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Clive Shearer
Management
by Design
By Clive Shearer

September 8, 1999

An introduction to negotiation

By CLIVE SHEARER
Special to the Journal

Negotiation helps you to get your ideas across, resolve an issue, compromise or develop consensus and use the art of give and take. Negotiation is found everywhere, from family matters to employee relations, in team and business transactions and in contract agreements.

It is all too easy to get emotional about a negotiation that affects us personally, so if you are emotionally attached to an outcome, it would be best to get someone else to negotiate on your behalf.

Three sources of power

  1. Power comes from knowing more than the other person, so do your homework before the negotiation commences.

  2. Power stems from time, which can be an ally, but only if you control it.

  3. Power is linked to leverage -- using the control you wield to influence the outcome.

Use all three sources of power if you can. Research the background needs and past outcomes. Give as little information during negotiation as possible, identify timing expectations and plan on an incremental negotiation. Leverage is often linked to options, so recognize who has the greatest number of options.

It is generally assumed that a contract is written with provisions advantageous to the writer, and that negotiations will result in a certain balance in that contract. So it is important to set your priorities beforehand, list and rank the issues, then decide what you want, or what you want to offer regarding money, terms, scope, schedule, detail and degree of involvement of both sides during the contractual term.

Next, decide on the concessions you are willing to make -- what you are prepared to give up as a concession, and what you might expect in return?

Finally, select a negotiation stance from one of the four choices below:

  1. The 500-pound gorilla tactic

    This is an adversarial approach, with no concessions offered and only limited tradeoffs placed on the table. This works well when you hold most of the cards at the outset, and you expect to remain powerful indefinitely. The benefit is that the potential reward is high.

    The danger is that your stance could collapse if the opposition holds some card that you did not anticipate. If you prevail, you may be considered an enemy, not just an adversary.

  2. The benevolent dictator strategem

    This can yield great benefits, as you still want the moon, yet you remain reasonable and conciliatory in discussion.

    While this choice is adversarial at the start, negotiations are offered as a favor to a less powerful counterpart. Consider this approach when you have most of the leverage at the outset, but recognize that your power may wane after the negotiation is over.

  3. The good neighbor approach

    A reasonable offer is made and minor negotiations are anticipated. These negotiations are often quick and uncomplicated. This is the most commonly used process and is the expected style. This stance focuses on mutual trust, with concessions expected in the spirit of fair play. It works well when your counterpart is reasonable.

    Yet, the speed of this transaction holds a danger. The danger is that you will lose more than just your shirt, and it can get quite cold when the chill sets in after the contract is signed.

  4. The elevator gambit

    Here you start at the bottom of the elevator shaft, make a low offer and negotiate upwards. When this works, you are respected for your style and your value.

    The danger is that your counterpart may not press the elevator button because your value may not be recognized.

    However, if you frame your stance correctly, you may be seen to be not only reasonable, but more importantly, respected as an expert.


Clive Shearer is a professional trainer, educator and retreat facilitator and can be reached at cgb9@yahoo.com


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