The secret strategies to negotiate your way into anything

WHETHER it’s a million dollar deal or your perfect job, there are certain strategies experts use to get their way. Here’s how to negotiate your way into anything.

Don Corleone was the master of getting what he wanted.

YOU’VE seen them on TV and maybe even in real-life. Hard-ball negotiators who will stop at nothing to get what they want. But could it be as easy as following a few simple rules?

Grant Thornton’s corporate finance partner Graham McManus handles multi-million dollar mergers and acquisitions. He said there are a few simple rules for making the most out of any negotiation.

Have a heart

Regardless of what you want to achieve, the most important quality in negotiations is empathy.

“Negotiation isn’t always a zero sum game and an adversarial thing. In fact it works best when it’s not,” Mr McManus said.

Expert negotiators use a technique called thinking about the other party’s BATNA — their best alternative to a negotiated agreement — which helps create a baseline for negotiations.

“If you’re negotiating and you know that their only other option to doing a deal with you is to pay more somewhere else that’s just an absolute gift,” Mr McManus said. “You certainly need to have thought through the dynamics, that then becomes your bottom line.”

If you know for a fact your competitors are more expensive, that’s a perfect position to negotiate from.

Know your enemy

Sun Tsu’s classic mantra is famous for a reason. Knowing as much as possible about the other party will give you power.

“Know your enemy and know them well. That is the only way you win the battle, to out manoeuvre, outsmart and prove your value to the other side. Research is very important to that,” Mr McManus said.

When looking for a new job this means researching the industry, people, dynamics and competitors to put you in the best possible position.

“You’ve got to have an understanding of what the market is like for that type of job. It might be there’re very few jobs and lots of people searching….[and] you know you’re going into environment where you’ve got to differentiate yourself,” he said. On the other hand, having special skills or a unique track record will give you the opportunity to negotiate harder.

Finding out as much as possible will put you in the best possible place from which to negotiate.

Work to grow the pie

Rather than having a winner and loser from each situation, the best strategy is “creating a bigger pie” everyone can benefit from, Mr McManus said.

For example if you want to get flexible working hours, consider negotiating to an output based performance schedule rather than one centred around time in the office.

Don’t play all your cards at once

It’s often said you should keep something up your sleeve, but this depends on the situation.

“You need to read the meeting and assess the circumstances. Playing all your cards when your first few cards are actually a winning hand may impact negatively on your overall position. Eager job candidates do this pretty regularly,” Mr McManus said.

However the alternative of missing out is just as bad, so judgment is important.

Job seekers often overplay their hand, but holding back and living a life confined to a dead-end job could be worse.

Keep your cool

The best deals happen when both parties walk away happy. It’s not worth ruining a relationship for the sake of a few dollars.

“You don’t get that when you go in with aggressive win/loss view of the world,” Mr McManus said. “It is about looking at total value on table working to optimise that value and then split it as opposed to splitting it later.”

If you find yourselves at loggerheads with the other party, ‘going to the balcony’ is a technique experts use to give themselves a bit of space to get back on track.

“The technique of calling a break, making a phone call or saying ‘can we break for a bit of a pow wow’ allows you to diffuse the explosive situation and get people back under control and focused on tangible objectives you’re trying to achieve as opposed to winning the argument.”

Be honest

Bluffing may be part of the art, but don’t let it spill into dishonesty.

“Bluffing is not too bad if both parties are big boys and they know that each is going to walk in and puff their chests out. Misrepresenting your facts long-term is a no-win strategy,” Mr McManus said.

“At the end of the day the benefit of being able to walk away and know the person is going to deal with you again is of significant value.”

Keep calm by taking a break to think things over if it’s getting tense.

Play the long game

Think of each negotiation as part of a bigger picture. Conceding on something now could earn your something later on.

“It is a very strategic process a bit like a game of chess ... You need to not look at everything as one time win/loss. It’s building skills over time and learning from each negotiation. What you could have done differently and bouncing it off colleagues and getting their advice.”

Don’t just think about me, me, me

Mr McManus said the most common mistake people make is talking too much about themselves.

“Walking in there and starting to talk about what you want and what’s important to you isn’t the best way to get people to agree that working with you is to everyone’s benefit.”

The whole point of negotiating is that you get other people on your side. “Without them you’re not going to get anywhere. You’re going to get to your BATNA,” he said.

Don’t bamboozle people by talking about yourself. Keep the other party’s interests in mind.

Keep calm when talking numbers

Whether it’s a huge merger of a salary package, first establish value then talk about price.

If you’re sure someone is interested in you for a job and you’ve demonstrated value, then you can aim for a higher salary package. If you’re unproven but driven, perhaps you could structure a package with low base and lots of potential through commission, Mr McManus said.

The only rule to remember is don’t talk about salary before you’re sure the other party wants you. “It’s a big hole to dig yourself out of,” he said.

Keep your poker face

When an offer is on the table, good preparation will tell you whether that’s a good deal or not.

“If you are prepared then you will know what a good deal looks like — you will also have a good idea of your chances of getting a better deal somewhere else. So your preparation should put you in a position to decide on the spot and move on to either the next deal or, if it’s a job interview — get to work building that brilliant career,” Mr McManus said.

Whether or not you accept on the spot depends on the circumstances.

“Does it mean you’re giving in too easy and passing up an even better deal if you accept on the spot? Again this is a possibility and a call you need to make. In a life changing decision like a new career path you probably won’t be viewed too poorly if you ask for time to consider the offer,” he said.

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