| During a negotiation I believe that knowledge and leverage lead to your advantage. What is the leverage in the deal? Who has it? How can it be used most effectively? How can it be countered?
Is time a factor in the negotiations? Is the other party up against the gun? Is there a timeframe within which they must consummate the deal? Time can be a great pressure point. This is one crucial time when you can use time to your advantage.
Who’s the boss? From the onset, find out if you’re dealing with a person who has the power to make the final decision.. There’s nothing worse than going through the negotiating process only to find that once a compromise has been reached, the other party has to check with his/her boss or spouse.
What does the other party want or need? What are his alternate options?
What are the comparisons in the marketplace? There’s a market for everything. Find out what your desired property or position or service or home or antique commands.
Regarding salary, decide on your settlement range before the negotiation begins by determining your best- and worst-case scenario. And also determine what other issues you want addressed during the negotiations – benefits, bonus, car allowance, daycare, uniform, vacation, pension plan, phantom stock, etc. The more issues available for discussion, then the more trade-offs can be negotiated to reach your ultimate goal. Remember, if you give up something without a tradeoff, then you’re not negotiating, you’re conceding.
It’s important to know what concessions and bargaining chips are available on both sides of the table. Make a note of which ones are important, and which ones are just throwaways – like the lanai furniture. And make sure you get the other party’s full “shopping list” of needs before you start to negotiate. Don’t let the deal be separated into single issues or allow new ones to be introduced later as “add-ons.” That’s a killer technique used by the experienced negotiator. You think you’re finished – your brain and patience are fried – and suddenly there are a couple more issues tossed onto the table out of nowhere.
When I was recruiting Larry Brown to be head coach of the Philadelphia 76ers in the spring of 1997, the negotiation was extremely difficult. Larry’s agent was also his father-figure and a seasoned negotiator by the name of Joe Glass. Mr. Glass knew he had the leverage and was well adept at using it to his advantage. Not only was Larry one of the most successful coaches in the NBA, but there were already five other NBA teams – Orlando, Boston, Denver, Golden State, and Portland – waiting to interview him once he departed his first interview stop in Philadelphia with me. And while doing my homework I heard that the LA Clippers where going to throw their hat into the ring, which was his wife’s favorite choice. She was an LA girl. And that’s serious leverage.
I mention Larry’s negotiation not because we were lucky to sign him for a five-year deal at $25 million – mainly because I wouldn’t allow him to leave the Bellevue hotel suite until he shook my hand – but because of what happened after the negotiation was over. That is, I thought it was over. After the salary was finally agreed upon, his agent then requested we lease for Larry a 600-series Mercedes and top-of-the-line SUV. Mr. Glass hinted that these issues were deal breakers that would be acceptable by any NBA team. Deal-breakers? I wanted to break his bones! But I agreed. Then Mr. Glass raised another issue – he requested that Larry be compensated for any loss in value of his Indiana home when he sells it to move to Philadelphia. My hands were tied. I surrender, stop! He didn’t. His parting question was one I remember distinctly: “Obviously all of Larry’s moving expenses will be covered?” It was a question with only one answer. Obviously!
Do your homework before you enter the negotiation. This includes getting the other party’s entire deal before enter into negotiating. -- PC
|
