Can You Invest Too Much Into A Negotiation?

by drjim on November 21, 2014

When you have invested time and effort into a negotiation you don't want it to fail

When you have invested time and effort into a negotiation you don’t want it to fail
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Face it, if you are willing to sit down and engage in a negotiation discussion with someone, then you are already committed to reaching a deal with them no matter what negotiation styles or negotiating techniques are being used. Where things can start to get interesting is when you become too committed to reaching a deal. How to tell if this has happened and what to do about it are things that every negotiator needs to know.

How You Can Become Too Invested In A Negotiation

I hate to admit this, but in the past I have become too invested in some of the negotiations that I’ve been involved in. Yes, I should be smarter than this but becoming too invested in a negotiation is not something that happens all at once. Rather, it has a way of sneaking up on you.

What happens is that you find yourself spending a lot of time working on a negotiation. Slowly you find yourself starting to become psychologically and probably economically invested in the negotiation. This happens because of the enormous amount of time and effort that you have been pouring into this effort.

Once I reach this point, I feel that I HAVE to close the deal. If I don’t then all of that effort will be lost forever. I’m sure that I don’t have to tell you just how horrible that feeling of loss would be!

How You Can Use Investment To Your Advantage

The party that has allowed themselves to become too invested in a negotiation now finds themselves in a tricky spot. If the time that has been invested is disproportionate, then the party that has less to lose now has an advantage in the negotiations. If a deal is not reached, they’ll end up losing less than the other side.

As a negotiator, what this should be revealing to you is a strategy that you can pursue. What you want to do is to find ways to get the other side of the table to invest more of their time and energy into the negotiations than you do. This way they will become committed to reaching a deal with you.

Once you’ve made this happen, you’ll have the upper hand. The reason is because when a deal is in jeopardy and someone is overinvested in it, that is when you can get them to agree to things that normally they would not. They are so desperate to avoid losing their investment, that a bad deal for them is better than no deal at all!

What All Of This Means For You

In order to have any chance of being able to reach an agreement with the other side of the table, you need to want to reach a deal with them. However, the difference between wanting something and needing something can be easily crossed.

All too often, what can happen is that someone who is involved in a principled negotiation starts to see the negotiation slipping away. When this happens, they can start to panic because of all the time and energy that they’ve spent on the negotiations. They may start to make poor decisions. As a negotiator, it is your job to try to get the other side to be more invested in the negotiations while keeping your investment to a minimum. Getting them to spend a lot of time on the negotiations is one way to make this happen.

Realizing that there is a line that can be crossed when it comes to investing in a negotiation is the first step to not crossing it. Try to make it so that the other side can’t back out of the negotiation.

- Dr. Jim Anderson
Blue Elephant Consulting –
Your Source For Real World Negotiating Skills™

Question For You: If you discover that you’ve invested too much into a negotiation, what steps should you do to decrease your investment?

Click here to get automatic updates when The Accidental Negotiator Blog is updated.

P.S.: Free subscriptions to The Accidental Negotiator Newsletter are now available. Learn what you need to know to do the job. Subscribe now: Click Here!

What We’ll Be Talking About Next Time

In a negotiation, nobody is operating without constraints. We all have limitations on what we can and cannot do. It’s how we deal with these power limits that can have a big impact on the outcome of the negotiations. As negotiators, we need to understand that we are dealing with power limits and then come up with ways to deal with them.

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Are Deadlines Really Real?

by drjim on November 14, 2014

Just because you are facing a deadline does not mean that it is real

Just because you are facing a deadline does not mean that it is real
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Every negotiation must come to an end sometime no matter what negotiation styles or negotiating techniques are being used. However, just exactly when it needs to wrap up is where there may be some disagreement. In order to help a negotiation wrap up sooner rather then later, often times a deadline gets thrown into the mix. What’s a negotiator to do when all of sudden you have a deadline to deal with?

When Is A Deadline Not Real?

If a deadline was just a deadline, well then that would be it. However, it turns out that all too often a deadline is much less than it may seem to be. As a negotiator you need to recognize a deadline for what it really is: yet another negotiating tactic.

The reason that deadlines are so effective in a negotiation is because of how the other side will react to them. When we are presented with a deadline, we tend to start to believe that we have to make a decision by the time that the deadline arrives. If we are unable to do this, then we are going to be left with the feeling that we’ve failed.

What you need to learn to do is to determine just exactly how real a given deadline is. The reason that this is so important is because of the power of a deadline. If you believe that you have to meet a deadline, then you are going to find yourself operating at a disadvantage during the negotiations. This is going to be especially true if the other side knows that you are operating under a deadline.

A Classic Example Of Using Deadlines In A Negotiation

We can talk about the power of deadlines until we are blue in the face. Sometimes what it takes to make the power of a deadline clear is an example of someone using them during an actual negotiation.

Such an event occurred recently during the discussions in which Facebook negotiated to purchase the creator of the WhatsApp. Jan Koum, the founder of WhatsApp, provided an interesting detail about how he steered WhatsApp into a $16 billion deal with Facebook:

‘We announced the deal with Facebook on Wednesday after the market closed. During the process, we realized there was a chance we might not be able to get the deal wrapped up and signed on Wednesday and it could delay.

When the risk of the delay became real, I said: “If we don’t get it done on Wednesday, it probably won’t get done. I have tickets on thursday to fly out to Barcelona which i bought with miles and they are not easily refundable or even possible to change. This has to be done by Wednesday or else!!!”

…and so one of the biggest deals in tech history had to be scheduled around my M&M award ticket.”

What All Of This Means For You

In almost every principled negotiation, a deadline eventually shows up. One or both sides state that the negotiations have to be wrapped up by a certain date or time otherwise a deal is not going to be able to be reached.

As negotiators we need to learn to look at deadlines with a skeptical eye. Yes, sometimes a deadline is real; however, more often than not they are simply a negotiating ploy. You need to take the time to determine how important a deadline is to the other side. Make sure that you never allow a deadline to put you at a disadvantage.

Deadlines are a fact of life and nowhere is this more evident than when it comes to negotiations. As smart negotiators we need to make sure that we don’t allow deadlines to influence the type of deal that we are willing to agree to. It turns out that sometimes deadlines really are NOT real!

- Dr. Jim Anderson
Blue Elephant Consulting –
Your Source For Real World Negotiating Skills™

Question For You: What technique do you think that you could use to test to see if a deadline was a real deadline?

Click here to get automatic updates when The Accidental Negotiator Blog is updated.

P.S.: Free subscriptions to The Accidental Negotiator Newsletter are now available. Learn what you need to know to do the job. Subscribe now: Click Here!

What We’ll Be Talking About Next Time

Face it, if you are willing to sit down and engage in a negotiation discussion with someone, then you are already committed to reaching a deal with them no matter what negotiation styles or negotiating techniques are being used. Where things can start to get interesting is when you become too committed to reaching a deal. How to tell if this has happened and what to do about it are things that every negotiator needs to know.

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