Making Positive Exchanges
During negotiations, it is important to maintain positive exchanges by using the following techniques:
Use “if-then” language. To maintain balance in the negotiation, don’t make a concession without getting something in return. Using the framework of “If ..., then ...,” provides a method of signaling the reciprocity that you demand: “If I pay full price, then I expect free delivery.” However, be willing to offer something in return for what you want: “If I can get more staff for this project, then I can guarantee that we will meet your deadline.” By connecting the two concessions, you are indicating a balance in concessions.
If you’re stuck, involve the other party. Offering to do something else to help often breaks a deadlock or introduces more currencies than initially offered. As we see in Chapter 8, brainstorming generates options that may help to break an impasse. A more general way to expand the pie includes involving the other party by saying, “What else could we do that will satisfy both our needs?”
Don’t give all your currencies or resources to the other party. After listing some concession options, ask comparison questions: “Which of these is more valuable to you?” If the other party insists on too much, give him a choice: “I can’t give you both more equipment and three more support personnel. Which one would you prefer?” A preplanned settlement range for each issue will determine how much you are willing to offer and what value it has to the other party.
Signal an expectation for reciprocation. The concept of psychological reciprocity involves the expectation that the other party will give something in return based on your willingness to make a concession. The message is, “In the interest of moving the deal ahead, here’s what I am willing to do; and I hope you’ll take this in the right spirit and reciprocate.” At this point, you can determine whether the other side is willing to move or will dig in even further. Often, skillful negotiators will make a low-cost concession to see whether the other side reciprocates. Information is often exchanged as an early currency. Note whether and how much the other side is willing to share. In many cases, this signals whether the negotiation will be win-win or adversarial. Chapter 10 covers this in detail.
Tie the concession to an explicit need. This is by far the best way to ensure that the other side sees the value of what you are offering. Use the framework: “As I see it, this [concession] will solve [this problem].” By tying your concession to the specific need or problem identified by the other party, you make it difficult for him to say no.
Develop your Best Alternative to a Negotiated Agreement (BATNA). [5] Based on the principle that no agreement is better than a bad agreement, your power is increased by having alternative ways to meet your needs. While planning or executing a negotiation, ask yourself: “What alternatives do I have if I can’t reach a satisfactory agreement with this party?” As we see in Chapter 5, identifying other alternatives increases your power dramatically.