2 PerspectivesSeptember 16, 2008

Why We Can’t Just “Cut to the Chase”: Acceptance Time in Negotiation

Not so long ago I was in Cleveland mediating a fairly complex commercial dispute.  My client had a plane to catch at the end of the day but, as is often the case, he really wanted a good deal.  Based on each side’s positions and the “dance” to that point, we both knew where the case would probably settle.  At about 3:00 in the afternoon he looked at his watch and asked a question most of us have heard before:  “Why don’t we just cut to the chase, offer what it’s going to take to settle this thing, and get out of here?”

“Cut to the Chase” Is Not a Negotiation Term

I recently learned that Hollywood, rather than frustrated negotiators, brought us the phrase “cut to the chase.”  Like today, good movies from the early days of talking pictures frequently ended with a chase scene.  “Obligatory romantic storylines” that weren’t exactly the best part of the movie often preceded the chase, according to The Phrase Finder.  Unfortunately, getting from the obligatory romance to the end wasn’t always smooth — Wikipedia tells us that, at some point, “an inexpert screenwriter or director, unsure how to get to the climax, would just make an abrupt transition, known as a cut.”

The Chase Scene Doesn’t Work Without the Rest of the Movie

While experienced negotiators may realize it a bit sooner than everyone else, at some point we all begin to see where our deal is headed. More…

Categories: Fundamentals,Mediation,Negotiation,Settlement

5 PerspectivesSeptember 12, 2008

Managing Expectations: An Unexpected Lesson on the Bus to Hertz

A few weeks ago I landed in Baltimore to find all the glamour that usually greets the business traveler: a wait at the bus stop better described as steamy than hot, a luggage rack designed to fit everyone’s bag but mine, and a recognition that I didn’t really know the way to my dinner meeting after all.  I soon encountered a negotiation technique ignored by some of the most experienced negotiators – a technique that worked on me that day and can work for you.

It’s Only 8 Minutes

Moments after the bus doors closed I checked the time and pondered how I would jam a full day into what was left of it.  Thirty seconds later, as I began to envision arriving at my car, a soothing voice came over the intercom and said:  “The ride to the rental car center will take approximately 8 minutes.  Please sit back and enjoy the ride.”  Or words to that effect.  While in retrospect it seems that there must have been a closer place to put the rental cars, I did as I was told.  Once I got to my car and through Hertz “security” I realized what had happened – the bus driver had managed my expectations.  And it had worked. More…

Categories: Communication,Fundamentals,Negotiation,Settlement

Add Your PerspectiveSeptember 9, 2008

Why It May Be a Bad Idea to “Send them a Message”

“Our next move needs to make it clear that we mean business.”  I have heard that line (and others like it) before, and you have, too.  But a concept in a popular business book recently helped me understand why this isn’t the great approach I once thought it was.  In Made to Stick:  Why Some Ideas Survive and Others Die, authors Chip Heath and Dan Heath explain how the “The Curse of Knowledge” impacts how we communicate.  With the help of their book, I now see how some negotiations succeed while others fail.

Do We Outsmart Ourselves?

At some point in almost every negotiation we are tempted to use our actions to send a message – a customer hoping to “get tough” demands the supplier come to her office; a home purchaser makes a “low ball” offer to signal that the house is priced too high; and a policyholder reduces his claim More…

Categories: Communication,Negotiation,Selected Posts,Theory

Add Your PerspectiveSeptember 5, 2008

The Power to Walk Away: Do You Really Know Your Downside?

I wrote recently on The Sid Hill Rule, where “the power to negotiate is the power to walk away.”  While others may disagree, I believe there is no more important rule for any negotiator.  A corollary of this rule is that, before you decide to walk away from the negotiating table, you had better know what your downside is.  My recent search for a beach house reminded me just how hard that analysis can be.

Surfing to seaside.com

One of my favorite places growing up was a tiny spot on the Florida Panhandle near Grayton Beach.  Then a destination virtually unknown, I watched a nearby idea called “Seaside” take hold and grow – by all appearances into a quaint, family-oriented community that would serve as the ideal backdrop for any American’s Fourth of July photo.

When a recent urge to take a vacation hit me I typed the logical guess “seaside.com” into my browser.  I was surprised to see More…

Categories: Fundamentals,Negotiation,Settlement,Theory,Walk Away