If you don't know exactly who you're up against, you
could shake on a deal and walk away missing a few fingers. Improve
your chances of success by finding out in advance the answers to
these questions:
1. Who's got the upper
hand? Few negotiations occur between evenly matched
players. How do you stack up against your opponent? Who's got
superior leverage, bargaining skills or momentum? Who wants the
deal more? Strategy starts with assessing the other side's
strengths and weaknesses, as well as your own.
2. Who's the
decision-maker? Know whether you're dealing with a
pawn, a bishop, a rook or even the king himself. Note titles, but
remember they mean different things in different companies. Ferret
out the true pecking order. Find out how approvals are given so
that you can move things along.
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3. What's negotiable; what's
not? Choose your battles carefully. Because businesses
institute uniform policies to help them run smoothly, declaring an
issue non-negotiable is just another way to steamroll you. Work
your grapevine. Your best sources are either inside the company or
what you've learned from previous negotiations.
Know whether you're dealing
with a pawn, a bishop, a rook or even the king
himself.
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4. What does the other side really
want? Consider this classic anecdote: Two kids are
squabbling over the last orange in the fridge. When Dad hears the
ruckus, he goes into the kitchen and is sure he's got the
answer. He slices the fruit into equal halves and gives one to each
kid. Surprisingly, no one is happy. Why? Because one kid just
wanted the pulp, and the other just wanted the rind. The moral is,
don't jump to conclusions about what the other side wants. Try
to find underlying interests. Often, the differences between two
companies make agreements possible.
5. How does the other side
negotiate? You'd think that a bumpkin would be a
pushover and a veteran would negotiate the shirt off your back.
Sometimes, it's just the opposite. An ace knows the ropes,
evaluates concessions and recognizes a fair deal. A naive
opponent's too insecure to give and take, so he or she
stonewalls. It's especially important to build trust with
beginners.
Last month, I discussed gender and negotiation. In a world
increasingly dominated by international, multinational and
transnational corporations, cultural differences are just as
important whether you're dealing with foreign businesses or
second- or third-generation Americans. Check out the literature on
the topic, because it will probably apply to many of your
encounters.
We all bring our quirks to the bargaining table, so heed the
words of the great financier Andre Mayer: "The merger business
is 10 percent analysis and 90 percent psychoanalysis."
A speaker and attorney in Los Angeles, Marc Diener is the author of Deal Power: 6 Foolproof Steps to Making Deals of
Any Size.