Successful Supervisor 45 – Negotiating for Success

September 24, 2017

Supervisors do a lot more negotiating than they may realize. My observation is that supervisors negotiate all day every day.

If you want to be a more effective supervisor, study up on your negotiating skills.

For most supervisors, negotiations usually involve resources. Obtaining the right level of staffing or a specific piece of test equipment would be typical negotiation discussions.

Also, the budgeting process is always a time of great challenge for most supervisors.

In the day-to-day activities of the operation, getting people to do the right thing at the right time is a form of negotiation challenge. If the standard break time is 15 minutes, how are you going to get people to adhere to the rule?

This article highlights some tips I have learned over the years in courses and in practical applied leadership in a large organization. Before sharing some tips, let me dispel a myth; negotiating is not a win or lose situation.

Great negotiators realize that to reach an agreement, both parties need to believe the deal in question is better for them than no deal at all. Both parties must “win” to have a successful outcome, although both individuals may not get everything they wanted.

Basic Negotiation Principles

The objective of any negotiation is to reach a fair deal that is not abusive to either party, and it is accomplished by a process of discovery and revelation.

Let’s first look at a few basic principles and then describe some of the more popular negotiation tactics and their countermeasures.

1. You have more power than you think you have

Human beings have a habit of undervaluing their hand and overvaluing the hand of their opponent. Information is power in any negotiation, so seek to understand as much as possible the forces that are putting pressure on your opponent.

Withhold some of the critical points about your own situation so the other person is not aware of your constraints.

For example, if you share a time constraint that you need an agreement by the end of the day, your opponent can use that pressure to make you compromise just before quitting time.

Know as much about your opponent’s constraints as you can; and be judicious with sharing things that are impacting you.

2. Plan your strategy

In any negotiation, if you have a plan you will do better than if you play defense and simply react to the offers made by the other party.

It is amazing how many supervisors will go into a negotiation and simply “wing it” to see what the other person is proposing before formulating an offense.

There is going to be some give and take going on in any deal. Be flexible to move off an original plan if conditions warrant it, but at least have a null hypothesis or case to beat before going in.

3. Leave room for the other person to win

We all know that if we want to sell a car ultimately for $1000, it is best to price it at something like $1300 at the outset. This allows the seller to make some concessions and still arrive at an acceptable end point.

Recognize that both parties will be playing the same game on opposite sides, so test the validity of any offers along the way. Do not take at face value any statement made by the other person. Assume there is a lot more latitude available than the other person is willing to share initially.

4. Identify your “walk away” position and be prepared to use it

Your opponent will seek to maneuver you into a position that may be untenable. Identify beforehand what you are not willing to settle for, and do not budge off that position. The walk away technique is often very effective at gaining a concession.

5. Look for win-win and compromise ideas

Always ask, “What else will do the job here?” This technique is particularly useful when you seem to have reached an impasse.

Simply step back and look at the roadblock from a higher perspective.Often there can be a better solution that has not even been considered.

For example, suppose the supervisor is negotiating with another supervisor trying to transfer a key resource into her crew. The other supervisor is intransigent and the discussion gets heated. The supervisor might break the impasse by volunteering to take on some difficult tasks from her opponent.

Negotiating Tactics

Now let’s take a look at some typical negotiating tactics that people use. View these ideas as both offensive strategies but also be aware that they may be used against you and pay attention to the countermeasures, if you need them.

1. Use of time

Time is the ultimate scarce resource, and smart negotiators use it to gain advantage in a negotiation.

For example, if the supervisor is not having much luck selling her yearly budget to her manager, she might schedule a meeting with the manager to discuss the details.

When she arrives, she could mention that she has set aside three hours to go over the details of the budget for full understanding. This would normally put time pressure on the manager, or he could turn it around to put time pressure on her.

A good countermeasure for time pressure is to reverse the logic. In this case the manager might say to the supervisor, “Oh this is too important to limit the discussion to just three hours; I am prepared to work with you all day, if necessary.”

2. Good guy/Bad guy

This tactic is a version of the good cop/bad cop technique when interrogating a suspect. The bad cop is nasty and aggressive when interviewing the suspect, but the good cop comes in and is much more reasonable and often gains a confession.

Whenever you are dealing with more than one person, be aware of the tendency to use this technique to gain leverage.

The antidote to this tactic is to call the people on it directly. Say something like, “You guys seem to be playing good cop/ bad cop, and that doesn’t work at all with me.”

3. The Bogy

A bogy is a statement that we simply do not have the resources to give, so the point is moot. Suppose a supervisor is approached by a manager who insists that she loan the services of a mechanic for the remainder of the shift.

She could use the bogy and say, “But I only have one mechanic on duty today, and loaning her to you would leave me with no way to fix my equipment.” The implication is that I would like to help you, but the well is dry.

The most common bogy in any organization is the budget. Suppose the supervisor needs a new optical comparator for her inspection operation. She goes to her boss with her request and he says, “I would love to help you, but that is simply not in the budget.”

The countermeasure to a bogy is to point out the reality of a false constraint. The supervisor might say, “I know it is not in the current budget, but we need the comparator to do our job. Besides the budget is just an initial guess we made out at the start of the year. Surely we can move some items around in the budget when we need to, or maybe we have to overrun our budget this year and factor that in next year.”

4. Use of silence

Silence is an effective tactic in any negotiation. In western society, people become very nervous when the other party just stops talking.

We tolerate silence for about 30 seconds and then simply have to fill the void with some words, often they are concessions. If you are at loggerheads with another person, just stop talking and watch the person squirm.

The countermeasure to the silent treatment is to refuse to break the silence. After a while the stress will shift onto the other person.

I used this measure when negotiating with a Japanese businessman, and it worked like a charm. It was his turn to counter offer, but he just stopped talking.

Because I know the tactic, I just sat and looked at him, since it was his turn to speak. At first he thought he had me on the ropes, but after 2-3 minutes of silence, he realized I had out-silenced him and he made the concession.

Try this little trick with a car dealer sometime. It’s a riot, and it really works. Very few people can make it beyond one minute of silence.

5. Breaking an impasse

You will occasionally reach an impasse situation where it seems there are no further options. When this happens, simply change the time shape of money.

We are used to the logic in everyday life but often forget the tactic at work. You say “I cannot afford $10,000 for that car.” I ask if you can afford $5,000 and you agree to that figure. So I counter with “OK let’s do $5,000 now and $1,000 a month for 5 months.”

These are some of the more common negotiation tactics and the countermeasures. Make sure you are alert to when others are trying to use these on you and do hone your skill at using them effectively yourself.

This is a part in a series of articles on “Successful Supervision.” The entire series can be viewed on http://www.leadergrow.com/articles/supervision or on this blog.

Bob Whipple, MBA, CPLP, is a consultant, trainer, speaker, and author in the areas of leadership and trust. He is the author of four books: 1.The Trust Factor: Advanced Leadership for Professionals (2003), 2. Understanding E-Body Language: Building Trust Online (2006), 3. Leading with Trust is Like Sailing Downwind (2009), and 4. Trust in Transition: Navigating Organizational Change (2014). In addition, he has authored over 500 articles and videos on various topics in leadership and trust. Bob has many years as a senior executive with a Fortune 500 Company and with non-profit organizations. For more information, or to bring Bob in to speak at your next event, contact him at http://www.Leadergrow.com, bwhipple@leadergrow.com or 585.392.7763


Using Time in Negotiations

November 22, 2014

Geeky hipster falling asleep on hand on white backgroundThe use of time in negotiations is a well known ploy that is more effective than meets the eye.

When you come into a car dealer for the third time to look at the same car, that dealer has a significant advantage. He or she knows you have invested significant time into this deal and will be willing to compromise a lot on price.

There are many examples of using time and personal energy as a tactic in negotiations, I will share a couple examples from my own history to illustrate how this works and how you can thwart others who would use time trying to get advantage over you. These ideas were also presented in my book, “Trust in Transition: Navigating Organizational Change.”

I recall one situation where a CEO was contemplating the purchase of a diversified company with offices all over the world. The selling CEO wanted to impress the buying CEO with how things work in the fast lane, so he arranged a trip around the world to visit every site as part of the due diligence.

The idea was to exhaust the buying CEO so that he would cave in during the negotiation. The seller even took along two assistants so they could relieve each other and have an unfair advantage. The ploy totally backfired.

I was present when the selling CEO came back from the week-long journey. He looked completely exhausted. His comment was, “Where did they get that guy? He ran rings around us and always came up smiling. We were absolutely dead on our feet.” So, what was intended as a ploy to gain the advantage turned into a liability for the seller.

The secret was that the buying CEO was a master at sleeping on airplanes and in taxis. He could get good quality sleep on every leg of the trip, while all three of the opponents could only sleep a little and did not get much rest for the entire week.

I recall another situation where one party tried to gain leverage using time, and that also backfired. This was a negotiation for a product line made in Japan. The principal, I’ll call him Don, flew over from the United States to negotiate a deal and was scheduled to stay for a week. He was outnumbered, of course, and was a guest on their home turf.

That was a big advantage for the Japanese, who decided to put time pressure on Don. They dragged their feet and brought up all kinds of small issues to avoid the financial negotiations until the final day.

The Japanese host said they found out which flight my friend was going to take so they could get him to the Narita Airport on time, but they actually they got the flight information to know when Don would be getting anxious to close the deal and head home.

At around 10 a.m., the Japanese host asked for a major price concession and stated, “We have been talking now for five days, and it is time for you to show some flexibility. Besides, we have to get going within an hour to get you to Narita on time.”

Don did a masterful reversal when he said,

“Oh, let’s not rush this deal. It is too important; I’m prepared to stay for another week, if necessary, so we can get this right.”

All of a sudden the time pressure was on the other side.

The Japanese host had been entertaining Don every night, and it would take him almost two hours to get home after he dropped Don off at his hotel. He was exhausted and wanted my friend out of his hair, yet Don claimed he was willing to stay for an additional week. The Japanese host quickly made a huge concession, and Don still stayed the extra week to hammer out the details.

The use of time in the negotiation process is always important, and good negotiators find ways to leverage this important consideration. Here are five tips that will help you improve your negotiating effectiveness regarding the use of time.

1. Be more aware of how time is working for or against you during the entire process, not just at the negotiating table.

2. Consider the element of time as a competitive weapon to use strategically and carefully to improve your changes for an excellent result.

3. If your counterpart is trying to use time against you, work to reverse the logic and have it work against the other party. It is fun to see the look on their face when they realize the dynamic has been overturned.

4. Do not telegraph your own anxiety relative to time. Make gestures like you have all the time in the world.

5. When you sense anxiety in the other party, slow down the process to gain leverage.

At the end of the day, the negotiation rests on human beings who have physical and mental limitations. Use the strategies above to enhance your negotiating success, and also use them to be alert to the tactics that others may be using on you.


New Book: Trust in Transition

June 21, 2014

Trust in Transition Cover060Is it possible to make major organizational transitions without catastrophic loss of trust?  I think there is, but the odds are against you unless you change the conventional thinking process. What is required is a new approach toward navigating organizational change.

My new book, Trust in Transition: Navigating Organizational Change, will be launched on August 18, 2014 by ASTD Press and is currently available for preorder.

The book is about how organizations must do a better job of preserving and enhancing trust when they go through changes such as reorganizations, mergers, acquisitions, or other restructurings.

Your purchase of the book includes access to a set of videos that enhance several of the key points.

There are numerous books on managing change, and many books and articles on M&As. My book is unique in that it focuses on the actions and behaviors needed to maintain the vital trust between people and organizational layers during the process of change.

A link between trust and organizational performance has been demonstrated in numerous studies. The correlation is strong, and the leverage offered by high trust is impressive. Most studies show a two to five times productivity benefit in high trust groups over low trust groups.

Can you name any other single factor that can offer a 200% improvement in productivity?

When organizations contemplate changes, the manner in which the effort is planned, organized, announced, managed, and led has everything to do with the impact on trust.

Unfortunately, in the vast majority of cases, the changes end up having a profound negative impact on the culture just when trust is needed the most. This condition ends up undermining the change effort and leads to a documented dismal track record of almost 80% of transitions not living up to expectations.

Thankfully, failure can be avoided by taking steps right from the start of a change process to act differently and prevent problems from occurring. The old adage of “an ounce of prevention is worth a pound of cure” holds true for this situation.

If some changes in mindset can be accomplished from the earliest plans for a change, the ability to retain or even grow trust during change is possible.

My book is about how to break the cycle of change failure by focusing as much effort on the cultural integration as on the mechanical parts of the change process.

Unfortunately many leaders have had professional training in the MBA schools that emphasizes the mechanical aspects of the change process such as negotiation, due diligence, financial valuation, or legal implications.

These subjects are critical in transitions, but they should not squeeze out the considerations of how to get people to work well together during and after the transition.

The focus on the financial and legal implications of a change are forced on center stage, and what ends up back in the wings is the fragile culture of trust between people in the organization. That is a problem, because the end result is a change effort that works well on paper but often fails to meet expectations in the real world.

The book contains dozens of areas where leaders unwittingly make errors in judgment which undermine the changes all along the way. By following a parallel path that works just as hard on the culture as the deal, leaders can greatly improve the odds of success.

I will provide a series of articles on this blog over the next few months that look at different aspects of the change process to suggest pragmatic antidotes to common problems.

Investing more leadership attention to the culture early in the change process will have a profound positive impact on the success rate.

I hope you find the tips I offer in the book and in future articles to be helpful at preserving trust in your organization. Nothing could be more vital for your ultimate success.


Impossible Goals

December 29, 2012

AwesomeDoes your organization establish goals that seem impossible to reach? If so, you are not alone. Many organizations go through a negotiation process with individuals and teams to establish annual performance goals. Often, the person or team is asked for their opinion on the best that can be achieved in the following year. Then, just for good measure, senior managers tack on an additional 15 to 25% and set that as the target goal.

When employees learn to anticipate this markup process, they instinctively sandbag their initial offer to account for the anticipated bump by senior management. It becomes a game of cat and mouse to establish reasonable stretch goals, and in the end, the organization and its employees suffer. I believe a better process starts with an understanding of what the entire organization needs and then breaks down individual and team performance goals that will ensure the organization meets its commitments.

Quite often, goals set by senior managers seem unrealistic or unobtainable, which has a significant negative impact on trust. When this happens, employees take on a fatalistic viewpoint that the team has no chance to perform up to expectations. Team members hope they can achieve the goal, but deep down they don’t believe it is possible. This creates a Pygmalion effect where the negative outcome is nearly guaranteed.

The truth is, you cannot “hope” your way to success. You must believe and expect success for it to become reality. When stretching for seemingly impossible goals, the most important ingredient is not technology, market size, manufacturing capacity, quality processes, sales force expertise, HR policies, or any other tangible enablers. The most important ingredient is belief.

This fundamental principle has been identified by philosophers and social psychologists numerous times throughout history. It seems that, through the ages, our civilization keeps discovering the same ideas. Here are a few famous quotations from historical figures you may recognize. Notice how they all say the same thing in different words.

Zig Zigler – “When you believe it, you will see it.”
Earl Nightingale – “We become what we think about.”
Brian Tracy – “If you think you can do it and hang on to that vision, you will accomplish it.”
Henry Ford – “If you think you can, or if you think you can’t… You are right.”
Lou Holtz – “If you get people to believe in themselves, they will set bigger goals.”
Maxwell Maltz – “What you believe will happen actually becomes physical reality.”
Norman Vincent Peale – “The power of positive thinking: No success occurs without it.”
Andrew Carnegie – “You will not be able to do it until you believe you can do it.”
Tony Robbins – “Beliefs have the power to create and the power to destroy.”
Napoleon Hill – “What the mind can conceive and believe, it can achieve.”
…..

This list is just a small sample of available quotations on the same topic. The phenomenon of creating success by visualizing it already being accomplished is well known. Unfortunately, most teams in the working world have forgotten this time-honored wisdom. They wring their hands and lament that achieving the goal set out by management is simply impossible. Well of course it is impossible if they believe that.

Quite often, teams believe they can’t accomplish the goal because they cannot visualize how it could possibly be done. It is important to not get discouraged at the start because the “how” is not evident. Forget about how you will accomplish a goal; simply set out to believe that it will happen. There are many tools available that can help you accomplish the goal. Resolve to find the right ones for your situation. If you do that, you will achieve the goal in ways you could not possibly imagine at the outset. Unfortunately, it is easy to experience the pangs of fear.

The antidote is to teach individuals and teams to re-train their brains so that they drive out any thought of failure. Set the goal high, and then use all the power of mind over matter to make that goal a reality. That sounds so simple, but it is very difficult to gain the skills required to believe rather than doubt.

Experts like the ones above, have taught us that if we reiterate an affirmative statement that we not only intend to meet the goal but to exceed the goal, then repeat that phrase in earnest at least twice a day for 30 consecutive days, we will actually bring forth a vital energy that was unavailable prior to the new mindset. It is not the rote repeating of an affirmation that makes the difference.

The method gives us a chance to catch the difference between the positive attitude and any negative thoughts or feelings that arise. We then have a moment of truth where we have the opportunity to examine what is holding us back. As we address these self-limiting beliefs, we can come into mental and emotional alignment and resonance with the affirmation. We become energetically congruent with the vision, and that brings forth powers that are truly amazing.

Having this resonance and congruity changes everything. Of course, a positive mental attitude is not the only factor that will allow us to meet difficult goals. We have to have a good plan, we have to execute well, we have to have high trust and great teamwork, we have to work incredibly hard, we must employ lean and six sigma principles, we need the right technology and resources, and, yes, we sometimes need some luck.

The truth is that by having the right frame of mind at the outset, we enable the other necessary elements to materialize in the physical world. When we expect and believe we will achieve the goal, sometimes the elements required to accomplish it materialize as if by magic. It is not magic; it is simply how the universe works.

I am not reporting anything new here, but I believe it needs to be reiterated, especially at the end of the year when goals for the next year are being set. This is the time to create a new mindset that will allow you and your team to consistently reach or exceed seemingly impossible goals.