Threats, Refusals and Ultimatums: Dealing with Hardball Negotiators Stephen Boyle Programme Director UCD Smurfit School Phillip Matthews Director, Executive Education UCD Smurfit School

Threats, Refusals and Ultimatums: Dealing with Hardball Negotiators Presenter: Stephen Boyle Moderator:Phillip Matthews

AGENDA Threats and typical responses Assessing the threat Disarming threats Fighting back, surrendering 25 minutes Questions and Answers 15 minutes

Threats, refusals and ultimatums: Tactics used by the other side to take control of the negotiation and force you to accept their terms and conditions at the expense of your own interests

The desired effect…

Surrender …And the typical responses Counter-threaten

BAR the threat B reak A ssess R espond

Assessing the threat 1.Will they follow through? 2.What are the consequences for you? 3.What caused the threat – what are their underlying concerns?

A better response Disarm and Negotiate SurrenderCounter-threaten

Disarm and negotiate

Tips for disarming threats Treat the relationship as a partnership Understand what’s behind the threat – what really matters to them Get all the issues on the table – and keep them linked Know your facts in order to disarm theirs Understand their alternatives

Essential DON’Ts! Don’t try to negotiate unless you’re prepared! Don’t become dependent on one customer Don’t bluff – know the facts Don’t whinge – take a problem-solving approach

What if they won’t negotiate? Ask why Use active listening Acknowledge their emotions Make proposals and invite criticism X

Fighting back

Tips for fighting back Say NO Stand up for your interests Be prepared to walk away

Manage the emotions Don’t counter-threaten Address the problem, not personal issues Allow your opponent to save face

Tactics for dealing with ultimatums Refuse to accept the ultimatum –Keeps the negotiation moving Play for time –Reduces the likelihood of the threat being carried out Develop your alternatives –Strengthens your ability to resist

Surrendering (when to do it, and what to do next)

Think twice about it! Do you really have little or no power? –What’s your BATNA? –Where does their power come from? *BATNA = Best Alternative To Negotiated Agreement

When to surrender When you’ve exhausted all options for improving the deal for both sides AND When your BATNA (best alternative) is worse than the offer on the table *BATNA = Best Alternative To Negotiated Agreement

After surrendering to a threat Figure out why you had to, and remedy the situation –Improve your alternatives –Reduce your dependence –Benchmark your offer –Develop a partnership approach

Final thoughts Threats can be self-invited: Are you “needy” when you negotiate? Threats can be self-perpetuating: Have you conceded to threats in the past?

Summary

Avoid knee-jerk responses to threats Disarming your opponent should always be your first option –Change the nature of the negotiation –Take the emotion out of the situation If you’ve got to fight it out, stand up for your interests

Questions and Answers ‘Winning Negotiation Strategies’, a 2-day training programme led by Stephen Boyle, takes place on February Please contact Gillian Brown, Programme Manager at (01) or