Negotiation
Ron Graham
Typical negotiations include sales/purchases, hiring, and promotions/reassignments/raises. The arguments employed in these cases generally don't benefit from advancing cooperation between the parties on either side -- but even advancing your self-interest can depend on your recognizing the needs of those you negotiate with, and on tailoring your arguments to answer those needs.

Before the meeting:

  • Know exactly what you want.
  • Seek professional advice (e.g. from accountants, lawyers, etc.)
  • Know as much as possible about the people (or the organization) you're negotiating with.
  • Eliminate distractions from the meeting place.
  • Take steps to minimize any risks.

During the meeting:

  • Be direct.
  • Be enthusiastic.
  • Concentrate on the value and uniqueness of your product or service.
  • Do what you can to alleviate their concerns.

After the meeting:

  • Get all agreements in writing.
  • If a negotiation fails, don't waste time extending it. Instead go on to the next, and try to learn why this one failed. That knowledge may help next time.
The open-ended question (OEQ) can't be answered by a simple yes or no. If you phrase an OEQ properly, you'll avoid one-word answers and cliches altogether. This gives you a chance to see what other people are really thinking. You may get lucky and hear "too much."

Start the OEQ with who, what, when, where, why, or how. The answers to OEQs can reveal

  • who the decision-makers are
  • what alternatives have or might yet be explored
  • how people (and their organizations) do business
  • underlying concerns

Negotiation w/vendors

Your in-house purchasing group must have a common understanding of needs to make negotiations efficient. There is a scene in the movie "Ghostbusters" that brings this idea to light -- when the Ghostbusters seek to rent building space. :-)

  • Sometimes vendors have apparent similarities. Clear, detailed specs will resolve them.
  • Maintenance costs dominate industrial product purchases. You must therefore consider the cost of "keeping current." Which vendor delivers the best lifetime value?
  • A long-term pricing strategy can benefit you and your vendors alike. Market data helps to determine fair prices, and such data is often readily available in the trades.
  • Preparing purchase specs may require a full team effort. All disciplines may be called upon to provide project details. In that case, proper documentation of the effort helps management understand where the work hours are going. :-)

Other negotiations

On non-compete agreements:

  • Get compensation for signing as a condition for promotion.
  • Get it worded so that it's only in effect if you leave voluntarily.
  • Get the competition to be named specifically.

On severance packages:

  • Beware of "guilt money." You will probably want more than the initial offer.
  • Don't lash out. That can be used against you.
  • Don't forget the details:
    • reference letters
    • extended benefits
    • tuition/training
    • paid subscriptions and dues
    • timetable

References

"Top 25 Tips in Asking for a Raise"
"The Art of Asking for a Raise"
Diener, M. "Let's Talk About It." Entrepreneur, 06.2002.
Kumagai, J. "Leaving on Your Own Terms." IEEE Spectrum, 03.2001.
Workplace Fairness
The sci.engr.* FAQ on Innovation and Product Development

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