Negotiation

As a leader you will spend an inordinate amount of time negotiating.  We often think of negotiation as something that goes on at a high level, involving CEOs and other high-powered executives.  In reality, you will find that a lot of negotiation takes place at much lower level. Why?  The answer is simple.  Everyone wants something from you.  They would prefer for you to just give them whatever they want and go away, but they are prepared to bargain if they must.

You will likely find it necessary to haggle with your team over everything from job titles (the difference between “VP” and “Senior VP” for instance), to office space, administrative help, and even parking spaces.  This can become a bit tiresome and even annoying, but try to remember how it was when you were down the chain of command. Keep in mind that as you negotiate with one team member, you are actually negotiating with the entire team.  This is because you will be expected to deal with everyone equally and fairly, taking into account factors such as rank, span of control, and seniority. 

Occasionally it may be necessary for you to negotiate unilaterally—that is, make an executive decision.   For example, when my team and I moved into a new building, parking became an issue.  There was much wrangling over whether there should be reserved parking close to the building entrance for executives and how the spaces would be allotted.  After a week or so of back and forth, I had to make the call so that we could all get back to work. The solution was deceptively easy once I looked at the big picture.  By the way, it is always a good idea to step back and get a larger view when you negotiate.  Negotiation should have a context.  This issue didn’t.

The larger context here was that all parking was covered, and no more than a two-minute walk to our offices.  More to the point, our building was occupied by a variety of front-line workers whose schedules ran on an almost 24-hour cycle.  My team members traveled a good amount, so that if they had assigned parking spots, those spots would often go unused.  Meanwhile, our front-liners would be coming to work very early and leaving very late, walking by those empty spaces. 

I suggested to my team that prime assigned spots that went unused would send a demotivating message to those workers.  The solution was simple.  All parking would be on a first come basis.  If someone was arriving at work at 5AM, they would have the pick of the lot, and rightly so.  Although there was initial grumbling from my team, the open parking rule was a hit with the rank and file.  And it didn’t really impact my team, except to improve their standing as good colleagues in the eyes of everyone who came to work at 5AM.  It probably also kept their cars from being keyed by disgruntled employees.

So OK, this is a pretty low-level example.  But the same principles apply in many other situations.  One such instance was a learning experience for me as I negotiated a raise for a promotion.  My boss and I went back and forth for some time, discussing expanded responsibility, comparable jobs in the organization, and such.  In short, we explored the big picture.

She finally suggested a compensation package that I agreed to and we both sat back.  After a moment, she said, “You know, you took that offer pretty quickly.  I might have offered you more.”  My reply was quick: ”And you know, I might have taken less.”  As we laughed at ourselves, it occurred to me that I had experienced the essence of negotiation.  I was satisfied, and so was the other party.  But as we continued to work together for many years thereafter, we both remembered the lesson we learned on that day.

The lesson for you, gentle reader, is that whether it is a reasonable bedtime for your kids or a merger with your company’s major competitor, the rules of negotiation remain the same.  Look at the immediate situation, grasp the context, and seek a compromise that both parties and can live with.  Now, isn’t that simple? (Said with tongue planted firmly in cheek).