Most negotiators ignore the fact that having limits on their authority can make their jobs easier – it's a source of negotiating power.
A negotiator with limits becomes harder to deal with. They can say "no" gracefully – someone else is saying it. That someone else can be a procedure, a policy, a budget, an engineering standard, or maybe a regulation that can't be budged.
Often one person's limits can become the other person's problem. If you and I are negotiating and I have limits to my authority, it is up to you to figure out a way around them. You are forced into a choice: either accept the deal at my limits or make a lot of work for yourself, and maybe get no deal at all.
If you challenge my lack of authority by taking the problem to a higher authority, other apprehensions set in. Now you must take on my boss, or their boss, or the legal department, or the engineering staff – all of whom represent new relationships and a greater degree of preparation on your part. Also, if you do go to higher levels, there is always a chance the party you are negotiating with will get angry.
There is greater strength in not having authority than in having it. A person going into a negotiation would do well to ask, "What limits do I want imposed on my authority?" Well chosen limits can make a big difference in the outcome of your negotiation.
Negotiating Via E-mail?
E-mail is a common component of today’s negotiations. It is, quite simply, an efficient way to communicate. However, e-mail brings new dynamics to your negotiation.
Assess Your Negotiating Profile
Negotiation is one of the most difficult jobs a person can do. It requires a combination of diverse traits and skills. The process of negotiating demands not only good business judgment but also a keen understanding of human nature. I know of no other area in business where the alchemy of power, persuasion, economics, motivation, and organizational pressure come together in so concentrated a fashion and so narrow a time frame. Nowhere is the return on investment potential so high!
Questions During a Negotiation
Negotiation is a process of discovery. Questions are raised and answers given, statements made and rebuttals offered. During a negotiation there often is great pressure placed on you to provide quick statements and sensible answers to hard questions.
