Simon Rycraft - Negotiation Hacks: Expert Tactics To Get What You Want

Published by Hacks Capital, LLC

Austin, TX

Copyright 2014 by Simon Rycraft

All rights reserved.

www.negotiationhacks.com

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First Edition

To my parents, who taught me
the importance of empathy, humor, and hard work.

negotiation hacks

HACK

The importance of mastering how to recognize and control
non-verbal communication techniques is rarely discussed.

HACK

The fundamentals of persuasion date back over 2,300 years.

HACK

Knowing your own negotiating style, how to read other
peoples styles, and adapt accordingly is critical.

HACK

Personal needs impact even the largest commercial corporate deals.

HACK

An expert negotiator maximizes their personal level of magnetism
in order to drive negotiation success.

HACK

Preparation is key; knowing how and what to prepare requires
focus and attention.

Introduction

T he official meaning of the term negotiation is a formal discussion between two or more people trying to reach an agreement (excluding basic trades and bartering). While the act of negotiating is both an art as well as a science, anyone with the right insights and support can rise to the ranks of an expert negotiator. You dont need to be a practitioner with 30 years of experience or a mind-reader or someone who was just born with significant leverage, nor do you need to be an ex-FBI agent (although that surely can help). You do, however, need to be prepared, whether you have five minutes or five months before your negotiation formally begins.

This book focuses on six distinct and proven hacks that are easy to learn, easy to implement, and accessible to anyone. These hacks have been gathered from my academic pursuits and experiences in working with hundreds of companies, from Silicon Valley and Silicon Hills startups to the Fortune 500. What I have learned is that regardless of the complexity of a negotiation, anyone will benefit from an appreciation of and the deployment of these negotiation hacks. Negotiations I have personally supported include individual salary negotiations, $100MM+ company contracts, and M&A as well as divestiture activities.

Rather than just rely on my own experiences, I also received and gathered first-hand insights and references from various prominent philosophers, gurus, psychologists, behavioral scientists, and business management experts.

Examples of situations in which these hacks are of most value include:

• Startup founders who are fundraising or negotiating with large enterprise clients;
• Corporate development or investment banking teams working on an M&A deal;
• Sales leaders who must improve their pipeline conversion rate;
• Purchasing directors negotiating with suppliers;
• Technology executives finalizing a major outsourcing contract;
• Trainee attorneys/lawyers looking to sharpen their persuasion skills;
• And the list goes on...

My aim is not to offer a new negotiation framework that is only slightly different from the many that already exist today, but rather to summarize what I believe to be the most important negotiation hacks that you can digest in a few hours and then re-visit at a later date. The real skill comes from testing out the various techniques for yourself and, as always, practice makes perfect.

The most important thing
in communication is hearing
what isnt said.

Peter F. Drucker

Non-Verbal Communication

W hile verbal and written communications are the focus of most inter-personal exchanges during a negotiation, being aware of and controlling your non-verbal communication is just as important (Hack #1).

The study of this topic can be traced back to the year 1872 in Charles Darwins book The Expression of the Emotions in Man and Animal . Darwin wrote that the young and the old of widely different races, both with man and animals, express the same state of mind by the same movements.

Following on from Darwins studies, there has been extensive additional research into non-verbal communication, four key insights of which I find particularly important to understand in the context of a negotiation.

1. body language

The chameleon effect, also known as mimicry, or copying how someone is sitting or standing, is often seen as an approach to signal that two or more people agree with each other and have/or are building a good rapport. Have you ever found yourself subconsciously copying how someone is crossing their arms or legs?

Its important to note that negotiators who are already aware of the benefits of mimicry will often use it strategically, copying your gestures to deliberately try and accelerate the building of a relationship. The next chance you get, have some fun with it. You can easily catch someone else who is consciously aware of this technique by randomly moving your seated position and taking note of how quickly the other person responds in the same way.

Proxemics is another key, albeit somewhat more subtle, non-verbal communication consideration. Proxemics focuses on the physical distance between people as they interact. Ever felt incredibly uncomfortable or pressured when a stranger, acquaintance, or co-worker stood a little too close? Did you move away immediately or try and back off slowly, to avoid causing insult? As you can imagine, being too close to another person can completely interrupt a negotiations progress and flow. Its important for each party to feel that their personal space is being respected. As a guide, in most countries you should sit or stand at least four feet away to avoid causing any discomfort.

One of the main reasons to be mindful of non-verbal communication is that it can give you insights into another persons sincerity. When someone says that they cannot provide a further price discount or they dont have the budget to cover the cost of your services, keep their non-verbal communication in view.

According to Albert Mehrabian (Professor Emeritus of Psychology, UCLA) in his book Silent Messages, Implicit Communication of Emotions and Attitudes , deceitful communicators, compared with truthful ones, are thought to:

• Nod and gesture less;
• Less frequently move their legs and feet while seated;
• Lean forward less;
• Use less eye contact;
• Talk less, talk more slowly;
• Use more speech errors;
• Smile more.

Professor Mehrabian also found that increased physical self-manipulation or adjustments (scratching your head, touching your arm or face) also indicates deceit, presumably associated with the sub-conscious reaction to the general discomfort that some people have when telling a lie.

A critical delivery tip when it comes to non-verbal communication is the need to keep your non-verbal cues, such as body language, in tune with your personal style and what is being said. Remember, the other person will be looking to see if your physical gestures mirror your words; when in doubt, keep them both open and positive. Look out for inconsistencies in how the other negotiating party is sitting in alignment with what they are saying as well as in alignment with the messaging being delivered by other members of their team, if present. A good example here could be if you are crossing your arms and legs but telling the other party you are open for a long term relationship.