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Productivity

How to Win Every Negotiation Even When Your Opponent Is Winston Churchill

Written by Brian Lee
Ex-chief of product management at Lifehack

Negotiation is an everyday human interaction — a process that takes place when two or more people with different stances try to work together for a mutually beneficial result. This includes anything from an employee/employer discussing a pay rise, to a customer trying to get better deals, to a mother/son discussing leaving home. Negotiation happens all the time, but most rarely realize it. This is why negotiation skills are something that everyone should take up.

In a negotiation, compromise is key.  Each party will likely have to sacrifice something to get what they want, and they may not get all that they want.  Negotiation without compromise will never work. Here I will help you get the best out of a negotiation without sacrificing too much benefit to please others.

Know Your Counterpart and Know Yourself

Identify your position.

This will make you strong yet flexible, and less susceptible to rash decision-making or influence from your counterpart, even when negotiations become intense.

  • Specify your objectives. Envision what the ideal outcome will look like to you.  Be specific. Articulate what the conclusion to your negotiation is so you know how to work towards it.  Now do a reality-check.
  • Ask yourself – what might I need to sacrifice to get what I want?  Categorize these items into what’s negotiable, and what isn’t. This helps you identify two important parameters: (i) your ideal outcome and (ii) your minimum acceptable outcome – the point at which you are no longer willing to negotiate.
  • Prepare a backup action in the event that the negotiation does fail. Otherwise, you’ll be a weak negotiator, making regretful sacrifices under pressure in order to come to an agreement at any cost.

Identify their position.

Get as much information as possible about what your counterpart really wants. If you can understand what they truly value, you can offer them an appealing solution that also benefits you.

Both parties should disclose all of the points that are up for negotiation. When you both know what’s at stake, it becomes clearer where you can both benefit (a win-win scenario) and where some give-and-take will be necessary.

Say a disgruntled employee who used to be conscientious suddenly complains about her salary. At face value, your main options are to increase her pay for doing the same work or refuse and risk losing her.  However, when you take the time to talk with her, you discover that it’s not really about the salary. She has high ambitions but was overlooked for a recent promotion opportunity. Then you can propose to support her to help her rise in the company.

Build Trust, Not Enemy

A key goal in any negotiation is to build trust. Earning trust helps you both during the negotiation and in the longer term.

Even with difficult negotiations, always be the party open to finding a mutually beneficial solution. Remain professional and follow the above steps, from preparation, to manoeuvring, to the negotiation’s conclusion.

Firstly, being professional gives you the edge in the process, as it encourages transparency and cooperation from your counterpart.

Secondly, even if you can’t come to an agreement in a particular negotiation, your counterpart will leave the encounter knowing that you are firm, flexible, clear, and honest. Worthy counterparts will return to you for future negotiations, and non-worthy opponents will realise that they need not try their luck with you.

Give Them Freedom

Prepare multiple give-and-take options. To give your counterpart the ability to choose is a powerful bargaining advantage to you.

Imagine you’re a parent who wants your toddler to eat more vegetables. Instead of repeatedly asking them to eat, and getting a ‘no’ as a response, you could prepare two different types of vegetables and ask them if they want to eat the broccoli or the peas.

Doing this reframes the options from ‘yes’ vs. ‘no’ into ‘this’ vs. ‘that’. Your toddler feels empowered because they’ve made an independent choice. And of course, since your goal was for them to eat more vegetables, ‘this’ vs. ‘that’ is really a disguised ‘yes’ vs. ‘yes’.

Be Silent About Your Sacrifices

Don’t reveal the value of your sacrifices. I’m not suggesting that you be dishonest. Keep matters straightforward because value is in the eye of the beholder.

A small sacrifice for you may be of great benefit to your counterpart. If you inadvertently reveal to them your most painful sacrifice, they’ll perceive that to be the thing of high value.

Offer low value sacrifices early in the negotiation as another way of showing goodwill. It helps to lower their defences and sets a cooperative tone. Similarly, package together several low value sacrifices to satisfy your counterpart.

Now imagine you’re going to a fishing region for your next family holiday. It’s further away than where you usually go for holidays, and isn’t quite as fun for children. After discussing it with the family, they’ve agreed to the holiday that you want. And you’ve agreed that you’ll (i) clean and tidy the car before you leave, (ii) do all the driving, (iii) take your 10-year old to the nearby zoo on two of the days away. This seems like a lot of work, but you enjoy driving, you need to tidy the car anyway to fit in your fishing gear, and you like spending time with your 10-year old.

Make Yours a Limited Edition

In other words, emphasize its value by informing your counterpart that your offer has a time limit. The goal is to get them to envision a possible future where your deal is no longer available to them. This should compel them to apply value to your offer in the present, and take action.

I have a friend, Michelle, who makes dresses. She agrees to make six dresses for a client (a boutique clothing store) at a discounted rate because it will solve a pressing cash-flow problem. However, she doesn’t apply a deadline to her offer. As a result, the client has achieved what he wanted in principle and doesn’t bother executing the deal for several weeks. Since then, Michelle has made sure that any deals she makes are strictly on the condition that her clients accept the offer within the week.

Delay, Delay, Delay

Don’t be too quick to respond, otherwise you may seem desperate. This may make your counterpart suspicious. Or a ruthless opponent may take advantage of your apparent desperation to close. Furthermore, the party who can afford to wait can increase their bargaining power.

Say you are really keen on a certain PA role and you know they’re keen to take you on, but their salary offer is lower than the minimum amount you’d accept. Instead of making a quick decision, emails them to say you’re not convinced, and that you’ll look at your options and let them know. Wait a few days, the HR will find you to ask if you’ve made your decision yet. If you say no, they may even raise their offer.

All’s Well That Ends Well

Keep the above tactics in mind and you will master every negotiation. Remember, negotiation requires compromise. The outcome of a negotiation should always be beneficial to both parties.