Negotiation Strategies: The Art of Negotiation
Negotiation strategies play an important role in life. Being able to successfully negotiate can also help resolve contentious legal issues. Attorneys often become skilled in the art of negotiation. You too can learn the strategies to negotiate and win. This article discusses twenty four negotiation strategies that can help you do just that.
Negotiation Strategy #1: “Take It or Leave It” Approach
This negotiation strategy involves drawing the line in the sand up front in the negotiation process. Thus, a satisfactory point of resolution is set. The negotiator communicates it to the opponent. Then the negotiator refuses to bargain further. This forces the opponent to consider accepting the offer or living with the consequences.
Negotiation Strategy #2: Concealing the Settlement Point
This negotiation strategy involves concealing this price which is an acceptable resolution. This can result in the opponent offering more than they should and it avoids disclosing weaknesses in the negotiators position or beliefs.
Negotiation Strategy #3: Inducing the Opponent to Start the Bargaining
This negotiation strategy involves cajoling the opponent into starting the bargaining process. By inducing the opponent to start the bargaining, the opponent may reveal the “general ballpark” for which he may settle. The skilled negotiator will realize that the opening shot may be fired high of the mark - usually double what the real settlement point is.
Negotiation Strategy #4: Appearing Irrational
This negotiation strategy involves appearing to be irrational. Irrational is different than appearing crazy. Irrational refers to appearing to be indifferent to rational pleas. This sends the message to the opponent that he will have to make greater concessions to satisfy the negotiator than what he would do to satisfy a rational person.
Negotiation Strategy #5: Blaming the Client
This negotiation strategy involves the negotiator siding with the opponent to a degree. This is similar to negotiating by appearing irrational. This negotiation strategy can put the attorney or negotiator in the place of being rational, but being constrained by a client that is impervious to rationality.
Negotiation Strategy #6: Using a Mediator
This negotiation strategy involves using a third party who is neutral to the subject. Using a neutral mediator can cut through all of the concealing of settlement points and irrationality that that the above techniques afford. This often allows the parties to find middle ground.
Negotiation Strategy #7: Appealing to the Merits or Posturing
This negotiation strategy involves appealing to the merits of one’s case. Appealing to the merits or posturing involves letting the opponent know the facts and law that is advantageous to the negotiators position. Then it involves emphasizing an unwavering belief of success if the issue goes to trial. This is similar to the “take it or leave it” approach.
Negotiation Strategy #8: Throwing Self at Opponent’s Mercy
This negotiation strategy explains itself. It involves throwing oneself at an opponent’s mercy. it is usually reserved for peculiar situations where the negotiator has little or no bargaining strength and opponent doesn’t seem cold-blooded enough to take absolute advantage. If the negotiator is daring, he can do this to play on sympathies and to get the opponent to reveal his settling point by making a generous offer. Then the daring negotiator can say, “Well that doesn’t really seem fair, I was thinking more of ______!”
Negotiation Strategy #9: Inducing the Opponent to Bargain Against Himself
This negotiation strategy involves telling the opponent that his first offer wasn’t even in the ballpark and then encouraging him to make a more realistic bid that is even less favorable to him.
Negotiation Strategy #10: Forcing Two Opponent’s to Bargain Against Each Other
This negotiation strategy often involves phantom bidders who are bidding against each other. This can lure the opponent into conceding points and arriving at an agreeable resolution.
Negotiation Strategy #11: Flattery and Clubbiness
This negotiation strategy involves flattering the opponent. This negotiation strategy helps the opponent to make more concessions in an atmosphere of dignity.
Negotiation Strategy #12: Timing
This negotiation strategy involves giving the appearance that the negotiator can afford to wait on settling. This is a hold-out approach that can result in a sense of urgency to settle.
Negotiation Strategy #13: Activity
This negotiation strategy involves vigorous and purposeful activity toward the start of trial (file suit, motions, discovery, set trial date, etc.) that encourages the opponent to settle along the way. This activity lets the opponent know the negotiator is serious.
Negotiation Strategy #14: Collateral Consequences
This negotiation strategy involves reminding the opponent of how costly the litigation process will be, etc.
Negotiation Strategy #15: Set Deadlines
This negotiation strategy involves giving the opponent an offer that is limited in time. Thus, if they don’t accept by a certain time the negotiator will be ready for litigation.
Negotiation Strategy #16: Focal Point Solutions
This negotiation strategy involves trying to reach a compromise by waiting to address the big issues until late in the negotiation process. As the differences between the two parties narrow they may be ready to “split the difference.” This means they’ll choose a settlement point somewhere near the middle of both parties latest offers.
Negotiation Strategy #17: Drafting the Agreement
This negotiation strategy involves drafting the actual language of the agreement after a loose settlement has been made. This way, minor points not discussed in detail can be drafted in the negotiators favor and the opponent may not notice the difference or may consider it too small to object to.
Negotiation Strategy #18: Control the Agenda
This negotiation strategy involves the negotiator setting the order of the issues to be discussed. This person will have the advantage. Concessions come easier in the beginning, so the negotiator can place the issues that are most important to him first. He may even insist on resolution of one of the early points before he will continue any further negotiation.
Negotiation Strategy #19: Bargaining Chip (False Demand)
This negotiation strategy involves asking for something the negotiator does not really want so that it looks like the negotiator is making a concession when they give it up.
Negotiation Strategy #20: Reverse Psychology
This negotiation strategy involves saying something like: “The last thing I want is ____.” This makes the opponent not want the result either, but it is rarely effective.
Negotiation Strategy #21: Physical Factors
This negotiation strategy involves negotiating on familiar ground and among the negotiators people. This gives the negotiator the edge in the negotiation process.
Negotiation Strategy #22: Direct Involvement of the Principal
This negotiation strategy involves making sure the opponent doesn’t undervalue the principal’s determination, etc. In some cases the negotiator may wish to do this to humanize the client for the other side (especially if the negotiation is for a criminal defense or for a civil work for a sympathetic plaintiff).
Negotiation Strategy #23: Give Opponent Feeling of Having Negotiated Capably
This negotiation strategy involves making the opponent feel like the result is advantageous to both and that he did a good job. This butters the opponent up for the next time if the negotiator has to deal with the opponent again.
Negotiation Strategy #24: Test of Strength
This negotiation strategy involves displaying a willingness to “go to the mat” (to trial) if the conflict just can’t be settled. However, most disputes can be settled. Thus, this strategy is often more of a ruse than a fact-based position.
Here is a list of short but effective negotiation books that can help anyone become a skilled negotiator:
- Getting to Yes: Negotiating Agreement Without Giving In
- Difficult Conversations: How to Discuss what Matters Most
- Getting Past No
- Bargaining for Advantage: Negotiation Strategies for Reasonable People 2nd Edition
- Secrets of Power Negotiating
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