Where to Start? Step One in the Malloy Method for Negotiation Success.

Ready, Set, Negotiate!

Let’s dive into this first step of the Malloy Method for strategic negotiation success.

I know the problem – it’s easy for me to tell you to “think strategically,” etc., but the question remains – how do I start? The starting point will determine where to take the negotiations and what you want to achieve, so you need to get this starting point right. Don’t worry – I’ll show you how.

Look in the Mirror

Start at your mirror. Your first step is to clearly and objectively understand your situation. I know this seems like “grass is green” advice, but in practice, common sense is not so common. In real life, very few negotiators invest enough time in this critical first step. It is, however, impossible to formulate a good strategy if you don’t know your starting point. Carelessness at this first stage will inevitably make your negotiations more difficult and will lead to worse outcomes.

Resistance

There are many reasons, or should I say, excuses why this obvious first step is rarely properly taken. Some say it is a waste of time – “we already know our situation.” Others are afraid of taking a hard look at their own situation for fear of what might come up. Still others are afraid of looking stupid by asking basic questions. Perhaps the most common excuse is a matter of bandwidth – “I’m busy with so many things, I don’t have time for basic issues.”

Whatever the reasons for the resistance, it is vital to your strategic negotiation success to have a clear picture of your position before you take any steps forward. The first skill you need to master is how to overcome this resistance.

Overcoming Resistance

“We already know our situation – let’s move on.” This usually comes up in team environments and is ultimately a reflection of other forms of resistance. It is often a smokescreen for other concerns. So, to counter the “we already know our situation” resistance, you need to address that reason directly and be ready to address the real reasons underneath.

In my experience, the best way to deal with this resistance is to simply say, “Humor me – we need to start from the start,” and then go through the basic questions in a professional and objective way. Raising one good point or question can open the eyes of your colleagues (or clients) to see that things are not so obviously known. This approach works nearly every time.

There are two considerations to make this work, though. First, avoid conflict. Keep it 100% objective and professional, and never personal. Creating internal conflict is counterproductive and could paint you as a troublemaker, eroding your credibility within the team (and later, with the wider negotiation). I will write specifically about establishing and maintaining the right image and authority in a negotiation, but for now, keep in mind that you don’t need to start conflicts within your team.

The second key factor is to be prepared from the start. Think about the relevant issues to cover in this stage – be relevant and focused – you are taking the lead. Think through the issues and questions and do some research if you can. Going in unprepared will discredit you and your attempts to fulfill this internal analysis of your starting position. This is your chance to establish authority within your negotiation team and have significant influence over the process from the start. Remember, control is the key to success.

“I don’t want to look stupid” – this comes from within your own psychology, and you need to get over it. While I won’t say there are no stupid questions (there obviously are!), it is almost always useful to go through the fundamentals. In my experience, analysis of the fundamentals always brings valuable insight. A great way to look stupid is to launch into a negotiation and later find important issues were not considered up front.

“I don’t have the time or resources to look into this” – this is the silent killer of negotiation preparation. It is not a substantive excuse but a systemic one. Everyone is overwhelmed, short on time and resources, but that does not affect the importance of starting the entire process with a solid understanding of your situation.

Best practice is to become an expert at preparation – know which questions to ask and which information you need. You will be surprised at how efficiently you can handle this part of the process once you have learned the skills. You can do this efficiently and effectively, and you can learn how with us.

Another aspect of this bandwidth resistance involves colleagues and information sources – they may resist helping you because they are already overworked, etc. There are a few ways to deal with this.

First, acknowledge the pressure they are under and try to work with them. Sometimes empathy alone will break the logjam. Don’t create a conflict with people who can help you.

Second, try your best to make it easy for them to help you.

Third, where priorities are set by higher management or within client teams, go to the supervisor or client in authority to have them set your project at an appropriate priority level. This makes it organizationally easier to get the help you need. Avoid going to senior executives with complaints about a lack of cooperation – that will come across as a personal conflict issue and will be counterproductive. Approach this as an organizational issue – “let’s set this project as a priority.” I have found cooperation in 100% of my negotiations by avoiding conflict.

There will always be some degree of resistance in this first step, even if that resistance is within your own situation, but strategic success in negotiation is based upon execution, not excuses.

Moving Forward

The key to this first step toward negotiation success is to understand your situation from the very start. Achieve clarity of vision of where you are – this will make the rest of the process work much better. The next step will be to figure out what you want and what you need. That’s for the next installment.

You can learn more about the Malloy Method and strategic negotiation success through the Negotiator’s Edge Blog and through our webinars and courses. Try a free webinar by contacting me directly at michael.malloy@michaelmalloyconsulting.com or click here:

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Case Study – Confirming Our Ownership of Technology

I was engaged to help a technology company in a deal with external investors. The client needed the investment as soon as possible and was very keen to move the deal forward at warp speed. The client was clearly cutting corners where possible, trying to move forward quickly. My starting point was simple – “Let me see the documentation proving your ownership of your technology before we engage investors.” The client initially resisted, saying that “we already know we own it,” and said we needed to move forward quickly without wasting time on this kind of thing. I knew these investors would undertake proper due diligence and they would ask this very same question, so I asked the client to trust me, as I knew what I was doing. I did know what I was doing and was able to ask the right questions and get some answers within a day. I had the full picture.

I learned that while my client had claims to the technology, the documentation was incomplete and would not pass investors’ scrutiny. Understanding the situation, I formulated a plan, and we put the necessary documentation in place to secure the legal rights to the technology. We got that done in a week and were ready before any investors started their own check.

Had we gone ahead in haste as the client initially wanted, one of two things would have happened. First, the investors may have just walked away – they have plenty of other opportunities and don’t need to invest in a company where the key assets are not fully secured. Second, the investors would have discovered the same issues I found, and this would have triggered a lengthy negotiation of how this would affect the transaction. This would have resulted either in a failed deal or, at a minimum, caused delays, and would have certainly placed my client in a weaker negotiation position for the entire deal.

In this case, the client wanted to ignore the basic question because of time and financial pressures, so he wanted everyone to just assume the technology was fully owned, but that concern was counterproductive. By asking the basic questions from the start, we were able to solve problems before they even arose in the deal. This put my client into a much stronger negotiation position and even moved the deal along more quickly with better results.