April 6, 2008
"If you want something done right, do it yourself."
Beware of hiring someone to negotiate for you. Too often hired negotiators are little more than mediators. Their reward stems from the reaching an agreement rather than the actual terms of the agreement.
Companies who hire real estate negotiators and reward them based on performance are asking for trouble. The very people who should be protecting the operating viability of the company are rewarded for something else, making the deal. People are human and incentives are important. Attorneys pose a different challenge to their clients. Some attorneys enjoy the process, the fight. They would rather fight to the end then compromise and settle. This is good for their egos and billable hours!
Knowing your bottom line is important. The bottom line is the point that you should either be prepared to walk away or to start bluffing seriously. In most cases, you should walk away. The deal was not meant to happen. When you walk away the other party may reach out to bring you back to the table. That is when you know they want the deal more than you do and that you might be able to agree on your terms.
Do not confuse goals with bottom lines. Your goals are what you want to achieve while your bottom line is what you need to achieve.
Continue reading "Negotiating your Bottom line"
Posted by Bill at 9:31 AM | Comments (0)
March 8, 2008
Except in a physical confrontation winning does not mean the loser must lose or even know he has lost. The art in negotiating is the creation of value so both parties can be vested in the outcome.
Creating value is work. It requires knowledge, preparation and inspiration. The benefit, however, can be a mutually satisfying resolution.
Conflict occurs when two or more people compete over a commodity. This can be anything. Land, money, a woman, a man, the baseball bat or the last piece of cake are all commodities likely to cause conflict.
The solution to conflicts other than by brute force is the realignment of interests through the exchanging of concessions. If the focus of the conflict is very narrow, like the wallet in your coat in a dark alley, the opportunity to align interests is very limited. Your best option is to tender it and hope that you will gain the option to walk away unscathed.
When the focus is widened, then there are opportunities to create value through the redistribution of assets or concessions that are valued differently by the parties.
The disparity of valuation is the key to value enhancement. Because we are all unique, we value things differently. The differential allows for the creative realignment of interests to maximize the potential value of the aggregate commodities.
Sex sells. The age old profession repeatedly validates this. The professional knows that she can up her price by adding feigned affection and personal involvement in the basic act. The cost to her is little in tangible assets but the reward can raise the price of a furtive back alley service to a lucrative remuneration for an ego (his) satisfying performance. The act has not changed. The perceived value has.
Similarly in a dispute over a minor issue between a contractor and the customer, a simple apology by the contractor may yield a significant concession by the customer. The cost of the apology to the contractor is a bit of ego; the reward is incremental cold, hard cash.
Posted by Bill at 9:42 AM | Comments (0)
February 10, 2008
Sociologists have studied the ways primates learn. One of the studies included very young chimpanzees and children. The combined group was given a basic demonstration on how to open a device. Afterwards the chimps and children were given their own devices.
The chimps diligently tried to open the devices. They applied their proven skill of random experimentation. The children, on the other hand, applied what they had been shown and tried to open the device with that technique. The children were far more successful.
We, humans, learn through socializing. We observe others, collect those observations and store them away to use in the future. Chimps, on the other hand, attack each new task with vigor but with little application of what they have just observed in fellow chimps.
Negotiators need social skills to capitalize on the preliminary social interaction. Insights potentially useful in the actual negotiation are gathered and stored for future reference.
In today’s fast paced environment building a relationship is often neglected in the interest of saving time and getting to the point. This can be a costly mistake. Negotiators are humans and humans respond to the personalization of any situation. It is our nature as social beings.
Posted by Bill at 9:14 PM | Comments (0)
February 3, 2008
There is great negotiating strength in having the right attitude. To win it helps to expect to win. Attitude counts! Like any sport or other competitive venue, attitude has a direct bearing on the outcome of a negotiation.
Any negotiation, no matter how insignificant, is based in conflict. Those involved are competing to protect or advance their respective interests by depriving another of his or her expectations. Negotiation is the settlement of conflicting interests without resorting to force.
If you are convinced that you are right, if you think you deserve to win, if you know that you are in the right, your passion colors your arguments and strengthens your statements. Conviction is contagious. Others will be persuaded to at least consider your position if your passion is obvious and sincere.
If you have doubts, you will be less than convincing. Self-doubt will undermine your arguments and encourage others to resist and fight back. Before getting involved in a settlement session resolve your doubts and mentally prepare to win. If necessary, adjust your position to be more realistic and, thereby, increase your own expectation of prevailing.
Continue reading "Conviction is contagious."
Posted by Bill at 9:25 AM | Comments (0)