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Tuesday, December 27. 2022Negotiation TimeRecently, I was sent by my company to a class to learn how to improve my negotiation skills. I'm actually pretty good at negotiation. In the class (of 8 people) I scored 3rd highest - which I thought was "very good" but was told "those who do best are the ones who do the worst and learn the most." So maybe I wasn't as successful as I thought. In fact, I learned afterwards I'm more 'sales' than 'negotiator'. Useful skills in leading up to a negotiation, but sales can derail a negotiation (as I learned to my surprise). I will never again confuse sales with negotiation. Which I have always done. I did not see them as fully separate skill sets - until now. I always felt negotiation is a part of the sale. I learned the hard way it's not. Basically, negotiation is about firmness, employing the proper behaviors as called for within the context of the discussion, and doing what is appropriate. To start with, there is no such thing as, or room for, 'fairness'. This was fine with me. I don't believe in the term 'fair' as it is subjective and most commonly used by 4-8 year olds who just want their way. Yet, I learned that there is a mindset of 'fairness' which almost all of us employ. I had to train myself to stop using it. It is a training that will take a long time to break the habit. I learned there are 12 different kinds of negotiations, ranging from basic haggling to complex, multi-dimensional relationship building (more suited to the roles I have had). Each kind of negotiation requires different uses of the skill sets of negotiation - and knowing how to employ them properly and credibly. I learned there is no 'winning' in a negotiation, even the most basic one. While many say "win-win" is the "goal" that's actually not really even a goal. It's just a part of one guideline. A very useful part, but just a part. The main takeaway is a form of quid pro quo, "If you do X, then I'll do Y" is a key tool of complex negotiations. Getting to this understanding, however, means learning how a negotiation can spin out of control, and often simply because two sides enter the negotiation by not paying close attention to what the other side is saying, or believing they have different goals and trying to achieve them willfully. The course took 3 intensive 12 hour days of work, conversations, practice negotiations, filming your behaviors. It was, in a word, transformational. I'm by no means a master of negotiation, even now. I have, however, been provided the skills and knowledge I need to continue to improve myself. At the age of 60, that's saying quite a bit. It shows my company has great faith and belief in me to spend the money they did for me to take this coursework. I have always enjoyed learning about anything in which I've regarded my skills or knowledge as weak. I learned I was weak here, and that was a good thing to learn, in itself. Sadly, I can't say much more about the course. I will, however, happily share the name of the group - The Gap Partnership - which provides the coursework. It is expensive, but I have assured my firm it was worth every penny. As they said in the course, what you get in life is what you negotiate. I do believe this now. Oftentimes, we're not even aware of what we're negotiating for. It's not ignorance, usually. Just lack of awareness. Trackbacks
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Learned the most important negotiation skill in the 7th grade. A friend would sell his lunch that his mother made and wanted a dime for it. His mother made killer sandwiches and desert. He wanted a dime, I offered 5 cents. He said a dime or he would throw it away. I said 5 cents. He unwrapped the sandwich and desert and tossed them in the trash. The skill? You have to be willing and able to walk away with nothing. Just walk away from the deal.
100%
If you can't walk away from a deal, then you're likely being suckered. Few people, in real life, will toss away something when they aren't getting what they want for it. 5 cents is better than nothing. He may have exhibited a negotiation skill, but he ultimately lost in that transaction - and that was clearly a skill in negotiation he needed to learn (and hopefully did). That is what I thought at the time. How stupid was it to lose the 5 cents just because you wanted more. BUT, this happened in 1956 and I never forgot it. It was a huge lesson. He could walk away from the deal. In fact he could throw it away and not care. The extra 5 cents meant nothing to him in the long run but here some 65 years later I still haven't forgotten the power of the party you are negotiating with knowing that you would sabotage the deal and walk away if you didn't get what you wanted.
A few years back I spent about 3 months to buy a new Jeep Wrangler from a big dealership. After about a month or so none of the salesmen would talk to me so I was dealing directly with the sales manager. I offered on half a dozen Jeeps and they didn't accept my offer even after haggling and getting them down to a pretty good price. I was just being stubborn. Then they got in a jeep that was exactly what I wanted and I kept haggling and the Sales manager finally made a deal $13,500 for a brand new Jeep Wrangler. I think he was just tired of seeing me. But I got my Jeep and I paid a super low price for it. And every time I refused the deal they offered me I remembered that day when my friend tossed the sandwich rather than accept a deal he didn't want. The two times I got something for an incredibly good price in the world of haggling was when I really didn't care of I got them.
I was in a shop in a middle eastern market with a friend. The friend really wanted to buy something. I was just there for company. I saw something I liked and casually asked how much. He quoted some price. I said "thank you" and put it back. He kept coming back to me, "Why don't you make me an offer?" And I just said, "It's very nice, but I can't afford it and anything I over will just be an insult." Then he started naming prices. I'd say, "That's a good price, but I really can't afford it." Then he'd ask me to name a price and I'd just respond, "I can't. Anything I'd name would just be insulting." Finally, he got down to the equivalent of ten dollars. I know he was still making money off of it at ten dollars, but at ten dollars, I thought, "What the hell." It was a gorgeous embroidered shawl. But I didn't really want it and was fine with walking away at any time. But at ten dollars, it was, for me, a great deal. The other time, it was similar. I didn't really want it. For those interested: "The Negotiation Book", or the recently released 3rd edition "The Negotiation Book: Your Definitive Guide to Successful Negotiating" by the founder/CEO of the Gap Partnership.
Always happy to speak more in person. There are parts we all agreed not to share - losing the surprises makes learning the skill more difficult.
I can describe certain parts of it, but if I explained the whole thing, it doesn't translate well. Not to mention, the experience that you go through is critical to absorbing the information. It's hard to explain here without giving too much away, unfortunately. I went to negotiation class so long ago that Dr. Chester Karrass was the teacher.
I remember having a negotiation program that was a series of lectures on disk, that I would listen to as I drove to work. I had a long commute back then. But I understand completely the distinct separation between 'making a sale' and 'conducting a negotiation'. Very different skills, mentality, awareness. The course came in handy when I was tendering and negotiating the contracts that support drilling programs, but I was not in the lead - usually that was a lawyer or procurement specialist, and I was there to supply the engineering expertise.
I probably only absorbed about 25% of the course material, and I'm not naturally a person that negotiates from strength - but I found it very helpful and I enjoyed the back-and-forth with the contractors' side. Negotiators are a different breed, interpreting signals and leveraging the motivations of others. It's a very specific skill set, and it's not entirely nice to be around someone that does it for a living, with a passion. You always suspect you're being played. It's kind of like socializing with a psychiatrist. A good friend of mine, a lawyer, asked me how I liked the course.
I told him he probably learned most of this in law school (he negotiates contracts). He agreed. It is funny that in almost all legal conversations I've been involved, the lawyers take the lead. In fact, I've been involved in other contract negotiations with salespeople - only to learn after the fact they had law degrees, which explained their studious and direct style. I observed a lot of negotiation without being much good at it myself--I'm more the person who documents the deal accurately and thoroughly. I found negotiations went best if the business people were clear about their priorities and the areas where they could afford to be flexible, while the lawyers were tactful but firm about identifying the lurking risks and suggesting ways to limit them so that the agreed price was close to the true price. It's unpleasant surprises that derail contract compliance and enforcement. A really good legal negotiator has the experience and imagination to see where things could go unexpectedly wrong and sort out in advance what the parties think should happen in unusual cases, so no one feels snookered.
I recommend the Black Swan Group for negotiation.
One of the founders was an FBI negotiator for hostage situations; Chris Voss. He was in situations were the stakes were high, "give me a car or I will shoot a hostage". His book 'Never Split the Difference: Negotiating As If Your Life Depended On It'. https://www.amazon.com/Never-Split-Difference-Negotiating-Depended-ebook/dp/B014DUR7L2 Their YouTube channel https://www.youtube.com/@Blackswanltd1 Their techniques are highly influential on me. Funny.
"Never split the difference" was a mantra throughout this course. The concept is simple. If you're splitting the difference, one of you is leaving something on the table - and it's usually you if the idea isn't yours. You have to get a feel for what the other side REALLY wants. Then you can decide if splitting the difference is a legitimate option - but most people fail to take the time to determine this. Even if you do this, then you may wind up losing. During the training, I was involved in a conversation over a (fake) sale of a business. We were literally $1mm apart and there were a few odds and ends left on the table. He says "how about we meet in the middle? (split the difference)". The minute HE said that, I agreed, but only if he gave up one other point. At that stage, he'd given me the signal that he'd gotten what he wanted. I guess he thought he was being tricky by changing the language, but after we broke the deal down, he laughed when we got to that part of the discussion point. He admitted he knew splitting the difference was in his favor - and hoped I'd gotten everything I wanted. His mistake was thinking the money was all that mattered. That's the interesting part, though. In a lot of these negotiations, the money is only secondary to many other complex moving parts. I had the hardest time telling my boss he was a terrific salesman but not the guy to make contracts. That became my job- learned from Dale Carnegie courses and watching my first boss.
Speaking of negotiations, I just read somewhere that about half of the Chinese that are arriving on flights from China are infected with COVID. Isn't this pretty much how they did it last time, with the flights from out of country? I seem to remember that Italy got hit particularly hard and that it was directly traceable to foreign arrivals from China.
As should be evident from my nom de blog, i am a retired lawyer. I spent nearly forty years negotiating settlements, and learned that there are some things that can not be negotiated. It is well to recognize those things at the outset so as to not waste one's time. For example, the issue of one's eternal destiny is not negotiable. It is rather more like win/lose, and if you err, the outcome is rather tragically final. Pascal knew this. You should learn it as well.
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