Do Negotiations Elicit a Fight or Flight Response?
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Does the thought of a negotiation elicit a 'fight or flight' response? Whether you are negotiating for a new job, a promotion or a high value supply agreement, there is one tool you must have in your tool box to be successful. In this lightening talk, you'll be introduced to a negotiating tool that will take the mystery out of your negotiation, help you prioritize and link the elements of your negotiation to define what it means to 'win' at the negotiation table!
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Do Negotiations Elicit a Fight or Flight Response?
- 1. 23 OCTOBER 2015 STICKING TO THE GRID DO NEGOTIATIONS ELICIT A FIGHT OR FLIGHT RESPONSE? PRESENTED BY JENNIFER LO
- 2. 2 STICKING TO THE GRID | 23 October 2015 | Confidential NEW YORK TO TENNESSEE SENIOR DESIGN ENGINEER MOVERS
- 3. 3 FACT FINDING INFORMATION IS POWER LeverageWho? What? When? Where? Why? How? STICKING TO THE GRID | 23 October 2015 | Confidential
- 4. 4 NEGOTIABLE FACTORS SOURCES OF LEVERAGE Flexible Work Hours Vacation Days Relocation Expenses Salary Signing Bonus Start Date STICKING TO THE GRID | 23 October 2015 | Confidential
- 5. 5 PRIORITIZE IMPACT & IMPORTANCE 1 2 3 4 5 6 Salary Relocation Expenses Signing Bonus Vacation Days Flexible Work Hours Start Date STICKING TO THE GRID | 23 October 2015 | Confidential
- 6. 6 FORM A PLANNING GRID KEEP IT REAL RANK NEGOTIABLE FACTORS MAX MIN 1 Salary $90,000/ yr. $80,000/ yr. 2 Relocation Expenses Company pays: Temp. housing, movers, & travel $5,000 lump sum 3 Signing Bonus $10,000 $3,000 4 Vacation Days 5 weeks 3 weeks 5 Flexible Work Hours M-F (40 hrs./ wk.) M-F @ 8AM-5PM (40 hrs./ wk.) 6 Start Date 2 months from date of offer 3 weeks from date of offer w/ company paid commute for 3-4 weeks STICKING TO THE GRID | 23 October 2015 | Confidential
- 7. 7 CONTRACT NEGOTIATION GRID MODIFICATION STICKING TO THE GRID | 23 October 2015 | Confidential SUPPLIER RANK BUSINESS RANK NEGOTIABLE FACTORS MAX MIN 4 1 Validation Cover full validation cost IQ & OQ 6 2 Quality 100% with penalty 99% 1 3 Cost Reduction 20% in 5 yrs. 10% in 5 yrs. 2 4 Payment Terms 2% 10 Net 60 Net 60 3 5 Lead Time Reduction 25% Year 1: 5 days Year 2: 10 days 5 6 Lead Time 40 days 70 days
- 8. Do your homework. Ask the right questions. Rank your negotiable items. Determine your max & min. STICK TO THE GRID.
Editor's Notes
- Think about a time when you were contemplating accepting a job offer… Was the offer what you expected? Did you negotiate or did you settle for what was proposed? I am going to share with you a method on how to get the most leverage in a negotiation and how to position it so that you elicit ad fight rather than a flight response.
- Scenario: Let’s imagine you were offered a job as a Senior Design Engineer, the position you’ve been searching for. The only issue is that it’s over 900 miles away in Nashville, TN. You’re a parent to 2 kids, both with very busy schedules, and you occasionally have to take time out of work to attend to your kids’ needs. What do you do? You decide you are going to take the job, but you want this transition to be as simple as possible for your family. You need to determine what it will take to get your family to make this transition.
- The first step in doing so is to fact find. Fact finding is the process of designing a series of questions to identify your sources of leverage in a negotiation. Think of some questions that you would ask the hiring company about this position. You could ask questions like –What experience is required? Where is the position located? How long has the position been posted? These questions will help guide you to key pieces of information that can strengthen your position. With these types of questions, you could potentially discover how eager or desperate a company is to hire someone. If the position has been posted for 6 months and the hiring manager is still interviewing, you could use this to your advantage as stronger leverage.
- Develop a list of factors that you would like to negotiate. Think about what leverage you have on each item. From the fact finding stage, you should have come up with information that will provide you with strong leverage points in your negotiation. Position your leverage so that you are where you want to be on each of the items. Let’s think about the terms you would negotiate in this offer. Remember… You are accepting a Senior Design Engineer position. You have a family. You would be required to relocate. I have listed some items that I feel are negotiable based on this situation.
- From here, rank your negotiable items by matter of importance and impact in your life. Think back to the example – You’re moving over 900 miles away to Nashville, TN; you have 2 kids that keep your life relatively busy and chaotic; and, you want to make the transition as smooth as possible for your family. Keep this in mind as your prioritizing your list… Salary should be first and foremost the item that you negotiate prior to anything else. You need to take into account what market value pay is for a Senior Design Engineer, what the cost of living is in your area of relocation, and what experience you have that could be used as leverage in negotiation of your salary. The item of next greatest value to you is the relocation expenses. With you and your family being uprooted and placed such a great distance away, there are surely to be major expenses and headaches along the way. Find out what the company would be willing to cover – movers, moving truck, boxes, travel, etc. Thirdly, negotiate your signing bonus. Your bonus will provide additional income for your family. You want to rank your salary, relocation expenses, and bonus within the top 3 items because they are of the most monetary value. These factors play a major role in how you and your family live your lives. The fourth and fifth items that are listed are vacation days and flexible work hours. Your family is important to you, and they require much of your attention and time. With 2 kids, you’ll want to make sure that you will be able to attend to them if any urgent arises. Lastly, arrange when you will begin your new position. Account for time to find a home in your new city, relocate, and settle into the new area. Start dates are commonly and easily negotiated, so they don’t pull as much weight in this prioritization.
- The final stage of preparation is to form a planning grid. Take your list of prioritized negotiable items and place them into a table. Define the maximum and minimum range you would be willing to accept the offer at. The max is a stretch objective, but is still defensible. The min is the least you can live with and still feel like it was a successful negotiation. This is not a defeat. As long as you fall within your set range, you have achieved a successful negotiation. The advantage to putting all of your gathered information into a grid is that it provides you with a clear and concise way of composing your thoughts. Having your thoughts and facts recorded and organized will prevent you from altering reality when your emotions come into play. We are all human. We have emotions that can change in an instance, so having the facts displayed right in front of you in an easy-to-read tabular format will allow you to KEEP IT REAL.
- Remember… Do your homework. Find out as much as you can about the negotiation. Ask the right questions to get the information you need to have strong points of leverage in your negotiation. Prioritize your negotiable items based on matter of importance and impact in your life. Determine the range in which you would be willing to accept an offer and what you would define as a successful negotiation. Finally, just remember to STICK TO THE GRID.