April 6, 2008

Negotiating your Bottom line

"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.

Whether you are negotiating over money, land, or any other commodity, interest, belief or service it has a personal value to you. Before you relinquish it, you want to establish that value so you don’t sacrifice it for less. Your bottom line is not your goal or objective. It is the worst case scenario that you would accept. Anything less and you would refuse.

Your bottom line has little to do with your cost in acquiring the item. It is the lowest price you would be willing to accept. This might include among other things:

• The actual acquisition cost.

• The interest on the money invested while you owned it or the “carry cost”.

• The value of improvements you made to the item.

• The fdiscounted uture value you think the item may have were you to keep it.

• Any other cost you expended to acquire, hold or sell the item.

This is not your asking price. That is negotiable. This may not even be your non-negotiable bottom line. This is your frame of reference when setting your bottom-line before the negotiating gets hot and heavy. In the throes of the bid and ask you do not want to have to decide a that time what your bottom line is. It is too easy to miss something or make a mistake when calculating under duress. Do it in the quiet of the preparatory period when emotions are in check and you have ready access to files and records.

Posted by Bill at 9:31 AM | Comments (0)

March 8, 2008

Creating Value as a Negotiaitng Strategy

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 3, 2008

Conviction is contagious.

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.

Positive attitude does not come to everyone naturally. There are ways to reset your mindset to be positive and create a positive demeanor:

• Visualize Winning. When considering strategies and tactics before a meeting envision winning with each tactic. Actually imagine and savor the moment of victory. This mental exercise sets in your mind the feeling or the gestalt of deploying the strategy or tactic successfully. When the time comes to actually use it, your actions will be more natural.

• Deserve to win. When setting your objectives and primary goal, test the terms against what you know to be reasonable. If they are reasonable you can set aside doubts that you will be rejected on the facts or “found out”. Before the meeting mentally contemplate the other person acknowledging the reasonableness of your argument and amending his position towards yours. Focus on actually convincing the other person. This form of mental preparation serves to establish your expectation that you deserve to prevail, that you should prevail. You are empowering yourself to prevail.

• Prepare to Win. As the start of the meeting approaches, plan how you will enter the room. Remind yourself to stand tall, make direct eye contact, offer a firm handshake, and emit confidence. Dress for the meeting. Pick your clothes to reflect this confident demeanor. Remember, you can always dress down during a meeting but you can’t dress up. Typically I over dress to insure I am the power figure in the room. I can always take off my coat and loosen my tie to make others comfortable.

The power of persuasion comes from within.

Posted by Bill at 9:25 AM | Comments (0)

January 20, 2008

Manage Negotiations Like Dysfunctional Small Groups

We all know the saying “the best defense is a strong offense”. This is especially true in negotiations. Attitude and conviction of purpose can trump facts and reality. If you feel you should win you demeanor will reflect your passion and confidence. This is very convincing.

Bartering is about trading between equals. Negotiating is all about leadership. Attaining your goal requires your convincing another person to do something they prefer not to do. In the work environment managers entice workers to come to work and perform to certain standards. They do this through offering to pay the employee. This gets reasonable performance. To get exceptional performance managers must develop and apply leadership techniques. Negotiators must do the same. They must motivate exceptional performance on the part of another person or group.

If you don’t need the help of others there would be no reason to negotiate. You would simply do what you wanted to do with pure power.

In any dispute those involved make up a small group and are subject to traditional group dynamics. Groups need to be lead or managed. Filling this role is what makes mediators effective at resolving disputes. Negotiators who take the initiative to become informal group leaders are most likely to have the best track record of achieving their goals.

Those involved in negotiations essentially are dysfunctional small groups. Negotiators should look at the various people around the table as a small but dysfunctional group in need of leadership.

The challenge is to motivate the group as a whole to focus on mutually beneficial goals.

Posted by Bill at 9:38 AM | Comments (0)

November 4, 2007

Language of a Negotiation

The language of a negotiation is a complicated smorgasbord of sounds, words and non-verbal signatures. Language, the proper use of it, is more than words or sounds in a negotiation. It is the meaning behind them that reveals the real meaning of the speaker. A lion or gorilla voice their intent to wreak havoc to make their prey cower or run. They know it is easier to bring down a large prey who has turned his back in fear. Were the elephant not to turn away, he would be a good contender and likely the lion would walk away rather than chance being crushed under the elephant’s hoove.

When you are negotiating, having almost any conversation with anyone else, it is not your words that are being listened to as much as how you are phrasing them and the intonation of your delivery. And we, as adept social animals, often hide our true meaning with oblique comments and inflections so as not to expose ourselves unnecessarily.

The equation is simple: Language + Delivery = Intent x Obfuscation.

Delivery of an low-ball offer or seemingly unreasonable proposal along with a humorous inflection can be shrugged off as a joke if it is received and rejected out of hand. On the other hand, if it is not rejected but countered then you have a meaningful bid-ask situation and stand the chance of securing an agreement on attractive terms. The use of diametrically opposed inflection to provide cover when the message is substantially different then the other person expects is a calculated negotiating tactic. And it works!

As the recipient of such an offer understand the intent. The person using humor as a delivery tactic is likely fishing to see how you will react. By listening to the meaning behind the words, you will be better able to respond strategically rather than emotionally. If the offer is ridiculously low, you can choose to walk away or respond. If you are serious about making a deal, an effective response would be to calmly inform the other party of the value of the commodity, the basis for that valuation and ask them to reconsider their offer and do better. What you have done is delivered the message that you are informed; that you know the value of the commodity; that you are not desperate; and, that you are serious about reaching an agreement; if they are.

Recently when negotiating for a property in Beverly Hills, the other person threw out some obscenely high comparables. The numbers were astronomical. He did not say that he expected us to pay that amount. He did say that is what “others” were getting. My response was a civil recap of actual comps for like property and the flaws his site had as compared to them. Much later, after he had done his research (validating the information I had provided him), we were able to reach an accord. Had I simply reacted to his initial overture assuming he was serious, we would likely have parted company on the spot.

Learn to listen and observe and then, most important, think about the information you have just gathered before reacting.

Posted by Bill at 8:57 AM | Comments (0)

October 5, 2007

Socializing is Part of a Negotiation

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.

Negotiators must develop the social skills to promote social interaction as part of the early negotiating process. From this interaction will come insights useful in the actual negotiation discussion. In today’s fast paced environment, too often building a relationship is omitted in the interest of saving time and getting to the point. This can be a costly strategic error.

Posted by Bill at 1:18 PM | Comments (0)

September 9, 2007

Fear - the Negotiator's Tool or Nemesis

Fear is what terrorists use against large, organized, powerful foes. In earlier times in Chicago a mafia underling would walk into a local bar or restaurant and observe, "This place could have a fire." The owner would logically say, “No way, never had one.” The next day, after a fire broke out in the kitchen, the underling would return and say, “See, I could have helped you avoid that. A little insurance goes a long way.”

This intimidation forced many law abiding citizens to pay for protection from the Mafia.

In the 21st Century Muslim extremists are using the same concept. They are trying to invoke fear into the western population to advance their cause. They cannot hope to confront most of the world’s military power or even their own countries head on, so they resort to attacking the mass population in the name of Allah and their cause. If the masses become too fearful they will either promote aggressive retaliation or elect acquiescence candidates to avoid personal harm. Either way, the terrorist gains strength and power by usurping control of the population.

The best defense against a terrorist is to not change dramatically our daily routine, our perspective on life, and our willingness to do what we want to do. Add to this a little caution, some extra vigilance in being aware of what is going on around us, and not changing our basic beliefs will declaw the attempt of the terrorists to control us.

In a negotiation fear plays a large, strategic role in the outcome. Fear of failing, fear of the unknown, fear of not being helpful, there are many fears that can be used to advance a negotiator’s cause. One of the most powerful tactics that few think to use is the fear of not being helpful.

Everyone wants to think that they care about others and want to be liked. A professional and adept negotiator will take the time to build a strong relationship with his or her adversary before really getting to the task at hand. In today’s fast paced world, too little time is spent in this fashion. As a result, many negotiating successes are lost because people are too impatient, to hurried and dismissive of the value of building relationships.

How does fear serve the negotiator in this context? By becoming a silent motivator to get the other person to do something that he or she does not want to do. A sociopath has no regard for the feelings of others. He does not relate to others. The rest of us do. In the business environment, many try to be non-emotional. They get away with this sociopathic approach if the other person does not build a personal “bridge”. Bank lending officers, credit managers, retail clerks all fit this mold. But who gets the best service at a store? Not the dour patron but the person who reaches out with a smile or kind remark. That is the person the clerk relates to and gives just a little extra. Why? Not because they have to but because they want to. This is a basic demonstration of the application of fear in a negotiation. The customer who has made the effort to build a personal bridge to the clerk has subliminally made that person concerned that they do not want to offend the person in some way. So they try to accommodate the patron.

Posted by Bill at 11:44 AM | Comments (0)

August 5, 2007

Power Balancing in Negotiations

Power in negotiations must be recognized and, if you are on the short end of the equation, balanced.

Other people presume to have power over us. Be they attorneys, accountants, doctors, clerks, teachers, or spouses who can make our lives miserable the power they presume to hold over us is based solely on the power we allow them to have.

Most power held by negotiators is illusory but powerful until it is challenged. Fear of everyday conflict, confrontation avoidance, can be overcome by understanding the process of any negotiation and learning how to garner enough power to impact the outcome of the situation in a positive fashion.

Surviving is getting along and accepting the status quo. Conquering is overcoming and prevailing. When we negotiate, the goal is to reach an agreement that meets our needs and advances our cause by satisfying some of our wants. As conflict is a constant part of our lives, it should be conquered rather than merely survived.

Conquering conflict does not necessarily mean crushing the other person. It means dispatching the negative connotation of conflict in your mind, the fear if you will, so that you can focus on resolving issues to advance your interests rather than merely preserving them.

The reality is that fear makes us act defensively, being defensive shuts down our ability to communicate. Lack of communication stymies negotiations.

Posted by Bill at 8:14 AM | Comments (0)

July 29, 2007

In Negotiations Personality Matters

Knowing the deployable "personalities" in a negotiation (see my previous post) is a good strategy but does not address use of your strongest negotiation asset; your personality!

Effective communication is essential in a negotiation. Sincerity is the power behind the delivery of a point or proposal during a dispute resolution settlement conference.

Using your natural personality to color or add dimension to your delivery is your best means of making your statements come across as sincere. Getting comfortable with your innate personal style will help you become more believable; more trustworthy in the eyes of others.

Everyone has different personality traits. Some are hard-driving, get to the meat of the matter forces. Others are more relaxed, preferring to develop relationships before focusing on the issues. Still others use humor as a defensive or offensive tactic.

How do you come to understand your basic personality traits? Observe how you act around those you are comfortable with; family, close friends, school chums. Are you the one cracking the jokes? Do they look to you to decide what to do? Are you always trying to keep everyone happy? How you act with these groups is a mirror as to your natural personality. You are relaxed and at ease. It is this personality that is "you".

Knowing that you have a primary personality does not mean that it is the only one you can deploy during a negotiation. But it does let you understand your most sincere delivery style. As your mix the four negotiating styles in any negotiating situation you should find that you shift back to your primary style when trying to make an especially important point or close a deal. It is the strong under-current of sincerity you emit in this mode that signals the other person that this is your final concession, your highest bid or the point at which you are about to walk away from the table. It is a powerful message!

Knowing how to deliver key messages with intense sincerity is part of the art of negotiating.

Posted by Bill at 9:07 AM | Comments (1)

July 22, 2007

Do personality traits effect negotiation skills?

There are four primary negotiating styles. They are similar to management styles or personalities.

We learn to negotiate from birth through our experiences, education, and from the people around us. From our first cries when hungry the reactions of others reinforces our predominant negotiating behavior. We learn based on what we find works with others. We also learn that different approaches work on different people and, as a result, develop additional styles.

Each is a blend of the four primary styles. Our predominant negotiating style is the manner in which we are most comfortable when interacting with others.

Consider how you act with other people; especially strangers in a stressful situation. You can probably identify your predominant negotiating style pretty accurately as long as you listen to what others think of your style at home or around the office. We constantly negotiate with them. Their perceptions are a mirror available if you are willing to look.

We also have a natural style. This is the style that emerges when we are physically threatened or under severe stress. My natural style is much less collaborative! Understanding your predominant and natural styles will help you will understand how you react with others. Now comes the difficult part.

One’s predominant style is a learned style. That means we can learn and develop different styles.

Now comes the difficult part.

Each negotiating situation deserves its unique style. One does not negotiate the same way with his wife as he would a business adversary, boss, or even the children. There are differing power bases and interests to be considered and respected. A negotiator is most effective when able to deploy a complimentary negotiating style to each situation.

Effective negotiators are like chameleons. They adapt to each situation. The benefit of being comfortable with a number of negotiating styles is that the appropriate style can be strategically used at will. In any negotiation one might use several different styles depending on the reaction of the other person.

Posted by Bill at 8:00 AM | Comments (0)

June 28, 2007

What happened to the Immigration Reform Bill?

No one can win every negotiation. Many suggest making each negotiation a “Win/Win” situation. The reality is that there is always a winner and a loser. It seems to be a better strategy to seek a solution that allows both parties to come away with terms that provide each enough incentive, positive or negative, to support and live up to any agreement that is reached. This mutual incentive is the basis of every relationship whether it is in a marriage, friendship, or business setting.

Of concern, though, is that such an equitable approach to some negotiations may result in too much compromising yielding too little progress toward the original negotiation objective.

This is where I think the Immigration Reform Bill ran aground.

The People of America wanted border security. For that, many were inclined to consider some form of expansive legislation addressing the current illegal immigrant problem. However, those in control, behind closed doors, became so focused on compromises pertaining to the current immigrant situation that they lost sight of the true goal of blocking illegal entry of future immigrants.

Add to that a latent distrust that the Government will really follow through on promises, and you have a broad-based constituency that rose up and cried "foul". They felt that the solution was worse than the original problem because they did not believe the border enforcement aspects of the bill would ever be fully implemented; only the prompt legalization of the existing illegal immigrants.

So the negotiators lost the faith of their principals, on both sides. They were so embroiled in the process that they lost sight of the forest for the trees.

What is troubling is that those behind the bill are the leaders of this country and in theory have been elected to their posts based on their ethics, competence, intellect and the commitment to represent those who voted them into office.

Negotiators must retain a sharp focus on the primary goal and not dilute that objective simply to solve the problem. Anyone can compromise to the point that a deal can be made. Negotiators must strategically use compromises to make progress towards their primary objective.

Posted by Bill at 4:40 PM | Comments (0)

April 18, 2007

Rules and Negotiations

A Great White has no known predator. He is unique in that he can and does make his own rules. They are simple as they are based solely on the concept that might does make right in their world. Machiavelli would have liked the great white shark.

Every situation has rules. Whether it is playing baseball on the corner lot or submitting an appeal to the Supreme Court. Knowing the applicable rules enables us to compete more effectively.

In school, legal situations, dealing with any governmental agent and other structured settings, rules must be followed to stay in the game and make progress. As an example, failure to adhere to specifics of state contract law can invalidate contracts.

Depending on your goal and the importance of the negotiation, it may be wise to hire professionals to assist in the documentation to insure what you sign is what was agreed to in the first place. A note of caution: Use these professionals as tools to help you. Do not rely on them to solve your problem.

Rules are essential to order but they are not sacrosanct. If you find the rules to be too restrictive it is your right to challenge them.

Far too often I have heard negotiators say they didn't ask for a concession because it was simply not “done” or the "rule" could not be challenged. All to frequently these are rules established by the other person (landlord or developer as an example). Other than having something you want, these individuals hold no power over you; they have no authority to which you must succumb. Also once firm rules may change over time.

Don't assume that rules of others necessarily apply to you or are still in effect. Rules are subject to time and circumstances. They are not always in effect. Good negotiators challenge rules to avoid missing an opportunity.

Posted by Bill at 3:51 PM | Comments (0)

April 7, 2007

The Power of Persuasion

If you want to win a negotiation you must expect to win. Attitude counts! Like any sport or other competitive venue, attitude has a direct bearing on the outcome of a negotiation.

Each negotiation, no matter how insignificant, by definition is based in conflict. The people involved are each competing to protect their respective rights by depriving another of his or her expectations. It is a negotiation over conflicting interests.

The secret of winning lies in the passion one brings to the event. If you are convinced that you are right, if you think you deserve to win, if you know that you are in the right, then your passion will color each argument, strengthen each statement, and lead you to victory. If you have doubts, you will be less than effective. Get rid of your doubts before getting involved.

Positive Attitude Tips:

Plan to win. When you are considering strategies and tactics before a meeting envision using each tactic and prevailing with it. This mental exercise sets in your mind the feeling or the gestalt of deploying the strategy or tactic successfully. When the time comes to actually use it, your actions will be more natural and more effective.

Expect to win. When setting your objectives and goal, test them against what you know to be reality. If they are reasonable expectations, visualize achieving the objective. Do this repeatedly to set the image in your mind that the objective and goal is achieved. Don’t focus on the process of achieving it during this mental exercise but on actually achieving it. This is a form of programming yourself to not only want the objective but feel entitled to it. You are aligning your inner being to expecting to walk in and win. You are empowering yourself to prevail.

Act like a winner. When you enter a room, stand tall, make direct eye contact, offer a firm handshake, and be confident in why you are there. Take the time to get comfortable at the table, lay out material you may need, then settle back, ready to begin. Your statements should be brief, pithy and authoritative. Concise, targeted proposals convey clarity of purpose and conviction on your part. As you deliver them, assume they will be accepted. The power of a positive delivery is immeasurable. If the other person has doubts about their position, it may show in their reaction. Be alert for signs of their doubt. If they question you proposal, ask them why. Never accept on face value an objection. If you are confident of your position, the other person should be placed on the defensive unless they can prove you wrong.

The power of persuasion is based in your personal conviction of being right and entitled to prevail.

Posted by Bill at 9:40 AM | Comments (0)

October 19, 2006

The Currency of Negotiations

Having a good supply of beads and mirrors is wise if you are venturing into the jungle. That is unless you don't mind staying to be dinner.

Negotiation is about currency. Currency can be far more than the money involved in a discussion. Understanding the currency of a negotiation is essential in knowing how best to negotiate the situation. Currency differs depending on the situation. Always identify and consider alternate or ancillary currencies in a negotiation.

Examples of alternate or ancillary currencies might be:

In All Situations:
- Time: To everyone time is important. A negotiation takes time. Time away from other activities. Second to money, time may be the next most important currency in a negotiation.
- Ego: From birth we have been taught that to win is good; to lose is bad. While everyone can't always win, no one likes to lose. If you can make the other person feel like a winner, his actual monetary loss might be come acceptable.
- Opportunity: There are only so many hours in the day. Other opportunities will always be pressing. Future opportunities, however, may become part of the currency of the current transaction if presented as potential benefits of working something out. This adds value to the terms for the other party and can make the difference between acceptance and rejection of your offer.

In Business Settings:
- Missed Opportunities by Meeting: Everyone is pressed for time in corporate life. Going to one meeting usually is at the cost of attending another. Both parties at a meeting have already made an investment of precious time. They have also foregone another opportunity to attend. You can strengthen the other person's impression of your sincerity in meeting and trying to work things out by revealing what you have given up to attend this meeting.
- Recognition: Everyone needs to be recognized. If you make it a point to acknowledge the other person's contribution to the process, to the outcome, you are providing an inexpensive incentive for the person to continue on and try to reach an accord.
- Power: Powerful people to be reminded that they are powerful. By seeming to acquiesce to a powerful person can often extract concessions other lose at a small cost, some of your ego. Effective negotiators understand their goals and objectives and strategically give up some personal satisfaction to make a deal work or to cement an agreement that is marginally acceptable to the other person.
- Prestige: If the arena within which you are negotiating has a special intrinsic value to those able to participate, use that attribute as collateral to be involved. Some tasks have great PR value in the corporate or public arenas. Don't miss the opportunity to parlay ancillary benefits of a deal into tangible returns.
- Advancement: To many corporate negotiators success brings advancement. When casually discussing each other's background seek to find out if this particular discussion has special meaning to the other person. It may be that a successful session is as important as the primary terms to the other person. If you know this, you can extract value on other fronts in exchange for reaching a final agreement.
In Personal Relationships:
- Love: This currency in a relationship should not be put on the table cavalierly. It is the basis for the couple being together. Threaten the love in a relationship may destroy it.
- Respect: While sex is important, respect trumps sex every time. Men, women, parents, children all deserve and require the respect of those they love. It is a powerful currency in a conflict.
- Affection: This is far different than sex and can be just as powerful. Either the man or woman can use affection to shape behavior.
- Sex: Women have used this commodity since the first bite of the apple.
- Privileges/Responsibility: Children are eager to gain freedom and personal responsibility. These are valuable commodities the parents hand out in exchange for good behavior, specific performance (grades or chores), or as other rewards for the desired responses.

Opening the discussion up to these alternate or ancillary currencies gives the everyone involved the chance to come together on a myriad of terms rather than focusing on one point of disagreement. This makes the primary term less important and may convert a troubled situation into a mutually beneficial accord.

Ancillary currencies may seem to have little or no value to you but may be vitally important to the other person. Converting idle currencies in to valued commodities in a transaction is how negotiators create value. mediators are adept at bringing out the importance of public apologies, admissions of guilt, and mere recognition of another person's situation as a means of diminishing the importance of the primary matter being mediated. The process of mediation is based on the very human process of interaction. Typically the parties to a mediation have squared off and stopped communicating a long time before the mediation. The mediator brings them together and forces communication. This, in and of itself, facilitates the ultimate resolution.
By incorporating ancillary currencies, you will increase the opportunity to craft an agreement that yields a greater return on your investment than merely bartering dollars. Often it enables you to extract value from the other person for something that you intended to provide anyway.

Posted by Bill at 4:55 PM | Comments (0)

October 16, 2006

Negotiating the BOTTOM LINE

A Ruby-Throated Hummingbird must consume trice it’s body weight in food each day. This is not a goal or objective. It is the bottom line!

Mediators and negotiators by definition have different goals. Both are seeking to reach an agreement, that is the sole and absolute goal of the mediator. He has no vested interest in the terms of such an agreement. Conversely, the negotiator has the goal of accomplishing something above and beyond the terms being negotiated. Typically the negotiation is part of a large initiative. He or she must appreciate the parameters of the negotiation and where to stop and walk away or when to agree and move forward.

Knowing your bottom line is perhaps the most important aspect of being a great negotiator. The bottom line, the minimum that you can accept, is the point that you must decide whether to continue to try to hold things together or simply walk away and seek a new opportunity elsewhere.

Appreciate that the other person also has a make-or-break threshold. Look for the non-verbal signs that indicate you are getting close to that point. If you want to make the deal, you will strategically need to keep the negotiation just this side of the brink. If you press to hard, he may walk away costing you a good opportunity.

Signs that someone is being pressed close to their bottom line include:

- Increased nervousness including fidgeting, rapid blinking, folding of the arms, sitting back away from the table, and disengagement in the conversation.
- Increased animosity in the dialogue.
- More personalized attacks.
- Smaller increments in concessions.
- An attempt to interrupt, postpone or stop the discussion.

When you are pressed to your bottom line and still can't make the deal, you can consider bluffing as a final, desperate tactic. The word "no!" has great impact and can often save the day; or end it. Bluffing is a last resort tactic that should be reserved until all you now have at risk is failure itself.

Do not confuse your goal with your bottom line. They are vastly different. Your goals are what you want to achieve while your bottom line is what you need to achieve.

Posted by Bill at 4:54 PM | Comments (0)

October 15, 2006

Brainstorming as Part of the Negotiation Process

Man’s ability to dream, to think beyond the obvious sets him apart from the animal kingdom. This unique characteristic has resulted in bows, arrows, slings, knives, spears, black powder, guns, bombs, nuclear warheads and other tools needed to advance civilization!

Brainstorming how to solve a challenge is the crux of advanced negotiations. Until the parties at the table begin to work together to resolve their issues the confrontation is merely a brawl or barter. It does not create value.

Negotiations should yield incremental value in that both parties should be able to leave the table thinking they gained more than the other person.

Brainstorming goes hand and glove with the whole-pie theory of negotiations. Before focusing on the base terms of a negotiation take the time to get as many issues as possible on the table. Expanding the scope of the discussion should reveal areas of agreement that help to offset the compromises that will eventually be required to settle the primary point of dissension.

The globalization of the discussion, the brainstorming to add incremental issues, and the process of reaching ancillary agreements creates the groundwork for the final, major negotiation. The incentives provided to assuage the ancillary needs can help to justify the required concessions on the major issue.

It is the capacity to look beyond the issues at hand to come up with viable solutions that make negotiating an art form rather than mere bartering or brawling. Before you actually sit down to negotiate, seek to uncover the ancillary issues that may have a bearing on the discussions. Brainstorming prior to a negotiation or settlement conference could include:

-Other related or unrelated areas of opportunity to work together.
-Issues related to the specific topic at hand that have yet to be raised.
-Common goals and objectives the parties might have.
-Common acquaintances the parties might have that may add credibility to either's arguments.
-Common challenges the parties may be facing on a micro, macro and global level.

You won't know where the brainstorming might lead. The time it takes to discover related issues typically pays dividends once the final negotiations commence. Be patient. Be diligent. Be thorough. Doing something right makes it worth doing.

Posted by Bill at 2:36 PM | Comments (0)

September 30, 2006

Flash Negotiations

Running into a angry grizzly requires swift, deliberate action. It is often best to aim and shoot rather than think and plan how to react.

Flash Negotiations is a tactic used to quickly resolve an issue. The proper use of this tactic relies on the sixth sense a negotiator gets that a resolution is at hand. This can happen when meeting the other person for the first time. Usually such meetings are tactical opportunities to gather and validate information upon which future strategies are developed. But the experienced negotiator will, on occasion, get a flash opportunity to open resolution discussions while the other person is off guard. Take advantage of these situations to save time and money. Flash Negotiations often yield the best possible deal available.

How does flash negotiating work?

To be able to deploy Flash Negotiations one must be able to draw upon his or her experience reading people, understanding the specific situation, knowing the background facts and understanding what they are prepared to do to make the deal. Armed with a strong base of experience and people skills, an aware negotiator commences the research interview. As the discussion develops, the other person may signal that he or she is receptive to an offer, is caught off guard, wants quick resolution, or is up to speed and prepared to discuss the matter.

Any of these signals presents an opportunity for Flash Negotiations.

If you are prepared to open negotiations, take the initiative and make a low but realistic offer. Tender as low an offer as you think will be received without shutting off the dialogue.

If the other person counters the offer or asks for more information you will know that the opportunity exists for a Flash Negotiation. His counter will set the parameter of the bid / ask and you can typically assume that the negotiation will end up at the median of the bid and ask. In a flash negotiation I often move quickly to that median point and use the swift pace of the negotiation as a reason to acknowledge the other person's professionalism, insight and forthrightness.

If you are ready to deploy Flash Negotiations as a tactic you will typically find that you will secure better terms and save time by doing so. As you have initiated the dialogue, you should be in control of the facts, be better prepared, and have the negotiating advantage while the other person has had little time to assess the situation.

When to use Flash Negotiations:

-When more time benefits the other person.
-When time is critical to your cause.
-When you know what you are willing to spend.

When Flash Negotiations may not be appropriate:

-When you aren't sure what your initial offer should be.
-When you do not know what you are willing to spend.
-When time is critical to the other person.
-When you are not prepared.
-When you do not have the authority to commit to the terms.

Develop the discipline to be alert and ready to deploy Flash Negotiations and you will be more effective as a negotiator or mediator.

Posted by Bill at 3:48 PM | Comments (0)

September 10, 2006

Having Alternatives Improves Negotiating Results

When you come to a fork in the road you have two chances to make the right choice. Pick carefully.

Negotiating is very much like a trek through a jungle. You know where you are going but will encounter any number of obstacles that need to be negotiated to get back to your camp. Being proficient with your tools and having planned the journey will increase the odds of your making it through the jungle.

A negotiator does not have a compass, map or guide to assist him. But he does have similar tools and the opportunity to plan. Those who come to excel in the field invest in their trade craft and properly prepare before each encounter.

Planning for a negotiation requires proper knowledge and preparation. Facts are the basis of the map to the negotiation. Your ultimate goal is the compass heading you need to check and recheck as you proceed. Your co-negotiators and experts are your field team. Setting the plan is an essential step in the pre-negotiation process. Establishing a common goal for the team allows everyone to set their internal compasses and pursue the same objective.

Planning provides a chance to anticipate objections and prepare counter strategies. It is far better to be prepared than forced to react. Preparing and planning gives a negotiator alternative strategies and tactics to use in pursuit of his or her goal. Negotiations are conflict based. They are not intended to be easy. Being armed with alternatives improves one's chances of prevailing.

Posted by Bill at 10:15 AM | Comments (0)

August 6, 2006

Negotiating Tactics

Everyone talks about negotiating tactics. I prefer to think of tactics as tools to resolve problems. The term "tactics" often connotes efforts to manipulate another into agreeing to something they don't want to agree to do. That may be shortsighted as agreements forged on reluctance have a habit of falling apart as soon as the oppressed side has an opportunity to go back on a prior agreement.

The best agreement is a lasting agreement.

Tactics that coerce compliance are best reserved for last ditch efforts to save a deal that has all but failed.

The tools of negotiation are those tactics and strategies that work to bring the parties together. Such tactics serve to:

-Inform
-Reinforce
-Clarify
-Restate
-Concede
-Conform
-Contribute
-Demonstrate
-Illustrate
-Educate
-Amplify
-Bracket
-Acknowledge
-Appreciate
-Direct
-Redirect

Tactics that tend to be coercive attempt to:

-Intimidate
-Control
-Confront
-Deny
-Cajole
-Coerce
-Threaten
-Embarrass
-Ridicule
-Manipulate

Consider the tenor of the negotiation and your tactical intent before employing any negotiating tactic.

Posted by Bill at 9:41 AM | Comments (1)

August 5, 2006

Bluffing is a dangerous negotiation tactic.

A pack of wolves can smell your fear. Yelling and shouting is better than running, but not as good as firing your rifle if only you had remembered to bring it!

Do not employ bluffing as a tactic unless you are prepared to have it called. Bluffing can be a strategic mistake if you can't back it up.

A bluff is a venture into the unknown. You are calculating the other side will back down or not take the challenge. If you are wrong, you will have to perform or be caught in a bluff. Once you are caught bluffing, the other side will tend to assume you are always bluffing. It is essentially being caught in a lie.

Strategically it is safest to bluff when you have nothing to lose. Sometimes last ditch bluffing pays off. Sometimes it doesn't. The odds, obviously, are in your favor of improving your position as compared to doing nothing and accepting defeat.

There are times when you know you have cornered the other person. If the person then proffers an obvious bluff, you may want to consider it.

It can be strategically prudent to grant a minor, ancillary concession to shore up the transaction rather than see the deal collapse and try to make the deal again.

Posted by Bill at 7:48 AM | Comments (0)

August 4, 2006

Bartering is a tactic, not negotiaitng.

Never venture into the jungle without something of value, like your guide or your mother-in-law, to barter with if you encounter a prowling, indigenous tribe of headhunters.

To barter is to effect trade by the exchange of commodities. Bartering is an important part of negotiations. The non-monetary commodities of the transaction are often more important than the actual monetary settlement.

While bartering is seemingly commodity driven, effective negotiators and mediators know to look for ways to leverage the human psyche to create commodities of intangible value in the form of apologies, respectful recognition, and pain infliction within the bartering framework. The more skilled the negotiator or mediator the more complex the physic negotiating arena can become.

As an example, often corporate negotiators approach landlords seeking contracts or leases bartering solely with their primary commodity, money. They know how much they can afford to pay for a given location and seek to pay a little less than that amount. It is fairly easy math, easy to explain to the home office, and easy to discuss with a landlord. It may not, however, be the best approach. They are apt to forget the value to the landlord represented by the security of their company's financial ability to service the lease or how much value their use may add to the center as a whole. More experienced negotiators would approach the same landlord on behalf of the same company with a quiver full of commodities with which to barter. These commodities could include the quality of the proposed use, the prospect of multiple transactions with the landlord, the ability to move swiftly through the permitting and construction process, a strong national advertising campaign that will make the shopping center more known within the trade area, the potential of increasing the rent value of the adjacent spaces, the strength of the tenant to potential lenders, and so on. This extraordinary-value oriented approach serves to inform the landlord about potential benefits above and beyond rent with this tenant. If any of those arguments are meaningful to the landlord, the tenant should be able to offer less rent than another tenant.

Unless the negotiating arena is expanded, the primary focus will remain on the base commodity. Without other incentives, there will be little reason for the party with the most power or strength to compromise. This tactic of adding commodities of value to the negotiation applies to almost every possible human interaction.
Understanding the full range of your available assets is a critical part of the strategic planning of a negotiation. In many cases, something that seems of little value to you may be perceived as very valuable to the other person. You need to uncover what is of value to the other person to be able to properly leverage its full value. You need to understand the needs and wants of the other party as well as your own goals and objectives.

No one said this was an easy process. It requires time, patience, interviewing skills and research. Then you might be ready to sit at the table. Once seated at the negotiation table, do not become so intent on winning that you offer more than you can afford to pay.

The objective is NOT to win the negotiation, but to achieve your goal; a cost effective resolution.

Posted by Bill at 1:11 PM | Comments (0)

July 30, 2006

Removing Barriers to Effective Communications

To negotiate with a deaf and mute adversary, use a pencil and paper.

A negotiator must be understood to succeed. Barriers to effective communication can be removed if they are identified.

Look for signs that the other person is not listening and understanding you. Watch for nonverbal signals that he or she is uncomfortable, bored or otherwise distracted.

Check yourself when the other person is speaking to make sure you are listening rather than planning your next comment or thinking of what you will have for dinner. It is your responsibility to be an effective listener.

If you have issues that prevent you from focusing properly, tell the otherside you need to reschedule the meeting or that you are having trouble following his argument. Proactively remove the barrier so you can do your part in the discussion.

Posted by Bill at 11:30 AM | Comments (1)

Layered Barriers To Communications

When you come across a tribe of headhunters it is wise to make sure the person you are bartering with is the one who plans the dinner menu.

Other than on playgrounds most negotiations are not one-on-one situations.

-In the business environment it is typical that at least one of the parties is an employee of a company. As such, that person is burdened with a hierarchy of approval rights. It is typical for both parties to have the same burden of needing the approval of others before being able to fully commit to an agreement.

-In family disputes there may be spouses or other family members who have a voice in any agreement.

-In mediation settings there may be spouses, insurance companies or other entities that must be part of the final approval of any accord.

Part of the initial phase of any negotiation is to establish who the decision making authority is for the other party. In the case of a mediation, each of the parties may present layered authority issues.

Most people will reveal their lack of authority only if asked directly if they need someone else's consent. The human ego is typically fragile and to admit dependence is sometimes hard to do. The inclination is to personalize the situation. It is up to the negotiator or mediator to peel away the posturing and determine who the actual decision makers are. In the case of a mediation, the mediator needs to gain access to the decision maker. That may mean asking the person to attend or at least making sure he or she is available by telephone to confer and when appropriate, consent to an agreement if one is reached.

Layered approval structures create barriers to clear communication. Actual decision makers must rely on the interpretations of their delegatees as to the dynamics of the discussions. Each person between the decision makers unconsciously or consciously alter the message. Individuals have their respective filters that alter what they hear.

Consider a corporate negotiation. When dealing with a company or corporation, each person within the organization has his or her own set of filters. They each adjust what they hear. For example, the CEO has a long-range perspective, the CFO is concerned about quarterly earnings and cash flow, the VP of Real Estate is concerned about opening new locations to meet his or her budget and the real estate manager is worried about making his bonus. In addition, each has a personal agenda caused by personal issues such as meeting mortgage payments, college costs, a pending divorce or marraige, or retirement planning. In this scenario, it might be that the real estate manager is really trying to maximize his bonus by chasing any location that presents itself. The CFO is feeling the pressure of lagging sales and has been talking to the CEO about the need to slow development or actually retrench. And the CEO is contemplating a sale or merger that is based on growth through new locations. How is a landlord/owner supposed to know how to negotiate with the company when there are internal conflicts within the corporate culture? How will his message be altered before it reaches the CEO.

Layered barriers in a negotiation require aggressive communication countermeasures to insure that your message is being heard. Possible counter-measures include:

-Put all critical communications in writing. This way, those involved on the other side will at least be able to refer to your written message.

-Copy everyone possible on the communication to make sure it is shared.

-Pick up the phone and call the decision maker to simply inform him of the progress being made and see if there are questions you can answer.

-Refuse to negotiate further unless you have access to the other decision maker.

Negotiating is an exercise in communications. Layered negotiations poses a normal challenge until you gain access to the right person with whom to deal. A standard negotiating strategy is to try to keep key decision makers out of the room so they can assess the situation without the pressure to respond immediately. Take the time before negotiations commence to find out who is involved in the approval process and seek to work with the highest person you can reach.

Posted by Bill at 10:59 AM | Comments (0)

June 22, 2006

Negotiators often create barriers to buy time.

CREATED BARRIERS

There are times when you want to slow the negotiating process. This is when you need to deploy time-buying tactics. Creating barriers is an excellent way to forestall an unacceptable decision.

We live in a society where everyone is supposed to be omnipotent and the best at what they do. Playing dumb to disarm the other person or to buy some time to think over what is being said is a seldom used negotiating tactic. It is very effective.

There is nothing wrong with asking questions or asking for clarification. When the other person is making a major point against you, don’t hesitate to interrupt to ask for clarification. It will break their train of thought and give you a chance to think of ways to deflect their argument.

We also live in the real-time world of email and faxes. Just because you receive a proposal by fax or email does not mean you should respond in kind. Feel free to sit on a proposal for a few days before sending a response. This signals several things. That you are too busy to look at the proposal. That you may have other offers. That it is not important to you.

Most important, it "says" you aren’t ready to respond for some reason.

Don’t be forced into making a hasty decision. Time typically works to your advantage. When you are at the negotiating table and the other person makes a proposal, sit back and ponder, for as long as you want and then some. More times than not the person making the offer will get nervous and improve the offer.

Your silence will signal that you were not satisfied with the terms. Their reaction tells you how much they want to reach an agreement.

As they say, silence is golden.

Posted by Bill at 6:47 PM | Comments (0)

Negotiators must overcome barriers to effective communication.

IDENTIFYING BARRIERS

While a deep, fast moving river between you and a hungry lion may appear to be an effective barrier, a locked cage with strong bars would be even better.

To be effective a negotiator must have his message clearly heard and understood by the other person. Barriers to effective communication can obscure the best argument. Look for and remove barriers that block your message. All negotiators must be, by definition, skilled communicators. That means they must listen as well as speak clearly.

But there is more.

Reactions to what you are saying signal if the other person is listening and understanding your message. Watch the listener’s eyes. If they stay focused on your eyes, that usually means they are intently listening. If however, the wander or disconnect, it usually means that their mind is racing ahead to formulate what they are going to say, that they are not believing what you are saying, or that they are thinking about the hot date they have that evening. In any event, you need to regain their attention. An effective way to do this is to simply stop speaking. When they realize that you are no longer speaking resume as though nothing has happened.

You may actually need to call their attention to the fact that they weren’t listening and ask why. This tactic will often uncover the reason for the barrier. Then it can be properly addressed. For example, I recall a situation where the other person replied, “I'm really sorry, my daughter is very sick and I’m distracted.” I said that I was sorry to hear about her daughter and suggested we put off further discussions until she was better. In recognizing her personal need, we dealt with each other as real people. Later this personal respect helped us to overcome some of the tougher issues we were facing.

Unless communications are being heard, they should be forestalled until the other person is able to hear what you have to say.

The mere act of acknowledging barriers to communications can give you the opportunity to work together to start to agree on how to resolve the barriers. Then it will be easier to discuss and resolve the real issues.

Posted by Bill at 6:43 PM | Comments (0)

May 21, 2006

Anxiety is Normal in Negotiations

Sharks never show anxiety, as predators they sense it. Then they go for blood. Make sure you have plenty of deodorant when 'swimming with a shark'. Power negotiators train to be able to observe, detect and capitalize on the anxiety of their opponents.

It is natural to start any negotiation with some anxiety. Whether in a family setting or the business environment, conflict is not comfortable for most people and a negotiation is a step we take to resolve conflict. Conflict by nature is stressful. Anxiety comes from not being fully prepared or experienced in any endeavor. People are anxious on their first date, before speaking in front of others and when meeting the in-laws. Why should they not be anxious before starting a negotiation with strangers?

Mediators know the root of the anxiety is typically the fear of the unknown. That is why they start mediation sessions with clear, understandable instructions to the parties explaining how mediation is structured, what they can expect, and what the rules of engagement are. The mediator is working at removing the anxiety from the room and opening the way for productive discussions. A seasoned negotiator will take similar steps in a negotiation to set up an environment that is conducive to reaching an accord.

Negotiators can create anxiety as a tactic by introducing new facts, raising embarrassing questions and challenging assumptions to unsettle the other person. Creating doubt may help to bring a recalcitrant opponent back to the negotiating table by undercutting his confidence. It may also create a defensive atmosphere that is counter productive.

Posted by Bill at 2:00 PM | Comments (0)

March 5, 2006

Arguing

Arguing is a destructive by-product of human interaction. Between nations, it can lead to war and mayhem. Between couples it can lead to pain and divorce. Negotiating is very different than arguing.

Arguing or fighting typically ends with the proponents trying to obliterate each other by out-shouting or simply shooting the other to end the argument. This amounts to screaming over the other's words to the point that nothing is heard by anyone. Seeking to overpower the other person may result in the other person simply walking away from the situation. If so, nothing is solved. No one wins.

When involved in a marital or family argument, understand that every person has differing personality traits that impact how they deal with anger. One important difference is the time it takes to get over a fight. Many of us get mad quickly but get over it just as quickly. Others are slow to ignite but simmer for days!

A couple needs to learn the "anger" pattern of the other. This difference will explain reactions and enable the couple to better understand each other. Respect is a key part of any relationship. Granting enough time or space for the other party to cool off is part of respecting their needs. Demanding the argument end on your timing is to selfishly want things your way and is not the way to end an argument. It often will result in a far greater argument than the original issue.

When conflicts between a parent and child or a husband and wife repeatedly escalate beyond control, destructive words and acts often become the norm. This mutual abuse slowly destroys the underlying relationship. Even though the more powerful parent may prevail, the underlying war will ultimately be lost as the core feelings that bind the family relationship may eventually be killed off. As a parent you need to try to control the situation and keep the discussions focused on the matter at hand rather than allow personal attacks to overshadow the core issue.

In business it is not acceptable to kill one's opponent!

Business conflict is typically resolved through negotiation. Whether the negotiation is over an employee's conduct, a supervisor's actions, a building lease or pay raise, the process is the same.

It stands to reason that the most effective negotiators are those with absolute power and the willingness to use it! Few people have absolute power. The rest of us must work to develop tools and techniques to improve their negotiating results.

Managers who demand compliance leave employees with two choices. They can knuckle under, accept the situation, and stay to make the money necessary to feed their family. Or they can fight back. Rather than quitting and jeopardizing their family's subsistence, they simply start seeking another job. By learning of other options the employee has grasped the power to decide whether to stay or leave. If the decision is to leave, the manager will have to become reasonable or accept the loss of an employee and the cost of finding and training a replacement.

In taking the initiative to seek another job, the employee is establishing his or her value on the open market. Knowing that worth empowers the employee with choices and forces the company to either acknowledge that value or lose it.

While arguing is not an effective negotiating tool, prolonged discussions designed to wear the other party down on issues can be an effective negotiating tactic. Learn to control your temper and extend discussions to gather information or wear down the other party. Losing your temper will have the opposite effect.

Posted by Bill at 9:40 AM | Comments (2)

Assumptions Lead to Negotiating Pitfalls

Seldom does a lion make a faulty assumption about its prey. They take the time to carefully stalk their prey until they know the time is right to strike. Man, on the other hand, eagerly rushes in only to find he forgot to pack his big-game gun!

Assumptions are at the same time necessary and dangerous. It is not likely you will have all of the information you need to make a decision. So you must fill in the blanks, so to speak. How you do this will determine if you are successful or not in whatever you do.

The best defense against a poor assumption is good preparation. Thorough knowledge of your topic, your goal, your strategies and objectives, your company, yourself, your opponent, his company, and the issues relating to the task at hand is the best way to insure your assumptions are reliable.

Few have the luxury of such preparation in their daily routine. So prepare as much as possible before the meeting and then add to your knowledge by measuring the reactions to your questions and comments. During a casual question and answer session you can refine what you know or think with reasonable accuracy if you listen effectively and watch the person's body language.

The problem with bad assumptions is that they can lead to bad conclusions. During your preparation separate what you know and what you assume to be the case. Then focus your conversation on validating your assumptions. In addition to using the preliminary casual discussion period to build a good working relationship or to create a healthy environment within which to negotiate, do not miss the opportunity to uncover false assumptions.

Posted by Bill at 7:47 AM | Comments (0)

February 21, 2006

Eventually Negotiators Must Agree

For a negotiation to be successful, it must end in agreement. As the saying goes, you can lead a horse to water but you can't make him drink. He has to want to take a drink.

The parties to any agreement both have to be willing to sign. This is different than wanting to sign. An agreement does not necessarily need to be equally satisfying. It just needs to be agreed to. Negotiators and mediators know that disparity of satisfaction has little to do with getting the parties to agree.

What is important is that both sides, individually, feel that they have gotten something out of the agreement.

Timing is everything. Agreements shouldn't be rushed. But a negotiator can prepare the way to reach an accord. Effective mediators and negotiators know this and use the negotiating process as a means to building an environment that promotes agreement.

Practice makes perfect. Actually, we all learn by practicing. Getting the parties comfortable with committing is part of achieving a global accord. All too often a negotiator tries to rush to an agreement only to be frustrated when the other person pulls back at the last minute. The problem is that the other person is psychologically not prepared to agree. This may well be an unconscious reaction to being pressed too hard to do something that he knows, in the end, he will agree to do. But undue or ill-timed pressure may cause him to rethink, and often change his mind.

One can pave the way to reach a global accord by making it a point to recognize each sub-agreement the parties make during the conversation or negotiation. These agreement opportunities can be as simple as deciding where to meet, to selecting a restaurant for a lunch break. They will also apply to small issues within the context of the discussion. These small achievements of collaboration establish a pattern of cooperation that prepares the parties mentally to accept the final terms.

Unless you have pre-emptive power and intend to use it, realize that you have the power to do everything but make the other party sign the agreement.

Few negotiations are concluded through invoking absolute power. Those that do would be better referred to as mugging the other person. In such situations, one side is out to decimate the other with little regard to the damage done in the process. This is an abusive situation, and after the dust settles, the oppressed party will be laying in wait for any excuse to break the contract or simply leave.
Power driven agreements are typically short-lived. Given the chance, the other person will renig as soon as possible.

Posted by Bill at 8:43 AM | Comments (0)

February 19, 2006

Negotiators use Agendas, Hidden and Apparent

There are two types of agendas. Those that are public and set the course of a meeting and those that are hidden and guide the actual progress of the session. Uncovering hidden agendas is an important aspect in any negotiation or mediation.

It is the hidden agendas that truly impact how a settlement conference will proceed.

Controlling a meeting is key to controlling a negotiation. Managing the agenda establishes this control. Mediators garner their power as they control what happens, when it happens and where it happens during a settlement conference. They have the ability to call for caucus sessions, quiz both sides, and dictate certain rules. This often gives them the cloak of authority to get the parties to move toward reconciliation.

Hidden agendas, on the other hand, are what skilled negotiators use to manage the process as the informal group leader.

There are likely many hidden agendas at play during any negotiating session. Those of the primary negotiators and those of the other participants in the room. Each person is likely to have a personal agenda that differs slightly from their own teammates. Uncovering and capitalizing on the disparity of these agendas can be useful to a negotiator.

How does one uncover another's hidden agenda? By being a good detective:

1. Ask questions soliciting the other person's needs and wants.

2. Ask follow-up questions designed to cross check previous answers.

3. Seek similar responses from other members of the other negotiating team.

4. Feel free to question the responses.

5. Press to discover why the individual sitting across from you feels that way; as opposed to why his company or client may feel a certain way.

6. Identify if there are personal needs that are in conflict or amplify the stated objectives of the otherside.

7. Seek to discover if the real decision maker is at the table or available to be reached for input or decisions.

8. Gather and digest the responses to create the 'fabric' of the other side's basic needs and stated wants regarding the situation.

9. Observe non-verbal reaction that may indicate responses are less than forthright.

Negotiation is far more than simply sitting at the table and exchanging proposals. It is the art form of learning enough about the other person to be able to engage him or her in a dialogue that makes them want to work with you. Without absolute power, your primary agenda is to uncover enough about the other person to be able to manage the discussion toward satisfying your needs.

Posted by Bill at 5:14 PM | Comments (0)

February 18, 2006

A Negotiator Values Good Advice

Advice is cheap. No matter the cost, it can be extremely valuable to a negotiator!

Before sitting down to negotiate anything of substance it is worthwhile to conduct a little research about the person with whom you will be meeting. Seeking the advice of others is part of the due diligence aspect of negotiation preparation. How you handle that advice marks the difference between an impressionable novice and a veteran negotiator.

The negotiator's job is to qualify and verify the advice received. Often information is biased or flawed and can be misleading. Remember, the information passed along has been filtered by the other person and may be biased based on their experience. The task is to validate input garnered from numerous sources. If this information is deemed pertinent to the task at hand, mentally file it away to use when appropriate. If something is learned that is disturbing, seek collaborative input. Never trust a single source even if that person is respected. If they lost a fight or were embarrassed by the outcome, they are more likely to 'bend' reality to their liking than to relay the facts of the situation dispassionately.

Seek out advice by asking peers about their past experiences with the person or company, asking other people who have negotiated with them, or even asking their assistants or co-workers about them. Often one's hobbies reflect on the type of negotiator they are apt to be. A sailor, as contrasted to a power boat owner, is likely to be much more process oriented while the power boater will be focused on the end result.

Solicit input from as many sources as possible and distill it to salient impressions. Then, when actually meeting the other person, during the initial getting-acquainted conversation, observe and validate if the impressions seem to fit.

Train yourself to be observant and reflective to fully develop your negotiating skills.

Posted by Bill at 8:37 AM | Comments (0)

When to Accept an Offer

Crossing a rushing stream is easier if you take the time to locate the stones creating a path across the stream before wading into the water.

The art of negotiating is most required when you are presented with an offer that is acceptable; but you don't know if it is the best you can do!

When it's time to stop negotiating and accept the terms is an art of timing.

While you do not want to needlessly leave anything on the table, you do not want to over negotiate a point and risk losing the whole transaction. Understanding your business model enables you to know when you have acceptable terms. Knowing the other person enables you to know when you have pushed him as far as possible.

How do you get to 'know' the other person in the time span of a negotiation?

You do it by observing how he or she reacts/responds to various aspects of the negotiation. As you discuss terms, make offers, and react to offers made to you, carefully observe the non-verbal reactions of the other person. These reactions become the benchmarks you will need to evaluate how hard you have pressed them when the final offers and counter offers are being made.

No conversation should be treated as idle conversation. If you are not studiously learning something about the other side you should assume they are learning a lot about you. Learn to mask or vary your reactions, especially the non-verbal reactions, to keep them off balance. Negotiating is in no small part bluffing.

Posted by Bill at 8:29 AM | Comments (0)

Knowledge Improves Ability as a Negotiator

In negotiations, one's areas of expertise are not only defined by his mastery of the art of the process but his mastery of the issues being negotiated. You cannot expect to negotiate an outstanding real estate transaction unless you are well versed in the economic, cyclical nature, demographic, and geographic aspects of the specific real estate segment you are considering.

Negotiating is not just the process of bartering. It involves creating value from ideas and altering wants and needs to achieve an accord that is compelling enough to get both of the parties to agree. A negotiator cannot achieve this without being well informed of the subject matter.

A mediator, on the other hand, needs a working knowledge of the subject matter but need not be an expert in the field. His or her role is to bring structure to the settlement discussions and help forge a viable solution. Mediators are not creating value for their own accounts. They are seeking to introduce enough avoidance value so the parties can agree to settle for less than they feel they are entitled to in order to avoid the risk of losing more before a judge or jury.

A negotiator's ability stems from his or her knowledge of the collateral being discussed. The ability to negotiate is a hidden asset skilled negotiators possess. Frequently, they hide this attribute by feigning limited experience or lack of knowledge in "handling" such matters to put the other person at ease. This also may give the other person a false sense of superiority.

When a skilled negotiators meets the other negotiator for the first time, he or she will take the time to learn whether the other person is knowledgeable about the underlying subject matter. Many landlords are able to outwit and out negotiate corporate representatives from very large, powerful companies simply because they know more about the subject matter. Corporate employees handling real estate acquisitions for restaurant and retail companies often know a lot about real estate and very little about their industry. Landlords, on the other hand, are extremely well versed in the shopping center business, the economics of leasing and the dynamics of their tenancies. If you are a corporate negotiator, it is wise to learn the basics of how your business is run, what it takes to make a location profitable, how the occupancy costs impact cash flow, and what the drivers are that generate a strong top line. Being armed with this knowledge will enable you to meet the challenge of a well-prepared landlord and seek viable lease terms for your company.

It is not about how cheap you can get a property. It is about getting a property at a price that allows your company to make money.

Similarly, when negotiating to buy a home, you need to focus less on the cost than the affordability of the purchase price and mortgage terms.

Posted by Bill at 8:05 AM | Comments (0)

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)

October 6, 2005

Basic Management Skills in Negotiations

Any situation involving two or more people is a management opportunity. Those who take the initiative will typically prevail whether it is a physical confrontation or simply deciding which movie to see. Negotiations are only slightly more complicated management opportunities. Unlike a fight where blows are thrown, the combatants must feign civility and control. Initiative and leadership, however, are the most reliable tactics to be used to prevail.

Those involved in a dispute make up a small group and are subject to traditional group dynamics. Groups intrinsically need to be managed. This is what makes mediators effective in settling disputes. They are adept at taking control and managing the mediation process. Negotiators can benefit from learning mediating techniques. Parents, too, benefit from approaching family disputes as a group dynamic situation in which each family member has a role and voice. Using the mediation technique of inclusion to integrate everyone's needs into the solution can provide a mutually agreeable group decision.

How does one take control of an informal group?

By exerting influence and demonstrating leadership traits. In a negotiation, there are some ways to take the initiative:

- Initiate the call to arrange for the meeting.
- Host the meeting where you will have the ability to perform administrative tasks through your staff for the group.
- Prepare and present (or have on the table) an agenda for the meeting.
- Acting as the host, introduce everyone to each other and make sure they have coffee, water or anything else they may need.
- Position your pad and pen at the head of the table before the others arrive.
- Before someone else suggests it, call the meeting to order.

These seem like small things but they demonstrate your confidence, your can-do attitude, and your control of the environment. All that is left is for you to control the discussion. That is not as easy. But you will have made a good start.

Managing implies taking responsibility for the actions of others. A negotiation leader or a mediator delegates responsibilities not only to his co-negotiators, if any, but to the other side. This delegation of assignments serves not only to get the job done but also to give everyone a vested interest in the outcome. A mediator advances the process by directing and delegating the participants in a mediation. This process serves to make both parties valuable to the process, more equal in their respective statures, and, ultimately, more likely to be able to come to reach an agreement.

In a negotiation, group participation can have a similar impact. By getting both sides involved in working together, the resulting 'attitude' should be more supportive of reaching a mutually viable accord.

Two ways to get two people openly at odds to work together include:
Start with simple tasks that are unrelated to the primary issue.

1. Suggest the other person come with you to the coffee room to help get the coffee, cream and sugar.

2. Suggest methods of sharing information. "If I can explain to you how I have valued the property will you demonstrate to me your cost basis?" This is a tactic to get the parties involved in valuing a piece of real estate by working together. It calls upon each to be an expert in their own right. It also allows you to gather essential information.

Disorganized groups without leadership quickly collapse into chaos. Chaos rewards the stronger of the parties; it does not yield a negotiated settlement. Chaotic situations offer opportunities for someone to intervene and bring some order to the situation. Effective negotiators seek to control the environment and manage the process. It is better to be deciding what is going to happen next than to be told what to do.

Don't relinquish your role to another unless doing so tactically serves your ends. There are times to defer to another person to advance your cause.

Posted by Bill at 9:38 AM | Comments (0)

October 1, 2005

Decisions and Negotiating

Negotiators must be able to make decisions. Large decisions, small decisions, important decisions and mundane decisions. The process of making decisions is what advances a negotiation to its final outcome. Decision-making requires confidence, awareness, information, and courage. Most of all, it requires being prepared.

Prepare properly and agree to meet only when you are comfortable deciding what to do. Even though you may be meeting to gather information, the other person may present an opportunity for you to make an offer or accept a proposal. Being prepared to consider and act on such an opportunity enables you to take advantage of "The Moment".

There are those times when things just seem to go right and an opportunity to act presents itself. Unless you know what you want and need from a given situation, you will not be in a position to respond. Failing to do so may cost the deal later when the other person discovers other options or rethinks his or her offer.

People naturally resist making decisions. This is especially true when they feel they are being pressured to do so. To be an effective negotiator one needs to know how to prepare others to make decisions and commit. The climate of the negotiation plays a significant role in making everyone comfortable with making important decisions. Mediators work hard at giving everyone at the table a sense of power. They also use caucus or breakout sessions to separate people when emotions become too volatile. A negotiator can assume the role of a mediator in any negotiation by being sensitive to the climate of the discussions. By subtly taking responsibility for the "comfort" of the others, the negotiator assumes the mantle of a small group leader and may gain the ability to direct the discussion without having to force the issues through confrontational tactics.

Preparing for the Moment of Decision Tactics:

- If tempers have flared during the discourse, seek ways to mend the personal fences before pressing for decisions. People need to feel in control to commit willingly.

- As you approach major decisions it is helpful if you have laid the groundwork with small decisions along the way. This gets everyone used to committing and following through on their word.

- Review the terms carefully and solicit edits form everyone. By incorporating their changes they are becoming invested in the agreement.

- Encourage everyone to read the document one final time. You are intentionally slowing the process to ease the stress. Watch how others react to reading the document. If you see a cloud of doubt on someone's face, stop them and ask what is bothering them. You want everyone as comfortable as possible before placing pens in their hands.

- Review the reasons the others are agreeing to the terms and reinforce why their decision is a good one.

- Take a break and suggest a beverage or something to interject a chance to relax before actually sitting down to sign documents. Well timed breathers are a great way to diffuse mounting tension.

Decisions are pivotal moments in negotiations. Treat each decision, even the small ones, with respect. This builds a degree of comfort on the part of the other person in the process. Once a decision is made, reinforce why it was a good decision. It does not hurt to intimate that you may have conceded more than expected to build up the other's ego a bit. You want each decision to become easier as you build toward the really important decisions.

Negotiation, like any other process, can be managed. Who chooses to manage the process will likely prevail at the end of the day.

Posted by Bill at 4:36 PM | Comments (1)

September 30, 2005

Problem Solving Skills and Negotiation

No one can negotiate until they understand the situation. Basically there is a problem to be solved that involves getting two or more people to agree on something. Basic problem solving is part of the skill set of any effect negotiator.

Defining a problem is critical. Often people fight over ancillary issues rather than the real problem. In a mediation the mediator takes the time to source, identify and quantify all the micro issues that create the underpinnings of the primary argument. Mediators are trained to resolve the ancillary issues so that the primary problem can be resolved.

Problem Identification Tips:

- Don't accept the obvious; seek out underlying issues or other problems. Often the other person or the parties may be unaware of the impact of these 'lesser' issues.

- Prioritize the issues and seek to resolve the minor ones first. This will create a more positive environment and may help lead to a global agreement.

- Seek to put emotional reactions in perspective. If you can diffuse any prevailing anger or distrust, you will have made a major advance toward reaching an agreement.

- Separate the "wants" from the "needs" and focus on satisfying the "needs" of each party. Often it is the "wants" that create the most separation. And they are the least important aspect of the problem once they are properly identified as "wants".

- Don't ignore or dismiss emotional needs or wants. Sometimes their satisfaction is more important to one of the parties than the monetary aspects of the situation.

Problem identification does not stop when you enter the fray. Listen carefully to what the other person is saying to identify additional irritants or issues. Listen for clues on how to satisfy a specific need using alternative consideration.

Problem solving is the meat of dispute resolution. By expanding the possible settlement options the mediator is seeking to solve the dispute by pairing unlikely party commodities so that both emerge feeling a sense of victory. Win/Win negotiating is not so much about appeasing both sides as it is about pairing needs and satisfiers so that both parties come away with more than they gave away in their minds.

Posted by Bill at 11:03 AM | Comments (1)

September 18, 2005

Iran's Stalling Tactic May Have Backfired

Dafna Linzer of the Washington Post on Monday, September 19, 2005 wrote an article, "Iran's President Does What U.S. Diplomacy Could Not" showing how Iran's new president bought his country some time. She wrote, "Facing mounting criticism after walking away from negotiations with Europe and restarting part of Iran's nuclear program, Mahmoud Ahmadinejad asked the world to withhold diplomatic pressure while he put together new proposals."">Iran's President Does What U.S. Diplomacy Could Not" showing how Iran's new president bought his country some time. She wrote, "Facing mounting criticism after walking away from negotiations with Europe and restarting part of Iran's nuclear program, Mahmoud Ahmadinejad asked the world to withhold diplomatic pressure while he put together new proposals."
We live in a fast-paced society. Between faxes, email, pagers and mobile telephones, there is precious little time taken to reflect on the negotiation once it begins. But the pace of the discussions is something that you can and should manage. Just because the other party is in a hurry is no reason for you to rush a response or even respond. Take your time, assess your options, and set your strategy carefully. Then respond. You gain power and authority by setting the pace of the negotiations.

Keeping the other person in the dark can also be useful. When you use delay as a tactic, you do not need to tell everyone. Sometimes the unknown can forestall an action that jeopardizes your position while you regain your composure. When you are fully prepared, go on the offensive.

Linzer postulates that when the Iranian president contined, "Ahmadinejad appeared to threaten as much when he warned from the General Assembly podium that in the face of U.S. provocation, 'we will reconsider our entire approach to the nuclear issue'."

But such tactics can backfire. "The effect of that speech will likely be a toughening of the international response to Iran because it was seen by so many countries as overly harsh, negative and uncompromising," Undersecretary of State R. Nicholas Burns said in an interview Sunday. "The strategic aim of a great many countries is to see Iran suspend its nuclear program and return to peaceful negotiations with the Europeans."

Posted by Bill at 8:00 PM | Comments (0)

Is an Enemy Required in a Negotiation?

In the September 17, 2005 edition of the Epoch Times there is an article about Sino-U.S. relations, the Storm Clouds That Cancelled the Sino-U.S. Summit Were Not from Katrina, by He Qinglian. In that article he explains the need for an adversarial relationship between the U.S. and China. “China’s ever-growing military power requires that China have an “enemy” so that the military can greatly enhance its political status and increase its budget.”

The Chinese government appears to need to make an enemy of the U.S. to keep control of its population. In normal life we tend to make our opponents our enemies. This is usually not the case. They just want something different than we do. Like the opportunity to make a profit or to win a point. An enemy is out to do you physical or fiscal harm. In most business negotiations that is not the intent of the parties. Divorce settlements may be different. The parties want to do damage!

It is not always productive to view your opponent as an enemy. One makes enemies and friends through their actions. Both your enemies and friends will talk behind your back. Realize just as you seek background information on others before a meeting, they will likely do the same. If the feedback they get about you is too adverse, you may never be able to have an open, productive dialogue.

Dangers of being viewed as an Enemy:

-You may be prejudged.

-You may lose opportunities if viewed as an enemy or staunch adversary.

-You may have to overcome fear and hostility from a perfect stranger.

-It will take twice the effort to convert that enemy to be a friendly associate.

He Qinglian goes on to say, “A short while ago, General Zhu Chenghu announced the intention of using nuclear weapons against the U.S. The explanation offered by the Chinese government, that Zhu’s speech only expressed his own personal opinions and does not represent the Chinese military, is not convincing. Looking at the changes in the relationship between the two countries, whether a state of military neutrality will last depends on whether or not the Chinese civil system is strong enough to manage the military.”

Beware of letting your prejudice block your ability to negotiate. Yes, you have to watch your enemies to see the strike coming before it hits; forewarned is forearmed. Don’t let an impression of your enemy hinder communications. Through a dialogue you may find he is not the enemy but a potential ally.

Posted by Bill at 10:28 AM | Comments (0)

September 8, 2005

Negotiation Barriers

An anonymous complaint is filed against Deputy Chief Brenda Johnson, the lead character on the new TNT series The Closer, while she is busy investigating the murder of a Hollywood producer. The investigation threatens to jeopardize her career. Rather than take the easy way out by pretending to be contrite to stop the investigation, Brenda focuses on breaking the case. Her squad members, knowing of the pending investigation, work behind her back to thwart the unfounded case against her.

Negotiators are human. They are subject to being distracted by personal problems, other matters and even exhaustion. To a lesser extent, they can be distracted by delays in a meeting, antagonistic behaviour of someone in the room, or even by the light coming in through the window.

Being comfortable is an essential ingredient to being effective as a negotiator or mediator. Before entering a settlement conference put aside you personal issues and clear your mind. If the other issues are such that you can't do this, don't start the negotiation. Ask for a postponement or send someone else. You need to have all of you faculties focused to do the job properly. Such distractions are barriers or obstacles that stand in the way of a successful negotiation. Better put, barriers are obstacles to effective communications.

In order to have an effective discussion, the people party to the discussion have to be able to hear, be heard, and understand each other. If you sense the other person is distracted, make it your responsibility to expose the cause. If it is going to impede the other person from listening or focusing on what you are saying, you may want to suggest postponing the meeting. If you feel it will cause the other person to rush through the meeting and grant concessions to wrap things up, then it may be advantageous to proceed. Until you know the situation, you can't judge what the impact will be on the negotiations.

You may actually want to call their attention to the fact that they weren't listening and ask them why. While this second tactic may seem rude, it can often uncover the reason for the barrier that can then be removed. For example, I recall a situation where the other person replied, "I'm really sorry, my daughter is very sick and I'm distracted." To this I said that I was sorry to hear about her daughter and we put off further discussions until the personal problem was resolved. In understanding her personal need, we dealt with each other as real people. This helped us to overcome some of the tougher issues we were facing as we had built up a level of trust and respect. The point is that unless communications are being heard, they should be forestalled until the other person is ready or capable of hearing what you have to say.

The mere act of acknowledging barriers to communications can give you the opportunity to work together to start to agree on how to resolve the barriers. Then it will be easier to discuss and resolve the real issues.

By the end of The Closer, Deputy Chief Johnson's staff had demonstrated to her and to the LAPD that she was finally accepted. This will change for the better how they function as a team.

Posted by Bill at 7:42 AM | Comments (0)

August 22, 2005

Collateral Damage Assessment.

Michael Scheuer, one of the CIA's foremost authorities on Bin Laden, says his agents provided U.S. government officials with about ten opportunities to capture Bin Laden. All of them were rejected. One of the last proposals, which he described to the 9/11 Commission in a closed-door session, involved a cruise missile attack against a remote hunting camp in the Afghan desert. Bin Laden was believed to be socializing with members of the royal family from the United Arab Emirates.

Collateral damage is a seemingly unique human concern. It comes from living within social structure and being concerned about how one's actions might impact those around the targeted objective. In war, collateral damage pertains to loss of civilian life when taking a military objective and the potential of losing support at home or from one's allies. In negotiations, collateral damage can mean damage to one's reputation or the company's reputation if unilateral actions are taken.

Often the easy victory is foregone in favor of the collective good of a grander plan. But if you lose enough skirmishes, the war might become hard to survive.

The best way to manage collateral damage is to maintain a proper perspective as to the importance of the issues being discussed. If they are related to other issues, make sure you are addressing the big issues before you bring in your really big guns. Don't waste too much of your power base on minor issues. If you win the major battles, the small issues will likely fall into place in time.

Posted by Bill at 9:48 AM | Comments (0)

August 21, 2005

When to Use Power

"The use of force is the last option for any president. ... You know we have used force in the recent past to secure our country." -- --U.S. President George W. Bush, on the possible use of military force against Iran.

POWER

Power is a constant in all negotiations. Understanding the dynamics of power in conflict settings is essential to mastering its potential. Skilled poker players know that for a bluff to be effective you must first establish yourself as being a competent player with a tendancy to back up your bets with good hands. The public remarks made by President Bush certainly deliver that message loud and clear. As he has done in Afganistan and Iraq, he has used our military when negotiations fail. By rattling his saber, President Bush is pressing Iran to soften their resolute posture before he is forced to act. This does not mean he wants to act. Only that he might act and is not afraid to do so.

Power can complicate negotiations. Viable deals are often missed because one side assumes the other will not negotiate or will take undue advantage of their strength. This false assumption can result in an acceptable offer never being tendered. In fact, were a proposal made, there is always a chance that it could lead to a satisfactory result.

Everyone has power in a negotiation if they have the ability to walk away from the "table". A powerful person or company does not always hold all the cards. No matter your net worth, company size or investment in the situation, if you can get up and walk away, you have a degree of power. You have the power, and it is absolute, to say "No!".

In today's world, every nation appears to be vying for their own power base to remain significant on the national stage. Iran and North Korea are using the threat of obtaining nulclear status to grab the center stage while the rest of the world is trying to diminish the nulclear threat. America is very aware of the growing threat and is putting them on notice. We may just have to use the power we have to thwart their efforts as we have done in the past. His statements are to be taken seriously as he has the track record of doing what he says he is going to do. Saddam did not listen or believe. Hopefully others will.

Posted by Bill at 9:38 AM | Comments (0)