Negotiating
Truth/Smart Truth
Ordered Thinking
Creativity
About Negotiating
As Mark McCormack said in "What They Don't Teach at the Harvard Business School", don't be afraid to name big numbers.
People are often afraid to make the first move. Don't be. People who have the confidence to name a number, will do more deals. Doing ten deals that are acceptable to you is usually preferrable to doing the one perfect deal.
If you leave something on the table for the other party, you a) are more likely to do the deal and b) are more likely to do more deals down the road with that person. You'll get that back many times over in future deals.
Sometimes you want to outnumber the opposition and sometimes (maybe when your bargaining position is weakest), you just want to walk into the lions' den alone.
Never lie. Don't bluff. Tell the truth, the smart truth.
Disclose. Disclose. Disclose.
Never write down anything that you wouldn't want on the front page of your local newspaper. The "pen is a long arm from the grave".
Learn patience.
Learn to "ask for a nichel. Give me a nichel."
Ask for the deal.
"Yes" is better than "no" but "no" is better than "maybe". Treat a "maybe" as a "no" and tell them so- you can turn a "maybe" into a "yes" or, altenatively, you waste less time. People hate saying "no". They'll put you through the 'hoop' treatment and waste everyone's time.
Cultures differ. Rules for negotiating change from nation to nation- learn the differences; know your opponents and what rules they are following. As in Butch Cassidy and the Sundance Kid: "There are no rules in a knife fight."
Always volunteer to take the notes for a meeting; provide minutes and to produce the agreements. He or she who controls the document flow has a huge impact on the outcome of a deal- whether it even happens, how it happens and the conditions under which it happens.
Example:
To give himself an edge, one top executive always chooses a seat facing into a conference room with the windows and the sun behind him. That way he can clearly see the facial expressions of those he is negotiating with; he can read them and their body language better than they can read him. It is kind of like the Romans wanting the high ground facing east for a morning battle with Hannibal. Hannibal has to come up the hill with the sun in his eyes.
Example:
Bruce - I was offered a J.O.B. at a Fiber Optics company. It was a good company (est. since 1952) with good pay and benefits. At the same time I was offered a position at a start-up in Atlanta, GA. with little pay and pretty much no benefits. But, the CEO is offering a part of the company. So, I rejected the job in Toronto (inspite of my girlfriend's objection) and
here I am in Atlanta. I like the startup becasue I think it's more challanging, there will be much less office politics and I get to develop something from scratch. I have to do a lot of learning, very fast. But since I have no friends here, (just family) I will enjoy working.
I am meeting with the CEO on Sunday and I think we will negotiate wages then. Since I have no experience in negotiating, I would appreciate any advice you could give me. Thanks and take care.
ARSALAN ZARGAR
Wow, Arsalan- you are really out there! Great. But ask for some cash as well as stock options. Stock options are great when they work but if the company folds, you need to have enough cash to find your way back home (or to the next opportunity). Keep in touch. BMF