Sunday, October 3, 2010

What is the best way to negotiate?

Steve Tobak outlines negotiation


5 Ways to Win in Any Business Situation:
  1. Internal relationship between coworkers. Win-win, collaborate, all the way. Anything else is dysfunctional. Sure, the dysfunctional stuff - back stabbing, taking credit for someone else’s work, sugar-coating BS, CYA - all exists, but don’t fall into that trap. You either have to play it smarter or find a company that doesn’t accept that kind of crap.
    Goal: Win-win
  2. Boss-employee relationship. Again, Win-win, collaborate, all the way, same as with coworkers. Companies don’t exist for you, your boss, or your employees. They exist for two reasons: to provide a product or service to customers, and to provide value to shareholders. All employees at every level should be aligned to do that, simple as that.
    Goal: Win-win
  3. Competitors in the marketplace. I win - you lose. Period. Market competition is a zero-sum game, simple as that. To suggest otherwise is idiotic. And yes, you should befriend your competitors, call them frienemies, hang out and party with them, anything you like. Just listen more than you talk. Keep your friends close and your enemies closer, right?
    Goal: I win - you lose
  4. Customer-vendor relationship. Customer-vendor relationships should always yield the perception of a win-win, especially if you want an ongoing relationship. That said, when you approach negotiations, your goal is to get the better deal while the other guy thinks he did okay too. I think of that as “I win - you don’t lose.” Camp provides a pretty good approach for doing that. It’s not easy at first, but you do get better at it with experience.
    Goal: I win - you don’t lose
  5. Job or consulting opportunity. It’s important to note that, in this situation, you all have to live with each other after the fact. So, whichever side of the equation you’re on, don’t overpromise and risk underdelivering or underplay your hand and risk losing the gig. Best to be genuine. That said, when it comes to negotiating dollars and cents, it’s the same as customer-vendor.
    Goal: I win - you don’t lose