Negotiation Technique – Learn From Kids

Posted on Leave a commentPosted in Negotiation

 

Humans learn to negotiate early in life. Any parent can attest to this! As early as age two, children are offering to eat more vegetables at dinner if it means ice cream for dessert. By the tender of age of three, kids have developed a whole arsenal of negotiation tactics. Their approaches to secure prime toys, dessert or a later bedtime are not just child’s play — they offer valuable reminders about successful negotiation tactics in any setting.

 

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Related: 4 Ways to Negotiate Your Way to a ‘Yes’

 

1. Start by offering support. My wife and I have noticed that before our sons present a request for something outside of their usual routine, they are often especially helpful around the house. They will proactively help out with extra chores, and while we usually can sense an ulterior motive is at play, it still often works in their favor. In business too, it’s easier to say yes or want to work with someone who has just done something nice for you.

2. Time your approach. Kids are masters at timing their approach — often waiting to ask for something when you are right in the middle of preparing dinner or trying to get their sibling ready for bed. Toddlers have it figured out. Assessing what your target has going on around them and timing your approach so that you’re more likely to receive a “yes” is smart whether you’re at home or in a business setting.

3. Leverage a credible advocate. My youngest son likes to enlist the support of his older brother when negotiating. Having lined up an ally, it’s clear he feels more empowered and confident when his brother is there to back him up. It’s often effective, too, assuming it’s a reasonable request. Similarly, I find it’s helpful to preview ideas and build a group of influential, trusted advocates before approaching a decision maker or potential partner. When presented with an idea or request that a team of people believe is a good idea, it’s harder to say no.

Related: How to Negotiate for What You Want

4. Turn on the charm. Merit is important, of course, but charm and an emotional connection go a long way. Children learn that it’s hard for their parents to say no when they add a charming smile to their request. Human beings are emotional. Positive personal connections matter. In business, having a good relationship outside of the conference room with whom you are negotiating can have a significant impact on how or whether a deal gets done.

5. Talk to a decision maker. One of the most important reminders kids can offer us about negotiation is to make sure you’re talking to a decision maker. Kids know who can say yes to a request and will target that person. (And if one decision maker says no, they’ll often move on to the second decision maker!) It is a waste of time to talk with someone who is not capable of saying yes. When negotiating a deal, small or big, make sure you’re talking to the right person, otherwise there will be no ice cream for dessert.

Source : entrepreneur.com

Art of Drafting # Business Writing.

Posted on Leave a commentPosted in Communication, Creativity, Negotiation

Business writing is an essential tool, every one should master. We are not taught, neither we have to take classes on creative writing. Any one, who has slight knowledge of post qualification classes like GMCS – for CA Student knows pretty well its efficacy. Pun intended.Only after we progress a while, we start to learn, how to be precise in expressing our thoughts, unfortunately advent of Email and social media have diminished the real writing. Those, who occupy a position of prominence or aspire to be one, always grapples with the question. The answer lies in constructing your thoughts seamlessly and more particularly, observe the good drafting.

 

If you are not aware about who Taylor Swift is, she is a music sensation in USA and already worth in excess of US $ 200 millions. She is just 25 and possess the power to command an attention from giants like Apple. If you don’t know, she withdrew her music from Spotify, claiming poor royalty issue. But, when it comes to Apple. They are Giants and no one can take on them. Not until, you read her post on tumbler.

 

While threatening to withdraw her Album from Apple Music, she cajoled them into conceding to her demand. After reading her post, Apple did announced that they will be making changes in their royalty policy. Its not everyday, Apple decided to change or admit their mistake.

 

The beauty of the post can also be viewed from negotiation point. How, without actually threatening, one can put across point. Without using strong or harsh word, how in the most artistic way, using clever adjective, while admiring the Apple, an argument can be advanced against very behemoth, she tries to admonish.

 

Above all, it also requires courage to go out and speak her mind.

 

For a student, who inclines to learn craft of clever writing, reading of post is recommended.

 

Business/Employment Lessons

Posted on Leave a commentPosted in Negotiation, Uncategorized
  1. Business is a means to an end not an end in itself. Nobody on his or her deathbed says, “1 wish I had spent more time in the office.”
  2. Never quit a job unless you have another job. My father taught me this great truth. You are perceived as more valuable if you are working than if you’re unemployed. You may feel staying employed doesn’t give you the time or latitude to seek a better job. This is a dangerous delusion—don’t succumb to it.
  3. Always ask the question “If this decision is wrong, is it going to be painful or fatal?” Company builders and business leaders keep away from “bet the company” investments.
  4. Keep away from advisors/consultants. If they knew how to make money, they would. These folks are like the fellow who knows a thousand ways to make love but doesn’t know any women.
  5. The best test of a deal’s true attraction is to ask your partners, employees, directors, family, and so on, “Would you put your own money in this deal?” It’s amazing how often the answer to this question is, “No! This is good for the company, but I’ll take a pass.” These deals are invariably losers.
  6. Always have at least two people from your side present at any negotiating or deal-making sessions. This gives you time to think, plus an ally with whom to compare perceptions.
  7. Never confront or threaten people or institutions who have more power than you. Examples: police, customs agents, the sec, Ontario Securities Commission, tax agents of the government, or politicians.
  8. In dealing with the media, never forget to qualify your statements with “not for attribution” and “off the record” where appropriate. Journalists value their contacts and will usually respect a source’s desires.
  9. In negotiations, always try to get the other party to name its asking price. It may often be far lower than your maximum offer. If the other party won’t name a price, start very low. You can always go up.
  10. Almost everything in life is easier to get into than get out of.
  11. Never bid against yourself. Only raise your bid to top a real counter bid, not an imaginary one.

Source : Farnam Street

Art of Negotiations BJP V/s Sena – Final Post

Posted on Leave a commentPosted in Interesting Idea, Negotiation

If you have read my blog post published few days back, you would recall, I predicted, the reconciliation could be on the way between erstwhile partners, provided Mr. Modi flags go ahead and that Sena accepts the fact that they are no more big brother in the state of Maharashtra.

This was subject to caveat that both parties realize the compromise is the only way forward. This assumption was based on the events unfolded in the last few months.

Now that Sena has joined the Government, it seems finally common sense has prevailed at both the ends. Each gains equally, for BJP, a stable government and for Sena, control at BMC, minister at the Center and can certainly call the shots in Maharashtra Government.

A win/win formula. Isn’t it obvious? But unfortunately, common wisdom does not follow, when each one tries to outsmart other by bluffing or by false bravado, ignoring the basics. At times, it requires tenacity and art of waiting to achieve ultimate victory.

In the final analysis, BJP played to its strength and got what it wanted. Sena acted like a brat, and became happy with a pacifier in the mouth.

 

 

Negotiation : What to Learn from BJP V/s Shiv Sena –

Posted on Leave a commentPosted in Interesting Idea, Negotiation

Negotiations:

All of us know, the art of negotiations. It’s not a science, with set rules. As we work under uncertainty,   it’s difficult to follow a straight path. Ideally, each party negotiates to maximize self interest. However, when both parties are equal or slightly unequal, many a times rational outcomes does not arise. Take example of recent Negotiations between BJP and Shiv Sena. We can look at it in two phases: Before Election and After.

Before Election:

Both parties appear very strong, and Shiv Sena, having upper hand in ticket distribution since last 25 years, fails to recognize the rise of BJP and failed to accommodate the demand. Had they were more accommodating, the outcome for them would have been different.

They anticipated, rise of BJP would diminish their chances, with more Seats, they could bargain better with BJP. In the process, they bargained beyond reasonable.

For Shiv Sena, Pride came in the way, and they could not go back in compromising position. It is when, they lost the entire battle of negotiation. Obviously, in Hindsight.

For BJP, they probably always wanted to ditch the alliance, but with no reasonable ground, could not break away. Or Atlest assert their new found Power after thumping victory in Lok Sabha. They are like a younger brother, who for prolonged period remained under the shadow of the elder brother, and now aspires to show his prowess. Hard Negotiation for them was not a bargain but a door to break away or asset their superiority, they succeeded. BJP had detailed analysis and could measure the pulse of the voters, so they knew, they have an excellent chance of securing major seats.

After Election:

BJP now is in a superior position. With a master stroke from NCP, they bargain very hard with Shiv Sena, now they deployed the same technique of pushing Shiv Sena to the wall.

For Shiv Sena, once again, they could have accepted the weaker position, but somehow it seems indecision or pride or both of Mr. Udhav Thakarey come in the way to accept the defeat at the hand of BJP.

In my analysis, if both BJP/Shiv Sena does not come to cooperate each other, both will loose out on negotiation.

How,

Let us apply, game theory, classic example of Prisoners Dilemma.

prisoners_dilemma

If you are unaware, the Prisoner’s Dilemma is a classic game theory question, where each party has the option either to co-operate or betray another. In the absence of knowledge of the stand taken by other person, it is difficult to take a decision. So, If prisoner – A : Keep Quite and prisoner – B : Confess or vice a versa, both of them looses, since one of them have to go to Jail for 10 yars, as they do not know stand taken by other, No one will keep Quite, because than other person has chance to go Free. If both of them Confess, they go to Jain for 5 Years. So, in Ideal situation, in the event of uncertainty/ non availability of complete information or knowledge or other party action, best would be to cooperate i.e. Keep Quite. Even, though, it gives advantage to other. You may have to re read it couple of times to understand, as to why Keeping Quite, by both the parties, and accepting Jail Term of 1 years is best Alternative.

Now, let us relook at how Negotiations in real life have progressed:

Negotiations, to my mind are like a game of Chess + Poker. While you have to move strategically to best serve your long term interest, like poker along the way, you may be required to bluff. In a situation, where long term self interest is not getting served, the best situation would always be to Co-operate. A la Keep Quiet, even if, it appears that other would take advantage of Silence by confessing.

Though, in real life, there are many factors at play. As we hear every other day, some statements coming from NCP, threatening to withdraw support etc.. However, we know very well, its all a veiled attack to keep BJP on tenterhooks.Third parties does play an important role, but they should never become pivotal to negotiation strategy. If BJP banks on NCP support for their negotiation power with Shiv Sena, they will loose out, more so because in the ultimate analysis, its like conceding your power of negotiation to third party, while winning negotiations with others. In this case, Shiv Sena.

Similarly, for Shiv Sena, support of BJP in Mumbai Municipal Corporation is Must to continue its control, so in a sense, they appear to be weak, but even for BJP, appearing to be breaking Shiv Sena in Mumbai would indicate a negative image, that they cannot afford to project. In between, Shiv Sena utters less than a polite word on our Prime Ministers pedigree, and that seems to be the real blow to any further fruitful negotiation. And again for BJP supporting Shiv Sena in Mumbai leaves them a door open for renegotiaon. For Shive Sena, recalling their MP’s before cabinet expansion is part of the Shiv Sena strategy to show their displeasure over, the manner in which, their MP – Suresh Prabhu was snatched by BJP hours before expansion. It’s not that they loved him, but at least they have to appear to be having displeased. All along, bluff, calling shots thru media has become a norm to further ones negotiation power or to appear strong, so to speak, And at the same time keeping the back door open. With each round, the matter becomes complicated. And as the saying goes.

Problems are rarely a problem, but our reaction to the problem becomes major problem.

Thus, now original negotiation on Seat Sharing has turned into a power game,pride and game of one upmanship. And mostly, Pride always comes in the way of Rational Decisions.

What will happen:

In coming days, if both parties act rationally to serve their long term interest, like Prisoners Dilemma, the only way is to have a compromise formula. Finally, I feel PM Shri Narendra Modi will call the shot, if he can forgive some not so pleasant words in Samana – Shive Sena Mouth Piece and provide a long rope to Shiv Sena, that also requires some private apology from Mr. Udhav Thackarey. And if Shiv Sena, accepts the fact that they are no more a big brother in Alliance and that BJP will call the shot.

Let us wait and see how matters unfolds in the coming days.

5 Negotiation Tactics You Can Learn From Kids

Posted on Leave a commentPosted in Negotiation

1397852543-5-negotiation-tactics-you-can-learn-from-kids-2.jpg

Humans learn to negotiate early in life. Any parent can attest to this! As early as age two, children are offering to eat more vegetables at dinner if it means ice cream for dessert. By the tender of age of three, kids have developed a whole arsenal of negotiation tactics. Their approaches to secure prime toys, dessert or a later bedtime are not just child’s play — they offer valuable reminders about successful negotiation tactics in any setting.

Related: 4 Ways to Negotiate Your Way to a ‘Yes’

 

1. Start by offering support. My wife and I have noticed that before our sons present a request for something outside of their usual routine, they are often especially helpful around the house. They will proactively help out with extra chores, and while we usually can sense an ulterior motive is at play, it still often works in their favor. In business too, it’s easier to say yes or want to work with someone who has just done something nice for you.

2. Time your approach. Kids are masters at timing their approach — often waiting to ask for something when you are right in the middle of preparing dinner or trying to get their sibling ready for bed. Toddlers have it figured out. Assessing what your target has going on around them and timing your approach so that you’re more likely to receive a “yes” is smart whether you’re at home or in a business setting.

3. Leverage a credible advocate. My youngest son likes to enlist the support of his older brother when negotiating. Having lined up an ally, it’s clear he feels more empowered and confident when his brother is there to back him up. It’s often effective, too, assuming it’s a reasonable request. Similarly, I find it’s helpful to preview ideas and build a group of influential, trusted advocates before approaching a decision maker or potential partner. When presented with an idea or request that a team of people believe is a good idea, it’s harder to say no.

Related: How to Negotiate for What You Want

4. Turn on the charm. Merit is important, of course, but charm and an emotional connection go a long way. Children learn that it’s hard for their parents to say no when they add a charming smile to their request. Human beings are emotional. Positive personal connections matter. In business, having a good relationship outside of the conference room with whom you are negotiating can have a significant impact on how or whether a deal gets done.

5. Talk to a decision maker. One of the most important reminders kids can offer us about negotiation is to make sure you’re talking to a decision maker. Kids know who can say yes to a request and will target that person. (And if one decision maker says no, they’ll often move on to the second decision maker!) It is a waste of time to talk with someone who is not capable of saying yes. When negotiating a deal, small or big, make sure you’re talking to the right person, otherwise there will be no ice cream for dessert.

Source : entrepreneur.com