Smart Negotiating: How To Make Good Deals In The Real World Book

CONTENTS

BY WAY OF INTRODUCTION

Building up from the Basics

The Case of the Torn Twenty

What's Your Style?

An Inventory of Strengths and Weaknesses

The Location of the Loot

Positioning Yourself for Compromise

Expanding the Pie

The Basic Skills and the Game Plan Approach

The Goal of Mutual Satisfaction

Competitive vs. Cooperative Bargaining

The Composite Approach to Negotiating

A Personal Viewpoint

PART I The Basic Negotiating Skills

1 A PREVIEW OF THE BASIC SKILLS

The Case of the Overreaching Subtenant

Analyzing the Leverage

The Role Information Plays

Striving for Credibility

Judgment and the Principle of Balance

The LT Saga

2 LEVERAGE — THE ABILITY TO COPE WITH (AND EXPLOIT) AN UNLEVEL PLAYING FIELD

The Case of Harry's Dwindling Navy

Necessity, Desire, Competition, and Time

Don't Ignore Apparent Leverage

When the Balance Tips Your Way

When You're at a Clear Disadvantage

When the Leverage Factors Conflict

When You're Running a Quasi-Auction

Leverage Wrap-up

3 INFORMATION — THE ABILITY TO FERRET OUT (AND PROTECT) VITAL FACTS

The Case of the Valued Employee

What Information Are You Seeking?

Prying the Information Loose

Comparing Direct and Indirect Probes

Protecting Sensitive Information

Need Funds, Lack Bidders

Lying — The Clear "No-No"

Posing the Ethical Issue

Blocking Techniques

The Need to Debrief

Information Wrap-up

4 CREDIBILITY — THE ABILITY TO BE BELIEVABLE YOURSELF AND TO SPOT THE OTHER SIDE'S BLUFF

Transmitting and Receiving Positive Information

The Credibility of "Final" Positions

The PizzaConsultation

When You're for Real

Sending Blue-Chip and Bargaining-Chip Messages

When You're Bluffing

Dealing with What Might Be a Bluff

Credibility Wrap-up

5 JUDGMENT — THE ABILITY TO STRIKE THE RIGHT BALANCE BETWEEN VYING AND COMPROMISE

The Principle of Balance

Perseverance and Its Progeny

The Need for Perspective

The Case of the Kitchen Range

Forging a Balanced Approach

The Elements of Style

The Hairy-Chested School of Negotiating

Judgment Wrap-up

PART II The Negotiator's Game Plan

6 AN OVERVIEW OF THE GAME PLAN APPROACH

Asking the Boss for a Raise

What Do You Want?

Where Do You Start?

When Do You Move?

How Do You Close?

7 ASSESSING YOUR REALISTIC EXPECTATIONS

Why Expectations Are Important

The Periodic Need to Stretch

The Case of the Cautious Caterer

Evaluating Your Aspiration

The Role Played by Feasibility

Combating the Three Faces of Unreality

Factoring In the Leverage

From the Seller's Vantage Point

Reassessing Expectations as the Negotiations Develop

Expectations on Nonprice Issues

Expectations Wrap-up

8 DETERMINING THE APPROPRIATE STARTING POINT

Starting Out in Sporting Goods

Who Goes First on Price?

Who Goes First on Nonprice Issues?

When to Raise the Issue

How Much Room to Give Yourself on Price

Is Using a Range Helpful?

Bargaining Room on Nonprice Issues

Buttressing Your Position with Rationale

Giving Your First Offer the Proper Emphasis

Reacting to the Other Side's Price Offer

Putting Your Response on the Table

Reacting and Responding on Nonprice Issues

Starting Point Wrap-up

9 DEVISING A CONSTRUCTIVE CONCESSION PATTERN

The Emphasis Is on the Process

Substituting Momentum for Intransigence

Sending a Message

Good Sport Revisited

Reacting to a Counteroffer

The First Concession and Bidding Against Yourself

Managing the Concession Pattern

"Get Out of the Business — and Stay Out"

The Anatomy of a Concession Pattern

The Use and Misuse of Deadlines

Concessions Wrap-up

10 ARRANGING THE ULTIMATE COMPROMISE

Warm Bodies: A Piece of the Action

Facing Up to "No Deal"

Should You Compromise or Hold Firm?

The Right Place for a Bluff

Putting in a Good Word for Compromises

Give the Process Time to Work

Splitting the Difference

Reducing Principles to Dollars

Creativity I — Dividing Up Issues

Creativity II — Expanding the Pie

Compromising among Issues

The Package Deal

The End of the Road

Compromise Wrap-up

PART III Using Agents, Resolving Disputes, and Other Real-World Concerns

11 BARGAINING THROUGH, WITH, AND BETWEEN AGENTS

The Pros and Cons of Using an Agent

The Start-up Employment Contract

Understanding What's Important to the Principal

The Agent's Involvement in the Principal's Decisions

The Risk-Reward Analysis

The Agent's Involvement in the Principal's Game Plan

"Negotiations" between Principal and Agent

Dealing with the Other Side

"Let's Kill All the Lawyers"

The Issue of Limited Authority

When Both Principal and Agent Are in the Room

Agent Wrap-up

12 RESOLVING DISPUTES

The Omnipresent Litigation Alternative

The Emotional Baggage

The Slow Dance to Initiate Talks

The Decision Whether to Head Off a Collision

Problems Related to Litigators

The Case of the Flawed Consultation

Negotiating Pointers

Alternative Dispute Resolution

Disputes Wrap-up

13 TOUGH TACTICS, GOING TO CONTRACT, AND MORE

Psychological Warfare

Threats

Negotiations between Corporate and Multiple Parties

Bargaining on the Telephone

Putting It in Writing

The Last Word on Smart Negotiating

POSTSCRIPT

THE SMART NEGOTIATOR'S CHECKLIST

Preparation Before the Negotiation Starts

Once the Negotiation Begins

Bringing the Negotiations to a Close

ACKNOWLEDGMENTS

INDEX