You Can Negotiate Anything

Negotiation permeates every facet of our lives. It plays a crucial role in the way societies and the world operates: from nations negotiating fishing rights as part of a Brexit deal; to negotiating with your suppliers in getting a better deal; to negotiating with your colleagues in obtaining resources you require to deliver a project; to negotiating with your partner to allow you to drink that can of full-sugar Coca-Cola as a one-off during dinner.

I wanted to share some observations I learnt from a book I first read almost two decades ago and re-read just a few weeks back. The book is by Herb Cohen, a brilliant negotiator and wonderful teacher, and is titled ‘You Can Negotiate Anything.’ The book was written in 1980 but remains as relevant today as it was then. In my view, this is arguably one of the best books on negotiation written and have been recommending it to peers and friends who seek guidance on mastering what I believe to be a crucial skill that allows us to live life on terms that are favourable to us.

Cohen begins with how ‘almost everything is negotiable,’ and articulates the key tips and techniques that help support that statement.

This brief review of the book provides a brief insight into the following three areas:

a.      The three elements that underpin every negotiation

b.      Styles of negotiations

c.      Key to success in negotiations

Every negotiation one undertakes needs to recognise how the outcomes meets one’s needs; and be within the comfort zone of the individual; and needs to be worth the effort expended. The summary below helps individuals be comfortable in conducting negotiations towards their desired outcomes for the matters that are important to them.  

The three elements of every negotiation

Every negotiation contains the following three elements (which are discussed in detail below):

·        Information

·        Power

·        Time

Information

This is all about ensuring that one goes into any negotiation armed with all the pertinent information. Negotiation is not a point in time event but is part of a longer process of dialogue and discussion. Bearing this in mind, one needs to gather all the relevant information, expectations and the ‘red lines’ or areas which the other party considers to be non-negotiable. Essentially, the more you know, the better!

This follows the guidance set out by Sun Tzu in the Art of War, “If you know the enemy and know yourself, you need not fear the result of a hundred battles. If you know yourself but not the enemy, for every victory gained you will also suffer a defeat. If you know neither the enemy nor yourself, you will succumb in every battle.”

As we seek further information, it is vital to understand both the specific needs and demands stated openly by the other party as well as the real needs of the other side which is rarely verbalised but can only be found out through dialogue. For instance, a specific need highlighted by your counterparty may be to open up a new customer channel in a particular country. The real need may be that their business is slowing down sharply in their current strongholds and desperately need a new market segment in a new location to kickstart their growth.

Power

Cohen describes power as the capacity and ability to get things done and to be able to exercise control over people, events, situations and oneself. Ultimately, all power is based on perception. Cohen argues that if you firmly believe you have power, you will help create that perception in other and determine how they act, behave and react to you.  

Power in itself is not inherently good or bad but is neutral. It is a mean to an end rather than end in itself. Cohen argues that we all have power and we need to learn to harness it and use it to implement objectives that are important to us. As Cohen says, ‘You owe it to yourself not to live by what someone else thinks you ought to do.’

Firstly, it is the power of precedents. An important guidance provided by Cohen is to not act as though your limited experience represents universal truths. It doesn’t. Cohen exhorts the reader to go beyond their own experiences and to continuously test one’s assumptions.

Secondly, Cohen describes the power of legitimacy as power derived from perceived or imagined authority. Interestingly here Cohen describes negotiations with the US tax authorities over various accounting treatments that help defend his tax position and essentially highlighting how in a principles-based system, you should be comfortable in defending your assumptions and not accept precedence as a reason to forgo your position. Cohen stressed that legitimacy should be questioned and challenged. He says, ‘Use the power of legitimacy when it’s advantageous for you to do so and challenge that power when it’s advantageous for you to do so.’

Thirdly, we have the power of competition. Here Cohen describes how through creating competition for your services, you have the ability to strengthen your hand in negotiations. The example of Bert Lance, President Jimmy Carter’s federal budget director was used where he actively turned banks down who were offering him money by adopting an attitude that he was doing banks a favour by giving them an opportunity to lend him money! Through this approach, he was granted 381 loans by 41 banks, by looking like he had other alternative and competitive options (he was implicated in a scandal in the first year of the Carter administration subsequently though he was cleared of all wrongdoing). The point about the example was that one should never enter negotiations without options. Doing so only weakens one’s position and hand.

Next we have the power of risk taking where Cohen argues that in any negotiation we should have a clear understanding as to consequences for each outcome of a negotiation and be comfortable in taking optimal or moderated risks by calculated the odds to determine whether the potential benefits are worth the possible costs of failure.

Fifth, Cohen stresses the need for teams entering into negotiation to believe in the power of commitment. This is where teams need to build a close sense of common purpose and for them to collectively own the success of the venture that is being negotiated. Getting the commitment and buy-in of the whole team syndicates the risk and also helps to convey to the other party the united front of the team negotiating that often leads to crucial psychological advantages.

A quick comment on issuing ultimatums during negotiations as an expression of power. Ultimatums must come only at the end of a negotiation and never at the beginning. The other side must have no other choice, or they must have such investment in the negotiation that they can’t simply walk away. Ultimatums should also be soft which tend to be more palatable than hard ultimatums (e.g. ‘take it or leave it!’ or ‘it’s this or else!’). Finally, it is also important to never leave the other side without alternatives. It is better to structure the situation to allow them to make the choice with one option obviously much more desirable to them (at least comparatively).

Cohen provides an example of the TWA 355 plane hijacking from New York in August 1977 by Croatians who took it to Paris where the French authorities shot out the tyres. The plane was sat on the runway for three days. Finally, the French police provided he hijackers with an ultimatum but with two options: “You can make your own decisions. The American authorities have arrived and if you surrender, you will get a few years in prison.”  [pause] “But if we were to assault the plane and arrest you, you will be executed under French laws.” As Cohen puts it, ‘Believe it or not, the skyjackers decided to surrender and take their chances with the American judicial system!”

Time

In all negotiations, the longer time is invested by both parties (throughout the negotiation as a process rather than the culminating event of discussions), the more the parties will be keen to conclude matters to a satisfactory end.

Cohen also explains why sometimes it is necessary to identify when negotiating teams are playing for time and seeking to gain an advantage. He gives the example of the American – North Vietnamese negotiations in Paris to resolve the Vietnam War. The American representative Averell Harriman rented a room on a weekly basis at the Ritz Hotel at the Place Vend?me whilst the North Vietnamese delegation rented a villa outside of Paris with a two-and-a-half-year lease. Cohen argues that the North Vietnamese attitude about time shaped the outcome of the negotiations and influenced the Paris Peace Accords. He also argues that the other party negotiating will always have a deadline but may act nonchalant and this posturing often proves to be effective.

Cohen advises that given most negotiations tend to conclude often only at the deadline or just beyond, it is important to sustain the tension without flight or fight and that patience pays as a general rule. He also advises that in an adversarial negotiation, never to reveal your real deadline to the other side and to also unpick the nonchalant and serene attitude your counterparts may have to deadlines. They always have a deadline!

Styles of negotiation

There are two primary forms of negotiating styles described by Cohen. The first is what he describes as the ‘Winning At All Costs’ negotiation style which is also what he describes as the ‘Win-Lose’ style. Whilst Cohen does not recommend the use of this as a negotiation approach or technique, he makes it clear that it is important that we recognise it when it is being used so that we may counter it effectively.

The second negotiation approach is what he calls the ‘Negotiation for Mutual Satisfaction’ or the ‘Win-Win’ approach which Cohen is a proponent of.

The ‘Win-Lose’ style can be recognised through five key characteristics of the negotiating parties:

·        Take extreme positions and start with unreasonable opening positions

·        There tends to be a significant amount of emotional posturing – which typically tends to be premediated but are designed to provoke a response

·        View concessions made as a weakness

·        Offer stingy or no concessions in the hope of a negotiated settlement

·        Ignore deadlines or set unrealistic deadlines

On the other hand, the ‘Win-Win’ style is one where there is tact and a concern for the dignity of all parties involved in the negotiation. To achieve a ‘Win-Win’ style, it becomes important to see the problem from the other point of view. Demonstrating trust and respect and generally maintaining a positive attitude all form part of the process of negotiation and allows you to meet your objectives whilst also meeting the other party’s needs.

Key to success

In a ‘Win-Win’ negotiation approach, it is crucial to harmonise and reconcile needs to achieve success. As Cohen says, ‘Successful collaborative negotiation lies in finding out what the other side really wants and showing them a way to get it, while you get what you want.’

The following steps will help one achieve success in a negotiation:

a.      Establishing and building trust with the other party

b.      Obtaining the necessary information

c.      Gaining commitment of both your team and your negotiating counterparts towards a mutually satisfactory outcome and meeting needs

d.      Using the other side’s ideas to construct a reasonable outcome

e.      Transforming relationships towards collaboration

f.       Manage opposition to your ideas

g.      Taking moderate risks

h.      Get the other side to help achieve a mutual outcome and get them involved and solve the issues at hand in a mutual fashion.

It is also important not to be disheartened with opposition to your negotiation position and Cohen believes opposition can help sharpen your mind, perspectives and suggests that you take it as a positive contribution to your life. A ‘Win-Win’ negotiation approach encourages both parties to find a mutually beneficial outcome. It is even possible to deliver an outcome which may be better than what both parties expected at the outset.

There are also some tips which Cohen provides us for telephone negotiations but in current climate will be useful in the world of remote negotiations we find ourselves conducting these days over Zoom, Microsoft Teams or your conferencing system of choice! These include:

·        Preparing a checklist of key points to be covered along with your own red lines and desired outcome and a series of outcomes which may not be optimal, but you can ‘settle’ with

·        Doing a dry run of the negotiation in your mind

·        In an adversary encounter, attempt to anticipate the tactics of the other party.

·        Ensure all the relevant information and facts are at hand

·        Concentrate and avoid distractions (or multitasking!)

·        If facts and figures are involved, keep all reference material and record all discussion outcomes meticulously.

Conclusion

There are some fabulous quotes from Cohen throughout the book. Some choice ones include, ‘You have guts. Use them,’ and ‘Never give up and never give in’.

However, one of the most poignant quotes from Cohen is at the end of the book where Cohen says,

“You alone determine your destiny through your own efforts. Accept this responsibility – not just for yourself, but for us all. You have the power to change your life and the lives of others as well. Don’t back away from the exercise of power of wait for someone else to act. Of course, you can get what you want, but part of what you want should be to help others along the way.

The good life is not a passive existence where you live and let live. It is one of involvement where you live and help live."