Never Split the Difference: Negotiating as if Your Life Depended on It
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People will take more risks to avoid a loss than to realize a gain. Make sure your counterpart sees that there is something to lose by inaction.
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“He who has learned to disagree without being disagreeable has discovered the most valuable secret of negotiation.”
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ask for help with one of the greatest-of-all-time calibrated questions: “How am I supposed to do that?”
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Like the softening words and phrases “perhaps,” “maybe,” “I think,” and “it seems,” the calibrated open-ended question takes the aggression out of a confrontational statement or close-ended request that might otherwise anger your counterpart.
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First off, calibrated questions avoid verbs or words like “can,” “is,” “are,” “do,” or “does.” These are closed-ended questions that can be answered with a simple “yes” or a “no.” Instead, they start with a list of words people know as reporter’s questions: “who,” “what,” “when,” “where,” “why,”
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and “how.” Those words inspire your counterpart to think and then speak expansively.
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But let me cut the list even further: it’s best to start with “what,” “how,” and sometimes “why.” Nothing else. “Who,” “when,” and “where” will often just get your counterpart to share a fact without thinking. And “why” can backfire. Regardless of what language the word “why” is translated into...
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You should use calibrated questions early and often, and there are a few that you will find that you will use in the beginning of nearly every negotiation. “What is the biggest challenge you face?” is one of those questions. It just gets the other side to teach you something about themselves, which is critical to any negotiation because all negotiation is an information-gathering process.
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Here are some other great standbys that I use in almost every negotiation, depending on the situation:         ■    What about this is important to you?         ■    How can I help to make this better for us?         ■    How would you like me to proceed?         ■    What is it that brought us into this situation?         ■    How can we solve this problem?         ■    What’s the objective? / What are we trying to accomplish here?         ■    How am I supposed to do that?
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Don’t try to force your opponent to admit that you are right. Aggressive confrontation is the enemy of constructive negotiation.
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Avoid questions that can be answered with “Yes” or tiny pieces of information. These require little thought and inspire the human need for reciprocity; you will be expected to give something back.
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Ask calibrated questions that start with the words “How” or “What.” By implicitly asking the other party for help, these questions will give your counterpart an illusion of control and will inspire them to speak at length, revealing important information.
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Don’t ask questions that start with “Why” unless you want your counterpart to defend a goal that serves you. “Why” is always an accusation, in any language.
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Calibrate your questions to point your counterpart toward solving your problem. This will encourage them to expend their
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energy on devising a solution.
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■    Bite your tongue. When you’re attacked in a negotiation, pause and avoid angry emotional reactions. Instead, ask your counterpart a calibrated question.
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■    There is always a team on the other side. If you are not influencing those behind the table, you are vulnerable.
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The Rule of Three is simply getting the other guy to agree to the same thing three times in the same conversation. It’s tripling the strength of whatever dynamic you’re trying to drill into at the moment. In doing so, it uncovers problems before they happen. It’s really hard to repeatedly lie or fake conviction.
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on average, liars use more words than truth tellers and use far more third-person pronouns. They start talking about him, her, it, one, they, and their rather than I, in order to put some distance between themselves and the lie.
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And they discovered that liars tend to speak in more complex sentences in an attempt to win over their suspicious counterparts.
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“Yes” is nothing without “How.” Asking “How,” knowing “How,” and defining “How” are all part of the effective negotiator’s arsenal. He would be unarmed without them.
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■    Ask calibrated “How” questions, and ask them again and again. Asking “How” keeps your counterparts engaged but off balance. Answering the questions will give them the illusion of control. It will also lead them to contemplate your problems when making their demands.
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■    Use “How” questions to shape the negotiating environment. You do this by using “How can I do that?” as a gentle version of “No.” This will subtly push your counterpart to search for other solutions—your solutions. And very often it will get them to bid against themselves.
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Don’t just pay attention to the people you’re negotiating with directly; always identify the motivations of the players “behind the table.” You can do so by asking how a deal will affect everybody else and how on
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close attention to tone of voice and body language. Incongruence between the words and nonverbal signs will show when your counterpart is lying or uncomfortable with a deal.         ■    Is the “Yes” real or counterfeit? Test it with the Rule of Three: use calibrated questions, summaries, and labels to get your counterpart to reaffirm their agreement at least three times. It’s really hard to repeatedly lie or fake conviction.         ■    A person’s use of pronouns offers deep insights into his or her relative authority. If you’re hearing a lot of “I,” “me,” and “my,” the real power to decide ...more
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“them,” it’s more likely you’re dealing directly with a savvy decision maker keeping his options open.
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■    Use your own name to make yourself a real person to the other side and even get your own personal discount. Humor and humanity are the best ways to break the ice and remove roadblocks.
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The Black Swan rule is don’t treat others the way you want to be treated; treat them the way they need to be treated.
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(I’ve got a complementary PDF available that will help you identify your type and that of those around you. Please visit http://info .blackswanltd.com/3-types.)
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The Ackerman model is an offer-counteroffer method, at least on the surface. But it is a very effective system for beating the usual lackluster bargaining dynamic, which has the predictable result of meeting in the middle.
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The systematized and easy-to-remember process has only four steps:
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1.      Set your target price (your goal).
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2.      Set your first offer at 65 percent of your target price.
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3.      Calculate three raises of decreasing increments (to 85, 95, and 100 percent).         4.      Use lots of empathy and different ways of saying “No” to get the other side to counter before you increase your offer.         5.      When calculating the final amount, use precise, nonround numbers like, say, $37,893 rather than $38,000. It gives the number credibility and weight.         6.      On your final number, throw in a nonmonetary item (that they probably don’t want) to show you’re at your limit.
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Identify your counterpart’s negotiating style. Once you know whether they are Accommodator, Assertive, or Analyst, you’ll know the correct way to approach them.
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■    Prepare, prepare, prepare. When the pressure is on, you don’t rise to the occasion; you fall to your highest level of preparation. So design an ambitious but legitimate goal and then game out the labels, calibrated questions, and responses you’ll use to get there. That way, once you’re at the bargaining table, you won’t have to wing it.
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■    Get ready to take a punch. Kick-ass negotiators usually lead with an extreme anchor to knock you off your game. If you’re not ready, you’ll flee to your maximum without a fight. So prepare your dodging tactics to avoid getting sucked into the compromise trap.
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■    Set boundaries, and learn to take a punch
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or punch back, without anger. The guy across the table is not the problem; the situation is.
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Prepare an Ackerman plan. Before you head into the weeds of bargaining, you’ll need a plan of extreme anchor, calibrated questions, and well-defined offers. Remember: 65, 85, 95, 100 percent. Decreasing raises and ending on nonround numbers will get your counterpart to believe that he’s squeezing you for all you’re worth when you’re really getting to the number you want.
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One can only be an exceptional negotiator, and a great person, by both listening and speaking clearly and empathetically; by treating counterparts—and oneself—with dignity and respect; and most of all by being honest about what one wants and what one can—and cannot—do. Every negotiation, every conversation, every moment of life, is a series of small conflicts that, managed well, can rise to creative beauty.
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Let what you know—your known knowns—guide you but not blind you. Every case is new, so remain flexible and adaptable.
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Black Swans are leverage multipliers. Remember the three types of leverage: positive (the ability to give someone what they want); negative (the ability to hurt someone); and normative (using your counterpart’s norms to bring them around).
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■   Work to understand the other side’s “religion.” Digging into worldviews inherently implies moving beyond the negotiating table and into the life, emotional and otherwise, of your counterpart. That’s where Black Swans live.
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■   Review everything you hear from your counterpart. You will not hear everything the first time, so double-check. Compare notes with team members. Use backup listeners whose job is to liste...
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■   Exploit the similarity principle. People are more apt to concede to someone they share a cultural similarity with, so dig for what makes them ti...
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■   When someone seems irrational or crazy, they most likely aren’t. Faced with this situation, search for constraints, h...
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Get face time with your counterpart. Ten minutes of face time often reveals more than days of research. Pay special attention to your counterpart’s verbal and nonverbal communication at unguarded moments—at the beginning and the end of the session or when someone says something out of line.
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When the pressure is on, you don’t rise to the occasion—you fall to your highest level of preparation.
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Based on my company’s experiences, I believe that good initial preparation for each negotiation yields at least a 7:1 rate of return on time saved renegotiating deals or clarifying implementation.