Just as authors say that to write means to rewrite, so can
deal-makers say that to negotiate means to renegotiate. Strikes,
lawsuits, changes in bargaining position or any other freakish
events can provoke a renegotiation. However, this much is certain:
The more ongoing your relationship with the other side, the more
likely that your deal will, at some point, need to be massaged,
adjusted and/or surgically reconstructed.
Think of renegotiation as a deal-making "do-over."
Thus, you've got to prepare. For the most part, take the same
steps and ask the same questions as when you cut your original
deal.
First, pause, step back and think. How exactly do you want to
change the deal, and why? Review your original goals and notice if
they've shifted. If so, ask yourself what happened-a little
introspection will keep you in touch with your own big picture.
Spend some time brainstorming. There are always other options to
renegotiation-for example, doing nothing or filing a lawsuit. And
there will be many options within your renegotiation. Please
consider them all.
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Second, get help. Would it make sense to hire the same experts
you used the first time around? Perhaps you need more or different
experts. If you're an aggrieved party, find out if there is a
licensing, professional or watchdog group that can help you
straighten things out. Is there something you should read to
educate yourself? For personal perspective, talk everything over
with someone close to you.
Review the history of the business relationship. If there have
been problems, be honest (with yourself, at least) about your part
in them-it'll make you a stronger businessperson. If you need
additional information, get it. Meet. Question. Inspect.
Investigate. Audit. Make it your business to know what has happened
and what is really going on.
As always, look for ways to minimize your risk.Would
restructuring or taking more control help? Can you get more
security, collateral or people on the hook? Would new or different
forms of insurance make a difference? Can you demand a more
favorable formal contract with stronger remedies?
If you've come this far, you should now be able to set your
goals for this renegotiation with confidence. Make a checklist.
Know which points you must have, which points you'd like to
have, and which are expendable. As you sit down at the bargaining
table, try to see things from the other person's point of view.
Work together on what's not working, if you can. But recognize
your leverage: If you've got it, now's the time to use
it.
Ultimately, if the renegotiation is successful, everyone will
shake hands on the deal (once again). Make sure you get your new
deal in writing, of course. Among other things, your newly written
contract will come in handy when you sit down to renegotiate
again!
As the Greek philosopher Heraclitus said, "The only
permanent thing is change."
A speaker and attorney in Los Angeles, Marc Diener is the author of
Deal Power.