Negotiation Tactics

Tactic #1:  Convert Feelings into Measurable Goals
Before you seat across the table and begin your negotiations, make sure you have clearly   defined goals. Be very clear on what you want to achieve through the negotiations. For example, “Buy the XYZ Honda Car for less than $15000” is more measurable then “I want to buy my dream car”. Always try to attach measurable outcomes or indicators to every goal, regardless of how intangible or emotional the goal may be.

Tactic #2: Know your needs: The Why Questions
To reveal your underlying interests, ask yourself the “why” question.  Why do you want a particular objective?  For example, Why do you need a car? Do you want the car to go to work, or do you want a particular model of car to show people that you are successful? 
Why are you looking for a house in a particular section of town?  Because it is a better neighborhood, or do you need a larger house because your family is expanding?  And why do you want to live in a particular section of town? 
Use this tactic to explore your underlying interests. Ask yourself as many questions as possible beginning with “Why do I want…” Then answer them, possibly with another question in the same form.  Eventually you’ll hit bedrock – when you can’t ask another question – and then you’ll truly understand your underlying interests.

Tactic #3:  Investigate the opposite party
Make best efforts to find out what the other party’s underlying needs are.  If you can obtain this information from a third person, then your job will be simple. Very often, you will have to know about the opposite party’s interests by asking them questions, without making them alert. 
How you word these questions will help or hinder you in obtaining responses. Avoid judgmental styles of questioning.  For example, if you say, “Why do you think you can sell this house at such a high price?” you will simply put the other party on the defensive.  But if you say, “I’m not sure why this house costs so much. Can you explain?”

Tactic #4: Develop Alternatives:
It’s easy to develop alternatives, but most negotiators never make effort. If you have alternative, you can gain a significant advantage during the negotiations. You should always take a moment to think of alternatives.  Often it is as simple as asking a few questions. If you haven’t had time to develop alternatives before the negotiation begins, try asking the other party during your negotiation.  Amazingly, they will frequently supply the information you want.
For example, let’s say you call a resort hotel to make a reservation for a vacation that requires you to stay for two nights – only to find that only super-luxury suits are vacant, requiring you to pay almost double money.  You could grin and bear it, paying for the super-luxury you don’t need. Many guests do - that’s why the resort persists in the policy. But why not develop alternatives?  First, ask to speak to a supervisor (who presumably would have the authority to negotiate), and then ask her/him politely to give you the names and numbers of other hotels nearby in case you can’t get the reservation you want.
This innocent question, followed by a momentary pause in which you write down the numbers for other hotels, puts you in a better opening position by letting the point sink in that you can very well take your business elsewhere. When the dust settles you should get what you want –because you have invoked the threat of exercising your alternatives.

Tactic #5:  Shut Up
You can’t give anything away if you don’t talk.  In fact, how much you give away is generally proportional to how much you talk.  The one who talks the most, very often, loses.
So why is it so hard to shut and listen in a negotiation?  It isn’t hard for everybody.  Many negotiators are comfortable with long periods of silence – a cultural difference that gives them a natural edge over more talkative persons.

Let’s think quietly about that for a minute.  (Wait one minute before moving on to next sentence).

Okay.  We’re back.  Did you squirm a little while we were sitting here silently?  Were you tempted to fill the void?  Most people are.  Leave a thoughtful gap in the conversation and you might simply hear some useful information about their concerns. Whatever you hear, it is likely to help you understand the other party and design your next move.  And even if you hear nothing of value, you can still have the satisfaction of knowing that by being quiet you gave away nothing of value.

Tactic # 6:  Ask and Then Shut Up
Here’s a variant on the “shut up” tactic that works well when you need more information.  Use silence to bracket a question, focusing the attention of the other party on a topic of your choice.  All you need to do is to be quiet for a moment, then ask a question, and then wait silently for an answer, or (often) a string of answers as the other player fills the silence.

Tactic #7:  Tilting the Playing Field
This tactic uses lots of small advantages in order to create a negotiation context that favors you strongly.  Every negotiator will have his set of needs that shall be fulfilled. In fact these needs can be the problems that need to be solved. That’s why he is sitting across the table!
Think of each context issue as one of the many pawns on a chessboard.  Alone, the pawns are powerless. But together, they can create a bind that limits the other party’s movements and enhances your power. Here’s how the strategy works in chess: When one side’s pawns and pieces are so well positioned that they prevent the enemy from moving freely, a bind is created.  A player who is in a bind is not only cramped and unable to make freeing pawn moves but is also vulnerable to attack.
In negations, your pawns are all the details of the situation. Typical restrictive barriers can be business goals to be fulfilled (revenue targets), time (the deadlines), availability of resources, etc. 

Tactic # 8:  Buying Time with adjustment:  Diplomacy is the art of saying ‘Nice doggie’ to a barking dog, until you can find a rock to make him run away. Sometimes you feel very strongly about the outcome, but haven’t the strength to press for a satisfactory settlement through a Competitive, Compromising, or Collaborative negotiating style at the moment.  Maybe you lack support because you haven’t been able to get in touch with your management or some other powerful constituency.  Perhaps you are waiting for information, funding, or other resources to arrive.  Whatever the problem, your hands are tied behind your back.
In which case, you can use an accommodating-for-now approach to delay the negotiation.  The way to use this tactic is to make it clear that, while you don’t agree, you will go along with the other party for now – and discuss it again later on.  Use wording like “for now” and “until I have time to look into it” or “it’s okay for now, but I’m not satisfied with it and we will have to go into it later.”
                Such phrasing makes it clear that you are using the accommodating-for-now tactic, and have reserved the right to negotiate later on. 

Tactic # 9:  The Withdrawal Threat
Use this tactic to encourage a difficult player to begin a move. Sometimes you try to negotiate, but the other party acts as if they don’t care (a good negotiation tactic by other party!).  If your analysis of their position suggests that they need to strike a deal, then make it clear that:
1)      You have very good alternatives and aren’t locked into working with them.
2)      You are considering withdrawing.
Make these points unemotionally – don’t act angry or disappointed. Then wait a bit. Give them enough time to make it clear that you are waiting for a response (ask and shut up tactic).  If they value the outcome and/or relationship at all, they should signal their desire to keep you at the table.  They’ll do so by offering a concession, or at least by telling you that the deal matters to them. (In which case, you ask for a concession.) 
Or, in the worst case, they say they don’t care either.  But that’s okay, since you were at that point before using the tactic, so at least it didn’t hurt your position.  Either way, it’s often worthwhile to test their commitment by making them question yours.

Tactic #10:   Defusing Improper Behavior
What can you do if you detect unethical or illegal behavior in a negotiation?  Try the following sequence of responses, escalating only as far as needed to put the brakes on the other player.
1.       Ignore It.  Sometimes if you simply ignore unethical or illegal behavior, it will subside.  If not, then              
2.       Identify It.  Say what they’re doing and why you think it was wrong.  Don’t make it sound like a personal attack – try to be objective.  Often people will stop doing something wrong when it is brought in to view.  If not:
3.       Warn Them.  Say they are endangering the negotiation by continuing their improper behavior and that you’ll walk out of the negotiation if it continues.  If that doesn’t do it:
4.       Set Ground Rules.  Take time out to talk about how the negotiation is progressing, and try to negotiate new ground rules.  If you don’t get significant concessions, though, you should either walk away or, if you feel you can’t avoid this negotiation:
5.       Tell Them the Consequences.  Tell them how you will respond if they repeat the improper behavior.  Be clear in your own mind on how you will respond, so that this threat is realistic and actionable.  In general, threats should be about breaking off the negotiation, about using some kind of hardball tactic, or about appealing to a third party (like a boss) who has some power over the person you are threatening.
6.  Act.  If you decide to retaliate, you might try a very strong scolding, anger, or
even a competitive or unethical tactic of your own. Sometimes a tit – for – tat approach brings the other party into line – but not always, so this is a high-risk approach.  Besides, it often leads you to use unethical tactics that you don’t like, so in a sense you lose even if you win.

You should also consider two other actions that are easier to control:  withdrawing from the negotiation, and bringing in a third party with authority to stop the offending behavior.

No comments:

Post a Comment