Showing posts with label Negotiation. Show all posts
Showing posts with label Negotiation. Show all posts

Negotiation Strategy Vs Tactics

I have spent over twenty-five years now studying, practicing, and teaching martial arts. This includes time spent in the United States Army and living in Japan and Korea studying martial arts there. Two important concepts that I have studied, taught, and written about in a martial or military format are equally important when teaching negotiation. These concepts are strategy and tactics. Sometimes I see people mistakenly using one term when they actually mean the other. In this short article, I want to describe the differences between strategy and tactics as well as illustrate the relationship between the two.

Strategy

Strategy

Strategy is the overall, big picture, plan, which includes goals or desired outcomes. In the military, strategy is the utilization, during both peace and war, or all of a nation's forces, through large-scale, long-range planning and development, to ensure security or victory. Another definition would be a plan, method, or series of maneuvers or stratagems for obtaining a specific goal or result. A well known strategy used by the Allies in WWII was that of strategic bombing in Europe. The Army Air Corps' strategic bombing doctrine was based on the theory that a bombing force could pound the adversary until its industrial base was destroyed, and with it, its ability and will to wage war. While this example helps illustrate the concept of strategy, it is unfortunate that many of us have probably encountered negotiators that worked from a very similar strategic doctrine.

Negotiation Strategy Vs Tactics

Strategic negotiation is simply the act of devising and carrying out a well thought out plan to achieve your desired outcomes. Often, it is your plan to convince another party to give you something that you want and on your terms. The first thing you must determine when developing a negotiation strategy is what do you really want? What is the purpose of the negotiation? Do you want to purchase a house or commercial building? Do you want a raise in your salary? Do you want to settle a matter that is being litigated? Once you know what you want, and have devised a strategy, you can implement the tactics that will help you achieve your desired outcome.

When one is developing strategy, it is often easier to break your planning into phases. Here is a simple model used with martial arts and warfare that you will notice fits with negotiating equally well:

1. Identify your strategic objectives
2. Collect intelligence
3. Plan for environment
4. Program for engagement

Tactics

Tactics are simply the means by which you carry out your strategy. In the military tactics deals with the use and deployment of troops in actual combat, more specifically, it is the military science that deals with securing objectives set by strategy, especially the technique of deploying and directing troops, ships, and aircraft in effective maneuvers against an enemy. In our example above with the Army Air Corps, the tight formations employed by the bombers to make the best use of the bombers' heavy armament and prevent German fighters from singling out and swarming on lone planes is an example of a tactic used to help carry out the strategy. Another tactic was the employment of high altitude bombing when low level bombing proved to vulnerable to anti-aircraft fire.

One must be very careful not to focus upon activity, means, or tactics at the expense of accomplishment, achieving goals, or desired outcomes. Above all else, obtaining one's objectives in negotiations should be paramount. Of course, the tactics, activities or means we use should always be appropriate and ethical, but we must remember they are merely the ways to attain desired outcomes. Examples of negotiation tactics include things such as:

1. Giving ultimatums
2. Nibbling
3. Shocked or surprised looks
4. Good cop/Bad cop
5. Walk away

There are many tactics people use while negotiating. There is nothing wrong with using certain tactics to carry out your strategy and obtain your objectives. It is not necessarily unethical, deceptive, or unscrupulous to use negotiating tactics, even though some may want you to believe this. Yes, some tactics may be unethical, and as I stated above, we should always be appropriate and ethical, but there is nothing wrong with being competitive.

No, I have not forgotten the Principled Negotiation strategy taught by Fisher and Ury in "Getting To Yes." However, I also realize that sometimes we will be in competitive negotiations, and knowing various tactics can give us the edge. As an attorney, I realize some clients hire an attorney to be their pit bull, and while win-win might be the ideal, some of these clients only care about a win in their column. Practically speaking, we attorneys must deliver for our clients if we want to stay in business. In other fields of business, you run across competitive barganing as well, and knowing tactics may be quite beneficial. Additionally, knowing various negotiation tactics, and the counterattacks, prepare us for when others use them against us.

Conclusion

Strategy and tactics are concepts as old as conflict itself. By understanding the differences and relationships between the two, the successful negotiator can better plan and implement the strategies and tactics to reach specific desired outcomes. There is a reason so many successful business people study the ancient military classics such as "The Art of War" and "The Book of Five Rings." There is a reason why so many successful business people play strategic military games such as Go and Chess. The lessons learned from military sources, especially strategy and tactics, can easily be adapted to help us be better business people, better litigators, and better negotiators.

Negotiation Strategy Vs Tactics

Alain Burrese, J.D. is a mediator/attorney with Bennett Law Office P.C. and an author/speaker through his own company Burrese Enterprises Inc. He writes and speaks about a variety of topics focusing on the business areas of negotiation and success principles as well as self-defense and safety topics. He is the author of Hard-Won Wisdom From the School of Hard Knocks, several instructional dvds, and numerous articles. You can find out more about Alain Burrese at his websites http://www.burrese.com or http://www.bennettlawofficepc.com

Debt Negotiation Or Bankruptcy? - Which One is a Better Debt Relief Tactic?

If you are asked which one is better, debt negotiation or bankruptcy, your answer should always be the former. There are many people who feel that just by filing bankruptcy could rid them of the momentous problem of debt. Since they are not in a position to pay back a single penny, declaring themselves bankrupt seems a sensible idea. However, this is far from the truth. Bankruptcy can never be a good or appropriate solution for any kind of financial problems. At first sight, it might seem as the easiest way out and convenient too. But, as you go deeper, you realize the hazards and trappings that come with it and are an integral part of it. That is why it is always better to avoid becoming a victim of bankruptcy and explore other better options. You will definitely get a better debt relief tactic than this troublesome method.

With the help of debt negotiation, you can actually look forward to eliminating a considerable portion of the net amount that is owed by you. You can argue that bankruptcy helps you to be free from the whole burden. However, this relief is only momentary. After the initial period is over, a number of problems crop up. Along with the risk of losing some of the assets, there is also the fear of some part of the debt remaining unsolved. Again, it is not easy to file bankruptcy. It is quite a complicated process. There are separate chapters for every kind of problem and you have to know which one is suitable in your case. You require a legal advisor for the purpose as it is not the work of a layman.

Tactics

On the other hand, if you go for a competent settlement program, you would not have to worry about these things. It is a much easier debt relief tactic than bankruptcy. There are professionals to deal with your creditors and arrange for a bigger waiver so that it becomes easier for you to pay the settled amount and be free of dues permanently. Therefore, if you have to ever make a choice between negotiation programs and bankruptcy, you know whom to choose.

Debt Negotiation Or Bankruptcy? - Which One is a Better Debt Relief Tactic?

Debt settlement companies are widely available in just about every state however some are just flat out more experienced than others in debt negotiation. That's why it's so important for consumers to use debt relief networks. These networks qualify and only accept the best performing debt settlement companies. To find a legitimate debt settlement company in your state check out the following link:

Free Debt Advice [http://www.freedebtsettlementadvice.com].

Negotiation - Tactics, Tricks And Threats

Most successful negotiators recognise that the way people involved in negotiations behave does not always reflect their true feelings or intentions. We are going to look at negotiating tactics that may be used by you or on you. Whether or not you choose to use these tactics, it is vital to understand:

o Tactics work

Tactics

o They can be being used on you, and can be used by you

o Once they are recognised as tactics, their effects are reduced, or eliminated

You may feel that there is no need in your particular case to negotiate or resort to tactics. in negotiation. This is a matter of personal choice.

In general, tactics are used to gain a short-term advantage during the negotiation and are designed to lower your expectations of reaching a successful conclusion.

There are many tactics available to negotiators. Here are some you may recognise.

Pre-Conditioning:

This can begin before you even get together, or start your negotiations with the other party. Let us take a sales example:

You telephone for the appointment and the other side says, aggressively:

"Don't bother coming if you are going to tell me about price increases. You'll be wasting your time and I will be forced to speak to your competitors".

When you do arrive you are kept waiting in reception for half an hour, without being told why. As you walk through the door into the other person's office they indicate for you to sit down, but they don't look up. Instead, they sit leafing through your competitor's brochure, in silence, ignoring your efforts to make conversation.

You are given an uncomfortable low chair to sit in that happens to be directly in line with the sun shining into the office. At this stage, how confident do you feel?

The Monkey On The Back:

Some negotiators have the irritating habit of handing their problems to you so that they become your problems. This is the "monkey on their back" that they want you to carry around for them.

A classic example is the person who says, "I have only got £10,000 in my budget".

This is often used tactically to force a price reduction. Here is what you can do.

When one side says "I have only £10,000 in budget", look concerned and say something like:

"That is a problem. As you are no doubt aware, the cost of our systems can be anything up to £20,000 and I really want to help you choose the best system that meets your needs. Does that mean that if one of our systems has everything you are looking for, but costs £20,000, you would rather I didn't show it to you?"

The "monkey" has been returned and they have to make a choice. If the objection is genuine and the budget figure is correct, you must try to look for an alternative that meets your needs as well as theirs.

If they genuinely can only spend £10,000 that is not a tactic but the truth. In dealing with tactics the first decision you must make is whether it is a tactic or a genuine situation. If it is genuine, you have a problem to solve, rather than a tactic to overcome.

The Use Of Higher Authority:

This can be a most effective way to reduce pressure in the negotiation by introducing an unseen third party and can also be effective in bringing the negotiation to a close.

"I need to have this agreed by my Board of Directors." "If they agree to the terms we have discussed, do we have a deal?"

However, be careful to use this device sparingly so that the other side does not begin to feel you have no decision making authority yourself.

One way of countering this tactic is to say before the bargaining begins: "If this proposal meets your needs, is there any reason you would not give me your decision today?"

If the other side still wishes to resort to higher authority, appeal to their ego by saying: "Of course, they will go along with your recommendations, won't they? Will you be recommending this proposal?"

Nibbling:

Negotiations can be a tiring process. As the point draws near when an agreement is likely, both sides exhibit a psychological need to reach agreement and get on with something else.

You are very vulnerable as the other side reaches for their pen to sign the order form or contract, to concede items that don't significantly affect the final outcome. "Oh, by the way, this does include free delivery, doesn't it?" or "Oh, by the way, the price of the car does include a full tank of petrol?"

Nibbles work best when they are small and asked for at the right psychological moment. Like peanuts, eat enough of them and they get fattening.

Good negotiators will often keep back certain items on their want list until the very last minute when the other party is vulnerable. Watch out for this.

The Good Guy And The Bad Guy:

You may have come across this tactic before or else seen it used in films or on television. This is a tactic designed to soften you up in the negotiation.

For example, you are negotiating the renewal of your service contract with the Buying Director and his Finance Director. You present your proposal and the Buying Director suddenly gets angry and walks out in disgust muttering to himself about how unfair you have been and how the relationship is well and truly over.

You pick up your briefcase and are being shown the door when the Finance Director smiles at you sympathetically and says:

"I'm terribly sorry about that. He is under a lot of pressure. I would like to help you renew your contract, but he really will not consider the price you have suggested. Why don't I go and talk to him for you and see if we can agree a compromise? What is the bottom line on the contract? If you give me your very best price, I will see what I can do".

The best way of dealing with this tactic is to recognise the game that is being played and assess exactly what the quality of the relationship is. You may be able to say something like:

"Come off it, you are using good guy, bad guy. You are a superb negotiator, but let's sit down and discuss the proposal realistically".

If you don't have this kind of relationship, stand firm and insist on dealing with the bad guy, or else bluff yourself and give a figure that is within your acceptable range of alternatives.

One way of combining good guy, bad guy. with higher authority is by saying things like:

"Well, I'd love to do a deal with you on that basis, but my manager refuses to let me agree terms of this nature without referring back and he refuses to talk to salespeople. Give me your best price and I will see what I can do"

Body Language:

It is important in negotiation to react verbally and visually when offers are made. You may have seen the more theatrical negotiators hang their heads in despair or accuse you of being unfair and souring a perfectly good relationship when you present your proposal. Human nature is such that we can believe and accept these outbursts against us and our negotiating position becomes weaker as a result.

Ensure the next time you are in a negotiation that you react to the other party's offer. If you show no reaction, they may be tempted to ask for more and more and you will lose the initiative in the negotiation. Also, it is almost certain that their opening offer is higher than the figure for which they are prepared to settle, so it is important that you clearly signal your unwillingness to accept the opening position.

If you reach the point below which you will not go, it is important that you show this with your body language. News readers, when they have finished reading the news, have a habit of picking up their script and tidying up their papers. This tells the world that they have finished their task and are preparing to leave.

Similarly, when you make your final offer, it can be very powerful to collect your papers together and indicate with your body that it really is your final offer. Put your pen away, sit back in your chair and remain silent. Look concerned and keep quiet.

If your voice says final offer but your body is saying let's keep talking, the other party will disregard what you say and keep negotiating.

The Use Of Silence:

During the negotiation, you may make a proposal and find the other party remains silent. This can be very difficult to handle and often signals disapproval to the inexperienced negotiator. Just as nature abhors a vacuum, so silence induces the need in people to talk.

If you have a proposal to make, make it and ask the other side how he or she feels about it. Having asked the question, sit back and wait for the answer. Whatever you do; don't change your offer as this could seriously weaken your position.

The Vice:

A common technique used by negotiators when presented with a proposal is to say:

"You'll have to do better than that."

The most powerful way of dealing with this is to ask them to be more specific. Whatever you do, don't weaken your negotiating position in response to the vice by giving anything away, too easily. This will only encourage repeat behaviour.

The Power Of Legitimacy:

People believe what they see in writing. We all assume that if a thing is printed or written down, it is non-negotiable. This is what can make price lists so powerful. If you have to present a customer with a price increase or you wish to encourage an early order to beat a price increase, show something in writing such as an office memo from your boss announcing the increase. This will have a far greater impact than just saying your prices are about to go up.

When presented with a price tag in a shop, ask to speak to the manager and make him an offer. You could be surprised at the results.

And Finally -The Low Key Approach:

Don't appear too enthusiastic during negotiations. Over-enthusiasm can encourage skilled negotiators to review their strategy and demand more.

If you are in a negotiation and the other side is not responding to your proposal, recognise this could be a tactic and avoid giving concessions just to cheer them up. Salespeople like to be liked and will often give money away in a negotiation, if the other side appears unhappy.

For example, if you are buying a car avoid saying to the seller things like:

"This is exactly what I'm looking for. I really like the alloy wheels".

Develop a low-key approach. Say things like:

"Well, it may not be exactly what I'm looking for but I might be interested if the price is right".

Copyright © 2008 Jonathan Farrington. All rights reserved

Negotiation - Tactics, Tricks And Threats

Jonathan Farrington is the CEO of Top Sales Associates and Chairman of The Sales Corporation - based in London and Paris. Jonathan's personal site The JF Consultancy, - www.jonathanfarrington.com - offers a superb range of unique and innovative sales solutions and you can also catch his daily blog at The JF Blogit - www.thejfblogit.co.uk

Negotiation Strategy Vs Tactics

I have spent over twenty-five years now studying, practicing, and teaching martial arts. This includes time spent in the United States Army and living in Japan and Korea studying martial arts there. Two important concepts that I have studied, taught, and written about in a martial or military format are equally important when teaching negotiation. These concepts are strategy and tactics. Sometimes I see people mistakenly using one term when they actually mean the other. In this short article, I want to describe the differences between strategy and tactics as well as illustrate the relationship between the two.

Strategy

Strategy

Strategy is the overall, big picture, plan, which includes goals or desired outcomes. In the military, strategy is the utilization, during both peace and war, or all of a nation's forces, through large-scale, long-range planning and development, to ensure security or victory. Another definition would be a plan, method, or series of maneuvers or stratagems for obtaining a specific goal or result. A well known strategy used by the Allies in WWII was that of strategic bombing in Europe. The Army Air Corps' strategic bombing doctrine was based on the theory that a bombing force could pound the adversary until its industrial base was destroyed, and with it, its ability and will to wage war. While this example helps illustrate the concept of strategy, it is unfortunate that many of us have probably encountered negotiators that worked from a very similar strategic doctrine.

Strategic negotiation is simply the act of devising and carrying out a well thought out plan to achieve your desired outcomes. Often, it is your plan to convince another party to give you something that you want and on your terms. The first thing you must determine when developing a negotiation strategy is what do you really want? What is the purpose of the negotiation? Do you want to purchase a house or commercial building? Do you want a raise in your salary? Do you want to settle a matter that is being litigated? Once you know what you want, and have devised a strategy, you can implement the tactics that will help you achieve your desired outcome.

When one is developing strategy, it is often easier to break your planning into phases. Here is a simple model used with martial arts and warfare that you will notice fits with negotiating equally well:

1. Identify your strategic objectives
2. Collect intelligence
3. Plan for environment
4. Program for engagement

Tactics

Tactics are simply the means by which you carry out your strategy. In the military tactics deals with the use and deployment of troops in actual combat, more specifically, it is the military science that deals with securing objectives set by strategy, especially the technique of deploying and directing troops, ships, and aircraft in effective maneuvers against an enemy. In our example above with the Army Air Corps, the tight formations employed by the bombers to make the best use of the bombers' heavy armament and prevent German fighters from singling out and swarming on lone planes is an example of a tactic used to help carry out the strategy. Another tactic was the employment of high altitude bombing when low level bombing proved to vulnerable to anti-aircraft fire.

One must be very careful not to focus upon activity, means, or tactics at the expense of accomplishment, achieving goals, or desired outcomes. Above all else, obtaining one's objectives in negotiations should be paramount. Of course, the tactics, activities or means we use should always be appropriate and ethical, but we must remember they are merely the ways to attain desired outcomes. Examples of negotiation tactics include things such as:

1. Giving ultimatums
2. Nibbling
3. Shocked or surprised looks
4. Good cop/Bad cop
5. Walk away

There are many tactics people use while negotiating. There is nothing wrong with using certain tactics to carry out your strategy and obtain your objectives. It is not necessarily unethical, deceptive, or unscrupulous to use negotiating tactics, even though some may want you to believe this. Yes, some tactics may be unethical, and as I stated above, we should always be appropriate and ethical, but there is nothing wrong with being competitive.

No, I have not forgotten the Principled Negotiation strategy taught by Fisher and Ury in "Getting To Yes." However, I also realize that sometimes we will be in competitive negotiations, and knowing various tactics can give us the edge. As an attorney, I realize some clients hire an attorney to be their pit bull, and while win-win might be the ideal, some of these clients only care about a win in their column. Practically speaking, we attorneys must deliver for our clients if we want to stay in business. In other fields of business, you run across competitive barganing as well, and knowing tactics may be quite beneficial. Additionally, knowing various negotiation tactics, and the counterattacks, prepare us for when others use them against us.

Conclusion

Strategy and tactics are concepts as old as conflict itself. By understanding the differences and relationships between the two, the successful negotiator can better plan and implement the strategies and tactics to reach specific desired outcomes. There is a reason so many successful business people study the ancient military classics such as "The Art of War" and "The Book of Five Rings." There is a reason why so many successful business people play strategic military games such as Go and Chess. The lessons learned from military sources, especially strategy and tactics, can easily be adapted to help us be better business people, better litigators, and better negotiators.

Negotiation Strategy Vs Tactics

Alain Burrese, J.D. is a mediator/attorney with Bennett Law Office P.C. and an author/speaker through his own company Burrese Enterprises Inc. He writes and speaks about a variety of topics focusing on the business areas of negotiation and success principles as well as self-defense and safety topics. He is the author of Hard-Won Wisdom From the School of Hard Knocks, several instructional dvds, and numerous articles. You can find out more about Alain Burrese at his websites http://www.burrese.com or http://www.bennettlawofficepc.com