Building Bridges by Resolving
Differences
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Negotiation Strategies
April 2018
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Dear Clients and Friends,
Negotiation is often seen as an event rather than a deliberate orchestrated progression. As a result, many negotiators will push offers and proposals prematurely, before sufficient information has been developed and adequate trust has been built. Proposals at this stage are typically rejected out of hand even though the proposals may actually be good ones.
In this April '18 edition of Negotiation Strategies, I share an advanced and powerful technique for the proposal and closing phase of the negotiation.
For your reading convenience, this column is also summarized in the
Lessons Learned
bullet points at the bottom of the page.
With Best Wishes
Raphael Lapin
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Negotiation is often seen as an event rather than a deliberate orchestrated progression. As a result, many negotiators will push offers and proposals prematurely, before sufficient information has been developed and adequate trust has been built. Proposals at this stage are typically rejected out of hand even though the proposals may actually be good ones.
In truth, it is only after a productive exchange of information has occurred, a profound exploration of each side’s concerns and needs has been achieved, and the parties genuinely feel deeply heard and understood, that the proposal phase of the negotiation can begin.
But even then, there is a refined art and science as to how this proposal phase needs to be conducted so as to attain efficient and optimal results. In this column I will share a powerful technique for the proposal and closing part of the negotiation.
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The Conventional Approach
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Before introducing this technique, let us consider the conventional approach and it’s pitfalls.
Typically, a party to a negotiation will offer a single-point proposal or offer. For example a job candidate might suggest a salary of $80,000, or a prospective buyer may offer a home seller $500,000 for the purchase of his home. The other party will usually push back with a counter offer, and the bargaining standoff begins. This will end in either impasse or in a compromise in which potential value has been sacrificed and a degree of resentment might even have been spawned.
This typical process is adversarial, inefficient, limiting and most often results in sub-optimal agreements in which one or more parties feel exploited. What might then be a superior approach to conducting the proposal phase of the negotiation?
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Introducing Multiple Equivalent Simultaneous Offers (MESO's)
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Rather than making a single-point proposal, identify three different proposal packages any of which would be acceptable to you, and present those as a choice to the other side. In the job candidate salary negotiation example above, a MESO might look like this:
OPTION 1: $80,000/year; two weeks’ vacation; up to 30% time on the road
OPTION 2: $75,000/year; three weeks’ vacation; up to 25% time on the road
OPTION 3: $60,000/year; four weeks’ vacation; up to 5% time on the road
Multiple equivalent simultaneous offers allow for flexibility and increase the chances of a mutually satisfying and value generating agreement. It also is a useful and non-intrusive way to gather information about what the other side’s priorities really are, based on which offer they like best. Furthermore, it appeals to a human need for autonomy in making choices. MESO’s can also generate further discussion and input around values, weights, priorities and interests which will ultimately lead to an optimal settlement.
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How to Generate a MESO in Three Steps
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Having understood the needs and concerns of your counterpart, and the negotiation progression is ready for the proposal stage, it is time to formulate a MESO to present to them. Here are three steps to help you:
1.
Fractionate the Issue: Break the issues down into as many sub-issues as possible so as to increase the number of items that can be traded in negotiation. In our job salary MESO example above, we fractionated the salary issue into a) annual salary b) paid vacation and c) time on the road. This broadened the range of options on the table.
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Devise Three Equally Weighted Options: Integrate and package all the fractionated sub-issues into three equally weighted options, any of which would be similarly acceptable to you.
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Keep Issues Important to You Constant: Make sure that all of the options within the MESO do not compromise vital interests of yours and only allow the variables in areas important to them and that you are prepared to concede on.
After the MESO has been presented, be prepared to allow for some discussion and dialogue around it and refine and fine-tune as necessary.
Using the MESO approach in your negotiations will dramatically change the tenor of your negotiations and drive enormous value creation in your agreements and deal-making.
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- Negotiation is not an event but rather a deliberate orchestrated progression.
- Refrain from pushing offers and proposals prematurely, before sufficient information has been developed and adequate trust and rapport has been built.
- Only after a productive exchange of information has occurred, a profound exploration concerns and needs has been achieved, and parties genuinely feel deeply heard and understood, can the proposal phase of the negotiation begin.
- Avoid single-point proposals or offers, but use multiple equivalent simultaneous offers (MESO’s) instead.
- Multiple equivalent simultaneous offers allow for flexibility and increase the chances of a mutually satisfying and value generating agreement.
- In devising MESO’s, fractionate the issues; Develop three equally weighted options; and keep issues important to you constant.
- After the MESO has been presented, be prepared to allow for some discussion and dialogue around it and refine and fine-tune as necessary.
- Using the MESO approach in your negotiations will dramatically change the tenor of your negotiations and drive enormous value creation in your agreements and deal-making.
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Lapin Negotiation Services offers training, consulting, advising and executive coaching in negotiation, business diplomacy and dispute resolution services.
Our proprietary and aggressively results oriented services are designed to help your leadership, teams and individuals master the essential negotiation, relationship-building and conflict management skills that increase revenues, decrease the high cost of conflict and build strong working relationships.
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Learn more about Raphael Lapin's book, "Working with Difficult People" by clicking on the image above
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Our Skilled Specialists will:
- Help your organization build a highly effective negotiation competency and culture which translates into increased revenue and strong business relationships.
- Train and prepare your sales teams using our propriety "Investigative Selling" approach.
- Provide advice, strategy, guidance and representation in live negotiation challenges
- Facilitate, mediate and advise in dispute resolution.
- Create a culture of collaboration by guiding, facilitating and training teams and divisions to engage in dialogue, to negotiate and to partner.
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10940 Wilshire Blvd, Suite 1600
Los Angeles, CA 90024
888-964-8884
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