www.WhatILearnFromReading.comTrump-Style Negotiation:Powerful Strategies andTactics for Mastering EveryDealbyGeorge H. Ros...
www.WhatILearnFromReading.comOutlineIntroductionBegin with YourselfThe Other SideStrategies, Tools, and TacticsWrap-up“Ski...
www.WhatILearnFromReading.comDonald TrumpA successful businessmanReal estate business (e.g., 58-storey Trump Tower, NYC)Th...
www.WhatILearnFromReading.comGeorge H. RossA real estate lawyerTrump’s advisor since 1970sOne of Trumps two advisors on Th...
www.WhatILearnFromReading.comWhy: Resource scarcity or Conflict of InterestWhat is Negotiation?“Negotiation is a process in...
www.WhatILearnFromReading.comIt’s not all about money. It can also be ego, prestige,recognition, and, most of all, satisfa...
www.WhatILearnFromReading.comYour Weapons AreWordsConcessionsActions: e.g.,Being late for a meetingNot returning a phone c...
www.WhatILearnFromReading.comThe Best Negotiatoris…Your Kid!8Thursday, June 13, 2013
www.WhatILearnFromReading.comNegotiation StrategiesI winYou loseI winYou winI lose,You loseI loseYou win9Thursday, June 13...
www.WhatILearnFromReading.comTrump-Style NegotiationFocus on “Win-Win”Long-term benefitsIt’s not ALL about moneyProtect you...
www.WhatILearnFromReading.comRule#1: There is no rule in negotiationRule#2: Lying and cheating is OK!Rules of NegotiationT...
www.WhatILearnFromReading.comBegin With Yourself12Thursday, June 13, 2013
www.WhatILearnFromReading.comBegin With YourselfMindsetHone Your Skill13Thursday, June 13, 2013
www.WhatILearnFromReading.comWhy Do We Negotiate?Money (Prime) and otherbenefitsLearn something new and gainexperienceBuild...
www.WhatILearnFromReading.comWhat Do You Want?Focus on build trust and rapportFind out:Satisfaction: What both sidescan li...
www.WhatILearnFromReading.comPrepare YourselfRapport means ‘relation marked by harmony,conformity, accord, or affinity.’Min...
www.WhatILearnFromReading.comBegin With YourselfMindsetHone Your Skill17Thursday, June 13, 2013
www.WhatILearnFromReading.comGathering InformationInformation is power!Hard and laborious, but worth doingInformation abou...
www.WhatILearnFromReading.comGathering InformationYourselfWeakness: Admit it and findstrategies to address itStrength: Expl...
www.WhatILearnFromReading.comKnowledgeActual Knowledge Apparent KnowledgeNatureBenefitAccomplishedbyGeneral Knowledge Appea...
www.WhatILearnFromReading.comAura of LegitimacyPeople tend to believe inWhat you show them, e.g., printeddocument, Signs l...
www.WhatILearnFromReading.comCommunication“Seek first to understand,Then to be understood”Steven R. CoveyListenInvite other...
www.WhatILearnFromReading.comFlexibility and CreativityKnow where your line and the others’line are.Set out with multiple ...
www.WhatILearnFromReading.comBe a Good SalespersonRapport	:	 	 Relationship firstEnthusiasm:	 Fire up the other sideShowman...
www.WhatILearnFromReading.comThe Other Side25Thursday, June 13, 2013
www.WhatILearnFromReading.comHuman NatureEnvyEgoFearNobilityGreed26Thursday, June 13, 2013
www.WhatILearnFromReading.comGreedInvested time (andmoney) principlePrideTendency not to changeFriends or foes foreverEnvy...
www.WhatILearnFromReading.comGreedInvested time (andmoney) principlePrideTendency not to changeFriends or foes foreverEnvy...
www.WhatILearnFromReading.comPrideTendency not to changeFriends or foes foreverFearSuperiorityBe dumb and make friendsComp...
www.WhatILearnFromReading.comNobilityMutual exchangeForgivenessFearSuperiorityBe dumb and make friendsComplexityEnvyPeople...
www.WhatILearnFromReading.comNobilityMutual exchangeForgivenessEnvyPeople like free stuff and exclusivityMake a list of gi...
www.WhatILearnFromReading.comEnvyPeople like free stuff and exclusivityMake a list of give-away and must-have items.Dead d...
www.WhatILearnFromReading.comEnvyPeople like free stuff and exclusivityMake a list of give-away and must-have items.Dead d...
www.WhatILearnFromReading.comExploiting Human NatureBe skepticalFundamental Rule: Do not acceptanything for the face value...
www.WhatILearnFromReading.comDifficult People: #1 IntimidatorTraits: Big, loud, higher statusTactics: Scare the other sideA...
www.WhatILearnFromReading.comDifficult People: #2 Know-It-AllTraits: Know a lot, Arrogant,Listen to no oneProblem: No commu...
www.WhatILearnFromReading.comDifficult People: #3 WafflingTraits: UndecisiveProblem: Never move forwardAdvice:Be slow and pa...
www.WhatILearnFromReading.comStrategies, Tools, andTactics32Thursday, June 13, 2013
www.WhatILearnFromReading.comStrategies, Tools, andTacticsStrategiesDocumentationTactics33Thursday, June 13, 2013
www.WhatILearnFromReading.comPOSTKnow AllWhat to do toachieveobjectivesResourceallocationPersonTacticsObjectiveStrategyKno...
www.WhatILearnFromReading.comExample StrategiesEnthusiasmGood Cob, Bad CobSilent Notetakers35Thursday, June 13, 2013
www.WhatILearnFromReading.comAbout the Meeting: BeforeGather informationPrepare agendaExpect the other sides’ reaction, an...
www.WhatILearnFromReading.comDuring the meetingCreate positive negotiation atmosphere; Let them know why your proposedsolu...
www.WhatILearnFromReading.comDocumentationIt’s boring. It’s hard. It’s IMPORTANT!Reminder and EvidenceControl the document...
www.WhatILearnFromReading.comContracts and MinutesPut what you wantLeave out what you don’t likeThe other side may not eve...
www.WhatILearnFromReading.comMoU and LoINot a contract (i.e., non-binding)Reminder of what’s been agreedPeople tend to sti...
www.WhatILearnFromReading.comDeal BooksVery powerful tools1. General deal books:• Record everything• Eg., What, Who, When,...
www.WhatILearnFromReading.comDeal Books3.We-They List:• The difference of both sides (e.g., constraint, authority, time)• ...
www.WhatILearnFromReading.comExample TacticsTactics Countermeasure#1: “You’ve gotta do better than that”(Until you hear “t...
www.WhatILearnFromReading.comControl the PaceSlow:You need time to gather informationDo not accept anything right awayBe d...
www.WhatILearnFromReading.comDelayEsp. when there are several people (e.g., large organization)Invested time principle ➠ D...
www.WhatILearnFromReading.comDeadlineNot all deadline are equallyimportantTest all the deadlineMissing deadline v.s. Worse...
www.WhatILearnFromReading.comDeadlockBoth sides put their feet downInitiating deadlockTo show your confidence and to test t...
www.WhatILearnFromReading.comDeadlockBig organization fears deadlock because every decisioninvolves many departments.Resol...
www.WhatILearnFromReading.comGet Tough StrategyPut you foot down. Don’t make compromise.Set the tone. Let the other side k...
www.WhatILearnFromReading.comTelephoneBad for negotiation. If you want a ‘no’, use telephone.Interruption is deadly, caz y...
www.WhatILearnFromReading.comTelephoneBe the caller.Prepare a written agenda before you callPrioritize them. Go through th...
www.WhatILearnFromReading.comeMaileMail leaves paper trails.Make impression ➠ Spell check!!Always provide sufficient inform...
www.WhatILearnFromReading.comWrap-up53Thursday, June 13, 2013
www.WhatILearnFromReading.comDos and Don’tsDos Don’tsTrust your instinct Talk about your weaknessesAdapt your negotiation ...
www.WhatILearnFromReading.comTAKEAWAYS1.Rapport and people, notbenefits and the deal2.Documentation3.Use time and companypo...
http://WhatILearnFromReading.comwww.WhatILearnFromReading.comMore like this?Please visitwww.WhatILearnFromReading.com56Thu...
www.WhatILearnFromReading.comDiscussion?57Thursday, June 13, 2013
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Trump-Style Negotiation: Powerful Strategies and Tactics for Mastering Every Deal by George H. Ross

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  1. 1. www.WhatILearnFromReading.comTrump-Style Negotiation:Powerful Strategies andTactics for Mastering EveryDealbyGeorge H. Ross (Author)Teerawat IssariyakulThursday, June 13, 2013
  2. 2. www.WhatILearnFromReading.comOutlineIntroductionBegin with YourselfThe Other SideStrategies, Tools, and TacticsWrap-up“Skilled negotiators areeasy to deal with, butthey get what they want.”2Thursday, June 13, 2013
  3. 3. www.WhatILearnFromReading.comDonald TrumpA successful businessmanReal estate business (e.g., 58-storey Trump Tower, NYC)The Apprentice: “ You’re fired!”3Thursday, June 13, 2013
  4. 4. www.WhatILearnFromReading.comGeorge H. RossA real estate lawyerTrump’s advisor since 1970sOne of Trumps two advisors on The ApprenticeA lecturer at NYU: Real estate and negotiationThe author of the book!4Thursday, June 13, 2013
  5. 5. www.WhatILearnFromReading.comWhy: Resource scarcity or Conflict of InterestWhat is Negotiation?“Negotiation is a process in which people learn toaccept an available compromise as a satisfactorysubstitute for that they thought they really wanted.”5Thursday, June 13, 2013
  6. 6. www.WhatILearnFromReading.comIt’s not all about money. It can also be ego, prestige,recognition, and, most of all, satisfactionMindsetNegotiation is not science: You can’t quantify satisfactionWinning is not everythingContinuity is importantWhat is Negotiation?6Thursday, June 13, 2013
  7. 7. www.WhatILearnFromReading.comYour Weapons AreWordsConcessionsActions: e.g.,Being late for a meetingNot returning a phone callCutting a meeting shortScheduling conflicting schedule7Thursday, June 13, 2013
  8. 8. www.WhatILearnFromReading.comThe Best Negotiatoris…Your Kid!8Thursday, June 13, 2013
  9. 9. www.WhatILearnFromReading.comNegotiation StrategiesI winYou loseI winYou winI lose,You loseI loseYou win9Thursday, June 13, 2013
  10. 10. www.WhatILearnFromReading.comTrump-Style NegotiationFocus on “Win-Win”Long-term benefitsIt’s not ALL about moneyProtect your reputationBe TOUGH but FAIR“He [Ross]s tough, firmbut fair, a very brilliantlawyer, and I trust hisjudgment.”--Donaldtrump10Thursday, June 13, 2013
  11. 11. www.WhatILearnFromReading.comRule#1: There is no rule in negotiationRule#2: Lying and cheating is OK!Rules of NegotiationThat’s doesn’t mean that you have to lie and cheatYou just have to be aware of them11Thursday, June 13, 2013
  12. 12. www.WhatILearnFromReading.comBegin With Yourself12Thursday, June 13, 2013
  13. 13. www.WhatILearnFromReading.comBegin With YourselfMindsetHone Your Skill13Thursday, June 13, 2013
  14. 14. www.WhatILearnFromReading.comWhy Do We Negotiate?Money (Prime) and otherbenefitsLearn something new and gainexperienceBuild up reputation14Thursday, June 13, 2013
  15. 15. www.WhatILearnFromReading.comWhat Do You Want?Focus on build trust and rapportFind out:Satisfaction: What both sidescan live withConstraints: e.g., time,authority, regulationInformation: Personality,education, knowledge,morality, style, etc.“If you listen well, and areopen-minded in yourdiscussion with the person onthe other side, you willbroaden your knowledge.Everyone can learn somethingfrom everyone else. And, youwill definitely be smarter goinginto your next negotiation, andthose that follows.”15Thursday, June 13, 2013
  16. 16. www.WhatILearnFromReading.comPrepare YourselfRapport means ‘relation marked by harmony,conformity, accord, or affinity.’Mindset Skill Set• Be nice• Build trust and rapport• Be skeptic• Make (not break) deals• Gather information• Communications (Listen)• Creativity and Flexibility16Thursday, June 13, 2013
  17. 17. www.WhatILearnFromReading.comBegin With YourselfMindsetHone Your Skill17Thursday, June 13, 2013
  18. 18. www.WhatILearnFromReading.comGathering InformationInformation is power!Hard and laborious, but worth doingInformation aboutBoth sides and the dealE.g., Constraint, motivation, weakness (e.g., details, time)“God is in the details”Ludwig Mies van der Rohe18Thursday, June 13, 2013
  19. 19. www.WhatILearnFromReading.comGathering InformationYourselfWeakness: Admit it and findstrategies to address itStrength: Exploit itPeopleRemember names and roles (e.g.,Key man v.s. Messenger)Ask politely when seeing a new facePower limit (e.g., authority)19Thursday, June 13, 2013
  20. 20. www.WhatILearnFromReading.comKnowledgeActual Knowledge Apparent KnowledgeNatureBenefitAccomplishedbyGeneral Knowledge Appear to be ...Support yourpositionCreate credibilityExperience, Reliablesource, AccuracyAura of legitimacy20Thursday, June 13, 2013
  21. 21. www.WhatILearnFromReading.comAura of LegitimacyPeople tend to believe inWhat you show them, e.g., printeddocument, Signs like “Clearancesale”Powerful/Knowledgable people, e.g.,the president of the U.S., professors,buzz wordsPrinciple of least effortUse it and don’t be fooled by it“People are inclined togive you the benefit of thedoubt until they havecompelling proof tocontradict that belief.”21Thursday, June 13, 2013
  22. 22. www.WhatILearnFromReading.comCommunication“Seek first to understand,Then to be understood”Steven R. CoveyListenInvite other to listen to youRaise your voice to take controlLower your voice forcing the other sideto listen to you more carefully.Learn to read body language: Voice,gesture, look at friends for approval“Just hear me now. I think you aregoing to like my idea.”22Thursday, June 13, 2013
  23. 23. www.WhatILearnFromReading.comFlexibility and CreativityKnow where your line and the others’line are.Set out with multiple objectives ➠ MoreflexibilityMake wise concession:Cash is only a part of itOthers are marketing budget,payment term, quality of project,delivery date, etc.“You always havenegotiation power, if youcan force yourself to walkaway from a deal, eithertemporarily orpermanently.”23Thursday, June 13, 2013
  24. 24. www.WhatILearnFromReading.comBe a Good SalespersonRapport : Relationship firstEnthusiasm: Fire up the other sideShowmanship: Dress well, Proof of ConceptPreparation: Least Effort: People don’t like spending too much effortTenacity: 100 “no” before a “yes”“People want to believe. They wantto believe in you. They want tobelieve in your company. And, yourjob is simply to give them theopportunity to believe.”Bill Murphy Jr.24Thursday, June 13, 2013
  25. 25. www.WhatILearnFromReading.comThe Other Side25Thursday, June 13, 2013
  26. 26. www.WhatILearnFromReading.comHuman NatureEnvyEgoFearNobilityGreed26Thursday, June 13, 2013
  27. 27. www.WhatILearnFromReading.comGreedInvested time (andmoney) principlePrideTendency not to changeFriends or foes foreverEnvyPeople like free stuff and exclusivityMake a list of give-away and must-have items.Dead dog on the table: Giveunimportant items for importantones.FearSuperiorityBe dumb and make friendsComplexityNobilityMutual exchangeForgivenessGreedInvested time (andmoney) principlePrideTendency not to changeFriends or foes foreverEnvyPeople like free stuff and exclusivityMake a list of give-away and must-have items.Dead dog on the table: Giveunimportant items for importantones.FearSuperiorityBe dumb and make friendsComplexityNobilityMutual exchangeForgivenessHuman Nature27Thursday, June 13, 2013
  28. 28. www.WhatILearnFromReading.comGreedInvested time (andmoney) principlePrideTendency not to changeFriends or foes foreverEnvyPeople like free stuff and exclusivityMake a list of give-away and must-have items.Dead dog on the table: Giveunimportant items for importantones.FearSuperiorityBe dumb and make friendsComplexityNobilityMutual exchangeForgivenessGreedInvested time (andmoney) principlePrideTendency not to changeFriends or foes foreverEnvyPeople like free stuff and exclusivityMake a list of give-away and must-have items.Dead dog on the table: Giveunimportant items for importantones.FearSuperiorityBe dumb and make friendsComplexityNobilityMutual exchangeForgivenessHuman Nature“I know I made amistake. But if youdon’t help me out, itwill cost my job.”27Thursday, June 13, 2013
  29. 29. www.WhatILearnFromReading.comPrideTendency not to changeFriends or foes foreverFearSuperiorityBe dumb and make friendsComplexityNobilityMutual exchangeForgivenessGreedInvested time (andmoney) principleEnvyPeople like free stuff and exclusivityMake a list of give-away and must-have items.Dead dog on the table: Giveunimportant items for importantones.PrideTendency not to changeFriends or foes foreverFearSuperiorityBe dumb and make friendsComplexityNobilityMutual exchangeForgivenessGreedInvested time (andmoney) principleEnvyPeople like free stuff and exclusivityMake a list of give-away and must-have items.Dead dog on the table: Giveunimportant items for importantones.Human Nature27Thursday, June 13, 2013
  30. 30. www.WhatILearnFromReading.comNobilityMutual exchangeForgivenessFearSuperiorityBe dumb and make friendsComplexityEnvyPeople like free stuff and exclusivityMake a list of give-away and must-have items.Dead dog on the table: Giveunimportant items for importantones.PrideTendency not to changeFriends or foes foreverGreedInvested time (andmoney) principleNobilityMutual exchangeForgivenessFearSuperiorityBe dumb and make friendsComplexityEnvyPeople like free stuff and exclusivityMake a list of give-away and must-have items.Dead dog on the table: Giveunimportant items for importantones.PrideTendency not to changeFriends or foes foreverGreedInvested time (andmoney) principleHuman Nature27Thursday, June 13, 2013
  31. 31. www.WhatILearnFromReading.comNobilityMutual exchangeForgivenessEnvyPeople like free stuff and exclusivityMake a list of give-away and must-have items.Dead dog on the table: Giveunimportant items for importantones.GreedInvested time (andmoney) principleFearSuperiorityBe dumb and make friendsComplexityPrideTendency not to changeFriends or foes foreverNobilityMutual exchangeForgivenessEnvyPeople like free stuff and exclusivityMake a list of give-away and must-have items.Dead dog on the table: Giveunimportant items for importantones.GreedInvested time (andmoney) principleFearSuperiorityBe dumb and make friendsComplexityPrideTendency not to changeFriends or foes foreverHuman Nature27Thursday, June 13, 2013
  32. 32. www.WhatILearnFromReading.comEnvyPeople like free stuff and exclusivityMake a list of give-away and must-have items.Dead dog on the table: Giveunimportant items for importantones.GreedInvested time (andmoney) principleNobilityMutual exchangeForgivenessPrideTendency not to changeFriends or foes foreverFearSuperiorityBe dumb and make friendsComplexityEnvyPeople like free stuff and exclusivityMake a list of give-away and must-have items.Dead dog on the table: Giveunimportant items for importantones.GreedInvested time (andmoney) principleNobilityMutual exchangeForgivenessPrideTendency not to changeFriends or foes foreverFearSuperiorityBe dumb and make friendsComplexityHuman Nature27Thursday, June 13, 2013
  33. 33. www.WhatILearnFromReading.comEnvyPeople like free stuff and exclusivityMake a list of give-away and must-have items.Dead dog on the table: Giveunimportant items for importantones.GreedInvested time (andmoney) principleNobilityMutual exchangeForgivenessPrideTendency not to changeFriends or foes foreverFearSuperiorityBe dumb and make friendsComplexityEnvyPeople like free stuff and exclusivityMake a list of give-away and must-have items.Dead dog on the table: Giveunimportant items for importantones.GreedInvested time (andmoney) principleNobilityMutual exchangeForgivenessPrideTendency not to changeFriends or foes foreverFearSuperiorityBe dumb and make friendsComplexityHuman NatureSIMPLE SOLUTIONS:1. Split the differenceA buyer asks for $100A seller wants $150Difference = $50Let’s settle at $1252. Maybe later: Leave when the conversation get soheated3. Third party: Let another person decide4. Be creative and think outside the box27Thursday, June 13, 2013
  34. 34. www.WhatILearnFromReading.comExploiting Human NatureBe skepticalFundamental Rule: Do not acceptanything for the face value.When someone say “trust me”, becareful!Stay away from dirty negotiation“Don’t believeeverything someonewrite or say. Listedprice is usually madeto test the market. It ismuch higher thanactual price.”28Thursday, June 13, 2013
  35. 35. www.WhatILearnFromReading.comDifficult People: #1 IntimidatorTraits: Big, loud, higher statusTactics: Scare the other sideAdvice:Play defend and stand yourground. If you succeed, thisperson will be nice to youEstablish rapport (perhapsafter the meeting)Let him think he’s winningUse detailsBe good with hissubordinates29Thursday, June 13, 2013
  36. 36. www.WhatILearnFromReading.comDifficult People: #2 Know-It-AllTraits: Know a lot, Arrogant,Listen to no oneProblem: No communicationAdvice:Be humbleDo not confront him head-to-headGet people on his side tohelp youDo not give him new info. ortell him what to do becausehe won’t believe youanyway.If you’d like to give info., justgive what he’s alreadyknow. 30Thursday, June 13, 2013
  37. 37. www.WhatILearnFromReading.comDifficult People: #3 WafflingTraits: UndecisiveProblem: Never move forwardAdvice:Be slow and patientBuilding up his confidence(e.g., compliment him)Be stingy in concessionDon’t give too manychoices31Thursday, June 13, 2013
  38. 38. www.WhatILearnFromReading.comStrategies, Tools, andTactics32Thursday, June 13, 2013
  39. 39. www.WhatILearnFromReading.comStrategies, Tools, andTacticsStrategiesDocumentationTactics33Thursday, June 13, 2013
  40. 40. www.WhatILearnFromReading.comPOSTKnow AllWhat to do toachieveobjectivesResourceallocationPersonTacticsObjectiveStrategyKnow all people andobjectives,what to do to achieveobjectiveTactics = resourceallocation34Thursday, June 13, 2013
  41. 41. www.WhatILearnFromReading.comExample StrategiesEnthusiasmGood Cob, Bad CobSilent Notetakers35Thursday, June 13, 2013
  42. 42. www.WhatILearnFromReading.comAbout the Meeting: BeforeGather informationPrepare agendaExpect the other sides’ reaction, and plan strategiesAsk yourself these questions:What are you going to say?How are you going to react towhat the other side says?What will you say if the talkcome to a stand still?What concession are you able/willing to make?What do you expect from theother side?Who will you be negotiatingwith and what motivate them?36Thursday, June 13, 2013
  43. 43. www.WhatILearnFromReading.comDuring the meetingCreate positive negotiation atmosphere; Let them know why your proposedsolution is best for them.Aim high and hold back your concessionAfter the meeting, IMMEDIATELY sit down with your team andPrepare documentation (e.g., minutes)Review the negotiation:About the MeetingNew info. about people or the dealRevised assumptionsDid you get what you want? Why? andWhy not?Is there any strategy to get what youwant?37Thursday, June 13, 2013
  44. 44. www.WhatILearnFromReading.comDocumentationIt’s boring. It’s hard. It’s IMPORTANT!Reminder and EvidenceControl the document! ➠ Aura of LegitimacyWhat documents?Contract and MinutesMoU and LoIDeal books38Thursday, June 13, 2013
  45. 45. www.WhatILearnFromReading.comContracts and MinutesPut what you wantLeave out what you don’t likeThe other side may not evenread it.It’s ok if they want revisionSend the minute to the otherside for confirmation (by email orin the next meeting)‘I’m so glad we’veagreed on these items:.....If you disagree with this,please let me knowimmediately.”39Thursday, June 13, 2013
  46. 46. www.WhatILearnFromReading.comMoU and LoINot a contract (i.e., non-binding)Reminder of what’s been agreedPeople tend to stick to MoU/LoI. Why?NobilityInvested time principleConcise (2-3 pages)Real decision maker signs the documentA template for drafting subsequent legal document40Thursday, June 13, 2013
  47. 47. www.WhatILearnFromReading.comDeal BooksVery powerful tools1. General deal books:• Record everything• Eg., What, Who, When, Where, How (commun. means)• Use it as a reference2. Deal-specific deal books:• One book for one deal• Plan, Agenda, Strategies• Issues classified by type (opened, agreed, pending, strategy to resolve)41Thursday, June 13, 2013
  48. 48. www.WhatILearnFromReading.comDeal Books3.We-They List:• The difference of both sides (e.g., constraint, authority, time)• Show a part of it to the other side4.Wish List:• What we want and what they want• What we can give• Prioritized list42Thursday, June 13, 2013
  49. 49. www.WhatILearnFromReading.comExample TacticsTactics Countermeasure#1: “You’ve gotta do better than that”(Until you hear “this is my absolute best deal.”)“I offer you a very good price. Why do Ihave to do better than that?”#2“That’s all I can do”(Do it like an apology)Verify the line#3: Nibbling(Do for concession as if it is a general practice)- Put the price on every item- Give discount instead of free#4: A Change of Pace(Work at your own pace)Stay focused#5: “Take it or Leave it”Change parameters and look foralternatives.#6: Force Revision(Revise the contract after it is signed)Nothing you can do43Thursday, June 13, 2013
  50. 50. www.WhatILearnFromReading.comControl the PaceSlow:You need time to gather informationDo not accept anything right awayBe dubious and indecisiveFast:You don’t want the other side to do researchStay focus; Verify everything the other side ask for44Thursday, June 13, 2013
  51. 51. www.WhatILearnFromReading.comDelayEsp. when there are several people (e.g., large organization)Invested time principle ➠ Drag the negotiationExample usagePressure the other side (e.g., I’ll give you two days to finish or I’ll gosomewhere else)Verify (e.g., why two days? I allocate all the time for you. Isn’t thatenough?)Use delay as a concession (e.g., I can do it faster, but I need to putmore people into work. Can you help me out with the extra expense?)45Thursday, June 13, 2013
  52. 52. www.WhatILearnFromReading.comDeadlineNot all deadline are equallyimportantTest all the deadlineMissing deadline v.s. Worse Deal➠ Most deals are closed near thedeadlineThe worst deadline = imposed byyour sideYou also need to beaware that when anegotiation fails, it isusually caused by peopleon your side, not theother side.46Thursday, June 13, 2013
  53. 53. www.WhatILearnFromReading.comDeadlockBoth sides put their feet downInitiating deadlockTo show your confidence and to test the confidence of the other sideTo gain concessionTo show people on your side that you are really on the same sideTo change the pace of negotiationSmile and be friendly when doing soAlways leave a way to come back“Think it over. And, if youchange your mind, callme.”47Thursday, June 13, 2013
  54. 54. www.WhatILearnFromReading.comDeadlockBig organization fears deadlock because every decisioninvolves many departments.Resolving deadlockMove to other issues and come back later.Offer small concession and ask the other side to do the same.Go off the record and ask other people (who are not in themeeting) for help48Thursday, June 13, 2013
  55. 55. www.WhatILearnFromReading.comGet Tough StrategyPut you foot down. Don’t make compromise.Set the tone. Let the other side know that you can be tough too!Don’t back down. You cannot afford weakness when using GTS.Manage concession properly; Be reasonableDon’t burn the bridgeAim highDon’t succumb to simple solutionUse deadlinePatience and Stingy49Thursday, June 13, 2013
  56. 56. www.WhatILearnFromReading.comTelephoneBad for negotiation. If you want a ‘no’, use telephone.Interruption is deadly, caz you are not ready.Guidelines:People do not talk long ontelephonePeople believe most calls areimportant. They dropeverything when they’re on thephoneNo body languageCannot show the documentWho’s on the other sides?50Thursday, June 13, 2013
  57. 57. www.WhatILearnFromReading.comTelephoneBe the caller.Prepare a written agenda before you callPrioritize them. Go through them one by one.If someone calls you,Ask to call back laterOtherwise, try one way communication. Do not make any deal.Listen and make note. Only ask for clarificationWrite a follow-up letter to confirm the info. in the conversation51Thursday, June 13, 2013
  58. 58. www.WhatILearnFromReading.comeMaileMail leaves paper trails.Make impression ➠ Spell check!!Always provide sufficient information52Thursday, June 13, 2013
  59. 59. www.WhatILearnFromReading.comWrap-up53Thursday, June 13, 2013
  60. 60. www.WhatILearnFromReading.comDos and Don’tsDos Don’tsTrust your instinct Talk about your weaknessesAdapt your negotiation style Believe in bogus theoryTell your team to say as littleas possibleUse all the power you haveAim high but be realisticWaste your time forworthless things54Thursday, June 13, 2013
  61. 61. www.WhatILearnFromReading.comTAKEAWAYS1.Rapport and people, notbenefits and the deal2.Documentation3.Use time and companypolicy as your weapons4.Take calculated risk5.Commit to gainconcession55Thursday, June 13, 2013
  62. 62. http://WhatILearnFromReading.comwww.WhatILearnFromReading.comMore like this?Please visitwww.WhatILearnFromReading.com56Thursday, June 13, 2013
  63. 63. www.WhatILearnFromReading.comDiscussion?57Thursday, June 13, 2013
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