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Frequently Asked Questions Frequently Asked Questions on Negotiating
Picking the brain of negotiation
specialist - Bob Gibson
Q. Bob, you work with businesspeople all
over the world. What's the most common flaw you see in negotiators
on a day-to-day basis?
A. It's two-fold actually: not preparing
properly, and failing to think creatively in negotiating situations.
To increase your chances of achieving the most favorable outcome,
it's imperative that you plan ahead to negotiate. Most people
simply don't plan. They don't do their homework, and what they
do isn't
very creative.
Business people typically do a good job with
the nuts-and-bolts, such as prices and quantities. However, the
most successful
negotiators go far beyond that. They focus on creativity
and problem-solving
rather than just number crunching. Most people are so absorbed
by what could go wrong and try to protect against risk, they
don't explore
the creative side of deal making. A phrase we hear from clients
often is, "I hadn't thought of it that way." This
part - the planning and creative side of the negotiation
process is what separates
the amateurs from the pros.
Q. What keeps most salespeople
from being good negotiators?
A. Most of us would agree that
the main attribute of many salespeople is their ability
to build relationships.
Here's
the irony of that
statement: It's their greatest strength and their greatest
weakness. Many salespeople suffer from what I call a "Subservient
mentality." They
view the customer, boss, manager - the person with whom
they're negotiating - as having all the power: the power
to say yes
- the power to say
no. They think they need the deal to go through more than
the other party needs their product - or service - or idea.
This mentality
- this subservient mindset, lends itself to situations
in which a person will do whatever it takes to satisfy
the other
parties needs
or extend good will. I call salespeople who carry this
trait to the extreme "pleasers."
The pleaser
is especially adept at preserving harmony and avoiding
disruption in business situations. The drawback,
however, is
that they can allow themselves to be abused. It's hard
for classic pleasers
to exert themselves in head-to-head negotiating situations,
and as a result, they are often guilty of leaving company
profits "on
the table."
Every sales force has a number of Joe Pleasers.
Joe has been with the company for several years, and has
a solid
client
base. His
customers love him, because he's great at solving problems
and cultivating
relationships. His repeat business is good, but when his
accounts are analyzed, the profit margin is below where
it should be.
In closing situations, Joe gives up more than he needs
to. The problem
is compounded
by the fact that he is often doing business with decision
makers who are tough negotiators.
Q. Bob, you work a lot
with people in the technical professions. You even offer a course
named, "STREET-SMART Negotiating for the Technical Professional."Do
technical professionals have a different situation when it
comes to negotiation?
A. They really do - for several
reasons. Technical professionals, by their very nature are very
left brain oriented. That's
why they go into the technical
professionals
in the beginning. They begin very left-brained, very technical in
nature, and whey they enter school - it gets worse!
The curriculum is geared for the scientific/technical
mind. The professors are often very technical in nature.
What
began as a tendency can often become
an
obsession. A result is that students often are looking for "the
answer." As
in, "the perfect answer" or the "right Answer." We've
all walked into the office of a technical professional and found
bookshelves filled
with manuals - With rules.
This mindset can be comforting when you're
looking for a mechanic to determine the cause of an unusual sound
under hood of your luxury
sports
car, but
it doesn't lead to much creativity in business situations.
I. "I see what you mean."
Bob. There's more. A large part
of negotiating well is the right brain based activity of seemingly
reading another's thoughts. The
ability
to determine
what another person is thinking, how they might respond in certain
situations, where
their "buttons" reside in business situations. Good
negotiators Intuitively know what needs to take place to evoke
a certain response,
and certain reactions.
All of this is extreme right brain activity. It's been my experience
that most technical professionals are not adept at picking up
on those signals.
Lastly, it could be said the business world
plays a trick on
the technical professional.
I. "How so?"
Bob. At the outset of his or her career,
the technical professional is led to believe that their career
path and success will depend
strictly on their
intelligence,
their brightness, their ability to perform tasks efficiently
and flawlessly. At some point in the career path of a technical
professional
- the
rules
change. It's no longer enough to just be good - really good
- at what you do. You're
expected to have "Judgment" and "people skills" and
Influencing ability, and problem solving expertise in the
people arena.
Many technical professionals feel the rules
have changed
- that business and life have played a trick on them. The
skills
that
brought them
success early
on in their careers no longer work. They need the skills
that they have often disregarded as "fluff" or "soft."
So,
yes, technical professionals do have a unique situation
in that they often have to make a shift in mind-set, in skill
set
to progress
on the
corporate
ladder.
Bob Gibson is a negotiation strategist and the president
of San Francisco-based Negotiation Resources
He may be reached at 415-331-8808.
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