Advertising
Advertising

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

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

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.

Advertising

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.

Advertising

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.

Advertising

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.

Advertising

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.

More by this author

Brian Lee

Chief of Product Management at Lifehack

Dismissing Sadness Will End up Making You Sadder How To Protect Your Focus From Being “Robbed” By Notifications and Social Media Why We Say What We Won’t Do (but Still Say It Anyway) Don’t Wait for People to Praise You. Do It Yourself Every Single Day We Do What We Know Is Bad for Us, Why?

Trending in Smartcut

1 50 LinkedIn Influencers To Follow, No Matter Your Industry 2 22 Best Habit Tracking Apps You Need in 2020 3 How to Break Bad Habits (The Only Effective Way) 4 15 Daily Rituals of Highly Successful People 5 10 Best Mechanical Keyboards to Type Faster

Read Next

Advertising
Advertising
Advertising

Last Updated on January 6, 2021

14 Ideas on How to Measure Productivity to Make Progress

14 Ideas on How to Measure Productivity to Make Progress

Everyone has heard the term productivity, and people talk about it in terms of how high it is and how to improve it. But fewer know how to measure productivity, or even what exactly we are talking about when using the term “productivity.”

In its simplest form, the productivity formula looks like this: Output ÷ Input = Productivity.

For example, you have two salespeople each making 10 calls to customers per week. The first one averages 2 sales per week and the second one averages 3 sales per week. By plugging in the numbers we get the following productivity levels for each sales person.

For salesperson one, the output is 2 sales and the input is 10 sales: 2 ÷ 10 = .2 or 20% productivity. For salesperson two, the output is 3 sales and the input is 10 sales: 3 ÷ 10 = .3 or 30% productivity.

Knowing how to measure and interpret productivity is an invaluable asset for any manager or business owner in today’s world. As an example, in the above scenario, salesperson #1 is clearly not doing as well as salesperson #2.

Knowing this information we can now better determine what course of action to take with salesperson #1.

Some possible outcomes might be to require more in-house training for that salesperson, or to have them accompany the more productive salesperson to learn a better technique. It might be that salesperson #1 just isn’t suited for sales and would do a better job in a different position.

How to Measure Productivity With Management Techniques

Knowing how to measure productivity allows you to fine tune your business by minimizing costs and maximizing profits:

1. Identify Long and Short-Term Goals

Having a good understanding of what you (or your company’s) goals are is key to measuring productivity.

For example, if your company’s goal is to maximize market share, you’ll want to measure your team’s productivity by their ability to acquire new customers, not necessarily on actual sales made.

2. Break Down Goals Into Smaller Weekly Objectives

Your long-term goal might be to get 1,000 new customers in a year. That’s going to be 20 new customers per week. If you have 5 people on your team, then each one needs to bring in 4 new customers per week.

Now that you’ve broken it down, you can track each person’s productivity week-by-week just by plugging in the numbers:

Advertising

Productivity = number of new customers ÷ number of sales calls made

3. Create a System

Have you ever noticed that whenever you walk into a McDonald’s, the French fry machine is always to your left? 

This is because McDonald’s created a system. They have determined that the most efficient way to set up a kitchen is to always have the French fry machine on the left when you walk in.

You can do the same thing and just adapt it to your business.

Let’s say that you know that your most productive salespeople are making the most sales between the hours of 3 and 7 pm. If the other salespeople are working from 9 am to 4 pm, you can potentially increase productivity through something as simple as adjusting the workday.

Knowing how to measure productivity allows you to set up, monitor, and fine tune systems to maximize output.

4. Evaluate, Evaluate, Evaluate!

We’ve already touched on using these productivity numbers to evaluate and monitor your employees, but don’t forget to evaluate yourself using these same measurements.

If you have set up a system to track and measure employees’ performance, but you’re still not meeting goals, it may be time to look at your management style. After all, your management is a big part of the input side of our equation.

Are you more of a carrot or a stick type of manager? Maybe you can try being more of the opposite type to see if that changes productivity. Are you managing your employees as a group? Perhaps taking a more one-on-one approach would be a better way to utilize each individual’s strengths and weaknesses.

Just remember that you and your management style contribute directly to your employees’ productivity.

5. Use a Ratings Scale

Having clear and concise objectives for individual employees is a crucial part of any attempt to increase workplace productivity. Once you have set the goals or objectives, it’s important that your employees are given regular feedback regarding their progress.

Using a ratings scale is a good way to provide a standardized visual representation of progress. Using a scale of 1-5 or 1-10 is a good way to give clear and concise feedback on an individual basis.

Advertising

It’s also a good way to track long-term progress and growth in areas that need improvement.

6. Hire “Mystery Shoppers”

This is especially helpful in retail operations where customer service is critical. A mystery shopper can give feedback based on what a typical customer is likely to experience.

You can hire your own shopper, or there are firms that will provide them for you. No matter which route you choose, it’s important that the mystery shoppers have a standardized checklist for their evaluation.

You can request evaluations for your employees friendliness, how long it took to greet the shopper, employees’ knowledge of the products or services, and just about anything else that’s important to a retail operation.

7. Offer Feedback Forms

Using a feedback form is a great way to get direct input from existing customers. There are just a couple of things to keep in mind when using feedback forms.

First, keep the form short, 2-3 questions max with a space for any additional comments. Asking people to fill out a long form with lots of questions will significantly reduce the amount of information you receive.

Secondly, be aware that customers are much more likely to submit feedback forms when they are unhappy or have a complaint than when they are satisfied.

You can offset this tendency by asking everyone to take the survey at the end of their interaction. This will increase compliance and give you a broader range of customer experiences, which will help as you’re learning how to measure productivity.

8. Track Cost Effectiveness

This is a great metric to have, especially if your employees have some discretion over their budgets. You can track how much each person spends and how they spend it against their productivity.

Again, this one is easy to plug into the equation: Productivity = amount of money brought in ÷ amount of money spent.

Having this information is very useful in forecasting expenses and estimating budgets.

9. Use Self-Evaluations

Asking your staff to do self evaluations can be a win-win for everyone. Studies have shown that when employees feel that they are involved and their input is taken seriously, morale improves. And as we all know, high employee morale translates into higher productivity.

Advertising

Using self-evaluations is also a good way to make sure that the employees and employers goals are in alignment.

10. Monitor Time Management

This is the number one killer of productivity in the workplace. Time spent browsing the internet, playing games, checking email, and making personal calls all contribute to lower productivity[1].

Time Management Tips to Improve Productivity

    The trick is to limit these activities without becoming overbearing and affecting morale. Studies have shown that most people will adhere to rules that they feel are fair and applied to everyone equally.

    While ideally, we may think that none of these activities should be done on company time, employees will almost certainly have a different opinion. From a productivity standpoint, it is best to have policies and rules that are seen as fair to both sides as you’re learning how to measure productivity.

    11. Analyze New Customer Acquisition

    We’ve all heard the phrase that “It’s more expensive to get a new customer than it is to keep an existing one.” And while that is very true, in order for your business to keep growing, you will need to continually add new customers.

    Knowing how to measure productivity via new customer acquisition will make sure that your marketing dollars are being spent in the most efficient way possible. This is another metric that’s easy to plug into the formula: Productivity = number of new customers ÷ amount of money spent to acquire those customers.

    For example, if you run any kind of advertising campaign, you can compare results and base your future spending accordingly.

    Let’s say that your total advertising budget is $3,000. You put $2,000 into television ads, $700 into radio ads, and $300 into print ads. When you track the results, you find that your television ad produced 50 new customers, your radio ad produced 15 new customers, and your print ad produced 9 new customers.

    Let’s plug those numbers into our equation. Television produced 50 new customers at a cost of $2,000 (50 ÷ 2000 = .025, or a productivity rate of 2.5%). The radio ads produced 15 new customers and cost $700 (15 ÷ 700 = .022, or a 2.2% productivity rate). Print ads brought in 9 new customers and cost $300 (9 ÷ 300 = .03, or a 3% return on productivity).

    From this analysis, it is clear that you would be getting the biggest bang for your advertising dollar using print ads.

    12. Utilize Peer Feedback

    This is especially useful when people who work in teams or groups. While self-assessments can be very useful, the average person is notoriously bad at assessing their own abilities.

    Advertising

    Just ask a room full of people how many consider themselves to be an above average driver and you’ll see 70% of the hands go up[2]! Now we clearly know that in reality about 25% of drivers are below average, 25% are above average, and 50% are average.

    Are all these people lying? No, they just don’t have an accurate assessment of their own abilities.

    It’s the same in the workplace. Using peer feedback will often provide a more accurate assessment of a person’s ability than a self-assessment would.

    13. Encourage Innovation and Don’t Penalize Failure

    When it comes to productivity, encouraging employee input and adopting their ideas can be a great way to boost productivity. Just make sure that any changes you adopt translate into higher productivity.

    Let’s say that someone comes to you requesting an entertainment budget so that they can take potential customers golfing or out to dinner. By utilizing simple productivity metrics, you can easily produce a cost benefit analysis and either expand the program to the rest of the sales team, or terminate it completely.

    Either way, you have gained valuable knowledge and boosted morale by including employees in the decision-making process.

    14. Use an External Evaluator

    Using an external evaluator is the pinnacle of objective evaluations. Firms that provide professional evaluations use highly trained personnel that even specialize in specific industries.

    They will design a complete analysis of your business’ productivity level. In their final report, they will offer suggestions and recommendations on how to improve productivity.

    While the benefits of a professional evaluation are many, their costs make them prohibitive for most businesses.

    Final Thoughts

    These are just a few of the things you can do when learning how to measure productivity. Some may work for your particular situation, and some may not.

    The most important thing to remember when deciding how to track productivity is to choose a method consistent with your goals. Once you’ve decided on that, it’s just a matter of continuously monitoring your progress, making minor adjustments, and analyzing the results of those adjustments.

    The business world is changing fast, and having the right tools to track and monitor your productivity can give you the edge over your competition.

    More Productivity Tips

    Featured photo credit: William Iven via unsplash.com

    Reference

    Read Next