Darvin Moon Trips Up Phil Ivey Part 2

Darvin Moon finished 2nd in the 2009 World Series of Poker, winning $5.18 million.  Although Darvin is an amateur, many times he demonstrated an uncanny ability to make the right call at the right time.  Sometimes he was just plain lucky.

Continue reading

John Edwards – another Politician that Lies

Humintell posted video clips of the John Edwards interview on ABC when he first denied the rumors of his affair and secondly denied fathering a child. Here are my comments on the John Edwards video. Which I’ve reproduced below.

I reviewed five minutes of video #1 and one minute of video #2. So here is my question, What do you see?
Here’s what I saw.

Negotiating in China

In Kissinger’s book, Ending the Vietnam War : A History of America’s Involvement in and Extrication from the Vietnam War, he recounts the following observation. The American delegation made arrangements to occupy 3 floors in a prominent hotel in Paris. The Vietnamese delegation, on the other hand, bought a chateau. The message was clear. We are here for as long as it takes.

Continue reading

How to Negotiate Your Salary

Salary negotiations are a bit of an enigma.  They have all of the elements of a Hard Bargaining situation:

  1. Limited variables
  2. Price is the main focal point (Salary)
  3. There are usually multiple applicants vying for the same position

Yet a salary negotiation also consists of elements of a High Dependency situation:

  1. Focus is on long-term gain and results
  2. Both parties are dependent upon each other
  3. Trust and relationship play a critical role in the negotiation

There is no ONE way to negotiate a salary; each situation will vary depending upon the circumstance surrounding the negotiation.  I’m going to first look at a situation where the applicant is a new hire from outside the company.   Step one is to determine how much leverage you have in the negotiation.  To assess your leverage you’ll need answers to the following questions:

  1. How many other qualified applicants are in the final stages
  2. What are your alternatives to this position
  3. What is your breakpoint
  4. What is their breakpoint (you’ll have to guess unless you are able to question effectively to unlock this information)

If there aren’t any other applicants and you have multiple options, you have quite a bit of leverage and can effectively set the bar very high.   Continue reading

Price is Always Distributive!

You can’t have a collaboration over price.  Price is always win-lose.  What you gain the other party loses (or pays) and vice versa.  There is no way to grow the proverbial pie when it comes to price.  Unfortunately as luck would have it, price also seems to always be a very important element in negotiation.  If you constantly equate all other trading variables back to price you will, whether you like it or not, create a distributive environment.  The key is to shift your focus to profit!  Instead of thinking in terms of cost or price think in terms of value.  The ability to incorporate intangibles into a deal is what separates a skilled negotiator from the average bazaar merchant (although hard bargaining also takes a certain type of skill).  The ability to link variables other than price to create incremental value is where all the value is in negotiation.

Having said that (stealing a line from “Curb Your Enthusiasm”), there is a time and place when a good old fashioned price negotiation is just what the situation calls for, so don’t be afraid to shift gears in either direction.  After all, negotiation is all about the circumstance and your ability to determine what is appropriate.

The Wheel of Negotiation

The Wheel of Negotiation is a visual representation demonstrating the relationship of the different negotiating styles across many different characteristics.    The right-hand side of the Wheel captures the distributive negotiations while the left-hand side illustrates the  integrative or collaborative types of negotiations.  The model is circular based on the relationship between High Dependency and Auctions.  High Dependency occurs when trust is high, dependency is high, relationship is high, deals are complex, information is open, and parties can’t afford to walk away without substantial loss (unions, JVs, strategic partners, problem solving, marriage etc.).  When High Dependency negotiations fail, the parties typically end up on the right side of the Wheel haggling over remaining elements.

Negotiations are not static and do not occur in only one sector of the Wheel, quite often as things change (especially behaviors and reactions) the style of the negotiation will move clockwise or counter-clockwise in response.  You will have a natural pendulum motion except at the very extremes as noted above.  For additional information on each style see the Negotiation Basics page.

Differentiating Characteristics

  1. Your Behaviors – your behavior is the most important determinant when it comes to the negotiation style.  See “Style is EverythingContinue reading

Style is Everything when it comes to Negotiation

The single most influential determinant in any type of negotiation is YOU!  Your behavior (and that of the other party) determines the style of negotiation.  The law of reciprocity dictates as you become aggressive the other party is more likely to respond with an escalation of aggression or worse yet become more defensive.  Your behavior has a huge impact on the overall negotiation.  It is a classic mistake I witness over and over again, even in professional negotiations, when the actions and behaviors of one of the negotiators is not aligned with their strategy.  Here are a couple of examples:

  1. A retailer and their vendor working together to create a unique advertising program involving multiple media sources, mistake and misalignment happens when one party begins shooting down proposals by saying “no”, “that won’t work”, or “that’s a deal breaker” etc.
  2. A person negotiating the purchase of a collector’s item (stamp, baseball card, painting, whatever), meets the broker for lunch to create a more relaxed atmosphere.  While dining the buyer offers up personal information in an effort to create trust with the broker.  The buyer discusses their admiration for the object, their immediate plans for showcasing the item, how long they have searched for something similar etc.

Continue reading