Thank Goodness It's Monday #312

DOWN-TO-THE-WIRE NEGOTIATING

-- PUT TIME ON YOUR SIDE

So they’re at it – again – in Washington DC and in a few state capitols around the nation as well.

Which “it” are they at? Well, for TGIM purposes today, let’s focus on – 

As the 11th hour draws near ...

The Time Element. As legislation-passing, budget-balancing down-to-the-last-minute negotiations move forward (or not), time is one of the major factors that influences the outcome of that negotiation. 

Now, in the world of full-contact politics, this game is often played in a way that no really responsible business person or citizen/neighbor would dare.  

And since TGIM seldom dabbles in the curious hybrid world of political intrigue, we’ll suggest no what-to-do, how-to-do-it solutions for things governmental. 

But down-to-the-wire negotiating is still a legitimate TGIM conversation starter.  

So let’s consider how the time factor influences the outcome of the negotiations you and I are likely to be involved in. And while we’re at we’ll explore some real-world ideas we might use to bring about our desired outcomes. 

“If it weren’t for the last minute, very little would get done.”

That anonymous axiom is packed with much truth.  

The existence of a deadline almost always produces a last-ditch effort by all parties to reach an agreement. It’s a good bet more significant concessions are made in the eleventh hour of most negotiations than in all the preceding negotiating time.  

Of course if the deadline is an otherwise arbitrary one – if, for example, both sides have agreed for their mutual convenience to conclude at a certain time – there will be no great pressure to meet the deadline, only to move it.

But when one or both parties face costly consequences if the deadline is not met, the chances of reaching an agreement are much greater. 

The difficulty, of course, is accurately assessing the “consequences” and deploying your strategy most effectively given that insight. 

In adversary negotiations you are at an advantage if you know your opposition’s deadlines. 

Real world example: If you know that a seller must get an order that day, you can be more insistent that your terms be met. 

If, on the other hand, your opponents know your deadline, you are at a disadvantage. They can draw out the process until your pinch point is almost at hand, putting greater pressure on you to give away more than you’d like. 

• Obviously, then, it makes good sense to find out what your opponents’ real deadlines are.
• And it’s good strategy, whenever possible, not to reveal your deadlines to the other side.

And speaking of pinch points: Many times we go into a negotiation with a self-imposed handicap. We are very much aware of the deadline we have to meet, and this puts pressure on us to make concessions in order to close a deal before the time runs out. 

Don’t pinch yourself. Or if you do, let it be a reminder that it’s likely the other side has time pressures, too. Sure, they may appear unconcerned by the passing of time. But they almost always have deadlines of their own. And beneath the surface, they may be just as anxious as you are to reach an agreement. 

Also a good idea: Take a look at your deadline to see whether it’s as hard-and-fast as it seems. Most deadlines – especially self-imposed deadlines – are more flexible than you may think. Yes, there are times when it really is vital to meet a particular deadline. But in most cases the world isn’t going to come to an end if a specific time limit isn’t met. 

Ask yourself: Is this deadline real? Or is it one that I’ve given myself? If necessary, can I negotiate an extension with the other party or with my own organization? What will happen if I don’t meet the deadline? How serious will the consequences be? What is the likelihood that these consequences will really occur?  

The question, in a nutshell, is:  

Just how great is the risk you’re taking? Answering this can put the importance of your deadline in perspective. It can help you determine how much pressure you’re really under and to what extent you’re making it needlessly difficult for yourself to negotiate your best deal. 

Creating deadlines for others.

Because deadlines tend to be intimidating, you can often spur your negotiating opponents into action by creating deadlines for them. Give them a deadline that’s credible and they’ll have a strong incentive to move at your pace to reach agreement before time runs out.

To make the review very elemental, let’s look at the two sides of a buyer/seller negotiation.

TGIM ACTION IDEAS FOR SELLERS: When you’re in the position of “seller” in a negotiation, you may find deadlines like these will help the other party make the decision you want:

Ø  The custom color they’re interested is going to the first contract in house.

Ø  This offer is good only until July 31.

Ø  If I don’t have your order underway by August 1, I won’t be able to deliver in time for the holidays.

Ø  If we don’t get your deposit by Thursday, we won’t be able to hold it for you.

Ø  The price is going up Labor Day.

TGIM ACTION IDEAS FOR BUYERS: When you’re the buyer in a negotiation, you can also create deadlines for the seller. (Inside insight: Salespeople sometimes welcome having a deadline imposed by you; it helps them negotiate with their own management to get an OK to close a deal.) Here are some examples of deadlines that can get a seller moving: 

Ø  I need the lock-down price, from you or the competition, by tomorrow.

Ø  To get your earnest-money first payment check processed, my boss has to sign off on this PO, and he’s departing for his 10-day vacation cruise this Friday.

Ø  Engineering needs to know the specs and who’s supplying the components by the 15th.

Ø  Accounting is closing out the month so I have to get this on the books before July 29.

One final point: Time limits have a way of intimidating us. As honest – or opportunistic – as the examples above may be, unless we question them, we tend to accept them unthinkingly.

 Real world proof: Look at the front desk of a hotel at check-out time. No matter how inconvenient it may be for them, you’ll see a long line of “guests” trying to meet the checkout deadline -- let’s say, noon -- the hotel has posted. 

If you were one of those people you might rightly conclude the noon checkout is necessary to give the hotel staff time to get the rooms ready for the next guests. But you might also reason that all the rooms won’t be cleaned as the clock strikes twelve. So … if you want to keep your things in the room a little longer, can’t you negotiate a later checkout time with the manager?  

Almost certainly you can. 

TGIM Takeaway: This doesn’t mean you should ignore deadlines. But it does mean you should analyze them to determine how firm and important they are and how much they are worth offset against the other factors you’re negotiating for. 

As for Washington: Now let’s just hope all those politicians have correctly weighed the value of their positions –“positions” meaning the views they hold, the ongoing governmental needs of all the people they represent as well as their place in the legislative process – and do the right thing in a timely manner. 

Geoff Steck
Chief Catalyst
Alexander Publishing & Marketing

8 Depot Square

Englewood, NJ 07631
201-569-5373

tgimguy@gmail.com 

P.S.  Budget-balancing wisdom for the time wise: “An inch of time is an inch of gold; but an inch of gold cannot buy an inch of time.” That, it’s claimed, is an Ancient Chinese Proverb.