Tuesday, April 23, 2013

Trump Style Negotiation: CH1--What is negotiation, really?


Negotiator 

 A great negotiator go through a lot of troubles to find hidden information. He finds out what others can live with and what other cannot live with, in spite of what the others say.
For most people, the prime motivation is money. But, they are also motivated by ego, prestige, recognition, and personal satisfaction. A great negotiator, not only, finds out what the other side wants, but he is also able to convince the other side to change the motivation (e.g., from money to prestige).


Negotiation

The key elements in negotiation are creativity, skepticism, information gathering, and willingness to consider multiple solutions.

Why Negotiation?

Negotiation occurs due to resource scarcity and conflict. A deal is usually not wanted by both sides, because each side has their own way of thinking. A good negotiator need to think reverse to turn a hostile deal favorable.

When Do We Negotiate?

We have probably started negotiating since our birth. When we were a baby, we cried out for food. When we were a kid, we negotiated for toys with our parent. When we were a grown adult, we negotiated when we shops for stuff. When we were married, we negotiated with our spouse for what we want and what our spouse does not approve. When we do business, we negotiate. Since birth till death, we negotiate all the time.

Rules of Negotiation


  • Rule#1: There is no rule in negotiation
  • Rule#2: Lying and cheating is permissible.
This doesn’t mean that you should practice according to these two rules. It does mean that you should know and be aware that other may not be ethical. So be skeptical and protect yourself. Ethical Negotiation ‘Trump-Style Negotiation’ is NOT all about getting what you want. It’s not ALL about money. It’s about communication of what you want and expectation to others. It’s about finding out what others can live with and cannot live with. It’s about finding the best compromise so that both sides can walk a way with personal satisfaction. So why don’t we embrace the ‘winner takes all’ mindset. What’s wrong with it? Well, this mindset leads to a zero-sum game, where if someone wins someone must lose. This mindset may be good for a short-term. When sticking to this mindset, you will slowly build up bad reputation. In time, no one will want to do business with you

Non-Verbal Negotiation Tactics

Words are the most common negotiation tools. But we can use other methods to indirectly gain an advantage over the other side. These are, for example, being late or not showing up for an appointment without an apology, cutting a meeting short, not answering a phone call, or scheduling a conflicting meeting.

Three things You Need to Know about Negotiation


  1. Negotiation is not Science: Negotiation is about making people--both us and the other side--satisfied. You cannot quantify satisfaction. It’s a feeling, not science. 
  2. Winning is not Everything: The ultimate goal of negotiation should be satisfaction. It should not be getting the best price, or getting what you have in mind before negotiation. Sure, getting these things will satisfy you. But if you leave the other side with dissatisfaction, both you and the other side will feel bad at the bottom of the heart. And, both of you may not want to do business together again in future. 
  3. Negotiation is not an event with continuity: Do not slack off just because negotiation has started. The other side can change his/her mind all the time. Someone can always step in with better deal, and break the continuity of negotiation

Seven Goals to Help You Succeed in Negotiation

Prior to negotiation, you should set your goals. These are 7 goals you might want to consider.
  1. I want to profit from the negotiation: The profit does not have to be financial profit only. It can be something you learn, for example. You will gain an advantage edge, if you have various goals to begin with. These goals will give you flexibility the other side might not have during the negotiation. 
  2. I want to learn as much as I can about the people on the other side. This could help you expect how the other side moves. It will help you build trust and relationship, and will be useful later in negotiation. 
  3. I want to find out where the bottom line (of both side) is. A zone of uncertainty is an area between the minimum the other side will take and the maximum you will give. Anything lying within a zone of certainty is negotiable. It’s not easy to find out. You need to do research and discuss with the other side. 
  4. I want to understand the constraint surrounding the transaction (e.g., time, authority, regulation) 
  5. I want to study the other side (e.g., personality, education, knowledge of things related to the deal, dirty/truthful, uptight/outgoing): Find out through direct discussion and other methods. Use this information to act, response, and communicate. 
  6. I want to assess people on my side. 
  7. I need to find out what’s fair and reasonable for both sides. Each side might have different point of view. What’s fair for one side may not be fair for the other side. 
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Book or Audiobooks?

Personally, I prefer audiobooks. It's fun, and I can listen when I'm doing something else. It also makes other activities (e.g., jogging) a lot more fun. For more detail about audiobooks, please read [this post].

There is one more reason that may encourage you to go for the audiobook version. You can get it now for FREE. Audible offers you a free trial for 14 days. Even if you get the book and cancel the subscription right away (so that you don't have to pay), you can keep the book. And, don't worry if you lost the audiobook file. Just log into audible.com. You can keep downloading the over and over again.
About the summary: It takes time to finish up a book. And, when you do, sometimes, you want to review what you learn from the book. If you do not make  notes as you read, you might have to go through the book once again. This can be time-consuming when you are dealing with a book. But you can still flip through the book and locate what you are looking for.

However, when the material is an audiobook, it is extremely hard to locate a specific part of content. Most likely you will have to listen to the entire audiobook once again.

This book summary will help solve the pain of having to go through the book all over again.

I am leaving out the details of the books. Most books have interesting examples and case studies, not included here. Reading the original book would be much more entertaining and enlightening. If you like the summary, you may want to get the original from the source below.

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