
Most people underutilize the caucus. What’s your hurry? Summarize, take a break, and make sure your counteroffer is on the mark.
By Thomas Wood
This is one of the most commonly asked questions I get when I teach people in Watershed workshops that they need to open the negotiation by asking for their MDO (most desirable outcome). At Watershed, we refer to the MDO as the highest position within the realm of reasonability. Sure, it is not likely you will get your MDO, but it is defensible, and under the right circumstances you would get your MDO, and that is why it is not objectively insulting.
Take a simple example: You ask for bids from 3 graphics art firms for a project. The firm you would like to use is top notch and by far the best of the three, and its bid reflects this at 22% higher than the next highest bid. Are you insulted because the graphics art firm started at its MDO? You’re not insulted because you could conceive of paying for this high quality, even though you want a cheaper price.
Insults go both ways of course. Some people might be afraid to negotiate with the high-bid firm out of fear of insulting the bidder. But there are so many moving parts to the agreement -- deadline, payment terms, scope of work, follow-up support, approval process, etc. -- that you can easily negotiate without being insulting. It is completely legitimate to say,
“I really like your work and would like to use you, but your prices are much higher than the other bids we received. Would you be able to move on your price by 20% if we had someone from our team do some of the grunt work and we pay you 50% up front?”
You started “high” (low in this case) at your MDO. There is nothing insulting about your counter-offer.
On rare occasion your MDO will insult people. Let’s face it; people become insulted even though what we did is not objectively insulting. Last week I saw relatives become insulted by where they were seated at a celebration, even though their seating was given much consideration. It is just how they choose to see the situation.
If someone tells me they are insulted by my offer, I simply apologize, tell them that it was not my intention to insult them, that I want to do business with them in part because I respect them, and then I explain why I think my offer is legitimate. Insulted people typically calm down when given attention and information, and we are able to come to a mutually satisfying agreement.
Don’t let the fear of insulting someone keep you from asking for your MDO. Because it can get in the way of getting what belongs to you.
By Marianne Eby
It's no accident that we teach a full workshop on Managing Emotions as You Negotiate. Emotions are the #1 obstacle to a mutually beneficial negotiation. And when tensions flare between co-workers, the impact can reach far beyond the current negotiation, leaving you to solve an emotional puzzle. At some point you have to manage the emotional climate to return to a productive relationship.
The first step to managing emotions is to identify them.
By Marianne Eby
We return to the tense interaction between co-workers, often referred to as internal negotiations. The situation embroiling Lex and Jess was set out last week. Lex decided to make a few concrete changes for the next meeting with Jess. Lex realized that he needed to understand better what he was feeling when Jess takes over and treats Lex as a subordinate rather than an equal team member. And Lex needed to understand more about why Jess does this.
By Thomas Wood
Email may well now be the dominant form of business communication, and increasingly unavoidable in negotiations. It has its advantages -- it saves money and time, allows you to ask questions that might be more difficult in person, and sometimes reduces stress because of the time allowed for contemplation and reaction. So why do half of email negotiations end in impasse?
Negotiating by email has pitfalls too many negotiators ignore. Research shows that negotiators experience less satisfaction with the process, less rapport, and less future trust in their partners. Why?
Because of these downsides, email negotiations can inhibit the trust and mutual understanding that builds and sustains rapport, so conflicts or misunderstandings can easily degenerate or worsen. Here are 8 tips for maximizing the value of email and minimizing the risk:
Business professionals continue to use email to further the negotiating and decision-making process, despite its drawbacks, so there's no avoiding it. Just use it carefully! And smile as you type.
Visit Watershed's Negotiator's Learning Center to read more on Negotiating Over Email.
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