A friend’s mother once told me: “Life is like a box of chocolates, you never know what you’re going to get.” Well, she was not entirely wrong, unless she had in mind negotiating a complex B2B contract with a big, powerful, inflexible and slightly crafty company. In that case, you know exactly what you are going to get: a run of bitter-filled chocolates!
But before despair takes over (or you consider throwing in the towel and running for the nearest exit), remember the wise words of Sun Tzu: “in the midst of chaos, there is also opportunity.” The great strategist may never have had to negotiate a software licence agreement, but his principles of war still have their place at the negotiating table.
First principle: knowledge
Sun Tzu said: “If you know the enemy and know yourself, you need not fear the result of a hundred battles.” Do not take him literally, though: we are not here to start a war, but to negotiate. The line is better rendered as: “If you know your counterparty and know yourself, you need not fear the result of a hundred rounds of negotiation.”
Some people scoff at due diligence as a bureaucratic exercise. The laughter stops abruptly when the company across the table produces a hidden penalty clause that could swallow half your annual budget. Do your homework, my friends. There are no shortcuts.
Second principle: flexibility
Machiavelli wrote that anyone who insists on walking a single path will end up walking into thin air. If you think your counterpart’s rigidity is a handicap, think again. It is an opportunity to show how well you can dance the tango, work your way around problems and slip through the constraints.
And if you believe a plan B will be enough, think again. You will probably need a plan C, D and E and, if you are really unlucky, a plan Z.
Third principle: patience
The art of negotiation also lies in resisting the temptation to be the first to sign on the dotted line. That is where the crafty operator hopes to catch you out. Remember the lesson of the Odyssey: resist the sirens’ song, stay lashed to the mast and let no one untie you before the song has ended.
Take your time. Let your opponent play their tricks. Sooner or later they will show their hand. And if you feel rushed, remember Warren Buffett’s words: the stock market is a device for transferring wealth from the impatient to the patient.
Final principle: humour
Never underestimate the power of humour, especially in tense situations. To make someone laugh is to disarm them. A well-placed touch of sarcasm can not only ease the atmosphere but also subtly unsettle the person across the table. As Oscar Wilde put it: “If you want to tell people the truth, make them laugh, otherwise they’ll kill you.” You have been warned.
In the end, tough negotiations are like a game of poker: you bluff, you raise the stakes, you fold when you have to, and you never show your cards. But remember: even facing Goliath, a sound strategy and a little well-placed humour can turn you into David, and this time you will not even need a slingshot.