Negotiation and Strategy (from 'The Psychology of Management' by Brian Tracy - Part One)

Article Title: Negotiation and Strategy (from 'The Psychology of Management' by Brian Tracy - Part One)

Submitted by: Craig Lock

Category (key words): negotiation, negotiation principles and strategies, Brian Tracy, business success

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Publishing Guidelines:

This article (in note form) may be freely reproduced electronically or in print (with acknowledgment to Brian Tracy, please). All my writings may be freely published. If they help, encourage at all, make other lives easier in some way, or make any difference in people's lives by bringing some joy, then I'm very happy.

We share what we know, so that we all may grow."

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Submitter's Note:

I collected these notes from Brian Tracy's series of excellent tapes on 'The Psychology of Management' during my previous corporate career (many many "moons" ago). So am sharing a bit of the content (in note form) in the spirit of helping others to make the most of themselves, no matter your area of endeavour. Thank you, Brian for this most valuable material you have developed in your life's work...which I'm passing on in this article.

craig

NEGOTIATION and STRATEGY (from 'The Psychology of Management' by Brian Tracy - Part One)

Ten Steps to the Process of Successful Negotiation

Our ability in life often depends upon our ability to negotiate successfully...in your best interests.

21 important Ideas you can use to get better deals?

Here are ten of them (for "starters")...

Although people are different, everyone wants the same thing (just in different priorities). Things like: security, comfort, love, respect and fulfilment (yes, even children)

Negotiation is a skill: You can work on it and get better at it.. and so be more in control of your destiny.

Principle no 1:

EVERYTHING is negotiable. All prices are arbitrary - they can be adjusted. Always look for ways to improve the deal - eg. get something cheaper, faster, "add ons" (more thrown in), etc.

The key message in negotiation: Ask for what you DO want. Don't have a fear of the word "No", ie. rejection. Keep asking for a better deal...and you'll eventually get it. You can always improve the offering. Ask "Why, why not".

Don't be too serious. Treat negotiations as "just a GAME, FUN".

2. Always remember, the purpose of negotiations is to reach an agreement. Then all parties must be satisfied with their needs met; so they feel better off. Then participants will be internally committed to fulfil their commitments to the other party (or parties). True measure of success is being willing to enter future negotiations... additional transactions.

The process always has a beginning, a middle and an end. It starts with developing relationships (preferably ongoing).

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NEGOTIATION STYLES:

1. Win-lose

2 Lose-win

3. Lose-lose (both not happy with the deal)

4. Compromise, where some needs are met, but others are not

5. NO deal, where the parties are too far apart- can't come to an agreement.

6. WIN-WIN: The strongest and best position, where all parties are happy, satisfied and fulfilled. And are willing to enter into further dealings.

NB: A critical element in negotiation is POWER. The more POWER you hold in the negotiations, you more likely you are to get a satisfactory result - the one you really want.

Note: This is to do with perception of power - not the power itself.

What gives power? Elements, like scarcity (of the product or service), indifference give bargaining power.

In negotiations, the parties need the authority to make decisions on behalf of their organization (or country or constituents).

Courage to take a strong position and even walk away from negotiations, if need be. The power of commitment. A commitment to doing the very best deal possible.

The power of expertise: the person with the greatest knowledge of the needs of the other person gives a negotiator tremendous power. Empathy also gives power... as long as it's genuine, ie honest empathy. It's a matter of establishing identification with the other person - a warm relationship, where both parties WIN.

The power of knowing the needs of the other person. The power of rewards and punishments (financial) makes a person more likely to do business.

The power of investment: for the time and effort put in ("the more, the better").

All serious negotiators must have the power, the authority and the ability to help the other party get something they want, to benefit in some way, or even to punish. Ask yourself the question: "How can I increase my perceived power?"

5. Emotions are a key factor in negotiating. Keep your emotions out of the negotiations and in check to do the best deal. Bad emotions are greed, fear and anger and will negatively impact interaction. Don't manipulate others.

DESIRE is the key factor in determining the course and outcome to negotiations: How badly do you want it? How well do you express what you desire? This will determine your power.

What will the worst possible outcome be. Prepare your mind for not getting what you want? What is your worst possible outcome? Will it kill you?

Letting it pass: If the deal collapses, say "So what!" Practice detachment - like the Buddhists do. Don't get emotionally involved - gives the person a position of strength.

Time and timing are key elements in the process. The urgency or lack of urgency to conclude a deal. The less urgent negotiator has a stronger hand. Create urgency. How? Perceptions of scarcity, price going up creates strength. The Japanese say "denial is the cruelest form of delay."

The Importance of Timing: "The 80/20 Rule" is the key; The last 20 per cent of the negotiations will deal with the key issues and the value of the negotiations. The other 80 per cent is pre-amble and preparing to negotiate. You rarely make a breakthrough early on in the process.

7. Options = freedom: You are only as free as the various options you develop. Develop alte
ative courses of action... to move negotiations ahead - the more the better.

8. KNOW precisely WHAT YOU WANT. Don't have a vague idea. THINK it, the process through in advance. Clarify, then write it down: What would your ideal outcome be? Discuss with someone else.

Always bargain for the best. What is the best you can reasonably ask for? What is the worst outcome for you? Have an ultimate "fall-back" position. Begin negotiations slightly above your very best outcome.

What is an acceptable deal to you, where you'll be happy? What is the worst thing that can happen to you?

The person who knows clearly what they want has a tremendous advantage in negotiations. CLARITY is the key.

9. PREPARATION: 80 per cent is the preparation you do. Firstly, DEFINE your purpose. Issues like:

* What is the subject of the meeting?

* What to include/exclude on the agenda?

* What are the areas of conflict (or perceived conflict)?

* What are the starting positions of the parties?

What do you want to accomplish? Be clear about your goals? Then it's easy to convey, to communicate them... and move forwards and backwards. NB: Be open and FLEXIBLE.

10. Most important of all is the DESIRE, the strong WILL to enter negotiations and get a "WIN-WIN" solution between the parties. To reach a happy compromise.

Be happy and have fun in your negotiations... and in the entire jou
ey of life .

Good luck*

Shared by Craig Lock (“Information and Inspiration Distributer, Writer for Self Empowerment, Incorrigible Encourager and People-builder”)

* which is where “preparedness meets opportunity”

PS: The seed of an idea just came to me... why couldn't the same negotiating strategies and principles, the business model (or template) that Brian Tracy advocates be used by world leaders to help solve the many rather serious conflicts around the globe today. Israel and Palestine, North Korea, Zimbabwe... and even todays’ seeming impossible problems with Iran, Libya and Syria... perhaps??
"Together, one mind, one life at a time, let's see how many people we can impact, encourage, empower, uplift and perhaps even inspire to reach their fullest potentials. Change YOUR world and you help change THE world... for the better"

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THESE THOUGHTS MAY BE FREELY PUBLISHED (with acknowledgment to Brian Tracy, thanks)