8 Strategies of Wise Negotiators Straight from the mouths of successful CEOs, these strategies will give you the upper hand in any negotiation.

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."

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.")

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.

5. Turn Envy Into Energy

Successful CEOs are happy with what they have and who they are.That doesn't mean that they don't want to grow and prosper.They just know the importance of being happy with what is takingplace in the here and now.

That may not seem like a trait for successful negotiation, butit is. Envy saps energy and poisons relationships; admiration ofanother's positive traits and accomplishments is a supremecompliment that helps you focus on what you need to improve in yourlife, your business, your relationships, your finances--and yournegotiating posture.

Sam Katz, CEO of Sam Katz Inc., says: "Don't try to bea wise guy! Skip the typical sales spiel--which usually coverssomething negative--and stay on-purpose." (Sam also points outthat we tend to play power games with people we envy, and headvises against this: "Whenever you're in a negotiationnever, ever interrupt the person doing the talking." Hisreasoning? Interrupting that sounds like interrupting looks like anattempt to shift the power, control and authority away from theother person and onto you. Not a good idea.)

6. Avoid the OtherPerson's Problem(s)
This is a great (and simple) "negotiating tactic" thatmore than one of the CEOs I interviewed for this book mentioned. Itis also one I've used regularly over three decades ofnegotiating with CEOs and other high-level contacts.

This tactic is all about not inheriting someone's unresolvedproblem as your own. If I had a dollar for every time I'veheard "We don't have that amount of money in ourbudget," or "We don't have a budget," or"Your price is too high," or "I don't have theauthority," or "We can't move forward rightnow," or "We need this by no later than nextMonday," I'd be a millionaire. Look at all these typicalresponses again, and you'll see that each is an attempt to putthe buyer's issues onto the seller's list of problems.

Instead of fighting the problem, putting it off until"later on" in the negotiations or throwing a new one intothe mix, what would happen if you approached the problem from thestandpoint of finding a solution--of acting as a consultant withthe responsibility of finding an outcome that makes both sideshappy?

Keith McCumber, CEO of Daylite Systems Inc., urges you toaddress of the issues whenever they come up. Prompt the issues, anddon't pick up any baggage that doesn't belong to you."Beware of any term or condition that is put off for laterdiscussion. When someone says, 'We can discuss this at a laterpoint--I don't see this condition as being a big problem,'watch out!" This "insignificant" issue is verylikely the deal-breaker that will be rolled across the table whentime is running out for you, the seller (i.e., it's gettingclose to the end of your quarter or fiscal year, or some otherimportant deadline is looming). CEOs and other effectivenegotiators know that people tend to become much more flexible whenthe time is running out.

Heed McCumber's warning. Don't wait until"later." Deal with the issues now!

7. Do the CEOSwagger
To think, sell and negotiate like a CEO, you must understand thatmore than anyone in an organization, the CEO has the ultimatewalk-away power. The power to walk away is the most profoundnegotiating tactic that a CEO will use. She/he basically says"I am totally willing to pass on this opportunity." Thereis a big difference in that thinking vs. "I am going to getthe price as low as I can before I buy." Walk-away power takesthe opportunity past the point of no return. The winning party willconvince the other party that they can and will walk away from therelationship (buy or sell). Keep in mind that the goal here is notto actually 'walk'; the goal is to get the other party todo whatever the 'walking' party wants them to do.

Joe Mancuso, CEO of the CEO Club, points out there are two verydistinct ways to protect yourself against this tactic:

• Increase your options. If you're looking to contractwith a business consultant, make sure you've got at least oneother business consultant that you would hire. This way, when itcomes to "walking" on the first one, you've got abackup.
• Make sure you don't give too much early on in theselling or buying process. The point here is that "giveand take" makes much more sense than "give and give somemore." If you and the buyer/seller both invest in therelationship, you're more likely not to run into the"walk-away" tactic at the bottom of the ninthinning.

8. Ask for theStars
Asking for more than is expected (moving beyond expectations) is agreat trait of the CEO. You'll be able to see this one comingif you're a salesperson because you're already conditionedto the "do whatever it takes to get the sale" mentality.CEOs know this, too. Therefore, be prepared, and you may even wantto use this yourself when you're on the"seller's" side of the table. By doing so, you'llbe modeling an important CEO negotiating trait.

Consider this about asking for more than is expected:

• It's one of the only ways to establish perceived valuebeyond actual value. Example: ask your prospect CEO if theywould be willing to be used as a reference site as soon as theyreceive their expected result or within three months, whichevercomes first.
• It gives a CEO room to "wiggle" later on.She/he can always lower their expectations. Example: in the spiritof "marketing mobility" (Chapter 13 of my book), ask yourprospect CEO to allow your products to be included in theirquarterly newsletter to their customer base.
• It tends to prevent "deadlocks" in negotiationsbecause it promotes free discussions of the most important issuesearly on in the process. Example: Asking for payment uponreceipt of order in place of the "normal" net 30 willhelp with your organization's net working capital and put thepressure on the "buying" organization.
• Asking for more than is expected will almost always create afeeling that the other person has won when the expectations arelowered. Example: Giving net 30 in the above case will almostalways make the "buying" CEO happy, and you'll beright where you need to be.

The next time you find yourself at the all important negotiatingtable, keep your eyes peeled for one or more of the eight traitsthat I've mentioned here. Until next month, Happy Selling!

Anthony Parinello is the author of the bestselling book Selling to VITO, the Very Important TopOfficer. For additional information on his speeches, SalesSuccess Kits and newest book, CEOs who Sell, call (800) 777-VITO orvisit www.sellingtovito.com.