8: Negotiations - Mastering the Evil Art
Negotiation is often seen as an unpleasant task: it implies that two or more parties are in conflict, each with its own goals, and doesn't want to give up anything in pursuit of them. (EN: my sense is the author is focused strictly on competitive negotiations, It stands to note that not all negotiations fall into this category.)
The author portrays a negotiation as a journey in which each party seeks to arrive at a future condition that is different from the present one (physically or perceptually). Each party approaches the negotiation with three considerations:
- Attractiveness - an outcome they seek to gain from the outcome
- Benefit - to be "better off" as a result of the outcome
- Cost - that the amount of benefit is worth the cost to them.
(EN: Notice this is "ABC" - so it's worth being wary of it. When authors attempt to create a memorable acronym, it generally distorts the facts. In this instance, that the first two are not significantly different, and that the notion of alternatives is completely omitted.)
The author mentions the long-term effects of negotiation: in some instances getting what you want from the present negotiation creates a long-term loss by damaging the working relationship with the other party and making them less likely to be willing to negotiate in future.
Establishing Rapport
Aside of gaining a tactical advantage by having intelligence on the opposing party, leaders must also use the information they have to build rapport. Largely, it's a matter of defining commonality as a basis for conversation. This works on both the interpersonal level as well as the practical level: understanding the needs and interests of the parties involved in a negotiation is necessary to define the common ground of the agreement that the negotiation is intended to achieve. It's stressed that building rapport isn't so much a matter of talking as it is about listening and understanding the position of the other party.
Using Psychological Profiles
The author provides a sample profile for negotiation, that detail aspects of the other party's character that may influence the way in which they negotiate, which can bhelp to avoid missteps such as attempting tactics that will not be effective (and may be counterproductive) given their decision-making preferences, emotional drivers, negotiation style, and other pertinent traits.
A Spreadsheet for Negotiations
The author describes a spreadsheet approach to gathering information pertaining to a negotiation.
Primarily, there are six factors to consider for each point of negotiation:
- Current Status
- Proposed Change - As a result of the negotiation
- Objective - The desired future state
- Risks
- Benefit
- Forces - Outside parties to whom the negotiator must answer 9and appease)
(EN: Each of the above factors can be considered for both parties to the negotiation, but the author focuses primarily on the opponent, presuming a negotiator knows his own desires and influences. I'd recommend being just as circumspect, or more so, about one's own motives to be clear about them. It may also be worthwhile to do a third analysis, of what the other side might presume our interests to be. Finally, the author omits a very important component, which is the alternatives available to a party in a negotiation - this is critical to a negotiator's approach.)
The author suggests keeping focus on the interests of the other party. So long as you can focus the discussion on them, you can maintain leverage (when the discussion shifts to your interests, the opponent has taken the tempo).
The spreadsheet is organized into six columns, per the six items above, and the author notes that each column may contain multiple items, and should be ordered by their importance to the party in question.
The basic tactics the author describes involve describing the situation, and how it is unfortunate for the other party - painting as ugly a picture as possible while avoiding blaming them for creating the mess (e.g., "the market has changed" rather than "you failed to predict changes in the market"), then painting yourself as an individual who can help them out of the mess they're in, forestalling on mentioning any benefit to yourself for doing so to avoid seeming overly mercenary (those details can be discussed later, in light of the value of the solution), and perhaps wrapping back around to the unfortunate things that might occur if they fail to solve the problem.
Hitting losses/risks twice is purposeful. When presented with an opportunity, people look for risks, which undermines the attractiveness of an opportunity. When presented with a loss, people tend to be more willing to seek a solution, and less critical of the details.
Also, be attuned to your opponent, especially for signs that your , analysis may be wrong ... there will be clear body language that tells you when you are off base and need to back away and rethink your approach.
The author also mentions the importance of giving others an "honorable out" - in any negotiation, the parties are in a position to need help from one another. Tactics that aim to disempowered your opponent by making them contrite about their own shortcomings merely make them defensive and hostile to the accusations you will be leveling at them, however oblique your approach.
Customizing the Pitch
The spreadsheet can be based on the objective facts of the situation, which is useful in negotiations of any kind and with any person, but if you have more information available about the other party, you can assess their perspective on the issues, perhaps add other factors to consider, and tailor your approach to the other party's character.
The author suggests some expectations you might have of an ENTJ personality type: they will be verbally expressive and at ease in a social situation, more interested with "big picture" issues, factual to the point of being offended by emotional appeals, and very interested in specific details that support your proposal.