One of the most important concepts to understand when negotiating contracts is LEVERAGE. At the Studio we strive to drive home the importance of LEVERAGE, ways you can develop leverage, and how your behaviors affect your leverage.
The whole point of having leverage is to be able to obtain your goal, your NEED. So the first step is to identify the object of your leveraging. Think about this as your NEED rock. It's big, it's heavy and you can't move it without some help!
Next up, think about ways you can develop leverage. Every situation is unique, but there are often ways to increase your own leverage or decrease the leverage of the other side. For a great discussion of ways to do this, read Roger Volkema's book - Leverage. The primary point here is to avoid tunnel vision when negotiating a deal. What are your options? Are there competitors that you could go to instead of the person/company you are negotiating with? Could you alter the scope of the deal/project to create alternatives?
Finally, the way you act often speaks volumes about you and your needs in a negotiation. If you act "needy" the other side will sense this - they will believe that you believe that you need them more than they need you. This is often played out in subtle ways: Drafting Control, Individuals Involved, Willingness to Travel, etc. Always ensure that you are meeting the other side half-way instead of bending over backward to please them and meet their schedules.
Always keep LEVERAGE in mind. It's almost never too late to consider how to develop leverage and to consider how to change your behaviors to give you more leverage!
The whole point of having leverage is to be able to obtain your goal, your NEED. So the first step is to identify the object of your leveraging. Think about this as your NEED rock. It's big, it's heavy and you can't move it without some help!
Next up, think about ways you can develop leverage. Every situation is unique, but there are often ways to increase your own leverage or decrease the leverage of the other side. For a great discussion of ways to do this, read Roger Volkema's book - Leverage. The primary point here is to avoid tunnel vision when negotiating a deal. What are your options? Are there competitors that you could go to instead of the person/company you are negotiating with? Could you alter the scope of the deal/project to create alternatives?
Finally, the way you act often speaks volumes about you and your needs in a negotiation. If you act "needy" the other side will sense this - they will believe that you believe that you need them more than they need you. This is often played out in subtle ways: Drafting Control, Individuals Involved, Willingness to Travel, etc. Always ensure that you are meeting the other side half-way instead of bending over backward to please them and meet their schedules.
Always keep LEVERAGE in mind. It's almost never too late to consider how to develop leverage and to consider how to change your behaviors to give you more leverage!
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