Negotiation Tips

I am a litigation lawyer.  That does not mean that I spend all day in court.  In fact, quite the contrary:  I spend most of my time in my office.  Other than criminal and family litigation, most lawsuits settle before trial and even without spending any time in a courtroom. 

Given that most litigation files settle, litigation lawyers need to be expert negotiators even more than they need to be expert courtroom lawyers.

Negotiation is an art, not a science.  Good negotiators learn their talent over time and with practice.  Negotiation is a valuable skill for everyone, not just lawyers.  For example, real estate agents are in the business of negotiation more than the business of sales. 

Negotiation skills are just as important for a businessperson.  Whether you are negotiating your next business deal, working out the terms of employment for a new employee, or smoothing out a dispute between employees, much of a business owner’s time is spent negotiating.

Here are some tips that will make your negotiation more successful:

1) Don’t give an ultimatum unless you are prepared to stick to it.
2) Giving ultimatums is a dangerous tactic.  One negotiation teacher taught me this:  what’s your best alternative to a negotiated agreement?  Sometimes, giving up on a negotiation leaves a number of options which are worse than the agreement you just turned down.
3) In a situation where there is an impasse, the first person to speak will end up giving up the most.  This is a general rule, but if you keep this in mind the next time you watch a negotiation (or follow a strike situation in the news), you will see that it is pretty accurate.
4) People like their own ideas better than other people’s ideas.  Telling your opponent what should happen is far less effective than giving them the hints and suggestions that lead them to suggesting the very result that you want.
5) Similarly, being a bully in a negotiation will not get you anywhere.  A logical, practical approach will give you better credibility and can only help you, even if the negotiation fails.
6) “This is our final offer.”  Yeah, right.  Every offer is a “final” offer.  Don’t ever use that line unless you really, really mean that it is a final offer.  That will be a rare situation, indeed.  You see, if you then make another offer, you have lost credibility.
7) Understand what is important to your opponent.  Often, what is valuable to them may mean very little to you, and vice versa.  You may be able to give up little in exchange for a lot.
8) Negotiation is never about making the other side admit they were wrong.  Negotiation is not about winning.  Negotiation is about coming to a resolution that both sides can live with.
9) Finally, when assessing a potential resolution or “settlement” to your negotiation, keep this in mind:  In litigation, I tell my clients that “The right settlement is where both sides leave equally pissed off.”