A Tool for the Implementation of Golden Rules 3 and 4: The Concessions Matrix

You need to specify the following:

• Based on the business objectives matrix (cf. Golden Rule No. 1), the list of concessions anticipated during the negotiations and the main concessions demanded by the other party but nonnegotiable from your perspective; and
• The list of potential compensation, at the bottom of the table, highlighting your wish list of things you want in return but that you know are nonnegotiable from your customer’s perspective.

You should use the matrix before negotiations in order to clarify areas of potential agreement but also during negotiations in response to customer demands for concessions to enable you to respond in three different ways.

1. To dissuade. Here we are talking about making an initial, excessive demand that you know is unacceptable. This allows you to obtain two benefits:

   ° You encourage the other party to waive, or at least reduce, his own demand.

   ° You subsequently obtain realistic compensation more easily, by applying Golden Rule No. 1 (a realistic objective, but a very high initial demand).

2. To get what you want. The matrix allows you to review all the potential moves that might be envisaged from the other party in exchange for flexibility on your part. The benefits sought are

   ° to avoid giving ground under pressure without compensation,

   ° to provide multiple routes toward an agreement in the event of stalemate.

3. To move the goalposts. You must identify the least costly, most easily reversible, and least “contagious” concessions so as to move the goalposts toward those concessions rather than grant those concessions demanded by your counterpart.