Winning at all Costs: Soviet Style | Limited Authority
Good day Readers, Today we will be discussing about the 2nd Point of the Topic "Winning at all Costs: Soviet Style | Limited Authority" .
Let's say that I am a representative of International Harvester and I have been entrusted with the authority to go to the Soviet Union to sell them tractors. If the Soviets are interested, I will ultimately meet with some tough, experienced negotiators from one of their government's foreign-trade agencies.
These are not the people who will oversee the use of my product and certainly not those who will make the decision on whether to buy.
Because everything in the Soviet Union is determined by a select few in the Politburo, the people sitting across the table from me for 3 months have no discretionary authority to make any concessions or agreements.
What is the effect of this dilemma? I have adequate authority to consummate a deal, but my adversaries always have to consult with some absent commissar to make any movement. If they have no authority, what happens when we interact over a period of time? I may make offers and concessions, whereas they only give me vodka and comradeship.
Having been away a long time, I have a compulsion to make some headway. As a result, I continue to make offers. What am I doing? I am bidding against myself. That's why you should never negotiate with anyone totally lacking in authority.
The only exception might be when you're very lonely. Presumably, you would then be negotiating for something else, which may be beyond the scope of this book.
A variation of this gimmick is frequently practiced by car dealers, who give limited authority to their salespeople on the showroom floor.
Invariably the person you're dealing with will always excuse himself to speak to the sales manager and even on occasion to the owner of the dealership. He may or may not speak to anyone, but he uses the time to help him evaluate the negotiation.
Many years ago during a particularly cold Chicago winter, I found myself on a used-car lot searching for a second auto. Since the temperature was below freezing, I made an offer and was anxious to conclude the purchase.
To my amusement, the individual I was dealing with claimed a lack of authority at that price and said, "One moment , Please. I'll have to speak to the guy in the shack." Now I ask you, do you believe anyone is actually in that shack? Could anyone possibly survive a Chicago winter in that shack?
But there's a flip side to that coin. Never allow yourself-or anyone who negotiates for you- unlimited authority. Some famous last words are, "Whatever you do is okay with me ... you have total authority."
You may recall the Neville Chamberlain went to Munich to negotiate with Hitler with unlimited Authority. Certainly, he did not fare well as a Negotiator.
If you extend authorization to others, always get them involved in setting an objective that they believe is attainable. They must feel committed to what you expect them to accomplish.
Your negotiators are not errand boys or girls but responsible people who should have authority, but only up to a point. Ultimately say to them, "Go out there and try to get it for that amount. If you can, that's great. If you can't, come back and we'll discuss it further."
Earlier I mentioned that the worst person you can negotiate for is yourself. You are too emotionally involved, and it's all too easy to lose perspective. In addition, when you handle your own negotiations you have total authority, and it's easy to make snap decisions without making proper use of your time.
How can you get around this? By imposing checks and balances on yourself. By deliberately limiting yourself, at least for a period of time. By vowing, before you negotiate or interact, the equivalent of, "I'm going to pay no more than $1,200 for that TV console. That's it- not one cent more. If I can't get it for that price today, I'm going home."
In Other Words, by being obedient to your own dictates.
If having too much authority is a handicap in negotiations, it follows that the worst person to negotiate for any organization is the chief executive officer. It is a truism that the worst person to negotiate for a city is the mayor, the worst for a state, the governor, and the worst for the United States, The President.
The Particular individual may be brilliant, Patient, and Expert but has too much Authority.
There's another aspect of the Soviet Approach I'd like to touch on: The use of Emotions that seemingly aren't housebroken.
So, Readers Next we will Discuss :
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