a freebie, otherwise known as goodwill. It also means that your team missed an opportunity to create more value for your side of the deal. If your team can’t tell you what they will get in return, then they’re probably not ready to maximize the value of the deal. Encourage them to plan their concessions and their asks. Have them think about what they need in return for what the other side may ask for. Once you’re satisfied with their answer, give them the latitude to make those trades. **** In my experience, these three questions get to the heart of how well your team is set up for success. They’ll let you know if your team is ready to create the best deal possible because if they can answer them, then you can feel confident that they have good insight into
If your team can’t answer this question to your satisfaction, then encourage them to consider the deal from the other side’s point of view. If they struggle with this, then encourage them to reach out to find out. If that’s not possible, then counsel them to spend the first part of the negotiation asking a lot of questions. “What’s most important to them and why?” Not only is it important to understand what the other side wants, but it’s also critical to find out what’s most important to them and why. If your team can’t answer this question, then they’ll likely struggle with creating value in the deal. Understanding the other side’s priorities and motives will give them a better perspective on their own leverage and how to create a more valuable deal. Almost every negotiator will know what’s important to them and their own priorities, but skilled negotiators will also uncover this about the other side. In fact, they’ll use that knowledge to their advantage in order to trade things of lesser importance/value for things of greater importance/value. If your team can’t answer this question to your satisfaction, then have them make some assumptions about the other party’s priorities and motivations. From there, have them create a list of questions to test those assumptions — before they execute a strategy based on faulty assumptions. “What will you get in return?” During a negotiation, concessions will be made. You may even hear your team talk about “giving a discount” or “giving in on terms.” Instead of making them justify the give they want to make, ask them, “What will you get in return?” (Hint: “The deal” is never the right answer!) It’s good that your team is thinking about concessions. After all, negotiating is a trading process that does require a concession on your part. But making a concession without getting something in return is just
• their own power and leverage • the value they bring to the table • a strategy to get a deal that everyone can support
I wish you the best in leading your team to their best deals.
A deal will close only if all parties’ issues have been addressed.
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