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Vol. 10 No. 4, July/August 2008
Copyright 2008 by Wolf J. Rinke
mailto:WolfRinke@aol.com
http://www.WolfRinke.com
Feel free to forward this eNewsletter to others.
To get your own FREE subscription go to the end of this eNL.
IN THIS ISSUE
1. NEWS YOU CAN USE
2. SPECIAL OFFER FOR SUBSCRIBERS ONLY
3. MAKE-OR-BREAK NEGOTIATION STRATEGIES
4. HEAR WOLF "HOWL"--I MEAN SPEAK
5. HUMOR BREAK
6. ABOUT THE EDITOR
7. PRIVACY STATEMENT AND SUBSCRIPTION INFORMATION
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INSIGHT BREAK
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"There are no facts, only interpretations."
--Friedrich Nietzsche
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1. NEWS YOU CAN USE
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HOW TO MAKE MORE MONEY FASTER
A study of 2,400 women found that nearly half did not ask for a raise
or promotion in the previous 12 months. "However, of those who
did ask, 72 percent received one."
ACTION STEPS
The time to master the art and skill of negotiation is now! (See paragraph
#3.)
Source: A. Joyce, "Her Pay Gap Begins Right After Graduation,"
Washington Post, 4/29/07, p. F3.
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2. SPECIAL OFFER FOR SUBSCRIBERS ONLY
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HARDCOVER BOOK: "Make it A Winning Life: Success Strategies for
Life, Love and Business" (283pp) by W. J. Rinke $24.95.
"Your book came at a critical time in my life and helped me immeasurably."
Lou Holtz, former Head Football Coach, University of Notre Dame
POWERFUL CD: "Positive Attitude: The Key to Peak Performance"
(73 mins) $19.95.
This powerful LIVE CD by yours truly provides you with fail-safe action
strategies that will enable you to live longer get sick less often and
succeed faster.
PERPETUAL CALENDAR: "Make It a Winning Life Perpetual Desk Calendar."
$12.95
This one-of-a-kind desk calendar gives you words of wisdom and inspiration
every day of the year! PLUS easy to apply action steps to transform
the message into reality!
Order both book and CD--$44.90 + s/h and get the Desk Calendar ($12.95)
FREE! What a Bargain--You SAVE $12.95!
111% MONEY BACK GURANTEE: You risk absolutely nothing! If for any reason
the book and CD are not everything you expected, send them back to me
and I will give you your money back. The perpetual calendar is yours
to keep!
Log onto www.wolfrinke.com/specialmiwlpacal.htm or call 800-828-9653.
Mention this ad when ordering by phone! Offer expires 8/15/2008.
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3. MAKE-OR-BREAK NEGOTIATION STRATEGIES--PART I
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To help you achieve win-win outcomes master these strategies:
Manage Your Perceptions
Lots of people lose in negotiations because they do not manage their
perceptions. For example, have you ever noticed that when you are trying
to sell your house, there seem to be houses for sale everywhere? Conversely,
if you are looking to buy a house there are virtually none to be found.
Having bought numerous houses, both our own and to rent, I have always
been struck with this odd phenomenon. By the way, it has to do with
selective perception, which refers to any number of cognitive biases
related to the way expectations affect perceptions. For instance, several
studies have shown that students who were told they were consuming alcoholic
beverages, which in fact were non-alcoholic, perceived themselves as
being "drunk," exhibited fewer physiological symptoms of social
stress, and drove a simulated car just as ineptly as other subjects
who had actually consumed alcohol.
Similarly, how many times have you interviewed for a job and felt the
prospective employer had all the power because you really needed that
job while the employer appeared to have all the applicants in the world.
Having been in both roles--interviewer and applicant--let me assure
you that nothing could be further from the truth. The employer almost
always needs you just as much as you need him. These biases come about
because you are "doing a number on yourself" by committing
an attribution error. For example, because the employer has certain
visible attributes of power you assume she has more power than you do
which, right or wrong, becomes your "reality."
In other words, your perception controls your reality, which in turn
impacts on how you negotiate. For example, back to buying that house.
If you perceive there are very few houses on the market (Law of Scarcity)
you will feel compelled to make a quicker and potentially higher offer
than if your perception is there are lots of houses on the market. The
same is true when you are interviewing for a job. If you assume that
the employer has all the power, then you are going to be negotiating
from a position of weakness and probably compromise your expectations.
So the first step in every negotiation is to manipulate your perceptions
and "Do a positive number on yourself" by convincing yourself
that you are an incredibly powerful human being that deserves to have
your needs met. In other words, you define an empowering positive self-fulfilling
prophecy that at a minimum equalizes the perceived power between you
and the other party. Of course, it is even better if you can convince
yourself you have more power than the other party, which is quite feasible
since you are in control of your perceptions and since everything that
can be perceived as a weakness can be translated into strength. (If
you like help with this devour my Make It a Winning Life book--see my
special offer in paragraph #2.)
Be Willing To Walk Away
Being able to Walk Away is the single most important concept to internalize
if you want to get more of the things you want! Anytime you want something
so bad you are not willing to Walk Away, it is extremely likely you
will become a deal taker not a deal maker.
For example, Superwoman and I are avid cross-country skiers, hikers,
bikers and mushroom hunters. So approximately four years ago we found
this super idyllic resort called Black Bear in Canaan Valley, West Virginia.
We fell in love with the resort because it was in very close proximity
to all our favorite recreational activities. We especially fell in love
with four, out of more than 80 cottages, because they had an incredible
view of the mountains. So we told Candy, the real estate agent for Black
Bear, that if any of the four units ever come up for sale to call us.
About six weeks later she called to let us know that unit #14 had become
available, and that if we wanted it we better show up this coming weekend
because there were two other couples interested in it. (This was during
the real estate go-go years when units were bought within days after
going on the market, i.e. the Law of Scarcity at work.) When we arrived
on Friday we found a literal gem. Unit #14 was perfect--it had an incredibly
awesome view, an essential requirement for us, and was ready for move
in. Plus the price of $92,000, although the highest ever for any similar
unit at Black Bear, was still very reasonable. We told Candy that same
day (Friday) that we wanted to make an offer of $89,000. Candy sweetly
asked us how badly we wanted it. Our answer--"We want it!"
In that case, Candy said: "I would encourage you to offer full
price, because that way I will call the owners tonight and get them
to accept your offer. So when the other two buyers get here tomorrow
it will already be sold." Since Marcela and I both wanted that
very specific unit, we offered full price. In short, we did not negotiate
effectively because we were not willing to Walk Away.
Directly related to being able to walk-away, it is also essential that
you are very clear about your WAP--your Walk Away Price, which is the
least favorable point at which you will accept a deal. Most of the time
your WAP will be derived from your BATNA.
Know Your BATNA, WAP and ROSA
BATNA--Best Alternative to a Negotiated Agreement--is a concept developed
by Roger Fisher and William Ury of the Harvard Negotiating Project and
authors of "Getting to Yes. Negotiating Agreement Without Giving
In," one of the most popular negotiation books ever written. According
to them, BATNA "Is the standard against which any proposed agreement
should be measured." For example, if I'm negotiating with a client
for a consulting contract I have priced at $95,000/year, my BATNA may
be $95,000 if I value my free time more than the $95,000. Or it may
be $45,000 if I need the money to pay my mortgage, have very little
work in the pipeline, and could hope to generate about $45,000 from
writing another book in case I did not get the contract. According to
Fisher and Ury high quality negotiation is only possible if you know
your BATNA, since it is the only way you can protect yourself from accepting
unfavorable terms or from rejecting a minimally acceptable deal.
A WAP on the other hand, also known as the reservation price, "Is
the least favorable point at which one will accept a deal."
A CEO I coach wanted to sell his business. A protracted long negotiation
ended up with what I thought was a very sweet deal--$23.5 million for
the business and the opportunity to start a new on-line business with
financial support from the new owners. The CEO had established a WAP
of $26 million and her BATNA was that he was going to continue to run
his business as he had in the past, and be open to other offers as they
were coming along. Although I thought it was a very fair offer, he walked
away from it, which he would probably not have done if he was not very
clear about his WAP and BATNA.
ROSA is your Range Of Satisfactory Agreement also referred to as your
ZOPA or Zone Of Possible Agreement. "It is the area or range in
which a deal that satisfies both parties can take place." For example,
let's say that you want to buy a used car, which has a sticker price
of $2,900. The seller says to himself I will not take less than $2,400.
That's the sellers WAP, which usually is not known to the buyer. On
the other hand you say to yourself I will not pay more than $2,700.
That's the buyer's WAP which is usually not known to the seller. The
ROSA in this case is the area from $2,400 to $2,700. All other things
being equal, an agreement should be feasible between $2,400 and $2,700.
If you handle this purchase like a distributive negotiation i.e. win-lose
or lose-lose, your conversation might go something like this:
You: This car has quite a few dents and a lot of mileage. I give you
$2,200.
Seller: Thanks, but since that is way below the "Blue Book"
value I'll wait until I get a better offer.
You: I'm sure you'd like to get it sold and I don't really like to haggle.
I'll give you $2,400, take it or leave it.
Seller: $2,600 and it is yours.
You: I tell you what, let's just split the difference. I'll give you
$2,500.
Seller: You got yourself a deal.
In this case, even though both parties compromised (lose-lose) they
probably feel pretty good about the deal since both got a better price
than their WAP.
In future issues of this of this eNewsletter you'll find out a better
way to negotiate, so you can achieve more win-win outcomes. In the next
issue three other make-or-break strategies:
--Negotiate Over Interests, Not Positions
--Separate Option Generation from Decision Making
--If All Else Fails Resort To Objective Criteria
Source: W. J. Rinke, Chapter 5 of "Win-Win Negotiation: Fail-Safe
Strategies to Help You Get More of What You Want," a 20 credit
pre-approved continuing professional education (CPE) self-study course
available from www.easyCPEcredits.com.
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4. HEAR WOLF "HOWL"--I MEAN SPEAK
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8/22/08 Copenhagen, DK. "Education: How to Achieve Lasting Job
Security," In-House Seminar, Toms Gruppen A/S.
9/9/08 Philadelphia, PA. "Achieve Peak Performance by Increasing
Personal Effectiveness." Full day Institute of Management Studies
(IMS) seminar. Contact: Joe Paesani, Philadelphia@ims-online.com
10/3/08 Copenhagen, DK. "Perseverance: How to Deal More Effectively
with Change and Stress," In-House Seminar, Toms Gruppen A/S.
NOTE: I have other "in-house" presentations scheduled in
the U.S.A., Canada and Europe. Please let me know if you are interested
to preview me or bring me into your organization at reduced expenses
when I'm scheduled to be in your area. That way we can let you know
when I'm coming your way!
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5. HUMOR BREAK
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My quiet Saturday morning ended abruptly when my 12-year-old daughter,
Nicole, and one of her friends burst through the door.
"Hey Dad," announced Nicole, "Have you met the new neighbors?"
"No."
"Come on Dad, you have to meet them."
"Some other time; I'm busy."
"Dad, you have to meet them, NOW!"
From the urgency in Nicole's voice, I assumed the neighbors were waiting
outside. So I set aside my project and went to the front door. No one
was there.
"Where are they?" I asked.
"Well, Dad," Nicole explained, "We haven't met them yet
either, but our baseball is in their living room!"
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6. ABOUT THE EDITOR
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Dr. Wolf J. Rinke, CSP is a highly effective management consultant and
executive coach who specializes in building peak performance organizations,
teams and individuals. He is the author of 14 books including "Make
It a Winning Life: Success Strategies for Life, Love and Business"
available at www.WolfRinke.com and an internationally recognized motivational
and management keynote speaker and seminar leader who delivers customized
presentations that combine story telling, humor and motivation with
specific "how to" action strategies that participants can
apply immediately to improve their personal and professional lives.
You can preview a live demo at www.WolfRinke.com.
To take advantage of Dr. Rinke's services contact us at 800-828-9653
or WolfRinke@aol.com
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7. PRIVACY STATEMENT AND SUBSCRIPTION INFORMATION
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