I just finished writing Chapter 19 of my new book, Think and
Sell Like a CEO, due out in September from Entrepreneur Press.
It's on the topic of negotiating. I thought since the first
quarter of 2002 is all but done, it might be a good idea to share
with you some of the most advanced tactics that I've ever seen
for the all important task of getting what you deserve (or giving
up as little as possible). Here's a glimpse of what I've
learned so far from the people I considered to be the wisest, most
experienced people. Not too surprising, I imagine. Let's look
at the most profound yet subtle strategies for wise
negotiating…as practiced at the top.
1. Pick Your Battles
Carefully
CEOs who sell and negotiate successfully know that sometimes even
the most valiant fight may not be worth the potential loss it
entails. They know it's up to them to assign value to the
campaign they decide to take on or decline--not outside forces like
sales vice presidents or prospective customers. In other words,
good CEOs are more likely than most other businesspeople to
"walk" when they sense there will be no alternative to a
bad deal. They don't negotiate a deal just to be able to say
they've negotiated something.
Karin Bellantoni, CEO of I-Mark (the company that specializes in
"permission-based" voice-mail messaging systems), puts it
this way: "I'll only negotiate with people who can hear my
message."
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2. Leave No Loose
Ends
Once they take on a negotiating project--or any project, for that
matter--CEOs make sure everything on the "hot list" gets
taken care of. They can't afford to leave any loose ends in a
negotiating session, and they commit to following through on all
their commitments. You'll want to do the same. (Side note:
Every CEO I interviewed for this book had some personalized
strategy for making sure that nothing "fell through the
cracks.")
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Joe Gustafson, CEO of Brainshark, knows both sides of the
"get it done" equation: "I'll run fast and far
from salespeople and prospects who cannot clearly commit to what
needs to be done." Moral: Before entering a negotiation, make
your list and check it twice!
3. Know When to Ask,
Not Just What to Ask For
Successful CEOs know that you can't reap what you don't
sow. Their actions always seem to be in accordance with the
"ebb and flow." They get involved early in important
deals, they know when to wait, and they know when to push. This
trait comes in handy in negotiating sessions.
Emil Wong, CEO of Latitude, attributes this trait to an ability
to be involved throughout the sales process; he points out that the
sales and negotiating functions are really interwoven.
"You've always got to be 'closing' for
something," he says. "I need to get involved early in the
sales cycle. I can't wait until we're losing the deal or
until we're at an impasse. I'm not big on waiting until the
bottom of the ninth to get things done."
4. Don't Take
Shortcuts
CEOs have certain values that they just won't compromise.
That's not to say they are stubborn, but they do know how, when
and where to draw a boundary. Ill-advised departures from guiding
principles can carry huge costs, the most important of which are
non-monetary: lower self-worth, lower esteem, damaged reputation
and damaged self-image, to name just a few.
Keith McCumber, CEO of DayLite Systems Inc., has a core value
that says (as he puts it): "Learn to recognize early on when
we're looking at a situation in which we're unlikely to be
successful. I allow people to fail … but making the same
mistake twice is out of the question." This translates, in his
case, to highly focused negotiations, and hardly any that drag on
interminably.
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