Negotiation tactics – those little shifts in attitudes and issues that tend to pop up once the conversation gets started -- are one of the most interesting aspects of the negotiation process. In this article I want to look at tactics in the Delay category. These tactics are moves that drag out the process and buy time so that the user can gain information and implement other tactics. It might start out like this:
Holly: Well, I think that just about wraps it up, Keith. I am really pleased with what we have accomplished. If you will just sign here and initial here, I will fax the paperwork to St. Louis and we can have your order shipped by this time tomorrow.
Keith: Uh ? Holly? I don’t remember going over the provisions in this fourth paragraph – the one about using our company name in future promotions of your product.
Holly: I definitely remember discussing this on the phone with you yesterday -- the fact that we might be willing to give you a deeper discount if we could use your company name as a reference. Remember?
Keith: Well, yes, I remember that part, but I got the impression that you would just want to ? you know ? put us on a published client list or something. Paragraph four is much more comprehensive than that. I am only authorized to deal with you on products. My division manager is going to have to okay this other thing, and he will probably need to run it all past the legal department in Wichita. I don’t see any way we can close on this now until sometime late next week. And that’s probably only if we are able to redo some of these terms.
What happened to Holly? She got hit with a tactic from the Delay category called Limited Authority. At some critical juncture in the negotiations one party may announce that he does not have the authority to approve a crucial part of the proposal on the table. Either that part will have to be dropped, or he will have to check with his boss or the legal department or the home office. You get the idea. At the very least, the negotiations are stuck for now, unless, of course, you want to lower your expectations and settle for something less than you thought you were going to get from the deal. Also, this tactic is used to buy time. Now that one side has found out what the other is really offering, they might want some time to develop a new plan or rethink their offer. Limited Authority is a great tactic to use to both soften up the opposition AND get some extra time to refine your ideas without the appearance of stonewalling the process.
If you encounter the tactic of Limited Authority during a negotiation, here is what to do.
Holly: Oh, Keith, I didn’t realize that you were not fully authorized to negotiate for your organization. I really need to be talking with whomever it is that has the power to approve the terms of this proposal. Would you please contact that person and set up a meeting right away? I would like to settle this question as soon as possible.
Narrator: And Keith may have to do just that. Or, maybe he will simply back off on the hard line he took regarding paragraph four, and he and Holly will finish their negotiation today.
The tactic Keith used also included a little bit of the second delay tactic, something we call the Missing Person. This is very similar to the Limited Authority tactic, just more general. As a matter of fact, they are often used together. This tactic may come up in the middle of a negotiation. You reach the stage where you need to finalize an important detail of the contract -- shipping schedules, for instance – but, unfortunately, the person in charge of shipping schedules is on vacation or out with the flu (at least that’s their story). In the case above, Keith speculated that the whole question of references would have to be reviewed by the legal department in another city; clearly, these folks are not available on site today, thus the missing man tactic comes into play.
There are two ways to deal with this tactic. First of all, it is always very important to make sure that all key players are available during a negotiation. If part of your proposal is going to involve shipping schedules, find out who is in charge of that task and make sure they are going to be available before the negotiation begins. This is part of what it means to do your homework and be prepared. But, if the negotiation takes a turn you weren’t expecting, and now you need input from a person who is “unavailable,” ask if there is anyone else that could provide the needed information and move on to that person. In a lengthy negotiation, it may even be possible to set that issue aside until the missing person resurfaces and work on other tasks for the moment. Also, sometimes the best thing to do is to simply set up an appointment when that person returns and pick up where you left off. No matter what, don’t panic. Your proposal may be delayed, but it is not dead. Stay focused on what you want. You may even be able to use the delay to gain an advantage, too. After all, while they are taking a break to retool their strategy, you can be doing the same.
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May Negotiation Quick Tip of the Month – Walk a Mile in Their Shoes
The first step of the negotiation process is preparation, and an important part of the preparation is to learn as much as you can about the interests, issues, positions, strengths, weaknesses, tactics and personalities of the folks on the other side of the table. However, one of the best ways of truly understanding their perspective is to pretend to be them for a while. If at all possible, develop a role-play scenario that your team can run through, with a couple of people advocating for the other side. Not only will this help you sharpen your skills and refine your arguments, it will also help you appreciate their needs a little better. This could come in handy when you start looking for that Win-Win solution.
