreements that will satisfy all parties.
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Negotiating Power Is In Your Head
There is an old expression, "If you think you can, or if you think you can't, you are right." This certainly applies to how you approach your negotiations. Your power is in your head.
Much of what happens during a negotiation is influenced by the expectations and pre-conditioning of each party. As we discuss in the Karrass Effective Negotiating Seminar, you are normally more aware of your pressures than the pressures on the other party. You need to discipline yourself to determine what pressures the other party has. And, to what extent you can, precondition the other party to impact their expectations.
An article in the Los Angeles Times illustrates this issue. The article describes what's happening today with many consumer purchases – things like flat-screen televisions, new furniture, clothes, luggage, etc.
Most of us have preconceived expectations regarding what is possible, and what is not possible, when we see that sale price posted on a new flat-screen television. But, as this LA Times article states, this is changing!
"With jobs getting scarcer, stocks on a roller coaster and economists talking recession, not many people feel like paying full price for, well, anything." Now is the time to try negotiating. "That's right, the age-old tactic more frequently observed in foreign bazaars and rug stores is returning to the malls and Main Street. As stores feel pressured to move merchandise, and consumers feel the pinch of slowing economy, prices are becoming more negotiable."
Negotiating is at an all time high. "Negotiating is more common at independent retailers than big chain stores . . . but that is changing, says Richard Giss, a partner in Deloitte & Touche's consumer business division in Los Angeles."
Obviously when a store permits its salespeople to negotiate prices, it can hurt the bottom line. But, it can hurt the store much more if merchandise ends up sitting around unsold and larger discounts have to be offered to sell it a month from now.
What is the key to taking advantage of this changing climate in the consumer marketplace? You've got to try to negotiate. Don’t let your head tell you it can’t be done.
Be prepared to negotiate. Research prices before you start and know what competitors are offering (the power of competition). Use the Web – more and more merchants are agreeing to match the price of something you can purchase on-line.
Be nice (i.e. establish a relationship). Take your time, this assures both you and the merchant have a vested interest in making a deal happen. Ask for information on upcoming discounts, past discounts, special un-advertised discounts, special discounts or coupons they have sent out to other customers, that could be used for this purchase.
Sometimes a merchant may be willing to take off the sales tax. Paying cash, “or pulling out a credit card or checkbook and looking ready to buy on the spot helps too.” Ask for help, “This is all I can spend. What can you do for me?”
Be persistent; but be prepared to walk out (deadlock) “When they say, ‘I can’t do that. I’ll lose money,’ say ‘If I walk out of here, you’ll lose even more money.” As one merchant said, “We don’t want to do it, but we don’t want to lose the business either.”
Don’t make a scene in the store. A merchant is much more likely to offer a price concession if not all the other shoppers in the store hear what is happening. If you are purchasing multiple products (i.e. three pairs of shoes) ask for a discount. If you are a repeat customer, ask for the ‘good customer discount.’ Try a ‘nibble’ – if I buy these, will you give me one of these?
You may be surprised how things have changed – just in the last few months. “One thing is certain: There’s no harm in asking. And shop owners probably won’t be surprised if you ask for a bargain.” These negotiations starts with you – you have to ask!
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Negotiating Pressure
It's a fact: Identifying the pressures on the other side increases your negotiating power and strength.
The current economic climate and ongoing political unrest around the world is creating pressure on many negotiators. Decisions are being delayed. Buyers are being asked to bring costs down. Salespeople are being asked to increase volumes and margins. Engineering and manufacturing professionals are being asked to increase plant efficiencies. Managers everywhere are being asked to do more with less.
Any given negotiator is probably felling pressure from a variety of sources.
Now, more than ever, you must remember that in any negotiation there are pressures and problems on BOTH sides.
Yet, its only human nature, we almost always focus on our own problems and pressures and forget about the other side.
One of the key concepts discussed in the Effective Negotiating seminar is -- "You've got more power than you think." Just the recognition of the pressures on the other party will increase your power and strengthen your negotiating position.
You know your needs -- your pressures. The other party also has needs, which they feel as their pressure. Remember to ask yourself that key question -- "What's on their sheet?" This will help you identify the other party's pressures.
With this information use your negotiation as a tool to help find opportunities for a Both-Win solution--an agreement that takes the pressure off both you and the other side.
Read more »
Scrambled Eggs and Negotiating
Disorder -- (i.e. Scrambled Eggs) -- is a negotiating tactic.
When negotiating good, lasting agreements, it is generally wiser to simplify matters than to confuse them. However, "Scrambled eggs" does the opposite. It deliberately mixes things up for tactical reasons. Scrambling can be used to forestall a deadlock, make the other person work harder, force through a last-minute demand, or retreat from a prior concession. Sometimes it is used to determine how well the other person keeps his or her wits under pressure.
Negotiations should be conducted in an orderly fashion. The Scrambler knows that disorder can also work.
The Scrambler takes advantage of the mistakes people make when they are confused. Suddenly apples can't be compared to apples, and cost comparisons become impossible to make.It takes self-confidence to stop a Scrambler. These steps help:
1. Have the courage to say, "I don't understand."
2. Keep saying "I don't understand" until you do.
3. Insist that matters be discussed one at a time.
4. Recognize that you do not have to talk about things as the Scrambler wants you to. Start in your own way and get the Scrambler going down your line of reasoning.
5. Remember scrambling can backfire. The Scrambler can become as confused as you are.
6. Watch for the mistakes you are sure to make.
Your key defense is to never negotiate an issue until you understand it. Practice and courage help unscramble the Scrambler.
Read more »