Your Weekly Walkaway - The Art of Giving Negotiation Satisfaction.
The Weekly Walkway highlights negotiation in its ‘good’, ‘bad’ and sometimes ‘downright ugly’ forms. Newsletter Issue No. 23 (3rd March 2023)
What to expect?
Quote of the Week - "Unwillingness to give satisfaction usually comes in the form of either a competitive mindset and inflated ego or just plain simple pride!"
Thought of the Week - The Art of Giving Negotiation Satisfaction
Remember: You are a negotiator!
You are always managing some form of conflict, a difference of opinion or interest.
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QUOTE OF THE WEEK
Unwillingness to give satisfaction usually comes in the form of either a competitive mindset and inflated ego or just plain simple pride!
I can not stress this ENOUGH! Negotiation is not a competition! There is no place for ego nor pride in negotiation!
Giles Morgan (Kahvay)
THOUGHT OF THE WEEK
The Art of Giving Negotiation Satisfaction
The last two Weekly walkaways have focused on ‘opening extreme’ and ‘who should put their number on the table first’. This week we look at ‘the art of giving satisfaction’.
As we’ve already discussed, we open extreme, with more than we need, so that we have room to move. So that we can give ‘them’ the feeling of satisfaction.
In negotiation, the concept of "giving satisfaction" refers to moving, repackaging, giving them what they need or making concessions to the other party to make them feel like they are ‘winning’.
It is a tactic that involves giving something to them to make them feel that their needs or wants are going to be achieved and at the same time creating a sense of ‘pay back’, known as ‘reciprocity’, which we covered here; ‘Practising reciprocity in negotiation‘. I’ve moved, so you need to move too.
As you all know, negotiation can be a highly charged and emotional process, and it is not uncommon for you to become frustrated or even angry. By giving satisfaction, you can help to defuse these emotions, to reduce tensions and defensiveness, making it easier for you to find common ground and create a sense of calm and reasonableness. This can help to ensure that the negotiation remains focused on the issues at hand rather than getting side-tracked by emotional outbursts or personal attacks.
Simply written, the art of giving negotiation satisfaction creates better outcomes. If you don't give satisfaction if you dis-satisfy them, then you create a negative reciprocal response right now, right here; they won't move, they won't give you what you need, or in the future, when (if) you meet again, they will repay your stubborn intransigence! Obviously not a good outcome.
Unwillingness to give satisfaction usually comes in the forms of a competitive mindset, inflated egos or just plain simple pride!
I can not stress this ENOUGH! Negotiation is not a competition! There is no place for ego nor pride in negotiation!
If you want to win in a negotiation, someone will exploit you for it. If you allow your pride or ego to influence your thinking, then you are sure to sub-optimise the deal.
They will make you feel like you are winning, they will fluff your ego, and they will prick at your pride to exploit you while they focus on what a win really is.
Competition creates a win-lose or even lose-lose (super competitive) mentality.
If you or your counterpart see the negotiation as a competition, a zero-sum game, then you’ll create an adversarial approach. This, in turn, leads to aggression and overly confrontational tactics, which in turn leads to the inevitable deadlock or the bitter feeling of dissatisfaction.
This can also be seen when one party has significantly more power or leverage than the other. In these cases, they may be tempted to use this to their advantage and make unilateral demands. These can be difficult and sometimes impossible to achieve for the less powerful party. By opening extreme and moving to give satisfaction, the less powerful party can use the tactic to make them feel like they won and can prevent them from just simply imposing their will.
If you allow your pride, ego, or need to win to get in the way, you will fail to recognise the other party's perspective, and ultimately, you’ll miss opportunities for creating value. Climb to the top of the lighthouse. Look down on the situation from a different perspective, and then, only then, will you see opportunities.
So, giving satisfaction;
sends a signal that you are open to finding a solution. This can help to create a ‘feeling’ of a positive negotiating environment;
is a useful way to manage big egos or power imbalances in negotiation;
can be a useful way to manage the emotional aspects of negotiation.
Techniques for giving satisfaction;
Opening extreme and making moves in ever-decreasing amounts, incremental concessions;
Linking and packaging issues. This involves linking multiple variables and concessions together to create a value bundle and then moving by repackaging;
Creating options and offering these options for your counterpart to choose from and then moving by repackaging the options.
The key is to make these concessions in a way that signals a willingness to work together but without making it too easy for them. It's a balance between moving and frustrating, which increases the value of your move.
It is important to note that giving satisfaction should be used carefully. Giving satisfaction does not mean just giving; it does not give you permission to be generous or soft. That just satisfies you; your feeling of discomfort may drive you to soften your approach to ease your own feelings and emotions. It is not simply a matter of giving in to every demand or request from the other party. Instead, it is about making tactical concessions that help to achieve your own goals while also giving satisfying the feeling that their needs are also being met.
Next week we will take a closer look at how we can move, concede, to ‘Test Assumptions’.
We’d love to read your comments or thoughts. What do you think?