The Elements of Negotiation E-Book

Keld Jensen

• Herausgeber: John Wiley & Sons
• Kategorie: Fachliteratur
• Sprache: Englisch

Seitenzahl: 451

Veröffentlichungsjahr: 2024

Beschreibung

Comprehensive guide to mastering negotiation, based on 24 years of research

The Elements of Negotiation provides readers with an easy-to-follow step-by-step approach to becoming exceptional negotiators in both their professional and personal lives. Grounded in 24 years of extensive research, studying the habits and techniques of 35,000 individual negotiators, the 103 steps provide a detailed roadmap for negotiation excellence, covering preparation, execution, and post-negotiation analysis.

Backed by tested science proving the tips' efficacy, The Elements of Negotiation explores a wealth of real-world case studies and examples, with trends and predictions into the future of negotiation, and additional resources and training programs to further improve your negotiation skills. In this book, you'll learn:

• How to prepare for negotiations to achieve superior financial outcomes
• What to say—and not say—during any negotiation, big or small
• How successful negotiators achieve positive outcomes for both parties
• Why successful negotiators are usually successful in both their personal and professional lives

With its research-backed approach and the expertise of Keld Jensen, an international authority on negotiation with countless accolades and clients like the Financial Times, Target, Government of Canada, and UCLA, The Elements of Negotiation is an invaluable resource for anyone looking to elevate their negotiation skills.

Leseprobe

Table of Contents

Cover

Table of Contents

Title Page

Copyright

Dedication

Introduction

How Much Do Mistakes Cost?

The Ketchup Effect

Welcome to the Journey

CHAPTER 1: Nonverbal

ELEMENT 1: Body Language

The Power of Delivery in Negotiation

Presentation Skills: Beyond Mere Conversation

Start with Facial Expressions

ELEMENT 2: Eye Contact

ELEMENT 3: Gesticulations

The Do's and Don'ts of Body Posture

Gesticulation: A Personalized Approach

ELEMENT 4: The Role of Voice

Volume

Tone

Speed

Breathing

ELEMENT 5: Humor

Leveraging Humor in the Negotiation

The Dynamics of Humor in Negotiation

Practical Humor Strategies in Negotiations

The Pitfalls of Humor Missteps

ELEMENT 6: Use of Feet

ELEMENT 7: Image

Good Advice

CHAPTER 2: Knowledge

ELEMENT 8: The Crucial Role of Mathematics

ELEMENT 9: Negotiating in a Foreign Language

Individual versus Group

Status, Titles, Mode of Address, and More

Religion and Politics

Should You Blot Out Yourself?

Behavior

Formal Contact Paths

Technical Competence

Evaluation Norms for Technical Standards

ELEMENT 10: The Journey of Learning

Stage 1: Unconscious Incompetence

Stage 2: Conscious Incompetence

Stage 3: Conscious Competence

Stage 4: Unconscious Competence

ELEMENT 11: Education

ELEMENT 12: Negotiation Training

ELEMENT 13: Asymmetric Value

How Does NegoEconomics (Asymmetric Value) Work? A Bigger Pie Means More to Share

Who Has the Lowest Cost of Ownership?

ELEMENT 14: Subject Matter

ELEMENT 15: Leveraging AI to Enhance Your Negotiation Skills

CHAPTER 3: Tools

ELEMENT 16: Negotiation Strategy

Choice of Strategy

Flexible Tactics

ELEMENT 17: Rules of the Game

ELEMENT 18: Questions

Types of Questions

Questions for Your Audience

Questions from Your Counterpart

Dealing with Questions You're Not Able to Answer

Be Specific in Your Questions

Precision with Language

How to Hold a Conversation

ELEMENT 19: Openness

SMARTnership Approach

ELEMENT 20: The Hidden Value: NegoEconomics

Room for Negotiation

A Simple Model to Identify NegoEconomics

The Four-Step Model

Identifying NegoEconomics in Projects

From Public Authority to Commercial Enterprise

ELEMENT 21: Tru$tCurrency

The Water Bottle Experiment

ELEMENT 22: Strategy Access Matrix (SAM) Model

ELEMENT 23: Threats

ELEMENT 24: Activating Several Senses

Physical or Intellectual Demonstrations

Visual Aids

The Professional Picture

Use Colors Effectively

Pacing

PowerPoint

Your Personality Is 80 Percent of Your Presentation

ELEMENT 25: Using an Agenda

Taking the Initiative

Controlling the Other Party

When an Agenda Is Unsuitable

ELEMENT 26: Planned Target

ELEMENT 27: Walking Away

ELEMENT 28: Team Dynamics

ELEMENT 29: Division of Roles on the Team

ELEMENT 30: The Trial Balloon and Highball/Lowball Techniques

The Trial Balloon: Testing the Waters

The Highball/Lowball Technique: Setting the Negotiation Range

Ethical Considerations and Risks

ELEMENT 31: Starting Point, Threshold of Pain, and Target

ELEMENT 32: Variables

ELEMENT 33: The Art of Managing Non-Negotiables

ELEMENT 34: Cross-Cultural Negotiations

Checklist for International Negotiations

ELEMENT 35: Emotions, Stress, and Personal Chemistry

Personal Chemistry Is More Important Than Technique

The Importance of Communication and Awareness

Constructive Negotiations Require a Balance between Feeling and Reason

Identifying Your Counterpart's Needs

Negotiations and Stress

ELEMENT 36: Prioritizing Variables: The Key to NegoEconomics

The Trap of Limited Variables

Your Assignment: Developing More Variables

ELEMENT 37: Listening Skills

The Vital Role of Two-Way Communication

The Pitfalls of Ineffective Communication

The Power of Credible Information Exchange

Active Listening: Beyond Hearing Words

ELEMENT 38: Understanding and Navigating Salami Negotiations

The Anatomy of Salami Negotiations

Example of a Salami Negotiation

Strategies to Counter Salami Negotiations

ELEMENT 39: Mastering Package Negotiation: A Holistic Approach

The Essence of Package Negotiation

ELEMENT 40: Total Cost of Ownership

ELEMENT 41: Confirming a Mandate

What If Direct Negotiation with Decision-Makers Isn't Feasible?

ELEMENT 42: The Double-Edged Sword of Ultimatums

The Strategic Use of Ultimatums

The Risks of Ultimatums

ELEMENT 43: Time Out: Embracing Preparation and Patience

ELEMENT 44: Checklists

The Dos of Negotiation

The Don'ts of Negotiation

Checklist for a Successful Negotiation Before and During Negotiations

Post-Negotiation Audit Checklist Negotiation Evaluation

ELEMENT 45: Closing the Deal: Strategies for Effective Negotiation Conclusions

Negative Closure Tactics

Signing the Deal

ELEMENT 46: Working with Summaries

Check by Summarizing

Document the Process

Learn How to Listen

Use Paper and Pen, iPad, or Computer

ELEMENT 47: Anchoring in Negotiation

The Everyday Salary Negotiation

ELEMENT 48: Postmortems: Navigating the Aftermath

Post-Negotiation Analysis and Relationship Continuity

Deciding Whether to Continue the Relationship

ELEMENT 49: Creating a Negotiation Planner

Your Negotiation Goals

ELEMENT 50: The Next Best Alternative in Negotiations

The Concept of NBA

The Power of Breaks

ELEMENT 51: Testing Limits with Respect

The Carrot vs. the Stick Approach

Understanding Pressure Dynamics

CHAPTER 4: Tactics

ELEMENT 52: The Combative Negotiator

Agreement Disputes

Conflict Is Harmful

Not Seeing the Whole Picture

Don't Get Caught in the Trap

How to Meet a Combative Negotiator

Meeting Conflict with Conflict

ELEMENT 53: The Concession-Oriented Negotiator

The Domino Effect of Unilateral Concessions

The Art of Concessions in Negotiation

ELEMENT 54: Compromise in Negotiation: The Delicate Art of Balancing Interests

Exploring the Depths of Each Party's Needs

The Role of Creativity and Flexibility in Compromise

Building Trust Through Transparent Communication

The Long-Term Impact of Compromise

Compromise as a Strategic Tool in Negotiation

ELEMENT 55: Stalling

The Art of Stalling: A Calculated Move

Unplanned Stalling: A Sign of Conflict Avoidance

Conclusion: Navigating Through Stalling in Negotiations

ELEMENT 56: The Collaborative Negotiator

Share the Profit

See the Whole Picture

CHAPTER 5: Emotions

All Business Is Human

ELEMENT 57: Argumentations

Dealing with Argumentations

ELEMENT 58: Building Rapport with Your Counterpart

The Role of Oxytocin in Enhancing Negotiation Outcomes

How Long Should You Talk about the Weather?

ELEMENT 59: Small Talk

ELEMENT 60: Positive and Negative Emotions

The Impact of Positive Emotions in Negotiations

Navigating Negative Emotions in Negotiations

ELEMENT 61: Maintaining Emotional Control

ELEMENT 62: Cheating, Bluffing, and Little White Lies

The Epidemic of Cheating

Is Bluffing So Bad?

ELEMENT 63: Perseverance

Use Tact and Patience

ELEMENT 64: Pacing, Rapport, and Lead

You Have a Choice

Physiological Matching

Voice Matching

Matching Language and Representative Systems

Matching Experience and Finding Common Ground

Matching Breathing

Matching Beliefs and Values

Using Rapport, Pace, and Lead

ELEMENT 65: Likeability in Negotiations: Insights from Research

ELEMENT 66: Personal Chemistry

ELEMENT 67: Emotional Intelligence: The Foundation for Effective Negotiation

Relevance for Negotiators

ELEMENT 68: Decision-Making and Emotional Biases in Negotiations

CHAPTER 6: Things to Consider

ELEMENT 69: Implementing NegoEconomics

Buying a Table in the 1950s

What Was in the Cartons?

ELEMENT 70: The Role of Mediators/Facilitators

When to Use Mediation

Benefits of Mediation

The Mediation Process

Training and Selecting Mediators

ELEMENT 71: The Big Picture

Room for Negotiation

Simple NegoEconomics Model

ELEMENT 72: Typical Skills to Improve

Key Skills for Negotiation Enhancement

ELEMENT 73: Navigating the Cosmos of Negotiation: Lessons from John Glenn's Insight

The Gravity of Trust

The Vacuum of Low Cost

The Atmosphere of Strategy

The Orbit of Mutual Benefit

ELEMENT 74: Addressing Misunderstandings

Strategies for Overcoming Misunderstandings

ELEMENT 75: The Total Cost of Ownership (TCO)

TCO and Collaborative Negotiations

TCO in SMARTnership

Strategic Considerations of TCO

ELEMENT 76: Listening, Summarizing, and Locking (LSL)

ELEMENT 77: Contingent Contracts

ELEMENT 78: Post-Negotiation Audit

ELEMENT 79: Face-to-Face or Virtual Negotiations

Embracing the New Normal in Negotiations

The Challenges and Benefits of Virtual Negotiations

Virtual Negotiation Strategies

Caution in Digital Communication

Generating Value in Virtual Negotiations

ELEMENT 80: Ability to Anticipate

ELEMENT 81: Soft vs. Hard Variables

CHAPTER 7: Ultimate Level

ELEMENT 82: The Essence of Negotiation Mastery

ELEMENT 83: Using Silence Effectively

ELEMENT 84: Teaching Others

The Power of Teaching: Enhancing Personal Retention and Understanding

Negotiation Skills: A Collective Benefit

ELEMENT 85: Expanding the Pie

The IKEA Idea

The Ryanair Discount Airline Model

Creative Service Provider Solution

ELEMENT 86: Subtext Awareness

Understanding the Subtext

Enhancing Communication Effectiveness

Decision-Making and Creative Problem-Solving

ELEMENT 87: Human Engineering

Core Findings of the Study

ELEMENT 88: Mastering Conflict Resolution Skills

Understanding the Nature of Conflict

CHAPTER 8: The Foundation

ELEMENT 89: The Love of Negotiation

ELEMENT 90: Building Trust

Tru$tCurrency

Cultivating Trust

ELEMENT 91: Unleashing Creativity

ELEMENT 92: Conveying Empathy

Intuition: Your Moral Compass

Self-Awareness: Listen to Your Intuition

Evaluate Your Empathy Level

ELEMENT 93: Practicing

The Importance of Personal Insight in Negotiation

ELEMENT 94: The Nuances of Argumentation

The Dynamics of Argumentation

ELEMENT 95: Adaptability

The Fluid Nature of Negotiations

Flexibility in Strategy and Approach

ELEMENT 96: Ethical Negotiations

The Essence of Ethical Negotiation

Long-Term Perspectives

ELEMENT 97: Choosing a Strategy

Positional or Zero-Sum Negotiation

Collaborative Negotiation

SMARTnership or Partnership 2.0

Planning

ELEMENT 98: Brainstorming

ELEMENT 99: Considering Gender

The Art of Negotiation: Gender Perspectives

Conclusion

ELEMENT 100: Making Sure You Get Something in Return

Concession Must Be Linked to a Counterdemand

ELEMENT 101: The Power of Habit

ELEMENT 102: Reflection: Essential Skills and Behaviors for Becoming an Accomplished Negotiator

ELEMENT 103: The Choice to Negotiate: Challenging the Obvious

The Misconception of Non-Negotiability

SMARTnership: The Art of Challenging the Obvious

Negotiation as a Mindset, Not Just a Skill

A Call to Action

Acknowledgments

About the Author

Index

End User License Agreement

Guide

Cover

Title Page

Copyright

Dedication

Introduction

Introduction

Table of Contents

Begin Reading

Acknowledgments

About the Author

Index

End User License Agreement

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Praise for The Elements of Negotiation

“Keld Jensen's new book The Elements of Negotiation is a great read. The book offers practical advice together with insightful and thoughtful reflection about how to be successful in negotiations. The 103 elements outlined by Jensen really will help you manage all your negotiations so that the outcomes will be effective and longer lasting. I thoroughly recommend this book for all the negotiators out there … both experienced and inexperienced practitioners.”

Clive Rees, PhD in Commercial RelationshipsVice President, International Chief Procurement OfficerExecutive Director Global Supply Chain UnitFujitsu

“Step aside, Chris Voss—there’s a new master negotiator in town. Keld Jensen introduces groundbreaking strategies in his latest book, redefining the art of negotiation to the highest level of our times. Discover why top negotiators are turning to Jensen’s innovative SMARTnership approach for results that benefit all.”

Werner ValeurEntrepreneur with multiple exits

“In my professional life, I have sought methods and techniques that not only improve my negotiation skills but also enhance my understanding of human interaction, which lies at the core of every negotiation. The Elements of Negotiation by Keld Jensen is a great representation of some of these methods.

The book is not just a collection of tactics; it is a compendium of wisdom, conveyed by an author who has clearly dedicated himself to mastering and sharing the art of negotiation. From the fundamental elements of nonverbal communication to the advanced strategies for emotional intelligence and adaptation, Keld outlines a path to negotiation that challenges the traditional view of winner-vs.-loser dynamics.

Through Keld's lenses, negotiation becomes an exercise in SMARTnership, where the true value lies in collaboration and mutual success. This perspective has over the years influenced the way I conduct professional negotiations myself.

One of the aspects of Keld's approach that I particularly appreciate is his emphasis on preparation, understanding, and respect for the other party's perspectives and needs. This methodical approach to negotiation underscores the importance of building relationships based on trust and mutual respect – an approach that has proven to be invaluable in both my professional and personal life.

I highly recommend The Elements of Negotiation: 103 Tactics for Everyone to Win in Each Deal to anyone looking to improve their negotiation techniques. The book is not just a guide to negotiation; it is a guide to achieving a deeper understanding. The essence of negotiation lies in the ability to understand and appreciate the people we negotiate with.

It is this insight that makes 103 Tactics for Everyone to Win in Each Deal essential reading for anyone aspiring to achieve more meaningful and productive negotiations.”

Lars KrullHead of MBA,Aalborg University (Denmark)

“Unlock the mysteries of negotiation with Keld Jensen's comprehensive guide. From dissecting every element to outlining winning tactics, this book offers clear steps for mastering the journey toward conscious competence and avoiding common pitfalls. Gain confidence and expertise in the art of negotiation.”

Mark Bowden, best-selling author on Human Behavior and Advisor to G7 leaders

“Do we even need to introduce Keld Jensen anymore? As one of the most prolific negotiation authors globally, his publications have reached nearly three million readers. He consistently ranks among the Top 30 Negotiation Gurus and teaches in some of the most prestigious eMBA programs worldwide.

As a negotiation professor at McGill University in the Desautels Faculty of Management, I have trained thousands of students across our BCom, MBA, and executive education programs. I am committed to providing an excellent learning environment to my students, which has been recognized with several teaching awards. I am always on the lookout for practical negotiation books that both students and managers can utilize to enhance their skills.

The Elements of Negotiation: 103 Tactics for Everyone to Win in Each Deal is not merely about making deals; it's about mastering the multifaceted elements of negotiation. This includes managing information, behaviors, emotions, language, and tactics, avoiding common pitfalls, and more. This book serves as a periodic table of negotiation, encompassing all the essential elements one needs to know. It provides comprehensive knowledge essential for achieving personal and professional goals.

Every page of this book is a treasure trove of actionable insights. Each element of negotiation is explained with clarity and is supplemented by concrete examples, providing readers a practical understanding of how to apply these tactics in real-world scenarios.

I firmly believe this is one of the finest books on negotiation available today. It is perfectly suited for students and practitioners eager to acquire extensive, actionable knowledge on negotiation.”

Jean-Nicolas ReytAssociate Professor of Organizational BehaviorDesautels Faculty of Management, McGill University

“I recommend this book to be read at least twice and keep on the desk as a reference, an Almanac of negotiation.

Keld's book is a masterpiece, transforming the art of negotiation into a precise science. Drawing on decades of experience and research, Keld provides readers with an unparalleled roadmap to navigate the complexities of negotiation. With eloquent details and a clear roadmap, he effortlessly guides readers through the intricate elements of negotiation, breaking down each component with ease of explanation.

What truly sets this book apart is Keld's ingenious use of the periodic table as a metaphor for negotiation dynamics. By likening negotiation elements to chemical elements, he brilliantly illustrates the diverse array of strategies and outcomes possible in any negotiation scenario.

As I delved into the book, I found myself deeply reflecting on past negotiation experiences, inspired by Keld's thoughtful insights. His meticulous attention to detail encourages readers to explore their own negotiation styles and adapt them for greater success.

From understanding emotional intelligence to making strategic adjustments, this book is essential for anyone aiming to excel in negotiations, whether novice or expert. It serves as both a comprehensive guide and a source of inspiration, offering valuable lessons for every stage of the negotiation process.”

Tarek AminePrincipal Vice President and Chief Supply Chain Officer at Bechtel Global Corporation

“Just like chemical reactions, negotiations require a delicate balance of elements to realize the desired result. In his new book, Keld is the expert chemist who teaches us how to identify and deftly mix and adjust these elements to achieve optimal results in any negotiation. A must-read for anyone looking to become a master negotiator.”

Laurie EhrlichChief Commercial CounselDatadog, Inc.

“While working at Google, you come across a number of internal and external personalities, and having a sound negotiation skill baseline is critical to any person's success. If you thought negotiation was all about power suits and stern faces, think again. Keld Jensen brings his 103 Tactics for Everyone to Win in Each Deal to life in a book that is rejuvenating the fun in negotiations, packed with clever tactics and insights that will have you thinking differently in a negotiation – and maybe even enjoying the process. Keld's ability to turn “kew” negotiation themes into resounding examples brings individual's mindset from an avoid negotiations mentality to a lead negotiator. These elements of negotiation are valuable to all industries and experiences.”

Jim DalyHead of North America Deal PursuitGoogle

103 TACTICS FOR EVERYONE TO WIN IN EACH DEAL

KELD JENSEN

Copyright © 2024 by John Wiley & Sons. All rights reserved, including rights for text and data mining and training of artificial technologies or similar technologies.

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Library of Congress Cataloging-in-Publication Data:

Names: Jensen, Keld, author. | John Wiley & Sons, publisher.

Title: The elements of negotiation : 103 tactics for everyone to win in each deal / Keld Jensen.

Description: Hoboken, New Jersey : Wiley, [2024] | Includes index.

Identifiers: LCCN 2024014712 (print) | LCCN 2024014713 (ebook) | ISBN 9781394248285 (cloth) | ISBN 9781394248315 (adobe pdf) | ISBN 9781394248308 (epub)

Subjects: LCSH: Negotiation in business. | Negotiation. | Interpersonal relations

Classification: LCC BF637.N4 J46 2024 (print) | LCC BF637.N4 (ebook) | DDC 658.4/052—dc23/eng/20240501

LC record available at https://lccn.loc.gov/2024014712

LC ebook record available at https://lccn.loc.gov/2024014713

Cover Design: WileyCover Image: © Keld JensenAuthor Photo: Courtesy of Justin Segura

This book is dedicated to my late mother, Laura.She meant so much to all of us.

Introduction

In the pursuit of mastering the art of negotiation, the journey began in the year 1976. It was an era marked by a burgeoning interest in understanding the complexities of human interaction, particularly in the realms of business and diplomacy. Recognizing the profound impact that effective negotiation tactics could have on outcomes, my partner Iwar Unt embarked on an ambitious project to dissect and analyze the very fabric of negotiation processes.

Over the course of several decades, Iwar and I meticulously observed and evaluated more than 35,000 negotiations, spanning various industries, cultures, and contexts. This extensive research initiative was not merely quantitative in its approach but deeply qualitative, involving the participation of seasoned negotiators. Together, we sought to uncover the underlying principles that govern negotiation dynamics.

By studying a large group of negotiators to see whether there are significant differences between those who are successful and those who are not, we formed a clear picture of some of the factors that influence the negotiation result in a positive or negative direction. This also gave us an understanding of why problems occur and how they could be avoided or handled. At the same time, we realized that this did not provide a simple explanation for success or failure. Sometimes the fundamental prerequisites were so unfavorable that no negotiation technique could create any further success. Conversely, sometimes the prerequisites were so favorable that failure was nearly impossible. Some negotiators are lucky, while others simply run into bad luck.

Our methodology was rigorous and multidimensional. We employed a combination of observational studies, controlled experiments, and extensive fieldwork. Each negotiation was recorded, annotated, and examined through various lenses, ranging from nonverbal communication patterns to the strategic deployment of information. We analyzed successes and failures alike, learning as much from the stumbles as from the triumphs.

Through this expansive research, we gradually began to identify recurring patterns and strategies that consistently yielded favorable results. These patterns were not happenstance; they were the product of deliberate and skillful execution of specific negotiation elements. We categorized these elements into several domains, including nonverbal communication, knowledge acquisition, strategic tool utilization, emotional intelligence, and overarching strategy.

Each element was then subjected to further scrutiny. We sought to understand not only how and when it was used but also why it was effective. To this end, we integrated insights from behavioral science, economics, and even game theory. Our aim was to construct a robust framework that encapsulated the multifaceted nature of negotiation.

In addition, over the last 20 years, I have researched and studied thousands of companies of many different kinds. As you might expect, I found some were more successful than others. As part of my investigations, I looked into their history of collaborations to see how much of their success (or lack thereof) could be attributed to this variable. I found the companies that were doing better in cooperative situations—whether buying, selling, and project management or otherwise—tended to succeed in proportion to their relative mastery of four fundamental factors:

Having a defined negotiation strategy (discussed in

Element 16

)

Closely monitoring the financial consequences of Tru$tCurrency (discussed in

Element 16

)

Articulating the rules of the game before entering into any bargaining situation (discussed in

Element 17

)

Practicing NegoEconomics (discussed in

Element 17

)

The culmination of this research effort is what I now present as the 103 Elements of Negotiation. These elements are not mere tactics; they are the distilled essence of what we learned from our comprehensive study of negotiation. They represent the science of human interaction, the psychology of persuasion, and the strategy of decision-making.

Keep in mind that as you integrate these elements into your negotiation practice, you are not merely applying techniques; you are embodying a legacy of research and knowledge that has transformed the landscape of negotiation.

How Much Do Mistakes Cost?

Studies show that only two-thirds of all negotiators land a deal, and then even one where they lose, on average, approximately 40 percent of the overall negotiation potential. This potential consists of unrealized yet realizable added value (NegoEconomics) that would have enabled the parties to get more out of the transaction without the opponent feeling like the loser. In this potential, we will certainly find part of the added value that negotiators in boardrooms picture when they calculate great merger gains—an added value that will never be realized now, and that contributes to the failure of the majority of all major mergers.

The question of how much all the mistakes cost is impossible to answer by looking at one single instance of negotiation. However, we will try to find out what the consequences are when negotiators fail in finding the most economical solution to the problem under negotiation.

In a negotiated agreement where the price is $1,000,000, the supplier has a gain of 25 percent, which most people would consider a very nice gain. But when we look at all the data that is available to the parties, we can see that an added value (NegoEconomics) of $200,000 in total could have been created. This added value can be realized if they design the agreement differently than originally planned in the offer; for example, by suggesting alternative payment conditions, another delivery time, a changed technical requirement specification, and improved servicing.

During the negotiations, they arrive at some of the changes that will provide the added value (NegoEconomics), but if they negotiate as the average negotiator in our study did, as much as 40 percent of the realizable added value of $200,000, ($80,000) will remain unutilized. If it was the seller, for example, who had found this $80,000 and they alone would benefit, their profit would have grown from $250,000 to $330,000, that is, by as much as 32 percent.

To this can be added that a little more than a third of the negotiators who participated in the test failed completely and never managed to enter into an agreement. The gain they lose is even greater. The overall cost of all the mistakes committed at the negotiation table will most likely amount to very large figures. Added to this are the very negative effects in the shape of superfluous environmental destruction, a poor working environment, unnecessary technical and economic risks, and the time and energy the negotiators invest in fighting.

Even though the mistakes are very costly, we should not let the result depress us. Instead of focusing on the failures, we ought to look at the great potential available. For the skilled negotiator, there is a lot to gain. The negotiation skill can and must be developed. Many of our companies are not so good at protecting and benefiting from the intellectual capital. The money and resources spent on developing the employees' negotiation skills are far too few compared to the enormous potential available.

The Ketchup Effect

The study shows that during the 120 minutes that the negotiators have at their disposal, only about 10 percent can finish without feeling any pressure of time. Fifty-five percent do not reach an agreement until the moment when they feel that time is running out. Under stress and pressed for time, they force a conclusion through. This can also be experienced in real life. When time is almost up, the negotiators are forced to reach an agreement, often in the shape of a compromise where the parties meet halfway, that is, no one must lose more than the other. Since there is no time to reconsider, they cannot be sure that all the significant points have been discussed and studied.

To study whether time had been lacking and whether this had influenced the result, the group of negotiators who had not reached an agreement after 2 hours was given another chance by having the negotiation period prolonged by another 30 to 60 minutes. In the group which had been given more time, only 6 percent managed to reach an agreement. The others could not break their destructive pattern. A skilled observer of negotiations would have realized at an early stage that these negotiators would have a hard time.

Time seems to have been of minor importance. Despite the extra time, 33 percent of the negotiators failed at reaching an agreement. Nothing came of the planned partnership about which they were supposed to reach an agreement.

The study shows that the small group of 10 percent that managed to reach an agreement at their own leisure without getting stressed as a result of lack of time also entered into better agreements than the others. They utilized up to 20 percent more of the available negotiation potential. They spent their time in another way than those who found themselves pressed for time.

It is not lack of time that makes the negotiation fail. What causes the failure is the negotiation methods—a fact that many have difficulty accepting.

During the exercise, we furthermore tried to step in and help the negotiators who got stuck in meaningless arguments and those who reached a dead end, having come up with solutions that were unacceptable for various reasons. Such help they would never get in real life.

In approximately 10 percent of the negotiations that led to a conclusion, one of the parties declared: “If this had been a real negotiation situation, we would have stopped a long time ago and thrown the opponents out. We would never have accepted their behavior. But since this is an exercise, we wanted to give them a chance.”

The significance of this is that there is a considerable risk that the negotiators would have been even less successful in real negotiations. It is at the negotiation table that your company can win or lose great sums of money in a short time.

Mastering Negotiation: The Rockefeller Method

In the annals of business history, few moments capture the art of negotiation quite like the iconic encounter between two titans of industry: John D. Rockefeller and J.P. Morgan. This story offers invaluable lessons for professionals, especially those keen on mastering the art of negotiation.

Rockefeller, a legendary figure in the corporate world, owned an enterprise that caught the eye of financier J.P. Morgan. Morgan, known for his keen business acumen, approached Rockefeller with an interest in purchasing his company. However, Rockefeller, unaware of Morgan's intentions and the potential value his enterprise held for Morgan, found himself at a crossroads.

Their meeting, initially veiled in casual conversation about the weather and current business trends, soon took a pivotal turn. Morgan, growing impatient, directly addressed the purpose of their meeting, urging Rockefeller to set his terms for the sale. Yet, Rockefeller, a master of negotiation strategy, responded with a statement that shifted the entire dynamic: “I think you've misunderstood the situation. I'm not here to sell, you're here to buy.”

This response wasn't just a clever retort; it was a strategic move that placed Rockefeller in a position of strength. By refraining from presenting any terms and maintaining silence, Rockefeller effectively turned the tables, compelling Morgan, the eager buyer, to reveal his hand first.

This encounter teaches us a crucial lesson in negotiation: the power of information and positioning. Rockefeller recognized that to negotiate effectively, you must understand the other party's motivations and value propositions. His decision not to present terms immediately was a deliberate tactic to gain more information, thereby enhancing his negotiation position.

In your career, whether you're negotiating a business deal, a salary, or a partnership, adopting a similar approach can be incredibly effective. It reminds you to gather as much information as possible and understand the dynamics at play before laying your cards on the table. This approach not only strengthens your position but also helps you make more informed and strategic decisions.

Rockefeller's method underscores the essence of successful negotiation—it's not just about what you are willing to offer or accept, but also about understanding the value you hold in the eyes of the other party and leveraging that to your advantage.

As professionals navigating the complex world of business, incorporating this mindset can transform your negotiation strategies, leading you toward more favorable outcomes and success.

Remember, in negotiations, sometimes silence speaks louder than words, and knowledge truly is power.

Welcome to the Journey

Welcome to a journey through the intricate and exhilarating world of negotiation, where every interaction, every gesture, and every word can tip the scales of success. The Elements of Negotiation is not just a book; it's a comprehensive map to mastering the art and science of negotiation. My name is Keld Jensen, and I am your guide through this exploration of strategic partnership which I call SMARTnership negotiation.

This book is designed as a modular guide, allowing both novices and seasoned professionals to navigate through the complex landscape of negotiation with ease and confidence. Each element, represented here as a unique piece of the larger puzzle, is a building block toward becoming a great negotiator.

At the heart of this book lies the understanding that negotiation is a complex blend of skills and attributes, ranging from nonverbal communication and emotional intelligence to strategic planning and adaptability. Each of the 103 elements is designed to enhance specific facets of your negotiation ability, ensuring a comprehensive development of your skills.

I start Chapter 1 with the nonverbal—the unspoken yet powerful messages we send through our body language, eye contact, and gestures. These foundational elements set the stage for credibility and influence before a single word is uttered.

In Chapter 2, I delve into the knowledge necessary for any negotiator: understanding numerical data, grasping the nuances of different languages, and the importance of subject matter expertise. These tools are not just accessories but essential instruments in your negotiation toolkit.

The heart of the book lies in the Tools chapter. In Chapter 3, you learn to select the right approach, utilize visual aids effectively, employ checklists, and find additional value in your negotiation. These tools are your strategies in action—the methods by which you'll navigate through the negotiation process.

In Chapter 4, I discuss the five different tactics—combative, stalling, concession, compromising, and collaborative. This includes how and why they tick the way they do, and how to deal with this behavior.

As you progress, the role of emotions in negotiation (Chapter 5) becomes clear. The chemistry of interactions, the dance of building trust, and the power of likability can turn the tide in any discussion. These steps focus on the human element, which is often the most unpredictable yet rewarding part of any negotiation.

The book does not stop at the mere mechanics of negotiation. In Chapter 6, I consider the things that make a negotiation truly successful – reflection, adaptability, and the importance of habits that foster a negotiator's mindset.

Then you'll ascend to the ultimate level of negotiation. In Chapter 7, I introduce concepts that transform good negotiators into great ones. It's about reaching beyond the deal for something more profound – the initiative, the strategic silence, the human engineering that create not just agreements, but partnerships that last.

Finally, in Chapter 8, I touch on the foundation for everything – what is needed to master before calling yourself a great negotiator.

In crafting your journey through this book, keep in mind that it's designed for flexibility and personalized exploration. There's no need to adhere to a sequential path from Element 1 through to 103. Feel free to begin at any point, such as Element 45, and navigate in any order that suits your needs and curiosity. Alternatively, you can utilize this book as a reference guide, turning to specific sections as a resource for guidance on your next steps. This approach allows you to tailor your learning experience to your unique situation and objectives in negotiation.

You might consider starting by reading the entire book, as this approach provides a comprehensive understanding and guidance for later revisiting specific topics or content. However, the way you choose to consume the content ultimately depends on your personal preference.

The Elements of Negotiation is both your atlas and compass in the world of negotiation. Whether you're making your first deal or your thousandth, this book is designed to enhance your negotiation skills and enrich your understanding of this complex art.

Prepare to embark on a transformative journey that will not only enhance your negotiation skills but also enrich your professional and personal interactions. Welcome to the world of “The Great Negotiator.”

Negotiation skills are essential for everyone. By acquiring and applying these skills, we grow as individuals and contribute to a more harmonious and effective society.

—Keld Jensen

—Award-winning expert in negotiation and SMARTnerships

CHAPTER 1Nonverbal: Introduction: Orchestrating the Elements of Nonverbal Communication in Negotiation

Negotiation transcends spoken words, entering a realm where silence speaks volumes. This chapter is an exploration of the various elements of nonverbal communication, each integral to the nuanced art of negotiation. I dissect these elements into separate elements, exploring how they harmonize to create impactful, unspoken dialogue in the negotiating space.

Element 1

: Body language.

The first element delves into body language, examining how our physical expressions and posture communicate messages, setting the tone for negotiations without uttering a single word.

Element 2

: Eye contact.

This element focuses on the power of eye contact, exploring how it can establish a connection, convey sincerity, or assert authority in the subtle interplay of negotiation.

Element 3

: Gesticulations.

In this element, I explore the role of hand movements and gestures, which can reinforce or contradict spoken words, significantly influencing the perception and outcome of a negotiation.

Element 4

: The role of voice.

This element covers the nuances of voice modulation, including tone, pitch, and volume, and their subtle yet powerful impact on negotiation dynamics.

Element 5

: Use humor.

This element introduces humor as a pivotal nonverbal tool, highlighting how it can diffuse tension, build rapport, and create a more conducive environment for negotiation.

Element 6

: Use your feet.

Often overlooked, feet can communicate intentions and emotions. This element sheds light on how foot positioning and movement can inadvertently reveal underlying attitudes or reactions in negotiation settings.

Element 7

: Image.

The final element discusses the importance of appearance and attire, emphasizing how a well-crafted image can influence perceptions and set the stage for successful negotiations.

Each element in this chapter is a keynote in the symphony of nonverbal communication, playing a vital role in the overall performance of a negotiation. From the silent yet expressive language of our bodies to the strategic use of humor, these elements collectively enhance our ability to negotiate effectively, empowering us to communicate beyond words and navigate the complexities of human interaction.

ELEMENT 1Body Language

This element will assist you in engaging your audience through mastering the nonverbal communication in negotiation.

In negotiations, the ability to captivate your counterpart is not just beneficial; it's essential. Whether you're delivering news or persuading a team, the impact of your message hinges on your presentation skills. Consider the ease of conveying positive developments, like announcing a significant pay raise or additional holidays. Such messages naturally resonate with the audience. However, the challenge lies in presentations that demand more nuance and persuasion.

The Power of Delivery in Negotiation

When engaging in negotiation, your aim is not just to inform but to influence and motivate. To achieve this, you must utilize a range of communicative techniques, including:

Varying your gaze to maintain engagement

Employing gestures to emphasize points

Injecting humor to lighten the mood

Gesticulating to convey passion

Using your feet to command presence

Modulating your voice for impact

Cultivating a professional image

These elements are fundamental, regardless of the setting – be it a large conference, a sales pitch, an idea presentation, or a one-on-one discussion.

Presentation Skills: Beyond Mere Conversation

Excelling in negotiation requires more than just being a good conversationalist. You must master effective presentation skills to communicate your objectives professionally and persuasively. This mastery begins with understanding the use of your voice and gestures.

The Power of Verbal Communication

Verbal communication, inherently more flexible than written text, is a potent tool in negotiation. The English language offers a vast array of words, yet the average person uses only a fraction of this lexicon daily. To connect with your audience, use familiar words and phrases, avoiding condescension or overly complex language. Short, concise words often carry the most weight.

Aligning with Your Audience's Perspective

In negotiation, you are not just speaking to be heard; you aim to convince, entertain, sell, or persuade. Always consider your audience's viewpoint:

What benefits will they gain?

How can you make them feel valued?

How will you instill confidence?

Is your message relevant to them?

Show genuine interest in their needs. Remember, we live in an era where attention spans are short. People are accustomed to rapid, concise information. This reality makes your audience more demanding but also more receptive to effective communication.

The Impact of Multisensory Engagement

Research indicates that people remember:

10 percent of what they read

10 percent of what they hear

30 percent of what they see

50 percent of what they see and hear

In negotiation, relying solely on a prepared script is insufficient. Your tone of voice and body language are pivotal in reinforcing your message. These tools should be used strategically to enhance your negotiation tactics.

In summary, the science of negotiation extends far beyond the mere exchange of words. It encompasses a comprehensive understanding of how to effectively engage and persuade your audience. By mastering these skills, you position yourself not just as a speaker, but as a powerful negotiator capable of shaping outcomes to your advantage.

Start with Facial Expressions

Children are born with the ability to read other people. They know when to ask their mother or their father about something, and they know when not to ask.

They know when to leave the room and when there is conflict or when their parents are having a row. They “read” people on a different wavelength than adults.

Most people can read ordinary facial expressions – happiness, sorrow, anger, disappointment – but what about all the other nuances? Try to train yourself to interpret different expressions.

Place yourself in front of a mirror and concentrate on a really sad experience, a very happy experience, and a very surprising experience. Look at your eyes. When your eyes smile, your face lights up – when your eyes are sad, your whole face looks sad.

You can also try this out with your television set. Turn on your television set and turn the sound off. Sit down for half an hour and look at the presenter's facial expression. Can you “read” what is going on? A good rule of thumb: If you find the host's facial language and body language so interesting that you want to turn the sound up, it indicates that this person is skillful and has a high ability to inspire others.

An interesting piece of research has classified human beings into three groups.

Those with closed, almost angry-looking faces

Those with neutral, almost indifferent facial expressions

Those with open, cheerful facial expressions

Take a long look around you! People look angry, neutral, or optimistic, not necessarily because their emotional expressions reflect their inner feelings, but quite simply because we are all born with different faces and for this reason exude different expressions.

With me, I know that when I am really concentrating on something I come across as withdrawn or angry. Because of this, I do not naturally come across as showing very much interest or openness toward other people.

Our 80 facial muscles enable us to create approximately 7,000 different facial expressions!

In itself, this provides a number of options for combining expressions. When you introduce a speech or a presentation at a meeting, try to relax, as a person's facial muscles particularly tend to stiffen up when they are nervous. Bear this in mind before you open your speech, and concentrate on your eyebrows, your mouth, and your eyes.

ELEMENT 2Eye Contact

In any negotiation, capturing the attention of your counterparts is crucial. Eye contact plays a pivotal role in this. Avoid gazing at the ceiling, the ground, or out the window during negotiations. Instead, engage your counterparts with direct eye contact. This nonverbal communication conveys confidence and interest in the discussion.

When negotiating, it's important not to fixate your gaze on a single individual. This can create discomfort, regardless of their apparent receptiveness. Distribute your gaze evenly across the room, making each participant feel personally addressed. This technique is effective whether you're seated at a negotiating table or presenting in a standing position.

In smaller, more intimate negotiation settings, maintain eye contact with each participant for about five seconds. This duration aligns with the average time it takes for a person to process a thought and helps reinforce the points you're making. By making eye contact with various individuals, you create a sense of personal connection without making anyone feel intimidated. Move your gaze smoothly across the room, avoiding sudden head movements or restless shuffling.

Remember, your counterparts in negotiation are keen for your attention and validation, similar to a child's plea for attention. Using eye contact effectively establishes a rhythm and rapport in negotiations.

Begin your negotiation by calmly walking to your designated spot, surveying all participants with a composed and serene demeanor. This initial eye contact asserts your assertiveness and openness. Without this, participants may remain engaged in their own thoughts, unsure of the negotiation's commencement.

Negotiators who avoid eye contact may be perceived as uncertain or insincere. Questions like, “Why aren't they looking at us? Do they lack confidence in their stance?” can arise, undermining your position.

During larger negotiations, when addressed with a question, start by looking directly at the inquirer. Then, gradually shift your gaze around the room to include others in your response. This approach prevents other participants from feeling excluded. Conclude your response by reestablishing eye contact with the questioner, seeking their acknowledgment of your answer.

Finally, as you conclude the negotiation, replicate the initial pattern of eye contact. This reinforces the connection established at the beginning and leaves a lasting impression of your engagement and assertiveness.

ELEMENT 3Gesticulations

In the intricate dance of negotiation, the use of hands and arms plays a pivotal role in emphasizing and underlining key facts and arguments. Whether seated at a bargaining table or standing in a boardroom, the way you position and move your limbs can significantly impact your negotiation success.

The Do's and Don'ts of Body Posture

A negotiator must be acutely aware of posture. Slouching, hands in pockets, or arms folded across the chest are all signs of disengagement or defensiveness, which can hinder the flow of constructive dialogue. Similarly, avoid displaying nervous habits like clicking knuckles or pens. Initially, keep your hands calmly in front, perhaps resting on a table, before using them to reinforce your points.

Gesticulation: A Personalized Approach

Gesticulation, which is the use of hands, varies from person to person. Reflect on how you naturally use your hands during relaxed conversations. While it's important to be authentic, avoid closed-off postures like folded arms, which can create a barrier between you and your negotiating partner. Remember, your hand movements are a language of their own, speaking volumes about your confidence and intent.

Avoiding Distracting Habits

Distractions, such as fiddling with objects, shuffling notes, or excessive movement, can detract from your message. Be mindful of these habits, as they can shift focus away from the substance of your negotiation.

Illustrating Your Points

Use your hands to visually articulate your points. For example, demonstrating how to fill a lawn mower with gasoline using hand movements can make your explanation more vivid and memorable. This use of body language to depict action enhances the clarity and engagement of your communication.

Conveying Confidence and Respect

Your arm movements can signal self-assuredness and authority. However, be cautious about how you direct attention. For instance, summoning someone with an index finger can seem aggressive; an open hand gesture is more welcoming and respectful. This gesture dates back to the Middle Ages as a symbol of peaceful intentions.

Your stance is just as important as your hand gestures. Avoid rocking or twisting movements, which can reflect nervousness. Instead, adopt a balanced, forward-facing posture. Use your feet to subtly enhance your presentation, moving to mark transitions or to emphasize points. When inviting questions or engaging with a group, adjust your position to reflect openness and engagement. See Element 6 for more about positioning your feet properly.