
Abstract: What’s in it for me? Learn how to bargain your way to better deals at work and in life.
Negotiating. No matter who you are, it’s something that you’re almost certainly going to have to do both at work and in life. Whether it’s negotiating with your boss over a new contract, with a vendor in a crowded market, or with a business partner as you embark on a new enterprise, a bargaining situation can spring up anytime.
*self-referencing Post
Takeaways:
1. Better negotiating starts with embracing your authentic strengths.
- make use of what you have at your disposal rather than wishing for something else.
- it’s important that you’re true to your own character; otherwise, your negotiating strategy will be an incoherent mess. Plus, people recognize and respect authenticity.
2. The best negotiators set optimistic but justifiable expectations.
-Morita’s story ( Sony ) shows us that it’s best to enter into negotiations with an optimistic expectation rather than a goal. The difference? A goal is a more abstract ambition, while an expectation is something that we think we can reasonably accomplish.
-At the negotiating table, an expectation gives conviction to your statements. Believing that what you’re asking for is reasonable, given the facts at hand, is a powerful motivating force that makes you much more likely to succeed. And the more research and preparation you do, the surer you can be that your expectation is justifiable and legitimate.
-When, like Morita, you bring expectation to negotiations, you’ll have total conviction that what you’re asking for is reasonable.
3. Appealing to norms helps win negotiations.
- We all respect certain norms. The most obvious are laws, which are the norms that hold society together. However, there are internal norms, too – these are things like a business’s philosophy or code of conduct, which only apply within a certain context.
- Your negotiation is easier when your expectation is matching with the companies goals/rules/norms.
- Mahatma Gandhi employed this tactic in a vastly different context. Refer to South Africa train incident of MG.
- Whether it’s political activism or a boardroom dispute, once you identify the norms at play, you’ve got a proven and effective tactic at your disposal.
4. Fair, reciprocal relationships are conducive to negotiating.
- Simply put, if you treat people right, they’ll treat you right.
- Just because you have the power to take advantage of someone doesn’t mean you should. After all, generosity often begets generosity, and a good relationship can be valuable to both parties long into the future.
- Refer Morgan and Carnegie's story. Morgan gave him 10k more than asked to establish a friendship.
- Reciprocity is a necessary part of developing a good negotiating relationship. So when negotiating, make a move – and then wait until the other party reciprocates before you move again.
- Also, remember that real reciprocity isn’t imbalanced; don’t let small gifts from the other side lure you into much larger concessions. Generous and cooperative people are often manipulated into conceding when they don’t need to because they feel compelled to respond. Watch out for con artists like that in the world of negotiation, too – they can be found in the CEO’s office just as often as they can in the street.
5. You need to know what motivates the other side in a negotiation.
- When it comes to negotiating, stepping into the other person’s shoes can offer a real advantage. - The best negotiators find out what really motivates the other side. They ask themselves, “Why is the other person sitting there?” and make an offer that tries to satisfy those interests.
- No matter how much you appeal to the other side's needs in a negotiation, however, you also need to know who it is you'll be negotiating with. That’s because even if companies and institutions have policies and goals, it’s people who actually negotiate. Their needs, including their status, self-esteem, and incentives, drive the negotiation.
- When you know who you’ll be negotiating with, see if you can work out where those interests coincide with yours.
6. Leverage is critical to negotiation.
- Leverage gives you the power not just to reach an agreement, but to obtain one on your own terms.
- leverage means all of the particular advantages you have over the other side; these can come in many forms.
- leverage means all of the particular advantages you have over the other side; these can come in many forms.
- Another way to apply leverage is to find a good alternative option.
7. A little objectivity and one small step can get you out of an impasse.
- Most negotiation is about finding compromise, but that's not easy when you reach a stalemate and your mood begins to sour. When that happens, it’s time to find some objectivity. First, pause for a moment and step outside yourself. Without becoming inexpressive, check your emotions. Are they appropriate in a professional context?
- Next, examine your perceptions. You need to understand that the other side’s behavior has nothing to do with their innermost character; it’s contingent on the negotiation. Forget this and it’s likely that you’ll view them as a selfish, unreasonable enemy and yourself as a victim of aggression. That way of thinking risks sending the negotiation into a downward spiral that will be difficult to recover from.
- Once you’ve avoided this, you’re ready to start employing a procedure known as one small step. To do this, make a small, unambiguous move in the other side’s direction. This could be a concession to one of their needs or an acknowledgment of past mistakes. If the other side responds in kind, you can then take another small step. Repeat the cycle until tensions have eased, and you’ll be back in business.
- Whether it’s a personal misunderstanding or a professional negotiation, the one-small-step strategy can be a lifesaver.
8. There are three different schools of bargaining ethics.
- In the real world, there are lots of negotiation strategies. However, most of them are ultimately one of three main types. The first is the Poker School. Those who adhere to it see negotiation as a game – one with well-defined rules. These rules are set by the law and are there to prevent fraud, coercion, or breaches of fiduciary duty. Within these explicit rules, though, anything goes.
- That allows for a lot of ethical gray area. For instance, in the visit to the antique store, a member of the Poker School would see no problem with lying to extract the best price for the old globe. In fact, deception is to be admired in this school, as long as it's effective.
- A certain amount of deception is seen as fine in the Pragmatist School as well. In this school, however, adherents prefer not to use misleading statements or outright lies if there are better alternatives. Unlike Poker Schoolers, they’re concerned about the damage their reputation could suffer if they’re caught. To preserve good working relationships and their reputation in the market or community, they look to protect their credibility.
- Finally, there’s the Idealist School. This school agrees with the philosopher Immanuel Kant, who believed that people should never lie, whatever the circumstance. Like him, they reason that if everyone lied, our social life would be chaos. Idealists believe that negotiations are serious, consequential acts not to be treated like a game. A great example of the Idealist School is the most successful capitalist of modern times, Warren Buffet, who always conducts himself with a commitment to truth – proof, then, that you don’t have to be a Machiavellian trickster to be successful, in business or in life.
Bibliography
G. Richard Shell. (2022, June 06). Book Source. Personal. Bargaining for Advantage.
Note
These are all personal notes and reviews for self referencing; The self interpretations are not meant for any profit or marketing.
Suggestion to readers
Please read the entire book. Suggested.
--------------------------------------Thank you, Gratitude, Love and Light-----------------------------------
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