Good read – Strategic Negotiation by Brian Dietmeyer

I’ve recently re-read a good business book on negotiations, “Strategic Negotiation” by Brian Dietmeyer. Instead of the old win-lose or even the newer win-win negotiation styles, Brian advocates a style I’d call 1+1=3. Some of the results from his surveys suggest that while negotiations are becoming more complex, the competitors for the buyers are behaving irrationally. In the book, he outlines a 4 step process towards successful negotiation. Parts of the process are hard work or even impossible since you don’t know what the buyer is really thinking. However, the process is more than an interesting intellectual exercise since it helps position your standing with the buyer and helps your management understand the parameters of the deal.

I especially found valuable Brian’s discussion of determining each party’s wish list and the consequences if either party walks away. The questioning of the buyer required to validate the wish-list and walk-away areas not only helps you better understand the buyer but also ensures that the buyer has truly thought out all the details of what they want to purchase. This understanding also helps you determine what kind of power you have. Your negotiating power is derived from the difference between your proposal (based on your knowledge of the buyer’s wish list) and their walk-away choices. The bigger the difference the more power you have in negotiating.

By making your proposal better for the buyer then choosing to walk away and then by trading items on each other’s wish list to finalize the negotiation, you’ve created that 1+1=3 situation.