Tag archive: negotiation-deadlines
Strategies for Negotiations
Let's review some negotiating strategies. 1.Leave yourself room to negotiate --but don't be ridiculous. Always give a reason for your position. 2. Be stingy with your concessions. Always consider your concessions as a "message" or information you are sending the other side. 3. Always tie a string to your concession and ask for something in return. This communicates to the other party that you don't have a lot of room to move; it communicates good will and your willingness to cooperate; and it introduces a talking point that might gain you additional information regarding their position. This new information could lead to a totally new solution. A solution you might have not considered before. 4. Patterns or rates of concessions are important. Always use declining numbers; don't always use whole numbers/percentages; don't match the other person's concessions-----instead say: "I can't afford to match that, because . . ." 5. Always provide reasons for the positions you take. This communication to the other party can encourage them to introduce new information that could create better paths to agreement and a better solution. 6. If you can, always get the other side to state their position first/make the first concession/or put out the first number. You may be surprised to find that the situation is better than what you anticipated. This information permits you to modify your response and change your negotiating strategy. 7. Consider the pressures 'Deadlines' can cause. Can you relieve your pressure by changing the Deadline? Can you cause pressure on the other side by enforcing a deadline? 8. It is generally wise to "Say NO once more" before coming to agreement. There usually is a way to make the deal a little bit better---for both sides. 9. When the opportunity presents itself, use the Considered Response, Limited Authority, Power of Legitimacy, the Bogey and the Flinch. They really do work and will provide you more negotiating power and create the opportunity for you to learn new information. 10. Remember "Catch Twenty-Two." Being real smart in the negotiation can be kind of dumb. Being a little dumb can be very smart. Don't know everything. Ask the other side to help you 'understand.' This conversation may open up avenues to agreement that you had not considered before.Read more »
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:Read more »
- 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?
Building a Dossier to Negotiate Better Next Time
When learning to negotiate with another party, it is important to discover their personal negotiating characteristics. At the same time the knowledgeable negotiator on the other side of the table is learning how to deal with us. Even though we try to do business only with cooperative business partners, the old military admonition, "Know thy enemy," certainly applies. Here are a few characteristics that will be useful to understand your other party's approach to negotiation:Read more »
- What range to negotiate do they leave themselves? In other words, historically, is there a consistent pattern from where they open to where they close?
- Concession valuation: It was interesting to learn that not everyone values concessions the same way. Some count consessions, while others look at the total value of the concession.
- People who count concessions are bargainers who are very comfortable with the tit-for-tat approach. Dr. Karrass reminds us that if we must give a concession in return, make sure it is less costly than the one gained.
- How does the other party respond to deadlines?
- Can we believe their deadline?
- How good is their planning?
- How is their team synergy?
- Do they use ploys like Good Guy-Bad Guy?
- Does the boss come in at the eleventh hour as the bad-guy?
- How much emotional content do they use in the negotiation process?
- Do they have non-verbals that signal a willingness to close?
- Is there someone on their team who talks too much?
- How well do they honor agreements once they have been made?
Caution-Your Concessions Will Get Larger Than Necessary As Deadline Nears
A curious thing happens again and again in practice negotiations we conduct at seminars. Attendees are able to control their concession behavior through most of the bargaining. They make relatively modest concessions as give and take progresses. Then, when I announce that deadline is approaching, one party or the other cracks by making large concessions not reciprocated by the other. The party making smaller concessions as deadline approaches usually does better. In my formal doctoral experiment at the University of Southern California with 120 professional negotiators, I found that both sides controlled their concession behavior for most of the session. Then things changed. As deadline approached and I began to announce, “three minutes to go,” “two to go,” “one to go,” – a hush fell over the room. The tension mounted. Many participants settled only minutes or seconds before the final bell, although they’d had a full hour to do so. It turned out that both skilled and unskilled negotiators made concessions as time ran out. Both caved in somewhat as they sought to reach settlement, but it was the unskilled who gave away the most. A friend of mine, a psychiatrist, told me he wasn’t surprised at these results. He has found that people make bad decisions under pressure; they behave in emotional rather than in rational ways. His belief for those who come to him as patients is that they are better off postponing a decision when under duress. The next time you are in a negotiation, recognize that your tendency will be to give too much as deadline comes close. Discipline yourself to make smaller concessions and spread them out a bit longer. Learn to ask two simple questions as time runs out. First, “Why should I give so much in one lump sum right now?” And second, “Why not make these final concessions on the installment plan- a little now, a little later?” These reminders will help you avoid the deadline cave-in crisis. Remember also that most deadlines are themselves subject to negotiation. There is usually time enough to make another concession after you have renegotiated the deadline.Read more »
The Pyramid of Planning Strategy Blocks-Part One
For those involved in complex negotiations-sales executives, purchasing managers or administrators in the industrial or financial sector-what follows is a series of detailed planning points for each strategy block of the Pyramid. Each point is designed to stimulate the kind of thinking and analysis that is essential to effective planning-the kind of thinking that will result in intelligent long-lasting agreements.Read more »
- Power Sources and Limits Strategy
- What rules or regulations are on our side? Theirs?
- Are we prepared to work hard on this deal? Are they lazy?
- What risks are we willing to take? What risks are they worried about?
- What do we know that gives us strength? What don’t they know about our weaknesses?
- Have we selected the right negotiator and team? Have they? Any weaknesses? Are we well coordinated?
- What are the time deadlines on them? Can the time deadlines on us be relieved?
- How can we use the past (history, precedents, estimates, guidelines, or relationships) to add to our power base?
- Have we got the best backup to support our positions?
- What will happen to us if this negotiation breaks down? To them? What is our next best alternative? What is their next best alternative?
- How Does this Negotiation Fit into Our Product and Market Strategy?
- What are our near-future product and market needs and plans?
- What are our far-future product and market needs and plans?
- How should we go about moving from today’s service (or product) and market to tomorrow’s?
- What are our present product and service needs?
- What do we need to do to satisfy past commitments as we move to the future? How can this negotiation help us?
- What are our priorities? List them.
- How can we be sure that we will get what they agree to provide? How will we check? How will we measure both quality and performance?
- Win-Win Strategy
- Can we sell or buy more to get a better price?
- What else can we buy (or sell) to them?
- Will a change in specification help?
- Can delivery be better coordinated with production to reduce costs?
- Can transportation be reduced?
- Can some parts of the production process be moved from their responsibility to ours?
- Can payment terms help us, them, or both?
- Can we save on taxes?
- Can risk be shifted through another contract type (fixed price, cost plus, not to exceed or incentive)?
- Can inspection and quality costs be reduced for both parties?
- How can the other party contribute to our sales and market strategy?
- Should we form a partnership with them to expand joint win-win possibilities?
Assumptions Are Not To Be Trusted
Never trust your assumptions. They are likely to be as wrong as right. Salespeople, be careful with your assumptions. Don’t assume:Read more »
- "She'll never pay that much"
- "There's a lot of competition"
- "He doesn't have enough money"
- "They don't want to do business with us after the last mess-up"
- "I'm sure we're not the low bidder."
- Cause you to make high offers when low ones are called for.
- Influence you to make low demands and quick concessions when opposite actions are warranted.
- Seduce you into believing deadlines when patience is by far the better course.
- Create potential hurdles that can move you in the wrong direction.
Never Fear to Negotiate
Never fear to negotiate, no matter how great the differences are. It is impossible for both parties to recognize where and how an agreement can be made without undertaking the process of negotiating. The final outcome only becomes apparent after extended discussions. Fear can create enormous pressure on you and impact your negotiating success. Never get panicked into a final agreement by a time deadline. It is easy to fall into the time trap. Be skeptical about deadlines. Most of them are negotiable. If you make an error in coming to an agreement, don’t be afraid to admit it. Maybe it is an error in judgment or a mistake on some fact or statistic. Whatever it is, it can impact your final agreement. Deal with errors promptly. Admitting such mistakes takes courage, but immediate corrections are essential a satisfying agreement. Remember, negotiation is not a contest. Don’t shy away from negotiating just because you are afraid of making a mistake or doing poorly. With a little effort, and good negotiating skills, a better agreement can be found for both parties at the same time.Read more »
Simple Interactions are Negotiations
Think about all of the interactions you have at your office, or with your family or friends. There is no doubt about it —THESE ARE NEGOTIATIONS: * Differences of Opinion and Disagreements * The Exchange of Viewpoints and Ideas * Being Heard – Selling your ideas. * Building Personal and Professional Relationships It’s important to realize that all of these types of interactions are negotiations. And, since they are negotiations, then the same skills that trained negotiators use can help in these, more subtle, but no less important negotiations. * Time – Am I using my time wisely? Should I ask for more time? * Deadlines – are they working for me or against me? Can they be changed? * What has the other person not disclosed?” * Where can I find “BOTH-WIN” opportunities? * What are the Personal/Intangible Issues impacting this negotiation? * What can I ask for in return? * How will I deal with a dead-lock? Should I cause a dead-lock? * What planning should I do before I enter this negotiation? * How will what I do impact my future relationship with this person/group? How you handle your daily discussions and meetings impact your career and all of your professional and personal relationships. Use the KARRASS techniques. Approach these interactions as negotiations and you will find yourself more confident, in more control and ending up with improved results.Read more »