Everyday Leader
Everyday Leader...04.27.2005
By Michael Hudson, Ph.D.
Apr 27, 2005, 16:09

The True Stength of Your Position

Recently the subject of negotiation has been playing a central role in my life. It started somewhat intellectually with the development of a new learning module for a client, but it has rapidly become a day-to-day reality as we move our home building project ahead and work to bring closure to a number of client agreements.

In the midst of this, one thing has repeatedly stood out to me--the importance of assessing the true strength of your position in order to define your negotiation strategy. Let me explain.

In every negotiation there are weak positions and strong positions for all parties involved. The key to successful outcomes, therefore, is not just to define what you want to achieve, but to accurately assess your position in terms of its strengths and weaknesses.

While this may seem obvious, it is often hard to grasp in the midst of the negotiation process for several reasons:

1. Your emotions intervene...because you feel strongly about the outcome you are seeking and have decided what you are willing give up to achieve it, you tend to see only the weaknesses in your position and focus on how to mitigate them.

2. You transfer control...because often you are negotiating with someone who has something you want, you tend to allow them to control the process as you look for ways to satisfy them so that you will get what you want.

3. You ignore your strengths...because the other party seeks to exploit the weakness of your position, you devote most of your energy to trying to change the way they see the situation, instead of framing the situation based on the true strength of your position.

4. Your exposure to loss dominates...because there is something that you want to gain from the negotiation, the biggest fear you bring to the table is the fear of loss, so you move too easily toward compromise in order to protect your desired result and to eliminate the possibility of loss.

5. You perceive unequal power...because the person you are negotiating with has something you desire and essentially controls whether or not you will get it, you assume they have the power and forget that they need you to take whatever it is they are offering in order for them to succeed.

Specific examples could be shared to illustrate each of these points, and no doubt you can think of many times when one of these has impacted a negotiation you were conducting. But rather than bogging ourselves down in details and examples, let's settle for the quick lesson: Nothing is more important than accurately assessing the true strength of your position when you enter into a negotiation.

Here's how you can do this more effectively:

1. Identify all of the stengths and weaknesses of your position. Key thought questions include: What do you have that the other party wants and cannot get elsewhere? What does the other party have that you want? What is your most important strength and how can you leverage it to your advantage? What is your Achilles heel?

2. Determine the outcome(s) you want from the negotiation. Key thought questions include: What do you have that the other party wants and what do you require from them in order for you to provide it? What are you willing to give in order to get what you want from the other party? Is there an outcome that allows both parties to win?

3. Define your walk-away position. Key thought questions include: Under what circumstances are you willing to walk away from the situation? What are the non-negotiables from your point of view? How and when will you reveal them in the negotation?

4. Map out your strategy. Key thought questions include: How will you share your desired outcomes with the other party? At what point in the negotiation will you reveal your bottom line desires? What do you really know about the other parties position, and how can you increase your knowledge to enhance your chances of success?

5. Write everything down. Key thought questions include: What are the specifics of the outcome you desire? What is your fallback position, or minimum acceptable outcome? What is the better than expected outcome?

Completing these 5 steps will force you to think through the negotiation both your viewpoint and the viewpoint of the person with whom you are negotiating. By clearly defining what you will and will not accept beforehand, you reduce the impact of emotion on the process. By mapping out and writing down your strategy you force yourself to think through everything and improve your chances of success.

Bottom Line: Negotiation is seldom easy, but you can improve your chances of success greatly by working to understand the true strength of your position and taking time up front to plan for a successful outcome!

*****
Everyday Leader is written by Michael Hudson, Ph.D., The Everyday Leadership Authority(tm). Comments are welcome. Archived issues can be viewed at Everyday Leader Archives

Copyright MMIII by The Everyday Leadership Network. Reproduction for publication is encouraged, with the following attribution: From "Everyday Leader," by Michael Hudson, Ph.D., The Everyday Leadership Authority(tm). Toll Free: (866) 532-3968; International: (302) 684-8727 or at www.EverydayLeader.com

New subscribers are welcome--visit www.EverydayLeader.comto sign up. There is no charge for this public service.

© Copyright 2003 by EverydayLeadershipNetwork.com