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czwartek, 9 kwietnia 2015

The Role That Power Limits Play In Negotiations

In a negotiation, nobody is operating without constraints. We all have limitations on what we can and cannot do. It's how we deal with these power limits that can have a big impact on the outcome of the negotiations. As negotiators, we need to understand that we are dealing with power limits and then come up with ways to deal with them.

Time As A Power Limit



One of the most common power limits that we will all run into during the course of a negotiation is time. It can be all too easy for us to judge ourselves based on how much time we have and how much time a negotiation is taking. We often judge ourselves much more harshly than anyone else does.
If we feel that we don't have the amount of time that we believe that the negotiation will require to do properly, then time will be a real power limit for us. A great deal of this can be related back to the concept that "time is money" and the more time that we have invested in a negotiation, the more that we feel we have invested in a successful outcome. Taken together, we may find our options to be limited.

Money As A Power Limit

Another power limit in a negotiation is money. This all has to do with our ability to commit the amount of money that this particular opportunity is going to cost. Not having enough money to make a deal happen is what can cause money to act as a power limit.
If during the negotiation you start to feel as though you are not going to have enough money to pull off a deal, then things start to happen. Specifically, you'll discover that how you go about conducting your negotiations will start to change based on this belief.
In order to deal with this type of power limit, you need to take action before the negotiations start. Your best bet is to take the time to discover what limitations the other side of the table are operating under. Once you know this, you can work it into your negotiation tactics and you'll be able to overcome this power limit.

What All Of This Means For You

In a negotiation, nobody has a free reign, We all operating under power limits. The key is to make sure that we understand what our power limits are and find ways to deal with them.
One of the key power limits that shows up in most negotiations is time. When we feel that we don't have enough time to negotiate properly, we start to feel as though our options are limited. Additionally, money can also create a power limit in a negotiation. Taking the time to understand what limitations the other side has can help to equal things out.
Realizing that we are dealing with power limits is an important first step in dealing wit them. Once we know what may be limiting our ability to successfully negotiate with the other side, we can start to take steps to deal with these power limits. Once we master them, we'll find that we're able to create better deals and do it faster.

In A Negotiation, Information Is Power


Every negotiation is about power. Who has it, who wants it, and where did it all go. As negotiators, we are always looking for negotiation styles and negotiating techniques that we can use to become more powerful. It turns out that there is one simple way that we can make this happen: get more information.

How To Get An Advantage In Your Next Negotiation


When we walk into our next negotiation, we'd like to be in the strongest position possible. In order to do that, it all comes down to knowledge. The more of this stuff that we have, the stronger our position is going to be.
What this means for us in practical terms is that we need to take the time to gather as much information about what we'll be negotiating about and who we'll be negotiating with before the negotiations start.
One of the most important points about this information gathering exercise that a lot of new negotiators don't realize is that the best kind of information to get is information that the other side of the table doesn't want you to have. Likewise, if you have information that the other side of the table doesn't have then all of a sudden the power dynamics of the negotiation have shifted – you are in a much stronger position.

Knowledge And Trust Are Related

Honesty and negotiation have a very interesting relationship. In order to be able to reach the deal that you want, it is often in your best interest to control what information you choose to reveal to the other side and when you choose to reveal it to them. Note that this is very different from lying.
When we obtain important information that the other side really doesn't want us to have, this can help us to clarify the issues that are important to us and will show us the path that we want to follow. If one of the things that we discover is that the other side has been lying to us, then that will change everything.
Lying in a negotiation can take on two different forms. The first is flat out lying. The other is when the other side chooses to not reveal a material fact to you that is critical to what is being negotiated. In either of these cases, if you discover that you've been lied to then you are going to need to start to take every possible measure that you can in order to protect both yourself and the party that you are negotiating for.

What All Of This Means For Yourself

In order to be successful in your next principled negotiation, you need to have more power than the other side of the table. The trick is to learn how you can get this power. It turns out that by gathering information about both what is being negotiated as well as who is doing the negotiating you can get the power that you need.
By gathering information about what will be negotiated before the negotiation starts you'll be able to properly prepare to negotiate. The power dynamics of the negotiation will change once you have information that the other side does not know that you have. Having this information will guide your negotiating and will determine how the negotiations proceed for you.
Information is power. As a negotiator you need to get as much of it as you possibly can. Take the time to properly prepare for your next negotiation by doing your homework and you'll be impressed by the type of deal that you'll be able to negotiate.

In A Negotiation, It's Not What You Know, But What People Think You Know


I wish that I could tell you that I know everything that has to be known in this world. However, the truth is that I actually know very little when you consider all that there is to know. What this means is that when I walk into a negotiation, I'm really at a bit of a disadvantage – there are things about the negotiation that I don't know. What can I do to turn this disadvantage into an advantage for me?

The Power Of Apparent Knowledge



Apparent knowledge is all about making the other side of the table believe that you know more than you do about a topic. There are a number of different ways to go about making this happen. The first is to for your reputation to precede you. If they've done research on you before the negotiations and the information that they've picked up tells them that you know what you're talking about, then they'll believe that you know your stuff. Another way to make this happen is for you to use buzz words – by using the language of the topic, you'll come across as being very knowledgeable.
The power of apparent knowledge is that the other side will treat you with more respect. It really doesn't matter if this respect is based on reality or perception; the end result is the same. One of the interesting things about apparent knowledge is that once it has established you as an expert, very rarely will anyone challenge you. Simply by staking a claim to having the knowledge means that nobody is going to challenge you on this.
Having apparent knowledge is all about confidence. When you enter the room, stride in like you know what you'll be talking about. The other side will give you the benefit of the doubt until you give them a reason to believe otherwise. Just be careful and don't allow the other side to probe you too much – you don't want them to find out what you don't know!

Two Ways To Use Apparent Knowledge In A Negotiation

Having all of the apparent knowledge in the world is not going to do you any good if you don't know how to use it. There are two things that you are going to have to understand about apparent knowledge and how best to use it in order to be successful.
The first, and perhaps the most fundamental, thing that you need to know is that you don't have to be an expert on a given topic in order to look like you are an expert on it. This is even truer if you can recognize when a pattern is starting to emerge during a negotiation.
What this means is that based on past experiences that you've had with similar issues or similar negotiating teams, you're going to be able to anticipate how things are going to unfold. This is going to allow you to be able to take a step back and see the negotiation styles and negotiating techniques that the other side is going to be using. This will help you to reach a better deal.
The other thing that you are going to have to understand about using apparent knowledge is that during the negotiation you'll probably end up using your knowledge of similar negotiations. However, the thing that you need to understand is that this negotiation is not the same as any negotiations you've participated in previously.
What this is going to mean for you is that although you may be tempted to use negotiating strategies that have worked in similar situations, don't. You are negotiating with different people and no matter how similar the situations may seem, they are different. This is going to require you to keep your eyes open and develop a new strategy that is relevant to the situation that is at hand.

What All Of This Means For You

When any of us start a principled negotiation, we have an important job to do. The other side of the table will be sizing us up in order to determine just exactly how much we do or do not know about the subject that we'll be negotiating about. No matter how little we may know, this is where apparent knowledge can help us out.
Representing to the other side that we know more about a topic than we really can significantly help our negotiating situation. Keeping our eyes open and recognizing emerging patterns in the negotiation can help to bolster our apparent expertise. We must always keep in mind that although we may think that we recognize a situation as one that we've dealt with before, we may be wrong and it may be different.
As negotiators we need to recognize apparent knowledge for what it is: a powerful tool for us to use in our next negotiation. We'll never have the time to become an expert in every area of a negotiation. Let the use of apparent knowledge fill in any gaps that we may be bringing to the table and we'll eventually be able to walk away from the negotiation with a better deal.

środa, 8 kwietnia 2015

The Three Stages of Business Valuation in a Divorce

A couple's divorce can sometimes encounter a deadlock if either one or both parties own at least part of a business.  Property distribution is often an issue during divorce proceedings, and if that distribution involves business ownership, then there must be a value assigned to the business.


The three stages of a business valuation in a divorce require determining 1) own and owe, 2) what the business makes and 3) the business valuation.  Laws that dictate the distribution of a business interest vary by state, so the guidance of a business valuation expert who specializes in divorce valuation can prove critical when deciding who gets what and how much.

Own and Owe
The assets that a business owns include tangible property like equipment and machinery as well as intangible property like trademarks and patents.  The liabilities that a business owes include money, goods and services.  Each state maintains laws about how past, present and future revenue-generating business activities and debt must be handled. A valuation expert can better enable couples to successfully navigate these kinds of complexities.
What the Business Makes
Assessing the profits a business has earned is the simplest way to determine what the business makes.  Profits are the difference between income and expenses.  Income is the cash derived from the sale of goods and services as well as the money received from other business activities like investments.  Expenses are the direct costs incurred to produce goods and to deliver services as well as indirect costs like overhead fees for utilities and rent.
Valuation
Different methods may be used to determine the value of a business, but three common approaches are the asset, income and market methods. The asset method analyzes the difference between assets and liabilities, which, while seemingly simple, can become challenging when determining which assets and liabilities to include in the valuation. The income approach examines the likely earnings that the time, money and energy invested in the business will yield.  This approach must consider the risk of not receiving either all or part of the earnings when anticipated.  The market method considers the worth of similar businesses and uses market data to determine what can be considered the "going rate" for that type of business.
A business valuation expert can help a couple either avoid or overcome a deadlock that could otherwise ruin the business that they have built.  This kind of outside counsel is frequently the best strategy, particularly since the court has little ability to manage a business deadlock during divorce proceedings.

The Need and Importance of Negotiation and Conflict Management Skills in Forestry Operations

"Conflict" is a relationship among two or more opposite parties, whether marked by violence or not, based on actual or perceived differences in needs, interests and goals. A healthy organization recognizes that conflicts are part and parcel of any human interaction, and would always be on the alert of the emergence of any potential conflict and take proactive measures to manage, contain and subsequently resolve it before it grows into unmanageable proportions. Lessons learnt from previous experiences of handlings conflicts, whether from within or outside of the organization under similar setting, would provide useful clues on how to deal with any new incidences. And when documented into step-by-step instructions, these experiences could be standardized, packaged and accepted as the organization's standard operating procedure (SOP) on conflict management and resolution.


Organization's policy everywhere has always been one which encourages collaboration and teamwork and minimize conflicts whenever they exist, either within the organization itself or with other stakeholders, productively. A "conflict" may nevertheless result through misunderstanding and misinformation, which can be resolved through consultation and empathy, with the common objectives of sustaining the organization's operation and ensuring its growth for the benefit of all stakeholders, in conformity with the principle of sustainable development (SD). The latter calls for operations to meet the following three vital criteria of SD namely, (1) economic and technical feasibility; (2) social acceptability; and (3) environmentally appropriate.
2.0 General Approach To Conflict Management
Whenever a "conflict" is perceived to have cropped up, the following line of action should be taken:
1. Stakeholders compile all the important information related to the conflict and verify the facts.
2. All parties agree to a time and a place for the meeting.
3. The meeting is organized and its minutes recorded.
4. Each party explains its interests clearly (what it wants and why).
5. All parties identify and discuss areas of agreement or similar interests.
6. Areas of disagreement or conflicting interests are identified and discussed by all parties.
7. Common goals for the negotiations are established.
8. Options are expanded: the parties compile a list of possible solutions for meeting the established objectives.
9. Criteria to assess options are developed by the parties.
10. The options are assessed against mutually agreed criteria.
11. An agreement is confirmed that maximizes mutual satisfaction among parties.
12. An action plan is developed with time frames and responsibilities for implementing the agreement.
13. A plan for monitoring and evaluating the agreement is confirmed.
14. The agreement is written up.
15. The agreement is made public.
16. The meeting agenda is agreed by the interested parties.
17. Information gaps are identified and decisions made on how missing information is to be obtained.
18. Decisions are made on how unresolved disagreements are to be handled.
19. All stakeholders agree to participate in negotiations.
20. Stakeholders analyze the conflict.
21. Primary stakeholders in the conflict are identified.
3.0 S.O.P. On Conflict Resolution In Relation To Forest Operations
Forestry operations such as logging, especially when conducted in environmentally sensitive areas and sites close to population centers always invite derision and criticism, or even outright condemnation from various stakeholders, particularly environmentalists. Conflicts with these groups as well as local communities (which may include natives and aborigines) may crop up, which often descend into prolonged chaos and, sometimes lead to unnecessary loss of life and damage to properties. As a general guide, the following steps could be followed by the forestry organization concerned in order to avoid potential conflicts:
(i) monitor the problems and needs of the local communities and forest-users and ensure that the direction and the core business of the organization's operations continue to satisfy those needs, albeit within the bounds of existing laws, regulations and local traditions and customs, as well as the organization's scale of operation and capability;
(ii) identify material and psychological impacts of organization's existence and operations on the community;
(iii) evaluate and promote social acceptance of organization's operations in the community with the view to avoid costly modifications or abandonment of the project at a later stage;
(iv) monitor changing environmental and conservation as well as social values in the community;
(v) obtain additional environmental and ethical/ religious information known to the local population;
(vi) hold stakeholders consultation meetings at regular intervals to provide forum for face-to-face encounter and promote dialogue and mutual understanding;
(vii) document all complaints, take appropriate actions promptly and follow up on the actions taken.
Figure 1 summarizes a conflict tree of a hypothetical forestry project in a developing country.
Photo 1 Photo 2
Stakeholder consultations (photos above) with local communities provide useful means of communication which would help promote understanding and empathy as well as resolve potential conflicts among the parties involved.
4.0 Summary and Conclusion
Skills in negotiation and resolving conflicts are two of the 21st century skills vital for organizations operating on high-stake projects such as forestry and land-use management. This is especially so given the increasing connectivity in the era of ICT which brings along with it increasing democratization in our daily business and decision-making process, which is the main feature of the principle of sustainable development. Development projects should be conceived, planned and executed in such a manner that they would result in minimum of disturbance and upheavals, both over the short and long terms, to the satisfaction of the major sections of the affected stakeholders – a situation which is possible only in the presence of relevant and reliable supporting data and information, which would in turn enable "options" be made available and placed on the table.