Negotiation

When Saying Nothing Gets You More!

Andrew Cooke Negotiation, Problem-Solving, Psychology, Sales, Uncategorized ,

Using silence to find out more

Silence is a powerful way by which you can elicit more information from people you are talking with – especially when talking with customers or interviewees.

silence-is-golden-2

A Golden Silence is when you pause, deliberately, so that you can listen without thinking of what you are going to say next. There are two forms of Golden Silence:

Golden Silence I – you simply pause for approximately three to four seconds after you ask a question,

and

Golden Silence II – you simply pause for approximately three to four seconds after the person responds.

Golden Silence I – this gives the other person, your customer or interviewee, a moment to think about what has been asked and how to respond.  This is likely to provide more solid information.

Golden Silence II – this gives you a better chance to understand what has been said, furthermore during the second pause the customer or interviewee will often reflect further and provide additional information.

Be careful how you use Golden Silence so it does not seem manipulative or intrusive.  The Golden Silence technique is mean to expand, not limit, the possibilities of Superb Communication.  As such, by paying close attention to how the customer reacts, it vastly improves your chances of reaching a better result.

Benefits of Golden Silence

  • The number of  interactions increase
  • The length of responses increases
  • The reliability of the information you get increases
  • Your level of comprehension increases
  • The opportunity for misinterpretation is reduced
  • The number of relevant unsolicited responses increases
  • The number of customers’ questions increase
  • Dialogue shifts to the customer’s real wants and needs, and away from those of the seller
  • It gives you more time to think

Techniques to Avoid

  • Using the phrase – ‘think about it’ – it is vague and can come across as a subtle put-down
  • Mimicry
  • Using ‘Yes…but…’ – this occurs when the dialogue is stalled
  • Rhetorical questions – they add nothing to the dialogue and can be manipulative.
  • Asking ‘Why?’ immediately after they reply – this can put people on the defensive.

If you found this article of use or interest please don’t hesitate to share it with others.

Click here to find out more about Andrew Cooke and Growth & Profit Solutions.

Negotiating Better Projects

Andrew Cooke Decision Making, Negotiation , ,

3 Elements to Negotiating Better Deals

by  Andrew Cooke, Growth & Profit Solutions

How you can use scope, budget and timescales to get to the customer’s needs, and to create better deals more quickly.

When negotiating with clients or prospects over potential work there are three aspects to consider which are common to any piece of work – whether it be consulting, selling services, manufacturing or production.  The three elements are the scope of the work, the time for the work to be done, and the cost of the work.

Let’s look at them each in more detail:

Scope – this is the similar to having a “frame” around a picture.  It defines the extent of the work to be done and provides the focus and limits for that piece of work.  Equally important it defines what work is not going to be done – that is anything that is not within the scope lies outside it.

Timeframe – this is when the work will be done.  It establishes when the work is to be done by, the outcomes realised and the level of urgency for the client or prospect.  If there is a short timeframe, then additional resources may be required to complete the work within the agreed timescale, or other work may be delayed or impacted as a result.  This needs to be considered when negotiating this with the client or prospect.

Cost – this is how much is the client or prospect willing to pay, or how much you are going to charge them given scope and timeframes that have been agreed.

So how do you negotiate with the client or prospect around these three elements?  Let’s look at a fictitious conversation to illustrate how to use this.

I like to be generous!  I tell the prospect that they can choose any two out of the three elements and I will have the third.  Thus, for example, the prospect may say “I want to do everything (scope), and I need to do it quickly in the next six weeks (short timeframe)”.

This leaves me with the cost element.  I then say “OK, this will cost you at least $75,000 to do all that by then” (note: I do not give firm numbers yet as I do not have all the information I need, but I can give them an indication what they might expect the cost to be).

The prospect then may say:

 “That is too expensive for me.  Can’t you reduce it?”

I reply, as you will guess, “If you are not happy with the cost, then pick any two of the three elements”.

And so you start again…..

This process allows the prospect to determine what is really important for them, and for you to begin to understand this where they may have some flexibility or not.  This helps to open up the conversation so you really understand what they need, by when and why.

Think how you might use this with your prospects or clients.  Try out the different combinations of choices that might occur and prepare for them.  This will give you an easier way to focus the negotiation process, control the conversation and to make progress.  Let’s face it – two out of three ‘ain’t bad!

What works for you in getting to your client’s needs, timing and budget?  Share your thoughts ideas and experience here.

Share the knowledge, share the wealth!

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Click here to find out more about Andrew Cooke and Growth & Profit Solutions.

How to Use Emotions When Negotiating

Andrew Cooke Emotional Intelligence, Negotiation , ,

Emotions can make you a better negotiator… 

Normally when you think of making decisions, negotiating or dealing with others you do so on the assumption that you are a rational person, and that the other person is a rational person. In short, logic makes you think, and thinking makes you act.

Think of how you negotiate. In the book, Getting to Yes, Fisher and Ury, outline four key steps to take when negotiating:

  1. Separate the person – the emotion –  from the problem;
  2. Don’t get wrapped up in the other side’s position (what they’re asking for) but instead focus on their interests (why they’re asking for it) so that you can find what they really want;
  3. Work cooperatively to generate win-win options; and,
  4. Establish mutually agreed-upon standards for evaluating those possible solutions.

There is only one problem with this – the assumption that people are rational is flawed. People are actually irrational in how they think, decide and act. Let me share with you an example of how this happens.

Playing the Ultimatum Game

This game has been run many times with students. Students are split into pairs – a “proposer” and an “accepter”. The proposer is given $10 and then has to offer the accepter a round number of dollars. If the accepter agrees he or she receives what’s been offered and the proposer gets the rest. If the accepter refuses the offer, though, they both get nothing.  What would do you think they did? If you were the proposer, what would you do?

Whether they “win” and keep the money or “lose” and have to give it back is irrelevant. What’s important is the offer they make. Almost without exception, whatever selection anyone makes, they find themselves in a minority. No matter what split of the $10 is used ($6/$4, $5/$5, $7/$3, $8/$2, etc.), no split is chosen far more than any other.

When the pairs were asked to explain how they made a decision their reasoning, in every case, they described it as rational. However, they were wrong for two reasons:

  1. For proposers: If everyone was rational they would all make the same offer, yet they made different offers. The reasons they all made different offers is that they assumed the other person would reason like them.
  2. For accepters: Accepters who turned down $1, or more, made an emotional choice. If you are rational since when is getting $0 better than getting $1?

So do you honestly think you are a rational person? You’re not. Like everyone else, you and I are all irrational, all emotional.

So what is the assumption that should underpin how we decide and negotiate?

Logic makes people think, but emotions make people act.

So when making decisions or negotiating use both logic and emotion – remember, a feeling is a form of thinking.

To view or download a PDF version of this blog click here.

Share your thoughts and ideas here, or email me at andrew.cooke@business-gps.com.au

If you found this article of use or interest please don’t hesitate to share it with others.

Click here to find out more about Andrew Cooke and Growth & Profit Solutions.

What to Do Before You Start Making Decisions

Andrew Cooke Decision, GPS, Growth and Profit Solutions, Influence, Leadership, Meetings, Negotiation, Process, Uncategorized

What you need to do before you start the decision-making process

by Andrew Cooke, Growth & Profit Solutions

Decisions Before You DecideWe make decisions every day; small ones, big ones, unusual ones, specific or general and those which have become a force of habit.  We get so involved in the decision itself that we become blind to the key dimensions that surround it. So what are they, why are they important and how can we use them to help us make better and more effective decisions?

The Four Key Dimensions

There are four key dimensions which need to be considered when making a decision.  This includes:

  1. Composition: Who should be involved in the decision-making process?  You need to make sure you have the right people, with the right information, who can contribute and develop the necessary decision.4 Dimensions of Decision-Making
  2. Context: In what type of environment does the decision take place?  Is it an open environment that fosters open, constructive dialogue?  Or a closed environment in which personal interests supersedes those of the group?
  3. Communication: What are the “means of dialogue” among the participants?  Does it involve considerable direct discussion with those with relevant knowledge and expertise, or is it ‘filtered’ through reports from senior people in the hierarchy?  Are there face-to-face meetings or is it via phone, email, reports etcetera?
  4. Control: How will the leader control the process and the content of the decision?
  • Control of the Process – how do you want to shape the way that the deliberations are undertaken and followed;
  • Control of the Content – how much do you want to control the outcome of the decision

This last factor- Control – is the hardest, and has the greatest impact on the decision.

A Balanced Approach

A balance between control of the process and control of the content is required.  Too little or too much control of the process and/or the content will result in sub-optimal decisions.  Some of the impacts of low or high levels of control on the process or content are shown below.

Impact of the Level of Control of Content & Process in Decision-Making

 Decisions and Control

So how can we achieve a balance in controlling both the process and content of a decision?  There are three steps:

 3 Steps for a Balanced Approach

1.      Be Clear on the Decision

Are you clear on what the decision is that you are making is?   For example, you are looking at how to improve your retention of key customers.  This is not a decision; this is a problem that needs to be solved.  Be careful not to confuse decisions with problems.

2.      Know What Objectives & Outcomes You Want to Achieve

Have a clear understanding of where you want to be as a result of the decision you have made.  Knowing this will help you understand what expertise and information you need, from whom you need to get it, and the people who should be involved.

3.      Have Checks & Counter-Balances

You will find that you and others involved in the decision-making process will fall into common decision-making traps or errors of judgement.  Understanding them, and how to avoid them will provide you with the means to check your collective thoughts, ideas and insights and reduce the likelihood of your decision being subverted.

Use this as a checklist – make sure you address the four dimensions: Composition, Context, Communication and Control – and build the means for better decisions.  Will you share this with your colleagues and those who participate in your decision-making processes?

It’s your decision.

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Click here to find out more about Andrew Cooke and Growth & Profit Solutions.