Advanced Negotiation Tactics

Advanced Negotiation Tactics Gaining control in a negotiation 1. Negotiations can be emotionally intense 2. Maintain control over reactions 3. Do not want the other party to dominate the negotiation’s direction

Steps 1. Calm the negotiation environment a. Humor – do not use in hostile environments as it can be perceived as insulting. b. Take a break 2. Emphasize common goals 3. Check for understanding a. Restate or rephrase other party’s comments b. Allow other party to confirm understanding 4. Concentrate on the immediate issue a. Avoid muddling the process with multiple objectives b. Assure the other party that every objective will be addressed c. Ask the other party what he/she wants to discuss first & concentrate on the issues one at a time.

Using questions to control negotiations • • •

Reduce other party’s defensiveness Demonstrate willingness to listen Control negotiation’s direction

Types of questions •

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Open-ended o What o Why o How Closed-ended o Do o Did o Have Confirming

Questions that find the other party’s purpose Questions that overcome barriers to agreement

Addressing control in negotiations • •

Determine your objectives and limitations Develop your alternatives

Understanding negotiation tactics 1. Highball / lowball a. Prep activities i. Be well prepared ii. Be able to identify offer as too high or too low b. Response i. Tell the other party ii. Stress desire for fair negotiation 2. Delays / time pressures a. Response i. Show concern ii. Stress the need for timely agreement iii. Give an unavoidable deadline iv. If you feel rushed; insist on more time 3. Stonewalling a. Response i. Maintain composure ii. Openly review your proposition iii. Question the other party’s willingness to negotiate iv. Stand behind your offer 4. Bad temper a. Response i. Remain calm ii. Do not allow it to upset you iii. Listen to the other party iv. Allow the other party to finish complaining v. Show genuine concern vi. Use a sympathetic tone vii. Emphasize your willingness to work at meeting the other party’s needs viii. Request a break 5. Splitting the difference a. Response i. Accept only if agreement meets objectives ii. Explore other options 6. Good guy / bad guy a. Response i. Go along with it ii. Speak with “good guy” alone

Addressing negotiation tactics •

Control your emotions

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Determine how to respond to the tactic Maneuver the negotiation toward collaboration

Understanding legal considerations •

Must recognize and avoid illegal or unethical behavior 1. Fraudulent misrepresentation a. One party knowingly misrepresents material facts b. One party makes misrepresentation to induce other party to rely on the information c. The other party relies on misrepresented statement d. The deceived party suffers damage e. A cause and effect connection exists between damages and misrepresented information 2. Contract law a. A legal contract must contain the following 4 conditions: i. Agreement & assent ii. Capacity (mental capacity / cognizant of what is going on) iii. Legality iv. Consideration

Understanding unethical tactics • • • •

Concealment, overstatement, or understatement Intimidation Enticement (i.e., bribery or exchange of something that is illegal) Espionage

Response to unethical tactics • • •

Depends on tactic’s severity May need to end negotiation Take steps to counteract unethical behavior

1. 2. 3. 4. 5.

Acknowledge other party’s unethical behavior Emphasize importance of fair treatment Inform other party of consequences of unethical behavior Ask other party if they wish to continue Respond to other party’s answer