- Test any suspect information.
- Be wary of information that was acquired too easily
- Realize that trial balloons and rumors are a way to confuse you and to weaken your resolve
- Understand that grapevine information can be used as a way to communicate indirectly
Tag archive: rumors-and-negotiations
Dealing with Trial Balloons and Information Leaks
Not every negotiator is ethical and upfront. At times, some businesses (and governments or organizations) try to influence the outcome of a negotiation by issuing erroneous information or rumors.
Trial balloons are used most frequently by politicians who leak a rumored policy change to gauge public reaction. Essentially, it is a way of testing the waters.
In negotiation, some people use trial ballo0ns, rumors and price drops as a way of sending messages to the other party. This method of “grapevine” communications provides a way to save face without losing any bargaining leverage.
What do you do with information you hear through the grapevine?
Negotiators must be on guard against the rumor mill, false information leaks and trial balloons—understanding that these may be used as tactics. Here are a few counter tactics:
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Outside moves, inside pressure
Many business negotiations are straightforward affairs, where both parties are trying their best to reach an agreement that is mutually beneficial, a both-win negotiation. Disagreements are discussed and resolved, making everything go fairly smoothly. However, there are some negotiations that do not go smoothly. There is drama and there are threats. There may even be events—or moves-- outside the negotiating room can exert pressure.
Types of moves that can create pressure are:
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- Wildcat strikes
- Lawsuits
- Boycotts
- Demonstrations
- News reports that affect either party
- Press releases that share sensitive information
- Rumors about a product or service
- Rationing of materials
- Changes in credit terms
- Sending out requests for quotations
Dealing with rumors and information leaks.
Mark Twain is known for quipping “the reports of my death are greatly exaggerated.” In Twain’s time, news traveled more slowly than today, and in great likelihood, many people believed that he was dead, before they heard otherwise.
If it weren’t for rumors and information leaks, many tabloids would be out of business. Unverified facts from unknown sources can create sensational stories. But this “heard it through the grapevine” information is not only used by journalists, it may be used as a tactic during a business negotiation.
Rumors and leaks are often used to test the waters, to gauge reactions and to measure potential impacts. Some parties use rumors to send messages to the other party, or to introduce a new position on an issue.
Because this information is unreliable, negotiators need to be able to separate fact from fiction, what is real from what is merely a ploy. The other party may be spreading these rumors in order to create confusion or to weaken resolve. On the other hand, rumors can often be a way of indirectly communicating crucial information that cannot be shared through “official” channels.
How can a negotiator confronted with this tactic know what to believe and what to discount? As with any information, negotiators must work to verify and test the information. It may be a good time to have off–the-record talks with the other party to see what the intent may be. Some of it also may be treated with good old-fashioned instinct: does this information seem valid, or does it seem designed to get a reaction?
How do you deal with rumors and leaks? Do you use this tactic in your negotiations?
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