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www.businessenglishonline.net
2
POWER AND THE PERSONAL TOUCH
relationship-building as a persuasive tool in negotiations
The persuasive power of relationship-building in
negotiations was first brought home to me some
years ago in a carpet shop in a winding backstreet
of Istanbul. I had been taken there by my tour-
guide as the last stop on a whirlwind sightseeing
tour of the city and, though I made it clear from
the outset that I had no interest whatsoever in
buying anything, I was immediately given the full
treatment by the sales staff, who, it turned out,
were friends of my guide. No purchase was
necessary they assured me, as I was plied with
sweets and soft drinks and told at great length the
colourful history of the Turkish carpet industry.
Scores of carpets both new and antique in rich
crimsons, dark golds and smoky blues were
theatrically unfurled before me as I sat sipping
coffee after coffee with my guide. After half an
hour of this, I was starting to feel guilty that I was
taking up so much of their time with no prospect
of a sale. By the end of the ‘show’ we all shook
hands like old friends, and I barely escaped
shelling out three months’ salary on a fabulous
blue and gold rug that was straight out of Aladdin.
‘All things being equal, people will buy
from a friend. All things being not quite so
equal, people will still buy from a friend.’
Mark McCormack,
What They Don’t Teach You at Harvard Business School
Give and take
What those Turkish carpet salesmen knew, and
what every good negotiator should know, is that
making the effort to build a relationship with your
prospective customer in a negotiation, even in a
simple one-off transaction, will pay dividends no
clever ‘sales tactic’ can hope to achieve. Indeed,
they were using one of the most powerful
purchase-motivators known to man - the ‘Rule of
Reciprocation’. By overwhelming me with their
hospitality, they made me feel almost ashamed not
to buy. But there was no ‘hard sell’ and,
remarkably, at no point was money actually
mentioned.
‘When money is at stake, never be the first
to mention sums.’
Sheikh Ahmed Yamani, former Saudi Oil Minister
In fact, I must confess that, although I got away
without buying a carpet, I was later taken by my guide
to another friend’s jewellery shop where I ended up
buying several silver rings almost out of a sense of
obligation. These were masterful negotiators!
Haggling isn’t negotiation
Since that almost very expensive trip to Turkey,
however, I have noticed that in many of the
negotiation roleplays I conduct in my English classes,
the learners seem to bypass this relationship-building
procedure altogether, dispense with the niceties and
get straight down to business. Indeed, the rolecards
they are working from often encourage this hard-
nosed approach, detailing only objectives and nothing
at all about their opponents’ motivation. So my
learners always seem to enter the bargaining phase far
too soon and, as a result, frequently get bogged down
in a kind of tug-of-war over price, discounts and
delivery times. Convinced they’ll meet resistance
from the opposing team, they barely listen to the other
side’s proposals before they leap in with counter-
proposals of their own.
‘Don’t negotiate with yourself. Have the
patience to wait for the other fellow to make a
counter-offer after you’ve made one’
Richard Smith, Partner at Smith, McWorter & Pacher
Cultural factors
Part of the problem is cultural. John Mole, author of
the seminal text on doing business across culture,
Mind Your Manners, has mapped out different
nationalities’ approaches to negotiation using two sets
of complementary values: ‘power’ and ‘relationship’.
In terms of power, Mole divides cultures into those
who like to keep power and see all negotiations as
win/lose and those who prefer to share power and
embrace the style of negotiating now universally
known as win/win. In terms of relationship, he notes
that negotiators either give more importance to the
transaction itself or to the potential partnership with
their opponents. ‘Transaction negotiators’ think short-
term and easily get hung up on price. ‘Partnership
negotiators’, on the other hand, are much more
concerned with developing a long-term working
relationship and building for the future.
Predators and partners
Mole’s ‘Deal Map’ therefore describes four basic
negotiation types: the ‘Predator’ who wants to beat
their opponent and has a take-it-or-leave-it attitude to
the deal; the ‘Controller’ who also wants to remain in
charge but thinks longer term; the ‘trader’ who enjoys
the cut and thrust of haggling on an equal footing but
thinks short term; and the ‘partner’ who puts their
ongoing relationship with their opposite number
firmly above power:
I often find it useful to ask my learners where they
would place themselves and their culture on the map.
Frequently, they place themselves in the ‘Partner’
category, even when their behaviour in simulated
negotiations clearly paints a far more ‘predatory’
picture. Readers who are interested can find out more
about the Deal Map by logging on to
www.johnmole.com.
keep
predator
controller
share
POWER
transaction RELATIONSHIP partnership
trader
partner
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www.businessenglishonline.net
3
The power of questions
Of course, a key part of both relationship-building and
deal-making is asking questions.
‘Why and How are words so important
that they cannot be too often used.’
Napoleon Bonaparte
The unhelpful battle of wills I have so often seen my
learners engaging in when practising the language of
negotiation is usually the result of seeing the process
of negotiation as two sides pulling towards the
middle. This is sometimes called ‘positional
negotiating’. Had my learners shown more interest in
the other side by asking them questions, they might
have been better able to break deadlock and generate
new options. This is generally known as ‘interest-
based negotiation’.
Positional v interest-based
negotiation
In positional negotiating both sides set out their intial
positions and then tend to get tangled up in arguments
and self-justifications as they try to persuade the other
side that their demands are reasonable. The usual
result is a grudging compromise or, worse, a complete
breakdown in the negotiations.
In interest-based negotiation, however, the negotiators
try to find out the underlying needs and goals behind
their opponents’ demands by asking probing
questions. They don’t start off with the ideal outcome
of the negotiation clearly in focus. They search for it
during the negotiation itself.
‘Skilled negotiators ask more than twice as
many questions as average negotiators.’
The Huthwaite Research Group
The Mars Bar
Take the case of the woman who goes into a
sweetshop to buy ten Mars Bars. ‘That’ll be seven
euros, please’ says the shop assistant. ‘I’ll give you
five,’ says the woman. The shop assistant smiles at the
joke and holds his hand out for the seven euros. The
woman promptly gives him five. Annoyed now, the
shop assistant points out that she’s two euros short.
‘No,’ says the woman. ‘I’m buying ten, aren’t I? So I
expect a discount’. ‘Look,’ says the assistant, ‘I’m not
prepared to argue with you. The price is the price,
right? Take it or leave it’. ‘Five-fifty,’ says the woman.
‘And that’s my final offer’. By now a queue has
started to form at the till.
At this point the manager is called for and the whole
thing ends in unpleasantness.
Had the assistant only asked, ‘But why, may I ask, are
you trying to get me to reduce the price?’ he would
have heard the woman say, ‘Well, you don’t think I
want ten Mars Bars for myself, do you? They’re for
my dogs. They love them. But I’m not paying this
price for dog treats.’
On hearing this, the assistant might have answered:
‘Oh, I see. Well, that’s different. I can’t sell you these
for less than the recommended price. But I’ve got a
box of damaged ones somewhere I could let you have
for thirty cents each. Your dogs won’t mind if they’re
a bit squashed, will they?’
Result: one happy customer, three happy Rottweilers
and a box of unsaleable goods successfully got rid of.
Classroom activity: The Last
One in the Store
(see page 7 for Briefing Cards)
Win/win
Win/win negotiation has become a bit of a cliché and,
in some situations, it clearly is neither possible nor
desirable. But it is the preferred style of most
professional negotiators these days and, in terms of
language, will require a much greater emphasis on
problem solving, idea generating and rapport building
than on demand, counter-demand and trade-off. Two
things you may find helpful in setting up roleplays
are: 1) give your learners plenty of time to prepare for
the negotiation (up to double the time they’ll actually
need to negotiate), and 2) insist they spend at least a
third of the negotiation showing solidarity with the
other team and exploring each other’s needs through
careful questioning.
‘In a successful negotiation everybody wins.’
Gerard Nierenberg, US President of The Negotiation Institute
Mark Powell
In Company author
This activity is designed to raise awareness of the
importance of relationship-building and interest-
based questioning in effective negotiation.
Put your learners into pairs and give them the
briefing cards on page 7. These are not so much
rolecards as the story that leads up to the
negotiation they are going to take part in. The
information need not be memorised, only
understood.
The basic scenario is this: two people desperately
want to buy a particular toy for their child this
Christmas. For various reasons, they’ve left it
rather late to buy it and by the time they get to the
toyshop there’s only one left. They both grab hold
of it at the same time and only one of them can
have it.
As your learners play the parts of complete
strangers in this roleplay, they tend to take no
notice whatsoever of their opponent’s interests.
This is fair enough, but by concentrating on only
one objective, they reduce the whole encounter to
a single-issue negotiation with little room for
manoeuvre. This makes it a simple zero-sum game
- if one of them gets what they want, the other one
doesn’t, and vice-versa.
In my experience, learners get very competitive
during this activity, sometimes becoming
aggressive and trying to just grab the box off the
other person. Some give in completely, deciding it
simply isn’t worth the hassle. Others may resort to
emotional blackmail, inventing all sorts of reasons
why their kid is more deserving than the other kid.
Step in after a few minutes and stop the negotiation
and pass a piece of extra information to each
learner. This tells them that the circumstances
remain exactly the same, except that the two of
them are both close friends. This, of course,
changes everything and they will start the
negotiation again with a totally different attitude.
With a long-term relationship to protect, they’ll be
looking to find a mutually acceptable solution
rather than simply to beat their opponent. If they
ask sufficient questions, they may also discover
that only one of their children has actually said they
want the toy in question.
Allow ample time for post-task discussion and, if
you can, take notes during the two short roleplays
for comparative language feedback.