Positional Negotiating Tactics

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Unit Outline

Positional Negotiating Tactics

Positional Bargaining Tactics

1. What are positional bargaining tactics?

2. How do I break through positional bargaining tactics?

3. Can I use positional bargaining tactics?

Deception Tactics

1. What is deception?

2. How do I deal with a bluff?

3. How do I deal with deception of authority?

4. How do I deal with deceptive intentions?

Mind Games

1. What are mind games?

2. How can I counter stonewalling?

3. How should I walk out of a negotiation?

4. What could be the outcome if I walk out?

5. What if the other party tries to walk?

6. How can I counter the good guy-bad guy tactic?

7. How should I react to surprise information?

8. Should I ''split the difference?''

9. What debate techniques will I encounter during negotiation?

Pressure Tactics

1. What are pressure tactics?

2. How should I react to a ''take it or leave it'' offer?

3. How do I handle bad tempers?

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4. How do I deal with extreme demands?

5. How do I counter escalating demands?

6. What are lock-in tactics?

7. How do I handle an ''invisible partner''?

8. What is a calculated delay?

9. What is intimidation?

Unit Content

Positional Negotiating Tactics

Positional Bargaining Tactics

What are positional bargaining tactics?

Not all people negotiate with trust and integrity. Some will use positional bargaining tactics to throw theother party off-balance and establish a position of power. The tricks you may encounter whilenegotiating are:

z Deception tacticsz Mind gamesz Pressure tactics

How do I break through positional bargaining tactics?

Most people simply put up with positional bargaining tactics because they do not like confrontation.They let the situation slide, thinking that if the other side gets what they want, they will not push formore. More often than not, this approach results in unwanted agreements.

The best way to break through positional tactics is to call attention to the use of the tactic. By using themethods of win-win negotiating, you will be able to break through these tactics and concentrate on theissues.

Can I use positional bargaining tactics?

You should always follow the methods of win-win negotiating to find a solution that meets the needs ofboth parties. You will encounter positional tactics in many negotiations and may be tempted to usethem. However, the design of positional tactics is to increase the power of one side at the expense of theother.

Deception Tactics

What is deception?

Deception occurs when a party in the negotiation makes an untrue or exaggerated statement. There are

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three main forms of deception in a negotiation:

z Deception of an issue, otherwise known as the bluffz Deception of the other party's authorityz Deception of the other party's intentions

You must know how to recognize and deal with deceptive tactics. Using the techniques of win-win

negotiating, you should be able to detect and defuse deception.

How do I deal with a bluff?

If you do not recognize a bluff, you will either concede something of value or accept an undervaluedoffer. However, if you have prepared thoroughly for the negotiation, there is a good chance you willdetect the bluff and will know the value of negotiated items.

Always be careful when trusting the other party and do not allow them to treat your doubts as personalattacks. Support all of your factual claims with documentation and if the other party makes a factualstatement, ask for documentation.

How do I deal with deception of authority?

Prevention is the best technique you can use to address this tactic. You must know who has the decision-making authority within the company. Ask the person directly if they have the authority to negotiate,and if the answer is ambiguous, move up the ladder of the organization until you find the right person.

Deception of authority happens when the other party allows you to believe that they have decision-making authority. However, after they have gained all the concessions possible, they announce that theirsuperior must approve the agreement.

This technique allows the other party to start the negotiation again with the real negotiator alreadyknowing your limits and having given up no concessions. To counter this tactic, require reciprocity byinsisting that the agreement is a rough draft subject to final approval by both sides.

How do I deal with deceptive intentions?

A party with deceptive intentions will not fulfill their part of the negotiated agreement. Legal recourse iscostly, so you need to research the other party's background to learn if they have honored pastcommitments.

If you are not satisfied with the integrity and honesty of the negotiators, you can break off thenegotiations or build compliance measures into the agreement. Use your creative problem solving skillsto find a way to ''encourage'' the other party to fulfill their end of the deal.

Mind Games

What are mind games?

Mind games are psychological tricks a negotiator uses to confuse the other party or draw their attentionaway from the issues. Mind games consist of the following tactics:

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z Stonewallingz Walking Outz Good Guy-Bad Guyz Surprise Advantagez Splitting the Differencez Straw Man Arguments

How can I counter stonewalling?

Stonewalling is when a negotiator refuses to be flexible. There are four guidelines for overcomingstonewalling:

1. Maintain your composure regardless of how anxious you may feel.

2. Openly review your proposition and justify how your offers have been fair. The other party may notfully understand or appreciate the reasonableness of your offer.

3. Question the other party's willingness to negotiate and let them know you are concerned that they do

not appear to be interested in reaching an agreement.

4. Stand behind your offer, maintain support for it, and do not give in to the other party.

How should I walk out of a negotiation?

Walking out usually occurs when you reach a stalemate. Only walk out when you are dealing withcritical issues. This tactic will exemplify the importance of your point and make the other partyremember it.

Use the following steps if you decide to walk out of a negotiation:

1. Give yourself time to review the current situation. Never walk out when you are upset or you maywind up regretting the decision once your anger has subsided.

2. Explain your reasons for walking so the other party understands which points you will not concede.

3. Do not look back when walking out, since it sends a mixed message to the other party. Followthrough with your decision and do not show any sign of reluctance.

What could be the outcome if I walk out?

There are three possible outcomes if you decide to walk out:

1. The other party may try to stop you. Once they realize you are prepared to leave, the other party maytry to keep you in the negotiation. You are then in a powerful position to reach an agreement.

2. The other party may let you walk out but contact you later. This outcome also creates a powerfulposition for you, although it leaves you waiting for the other party.

3. The other party may do nothing. At this point, you have to decide whether to try to salvage the currentrelationship or look elsewhere.

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What if the other party tries to walk?

If the other party is about to walk out purely for effect, try to get them back into the negotiation. If theother party does walk, you may be required to call them to continue the negotiation. Tell them yourproposals have changed and you would like to work out an agreement. Do not be too proud to get backin touch with them.

How can I counter the good guy-bad guy tactic?

This involves two individuals on one side of the negotiation. One of the individuals is the bad guy. It isthe good guy's job to pacify the bad guy and make it appear as if the good guy is sincere about the deal.

Three methods counteract the good guy-bad guy tactic successfully:

1. Request to talk with the good guy alone, to eliminate the bad guy and render their plan useless.

2. Play along with the tactic and act intimidated. Announce an end to all further negotiations. By doingso, you will turn the bad guy approach into the ''come back and we will talk'' approach.

3. Use the good guy by telling him in confidence that you are about to walk away from the negotiationdue to his partner's unacceptable behavior. If done well, the other party will believe you.

How should I react to surprise information?

Surprising new developments are often used to throw the other party off-guard. There are three steps totake when the other party uses surprise information as a tactic:

1. Remain calm and do not let your anxiety, panic, or anger show. Demonstrate your strength as anegotiator by remaining calm in the face of an unexpected development.

2. Ask for specifics about the new situation. Learn as much as you can so you are able to judge whetherthe new development is truly cause for alarm.

3. Ask for a recess and regroup with your coworkers or supervisor to get feedback. Gather your thoughtsso you can return to the negotiation in a steady frame of mind. When you resume the negotiations, theother party may have changed their mind if they see you are not going to give in.

Should I ''split the difference?''

Near the end of the negotiation, the other party may suggest that you split your differences to reach a

solution. Although it sounds like a fair solution, be wary of this offer. Only accept an offer to split thedifference if the resulting agreement meets your goals and limits.

What debate techniques will I encounter during negotiation?

Debate is a refined argument over different points of view. Use elements of debate in your negotiation tolearn more about the other party's needs. You might encounter two debate techniques during negotiation:

1. Prioritization occurs when the other party wants to debate issues that are of concern to them. Choosethe items relevant to reaching an agreement and prioritize them in order of importance. After carefully

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listening to their arguments, find strengths and weaknesses in each of their points.

2. Straw Man tactics are used to nit pick individual problems the other party has with your stance on anissue. Straw man negotiators may give as much weight to these less significant matters as they do to themore important issues of the negotiation. Prioritize the issues that need to be resolved for both sides.

Pressure Tactics

What are pressure tactics?

Pressure tactics establish a position where only one party in the negotiation is making concessions.Some of the common pressure tactics you will encounter are:

z ''Take it or leave it''z Bad tempersz Extreme demandsz Escalating demandsz Refusal to negotiate

z Lock-in tacticsz Invisible partnerz Calculated delayz Intimidation and threats

How should I react to a ''take it or leave it'' offer?

This proposal sounds like an ultimatum, but it is a test of negotiation strength. There are four ways youcan meet this challenge:

1. Ignoring the proposal will demonstrate your strength and dedication as a successful negotiator.

2. Countering with a similar offer shows the other party that you are not intimidated by this tactic.

3. Giving in to the offer is acceptable if it will satisfy your goals. Look at the worth of the offer. Do notrefuse the offer just because it is a ''take it or leave it'' offer.

4. End the negotiation by exercising the ''leave it'' option only when you know other acceptable optionsare available to you.

How do I handle bad tempers?

An unhappy party will often use their bad temper as a tactic. Three tips will help you gain control of thesituation:

1. Listen to the other party and allow them to finish their complaining no matter how badly you maywant to interject. After you have listened to their concerns, find a solution that will satisfy their needs.

2. Let the other party know you are concerned, and surprise them with your sympathetic tone. They willprobably expect you to react defensively.

3. Take a quick break if the other party is truly enraged. Breaking allows them an opportunity to relax

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and pull themselves together. A break also gives you a chance to prepare your plan of action.

How do I deal with extreme demands?

In general, demands made in anger are not fair. When faced with extreme demands, there are three stepsyou can take to satisfy the other party:

1. Analyze the demands and decide what compensation you can fairly give the other party. Keep yourlimits in mind to determine what you can offer them without sacrificing your company's position.

2. Offer a fair settlement and let the other party know why you feel that your offer is fair and satisfiestheir complaint. Clearly detailing your rationale can convince the other party that your offer is areasonable proposal that pacifies their demands.

3. Determine the rationale for more compensation by asking the other party to justify their demand. Thisreflection may cause the other party to take a more rational look at their demands.

How do I counter escalating demands?

Sometimes a party will raise the terms of their demands as they make concessions in order to decreasethe value of their concession. This tactic also encourages quick agreements from the other party, whomay want to reach an agreement before demands rise again. When faced with a party making escalatingdemands, you can take two actions:

1. Bring the tactic to attention and let the other party know that you are aware of their use of this tactic.

2. Consider taking a break to assess the situation. A break will communicate to the other party theserious implications of their behavior. They will realize that you are unwilling to tolerate such conduct.

What are lock-in tactics?

A party using lock-in tactics takes an unyielding stance on an issue. The other party publicly states itsposition to an audience which ''locks'' the other party into a specific position. The other party then usesthis announcement as an excuse to be inflexible during the negotiation.

The key to addressing this situation is to avoid focusing on the position taken by the other party. Remindthem that you are trying to reach a mutually beneficial solution. By emphasizing the overall purpose ofthe negotiation, you can allow the other party an opportunity to back down from their offer withoutlosing face.

How do I handle an ''invisible partner''?

The invisible partner is portrayed as a difficult individual who concedes nothing. The invisible partner isabsent, but must be consulted before making any significant concession during the negotiation. If thissituation arises, ask to deal with the partner directly.

The other party will usually decide to deal more openly to avoid revealing that their invisible partner isfictional. If the other party does have to pass everything by someone else, then ask to deal directly withthat person. Proper preparation before the negotiation usually eliminates the invisible partner dilemma.

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What is a calculated delay?

Calculated delays occur when a party intentionally stalls making a decision until a more convenient timefor them. Let the other party know you are aware of the intentional delay and that you do not appreciatethis conduct. Use an unavoidable deadline to encourage the other party to reach a decision.

What is intimidation?

Intimidation occurs when the other party threatens some type of action against you or your company ifyou do not meet their needs. There are two types of intimidation, both with their own method ofrecourse:

1. Threatening to dismiss all negotiations is an intimidation tactic. However, it is probably not a wisedecision. Investigate to determine if this threat is a bluff. If it is not, try to appease the other party bygiving up a concession or two. Make sure that doing so will not hinder your overall goal.

2. Threatening to bring in higher management is usually a bluff. Do not reveal that this approach maybother you. Welcome the inquiry of the other party's superiors. The worst case scenario is that the other

party's superior becomes involved and you may need your superior's support.

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Positional Negotiating Tactics

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