« October 2005 | Main | December 2005 »
November 9, 2005
Power in Negotiations
Everyone possesses some form of power. It is not a unique or rare commodity. It exists within each of us. Power is an integral aspect of all negotiations. Those who have it flaunt it. Those who don't, crave it. Power is the fulcrum from which one seeks to leverage his or her position. The ability to reach within and draw upon it in time of crisis is another matter.
Knowledge is power. Similarly the lack of knowledge gives the other person power. Because you have not reviewed your material, your options, the facts, or your opponent's strengths and weaknesses you can not know just how much power the other person possesses in a given situation. Doing your homework before a negotiation expands your power base and diminishes any advantage the other person may have.
Everyone has the power to say "no". Knowing when to do so is essential. Knowing how much you can afford to spend on a purchase gives you the power of knowing when to walk away from the transaction. Saying "No" is very powerful in any negotiation. It is an unequivocal statement. Saying, "No, that is my highest and best offer. Take it or leave it!" is the ultimate power move. At this point in the negotiation you have decided that you have nothing to lose. It forces the other side to make a hard decision. Accept your terms or forego the transaction. Either way you have regained control of the situation.
Never enter a negotiation assuming you have no power. That is predisposing failure. If it is a situation where you have to meet and you are powerless, make the meeting worthwhile by cross-channeling the conversation to open other doors of opportunity. Don't waste your time or the other person's posturing when you know that you will concede. Move swiftly to the final agreed terms and then make the most of the balance of the meeting.
Power is an interesting commodity. It can be fact based or an illusion. Factual power has to do with money, options and time. The more you have of these three items, the more negotiating strength you have. Illusionary power, on the other hand, is often based on how the other person "sees" or perceives you. Your image is based in part on the assumptions the others make about you. You can impact those opinions by the way you act, your dress, your surroundings, your mannerisms, and how you address the others. Power is a state of mind; both yours and those around you.
Posted by Bill at 3:47 PM | Comments (0)
November 5, 2005
Technology and Human Communication
21st century communication tools have dramaticaly changed the negotiating process. We live in the communication era complete with faxes, mobile phones, laptops, PCs, PDAs that retrieve and send e-mails, the Internet, DSL and modem connections, video conferences, and pagers. And that is today. Tomorrow there will be even more ways to stay in touch or communicate.
We are trained to be readily accessible and available on demand with nano-second technology. It is almost a distinction to be the most-available executive on a team. Our generation expects instant gratification. That includes responsiveness. This immediacy is not necessarily good for negotiations. Like a fine wine, some negotiations require time to come to their full bloom.
Negotiating is an art and art should not be rushed.
The compressed time of today's electronically connected world takes the finesse out of negotiating. If you want to barter, succumb to nano-second technology. If you want to negotiate, require face-to-face meetings and save the time-saving technology for procedural matters.
There are times to use technology. But make sure you use it to your advantage and don't succumb to the expectations of others to do so just to make them happy. You are entitled to your privacy. You are also entitled to time your responses to your liking.
- E-mail is a great vehicle for quick, casual communication. It is no replacement for negotiating terms unless you have established a rapport with the other person and know that the essential negotiations are either resolved or will be handled at a future meeting. When responding to an e-mail consider that the timing of a response sends a distinct message. A prompt response can indicate eagerness to settle, desperation, or a lack of options on your part. A delayed response generally indicates the issue is not one of your priorities, you have other options, or that you are not very happy with the terms.
- Facsimiles and e-mail attached documents can move the documentation process along swiftly. This is to your advantage when you have made a good deal and don't want time to erode that agreement. But if you have yet to agree and need to gather additional information, choose the traditional method of transmitting documents, the U.S. Mail, to give you time to finish your research or explore other options.
- The Internet is an invaluable research tool. Use it to research your opponent. Assume that he or she will be doing the same thing. Make sure you don't have too much information about yourself on the 'net'.
- On screen reading is fine for the news. Don't scan through documents on the screen. Print and read important documents. Take your time and consider each important paragraph.
You need not give others your e-mail address or fax numbers even if asked. That information allows others to invade your privacy. Provide it only to those you want to have priority access to you.
Posted by Bill at 3:43 PM | Comments (1)