Published by Peter Barron Stark & Associates

Your premier resource for sharpening & strengthening your negotiation skills & techniques or providing training

    Tactic and Challenge  of the Week  — February 8, 2005


Peter Baron Stark: PBS Consulting - Everyone Negotiates

Peter Barron Stark
President


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Tactic #43 - Find Us an Umpire

Summary:  Getting an unbiased third party to mediate a negotiation.


When two counterparts do not have a history of working well together, using an intermediary, or “umpire,” to facilitate the negotiation can sometimes prove helpful. In this case, a third party who has had previous positive relationships with both counterparts enters the picture.

Example
Two corporate presidents know it is in the best interests of both their companies to merge. In fact, they know that if they continue on the present course, they will both eventually be leading unprofitable companies. The problem is that they have met twice before to negotiate a merger. Since each of them has an ego the size of King Kong, they have left the table without a deal each time, and their relationship has ended up even more strained. A vendor who sells machinery to both companies and is well liked by both presidents enters the picture. This vendor starts to talk with each president separately about merging the companies and eventually brings the two presidents face-to-face to create a win-win outcome.

 

Counter
Of course, an obvious counter would be for one counterpart to refuse to work with a mediator, but in this example, countering would not be in either president’s best interest.
If you agree to work with a mediator in a negotiation, we have two helpful suggestions. First, make sure you verify that the mediator chosen is truly impartial and does not unfairly represent one side. Test the information the mediator presents for accuracy. If necessary, talk to others who have worked with the mediator in the past to ensure his character is strong and his results are credible. Second, verify up-front the fees or costs of the mediator’s services so there are no surprise bills or sudden requests to split his commission.
 


►►You won't want to miss our upcoming Negotiation Teleseminars.  Look for a special announcement this week or click on this link.


Ask the Negotiator

Dear Master Negotiator,

I work for a foreign company whose principles and mission I believe in. However, we are in the middle of a huge potentially litigious situation because, in my assessment, there are cultural style differences at play.

My company does not seem to understand what "negotiation" truly means--at least in the American business world sense--and although I've been asked to assist in "getting what we need" in this situation, the bottom line so far seems unreasonable. We have the power in this situation, but this domestic company refuses to pay its debts and is in the meanwhile causing a lot of headaches in the marketplace for us — with the potential of doing real harm worldwide.

The company's conduct is a result of a mountain of communication misses and their perception that my company wanted to destroy them, but our company simply sees their actions as unforgivable--no matter what the cause.

What can I do if I get to the negotiation table,  and I'm not comfortable with my company's bottom line? What if in principle I disagree with how they are asking me to represent our company's position?

By the way, I am bi-cultural so I truly understand both sides, it's just I grew up in the States so therefore tend to see this from the standpoint of an American.

Please advise!

Sincerely,
Stacey

Dear Stacey:

There are three possible ways of dealing with this negotiation:

1. We do not recommend that you be involved in the negotiation when you do not believe in your company's goals for the negotiation outcome. If the goals are not your goals, you will not be a good person to drive the outcome. The lack of confidence will be written across your face and your counterpart will read the writing.

2. You might ask, what could make you the right person? If the company said, "If you do not get in there and achieve our outcomes, you will not work here," you might be motivated to make the company's goals, your goals. Although it would not be fun, the strategy could work. Or, you might have a negotiation with your boss and see if you can negotiate a more reasonable position prior to going into the formal negotiation. Last, you could take your boss into the negotiation and let her be the "bad guy."

3. Our last suggestion is to use the strategy of asking great questions. Ask your boss, "If we do not revisit our position, and our counterpart does not re-visit their position, is it possible this may result in a lawsuit? Is it also possible that if we don't bring this to a resolution, the counterpart may do irreparable harm to our reputation?"

Remain true to yourself and you will always be successful.

Best Regards,

Peter
 


Ask the Negotiator - Are you involved in a negotiation and not sure what strategies or tactics to use?  Send in your toughest negotiation challenge and our team of expert negotiators will outline a specific plan to ensure your success.  Please send your negotiation challenge (please put Negotiation Challenge in the subject line) to patti@pbsconsulting.com.  If your challenge gets published, we'll send you an autographed copy of The Only Negotiating Guide You'll Ever Need, by Peter Stark and Jane Flaherty ($14.95 retail) WOW!!        

 


To view this month's issue of The Master Negotiator, the premiere on-line newsletter for negotiators, follow this link:

The Master Negotiator, Volume 2, Number 11 The Fifteen Rules Every Negotiator Must Know

To view previous Negotiating Tactics of the Week, follow this link:

Negotiating Tactics of the Week


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