Aug 1, 2003

Take It Or Leave It: The Only Guide to Negotiating You Will Ever Need

 

Of course, much of this advice depends on what kind of negotiator you are in the first place. In Bargaining for Advantage, Shell urges the reader to figure out his or her own hard-wired approach to negotiation, perhaps by way of a psychological test like that Thomas-Kilmann Conflict Mode Instrument, which will tell you whether you are a "competitor" or a "collaborator." His point is that you need this framework both so that you can work with what you've got and so that you know which aspects of your style might be causing you problems. If you're too competitive, you should probably reel that in; if you would rather just avoid negotiating altogether, you need to convince yourself that this attitude is costing you. Your mindset, he says, is more important than tactics: "Effective negotiation is 10% technique and 90% attitude."

And in varying ways, all negotiation advice says the same thing. It seems the best negotiators rely not on overwhelming personalities or that secret list of five tricks anyone can memorize, but rather on something closer to a specific state of being. Shell suggests that to achieve the right attitude you need "realism, intelligence, and self-respect." Power of Nice commands you to "Be a better listener." Camp says that "high self-esteem" is "absolutely required." Chester Karrass says much the same, noting that "this feeling of self-worth should come from a history of getting things done satisfactorily." He notes elsewhere that the best negotiators have "the ability to think clearly under stress." Getting to Yes advises a stoicism in the face of adversarial attacks that is almost saintly. "Figure out what you fear most," Dawson advises the intimidated, "and do it." Steinberg describes himself as having (and the reader as needing to acquire) "utter clarity," a thorough understanding of one's self, "the ability to be in an absolute state of denial about the ultimate catastrophe of an unsuccessful negotiation," complete self-assurance, "as comprehensive a knowledge base as possible about every conceivable subject," "extraordinary stamina," and the ability to "rapidly factor figures" in one's head while negotiating. How long would it take to acquire all that? Camp is perhaps the most honest about how difficult it is to enact the behavioral changes he recommends when he cites "theories of learning" that estimate that "we humans need about 800 hours to truly master a complex subject and the habits necessary for its application."

Eight hundred hours! That sounds awful. But it points to something that is almost certainly true, which is that you can listen to or read all the negotiating advice you want, but the only way to acquire the poise under pressure to use that advice in real time is by way of extensive practice in the real world. And sure, maybe you already negotiate several times a day, but bickering with your spouse over who does the dishes isn't going to help you steer your start-up through a complex merger agreement. Advice is nice, and all of these books make useful points, but they won't transform you into a different person. In the real world, that takes a commitment in time and effort that many of us would make a deal with the devil to avoid. But perhaps, at some level of your experience, you already knew that.

Sidebar: How to...

Close the Deal

Lindsey McAlpine
CEO, The McAlpine Group LLC
Charlotte, N.C.

About 14 years ago, I was a young man anxious to work on my first real estate project. I met with a much older industry leader who was selling a piece of land in Charlotte. Perception of ability was the key issue in the negotiation, and his perception was that my ability was not there. Sensing that, I said, "Look, I have an experienced partner. I can't tell you who he is, but he won't agree to these terms."

I sat back and waited to see what his answer would be. Then he said, "Let me think about it." But I had a feeling he wasn't going to give me the answer I wanted. I was scared to admit I had pulled a tactic on him. So I held my ground, and we agreed to meet again the next day. Within 24 hours I had to go and get a partner. My entire goal was to find a man who was older than 50 with gray hair -- what I call, to this day, my gray-headed equity. I asked an older friend in the industry to partner with me. His sole role in that meeting 24 hours later was to sit there and look mature. That's all he had to do. And you know what happened? The old man signed the deal. We had already agreed on the basic points, but my gray-headed equity pushed it over the top.

Treat Your Adversary With Respect -- and Win

Bernie Tenenbaum
Former president of RBT, subsidiary of Russ Berrie & Co.
Oakland, N.J.

After we acquired the company that made Koosh Ball, it was my job to ensure that sales and profit would go up. We flew to Hong Kong to meet with key vendors to see if there was an opportunity to improve pricing, and we tested the integrity of the current vendor's price with a second manufacturer and found we could get the balls for 3¢ less per ball. Then we had a very elaborate dinner with the current manufacturer and his whole family to find out whether it was possible to get his price down. You have to imagine, we're sitting in this room, 16 people at the table, and we're trying to accomplish three things. First, we want to have a good relationship. Especially in China, your word really matters and the honor you give your partner means everything. If we had walked in and said, "I've second-sourced your product and can make it for 3¢ less," he might have walked away because we would've embarrassed him. Second, we wanted to let him know we were growing the business and there was an opportunity for him to make more products for us. Third, we had to ask for his help. We never told him he needed to lower his price; we asked, was there anything he could do to help us? He understood what that meant, and he came back with a price that was a penny below the second source.

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