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1.3 Decide if negotiating is your best bet

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There is no point in using brilliant negotiating skills if you shouldn’t be negotiating. In 1.2 we listed the main alternatives to negotiating. Here we will explore the advantages and disadvantages of those approaches.

 Persuade. If you can persuade them to your point of view, you’ve no need to negotiate. On the other hand, it can take forever. It won’t succeed if there is a serious clash of interests – if for instance your partner’s position in the market place is badly affected.

 Impose. This can save you time and money, but it may ruin long-term relationships. Your partner may decide that you have stopped thinking win-win and are thinking only of yourself.

case study As a sales manager, I regularly negotiated a large contract to supply aluminium products to a US-owned company. One year we agreed to use an American source of primary ingot as the basis of our costs. We neglected to consider the possibility that our costs might shoot through the roof because of changes in the dollar-sterling exchange rate. We took a chance on there not being a significant change in the exchange rate. Months later there was a massive change, and our hard-won agreement was put at risk – we had left one major issue to chance. After that, we learnt to put exchange rate limits in all our agreements, and negotiated a mechanism that kicked in outside those limits.

 Instruct. It’s quick, but people like to be offered choices, so are put off by being told what’s going to happen.

 Postpone. A good idea if the problem might go away, or if you think conditions will change in your favour. A bad idea if conditions change for the worse.

 Leave it to chance. A good idea if it seems fair. A bad idea if one party suffers so much that the agreement is sunk.

 Give in. A good idea if you have no choice whatsoever – it’s going to happen anyway. A bad idea if it destroys your credibility or if it will cost you in the long term.

 Problem solve. A good idea if you can work together on the same problem. A bad idea if each party has a seriously different agenda.

 Arbitrate. A good idea if both parties will accept the outcome. A bad idea if one party will be unhappy with the decision of the arbitrator.

 Plead. It shows you in a conciliatory light, as someone who is reasonable. But it puts you at the mercy of others, and may make you appear weak.

Once you have considered these options, but have then decided that negotiating is your best bet, we can focus on the techniques that will allow you to negotiate successfully.

Consider the advantages and disadvantages of alternatives to negotiating before embarking on a negotiation.

Negotiating

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