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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.

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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.

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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.

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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.

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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.

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Brian Lee

Chief of Product Management at Lifehack

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Last Updated on September 30, 2020

Effective vs Efficient: What’s the Difference Regarding Productivity?

Effective vs Efficient: What’s the Difference Regarding Productivity?

When it comes to being effective vs efficient, there are a lot of similarities, and because of this, they’re often misused and misinterpreted, both in daily use and application.

Every business should look for new ways to improve employee effectiveness and efficiency to save time and energy in the long term. Just because a company or employee has one, however, doesn’t necessarily mean that the other is equally present.

Utilizing both an effective and efficient methodology in nearly any capacity of work and life will yield high levels of productivity, while a lack of it will lead to a lack of positive results.

Before we discuss the various nuances between the word effective and efficient and how they factor into productivity, let’s break things down with a definition of their terms.

Effective vs Efficient

Effective is defined as “producing a decided, decisive, or desired effect.” Meanwhile, the word “efficient ” is defined as “capable of producing desired results with little or no waste (as of time or materials).”[1]

A rather simple way of explaining the differences between the two would be to consider a light bulb. Say that your porch light burned out and you decided that you wanted to replace the incandescent light bulb outside with an LED one. Either light bulb would be effective in accomplishing the goal of providing you with light at night, but the LED one would use less energy and therefore be the more efficient choice.

Now, if you incorrectly set a timer for the light, and it was turned on throughout the entire day, then you would be wasting energy. While the bulb is still performing the task of creating light in an efficient manner, it’s on during the wrong time of day and therefore not effective.

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The effective way is focused on accomplishing the goal, while the efficient method is focused on the best way of accomplishing the goal.

Whether we’re talking about a method, employee, or business, the subject in question can be either effective or efficient, or, in rare instances, they can be both.

When it comes to effective vs efficient, the goal of achieving maximum productivity is going to be a combination where the subject is effective and as efficient as possible in doing so.

Effectiveness in Success and Productivity

Being effective vs efficient is all about doing something that brings about the desired intent or effect[2]. If a pest control company is hired to rid a building’s infestation, and they employ “method A” and successfully completed the job, they’ve been effective at achieving the task.

The task was performed correctly, to the extent that the pest control company did what they were hired to do. As for how efficient “method A” was in completing the task, that’s another story.

If the pest control company took longer than expected to complete the job and used more resources than needed, then their efficiency in completing the task wasn’t particularly good. The client may feel that even though the job was completed, the value in the service wasn’t up to par.

When assessing the effectiveness of any business strategy, it’s wise to ask certain questions before moving forward:

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  • Has a target solution to the problem been identified?
  • What is the ideal response time for achieving the goal?
  • Does the cost balance out with the benefit?

Looking at these questions, a leader should ask to what extent a method, tool, or resource meets the above criteria and achieve the desired effect. If the subject in question doesn’t hit any of these marks, then productivity will likely suffer.

Efficiency in Success and Productivity

Efficiency is going to account for the resources and materials used in relation to the value of achieving the desired effect. Money, people, inventory, and (perhaps most importantly) time, all factor into the equation.

When it comes to being effective vs efficient, efficiency can be measured in numerous ways[3]. In general, the business that uses fewer materials or that is able to save time is going to be more efficient and have an advantage over the competition. This is assuming that they’re also effective, of course.

Consider a sales team for example. Let’s say that a company’s sales team is tasked with making 100 calls a week and that the members of that team are hitting their goal each week without any struggle.

The members on the sales team are effective in hitting their goal. However, the question of efficiency comes into play when management looks at how many of those calls turn into solid connections and closed deals.

If less than 10 percent of those calls generate a connection, the productivity is relatively low because the efficiency is not adequately balancing out with the effect. Management can either keep the same strategy or take a new approach.

Perhaps they break up their sales team with certain members handling different parts of the sales process, or they explore a better way of connecting with their customers through a communications company.

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The goal is ultimately going to be finding the right balance, where they’re being efficient with the resources they have to maximize their sales goals without stretching themselves too thin. Finding this balance is often easier said than done, but it’s incredibly important for any business that is going to thrive.

Combining Efficiency and Effectiveness to Maximize Productivity

Being effective vs efficient works best if both are pulled together for the best results.

If a business is ineffective in accomplishing its overall goal, and the customer doesn’t feel that the service is equated with the cost, then efficiency becomes largely irrelevant. The business may be speedy and use minimal resources, but they struggle to be effective. This may put them at risk of going under.

It’s for this reason that it’s best to shoot for being effective first, and then work on bringing efficiency into practice.

Improving productivity starts with taking the initiative to look at how effective a company, employee, or method is through performance reviews. Leaders should make a point to regularly examine performance at all levels on a whole, and take into account the results that are being generated.

Businesses and employees often succumb to inefficiency because they don’t look for a better way, or they lack the proper tools to be effective in the most efficient manner possible.

Similar to improving a manager or employee’s level of effectiveness, regularly measuring the resources needed to obtain the desired effect will ensure that efficiency is being accounted for. This involves everything from keeping track of inventory and expenses, to how communication is handled within an organization.

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By putting in place a baseline value for key metrics and checking them once changes have been made, a company will have a much better idea of the results they’re generating.

It’s no doubt a step-by-step process. By making concentrated efforts, weakness can be identified and rectified sooner rather than later when the damage is already done.

Bottom Line

Understanding the differences between being effective vs efficient is key when it comes to maximizing productivity. It’s simply working smart so that the intended results are achieved in the best way possible. Finding the optimal balance should be the ultimate goal for employees and businesses:

  • Take the steps that result in meeting the solution.
  • Review the process and figure out how to do it better.
  • Repeat the process with what has been learned in a more efficient manner.

And just like that, effective and efficient productivity is maximized.

More on How to Improve Productivity

Featured photo credit: Tim van der Kuip via unsplash.com

Reference

[1] Merriam-Webster: effective and efficient
[2] Mind Tools: Being Effective at Work
[3] Inc.: 8 Things Really Efficient People Do

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