Beware of last-minute strong-arm tactics

Even if you make the decision to treat your negotiating opponent with honesty and kindness, the other party may not extend you the same respect. Be prepared to stand your ground firmly, yet cordially, especially in the last few minutes of the negotiations. This is the time when manipulative parties may employ certain tactics in order to try to fool you into losing focus or lowering goals and standards. Remember that conflicts are generally resolved in the last few minutes. The theory behind last minute tactics is that one party may be more willing to give in out of fear that all of the concessions or progress made up to that point (perhaps hours or weeks of talks) might be lost. People also get tired or have other commitments that need to be met, such as making an important phone call before another business closes, or picking up children from school. Here are some last minutes tricks that negotiators often use at this time:

· Walking out of the room

· Offering a short-term bribe

· Telling you to take it or leave it

· Giving an ultimatum

· Abrupt change in tone (used to shock the other party into submission)

· Introducing new requests (used at to get you to concede with little thought or consideration)

· Stating generalizations without evidence (dropped without significant statistics/proof)

· Adopting the Mr. Nice Guy persona (used to try to make it look like they are doing you a favour in hopes that you will lower your expectations)

Language to use in closing

· It sounds like we've found some common ground.

· I'm willing to leave things there if you are.

· Let's leave it this way for now.

· I'm willing to work with that.

· I think we both agree to these terms.

· I'm satisfied with this decision.

· I think we should get this in writing.

· I'd like to stop and think about this for a little while.

· You've given me a lot to think about/consider.

· Would you be willing to sign a contract right now?

· Let's meet again once we've had some time to think.

 

Formalize the agreement/negotiation

In most business negotiations it is a good idea to get something down in writing. Even if a decision has not been made, a letter of intent to continue the negotiations is often used. This is a way for each party to guarantee that talks will continue. A letter of intent often outlines the major issues that will be discussed in future negotiations. In some cases a confidentiality agreement is also necessary. This is a promise from both parties to keep information private between discussions. When an agreement has been decided, a formal contract may be required. On the other hand, depending on the seriousness of the decision, and the level of trust between the two parties, a simple handshake and verbal agreement may be all that is needed. For example, an employer may offer a promotion and an employee may trust that the new salary will be reflected on the next pay cheque. However, even if nothing is put formally in writing, it is wise to send an e-mail or letter that verifies the terms and puts the agreement on record, especially when a specific number is decided on.

 

Assignment 3.

Which of these are good ways of dealing with conflict / confrontation in a negotiation?

 

1 Avoiding eye contact.

2 Smiling a lot.

3 Sitting back and appearing relaxed.

4 Stopping the discussion and coming back to it later.

5 Saying nothing for a long time.

6 Saying “I see what you mean”.

7 Finding out why the other side is unhappy.

8 Focusing on the issues, not on personalities.

9 Saying something humorous.

10 Speaking calmly and slowly.

 

 

Asking questions has two purposes: getting information and building trust. In both cases, it’s essential to be diplomatic. Therefore ask open and indirect questions rather than closed ones.

An open question is created by using a question word like how, when, why, who, etc. A closed question gives you a yes/no or I don’t know answer. Open questions give you much more information than closed questions. They will also help you to get out of an impasse or stalemate. By using open questions, you show the other party you are interested in their concerns.

An indirect question in English is polite and, therefore, helps to build trust, e.g. direct question How did you arrived at that figure? as compared to indirect question Can you tell me how you arrived at that figure?

 

Research shows that skilled negotiators often use the techniques listed below to achieve their negotiating objective.

Assignment 4.

A. Match the techniques (1-5) to their definitions (a-e).

1 Open questions

2 Closed questions

3 Softening phrases

4 Signalling phrases

5 Summarising

 

a) Say what you are going to do before you do it.

b) Modify language so that it does not appear too aggressive.

c) Go over the points covered to highlight when agreement is reached.

d) Gather information and explore the opposite number's views.

e) Check understanding and ask for precise information.

 

B. Match each expression to the correct technique in exercise A.

 

a) Can you offer any collateral?

b) There seems to be something wrong with your figures.

c) Let's go over what we've agreed.

d) What sort of loan are you looking for?

e) Let me clarify my last point. What I meant was, we would want to retain control of the business.

C. Read the dialogue and identify expressions that match the techniques. Then place each expression under the correct heading in the Useful language box below. (Market Leader. Upper Intermediate Business English Course Book. 3d Edition. Unit 9).

CD3TRACK 5 (B = BANK MANAGER, C = CLIENT)

B. I've looked at your business plan and I like some of your ideas for

expanding your business. Could I ask you, what other people are providing finance for you?

C. Well, two family members have offered I 00,000 Eurus for a small stake in the business. I haven't decided anything yet, and my partner is also investing some more money. We're still discussing the exact amount.

B. Have you approached any other bank, if I may ask?

C. Yes, two banks, but they turned me down.

B. Oh, sorry to hear that - these are difficult times to raise money. I'd like to make a suggestion. Why don't you revise your business plan? And especially, put in a bit more about your competitors, for example. That'd help.

C. Certainly, l can do that.

B. Good. Could l ask what sort of repayment terms you have in mind?

C. I'm pretty sure we could repay a loan - the whole amount, that is – within three years.

B. Right. That might be a bit optimistic, I'd say. Anyway, suppose we were to offer you a loan of, say, 250,000 Eurus, once you've rev bed your business plan? How would you feel about that?

C. Let me clarify what the money's for. The 250,000 would be for working capital, and to hire more staff; a finance director, marketing people, money for the extension of the factory...

B. Well, we can talk about that a little later. Your first task is to strengthen the management as we discussed earlier.

C. OK. Well, in that case, 250,000 would certainly help me to achieve some of my objectives in expanding the business.

B. Good. We seem to be getting somewhere now. Let me sum up what we've agreed so far, then we can talk about your marketing strategy.

 

Useful language

 

OPEN QUESTIONS	CLOSED QUESTIONS
Why do you need a loan?	Do you have any other backers?
What other sources of finance do you have?	Can you transfer the money by next week?
What did you have in mind?	Could you improve your credit terms?
Where does your information come from?	Will you pay our price?
SIGNALLING PHRASES	SUMMARISING
I'd like to make a proposal. I think we should...	Let's see what we've got so far.
Could I make a suggestion: why don't we...? Let's look at this another way.	Let's recap before we go on to...   So, to sum up,...
SOFTENING PHRASES
I'm sorry, we can't go that high.
We were hoping to pay a little less.
That seems very expensive

Work in groups of four made up of two pairs.

Pair A and Pair B: Read your instructions below.

Pair A

1. Look individually at the points to consider in an international negotiation listed below and add two more.

2. Choose the five most important points from your list.

3. Talk to your partner and agree the five most important points.

4. Join up with Pair B and try to agree the five most important points from your two lists.

 

1. Keep an open mind and be flexible.

2. Propose a strict agenda and keep to it.

3. Anticipate the interests of the other side.

4. Let the other side make the first offer.

5. Be very clear and direct about what you want from the other side.

6. Pay careful attention to building a rapport.

7. Put pressure on the other side to make an agreement.

8. Pay attention to the other side’s body language.

9. Don’t change your plan during the meeting.

10. Have a deadline for getting a deal.

 

Pair B

1. Look individually at the points to consider in an international negotiation listed on the right and add two more.

2. Choose the five most important points from your list.

3. Talk to your partner and agree the five most important points.

4. Join up with Pair A and try to agree the five most important points from your two lists.

 

1. Prepare carefully before you negotiate.

2. Avoid an agenda. Let the negotiation develop naturally.

3. Ask a lot of questions to find out the position of the other side.

4. Try to disguise what you really want.

5. Be prepared to walk away without a deal.

6. Never compromise on your key points.

7. Be careful not to let the negotiation break down.

8. Summarise often points you agree on.

9. Make no concessions until the end.

10. Make sure you 'win' the negotiation and get the best possible deal.