【Negotiation Genius】C9· Confronting Lies and Deception

2021-10-17财经

PRE-EMPTING LIES AND DECEPTION

The best defense lies against lies and deception is to eliminate your counterpart's temptation to lie. To eliminate their motivations to lie, you need to make salient to them the reasons they should not lie to you.

Defense strategy 1: Look Prepared

Arriving on time for all meetings and negotiations.

Being well prepared to discuss details regarding the myriad of issues that are involved.

Being well organized and efficient.

Speaking intelligently on issues related to their business and the industry- including issues that are not directly relevant to the current negotiation.

Remembering the finer details of prior discussions with the other side and/or referring explicitly to notes you made during an earlier meeting.

Responding expeditiously to requests for info or to the other side's offers.

Mention to the customer that he knows, on a personal level, most of his competitors, or that his firm keeps an eye on the rates competitors are charging.

Defense strategy 2: Signal Your Ability to Obtain Info

Orignal script: '… Is this really the lowest price at which you can sell?'

Revised: '… As you know we need the supplies quickly this time around, which puts you in a unique position to fill the order. But, as you also know, other vendors have the resources to fulfill our need for future orders. Perhaps they will not be able to beat your price. But I would like to know from you before I talk to them: Is this really the lowest price at which you can sell this component to us? Can you find a way to lower the price, or should I assume that if the other vendors can beat this price we should go with them in the further? '

Defense strategy 3: Ask Less Threatening, Indirect Questions

Estimate costs:

Can you pls give me some info regarding your production process?

Can you explain to me how your supply chain operates?

Do you purchase your materials domestically?

Who are your primary suppliers?

What are the characteristics of your typical buyers?

Can you provide me with a list of some of your other customers?

How much would I need to increase the size of my order to qualify for a price concession?

Defense strategy 4: Don't Lie

You can help your cause by making your intentions explicit:

'I know that there is a lot at stake in this relationship and that this is likely to make everyone more guarded and skeptical. But I also know that the more open and honest we are with each other from the start, the easier it will be for us to develop a mutually rewarding long-term relationship. With that in mind, I would like to share with you some info related to our cost structure.'

Some one must take the first step, and it may as well be the one who is aspiring to become a negotiation genius.

LIE DETECTION

Detection Strategy 1: Gather Info from Multiple Sources
Detection Strategy 2: Set a Trap

For the trap to work, the question must concern an issue about which the other side has an incentive to lie.

Detection Strategy 3: Triangulate on the Truth
The more questions you ask, the more difficult it becomes for the other party to come up with consistent answers.

When did you receive this offer?

What exactly did my competitor offer?

Did he provide you with specific product info?

What was that info?

Did my competitor give this offer to you in writing?

If not, why do you think that is? Did you ask for it in writing?

If you did get it in writing, may I see it?

He may not wish to reveal his RV to you, but if he is completely tight-lipped about the most straightforward questions regarding his alternatives- and if he has no reasonable explanation for his secrecy- then you should proceed as if he has been bluffing.

Detection Strategy 4: Look Out for Responses That Do Not Answer the Question

People will often go to great lengths to avoid saying something that is technically untrue, but they will be happy to mislead you indirectly with their response.

Thomas: My firm is making a big purchase, and we are likely to make purchases from you in the future. Is this really the lowest price at which you can sell this component to us?

Supplier: I appreciate your business now, and I would appreciate it in the future, but this is the lowest price at which we have ever sold this component.

Since people are more likely to deceive indirectly than to explicitly lie, negotiation geniuses who listen carefully to the answers provided (and to the answers that are not provided) are in a great position to catch 'nonlying deceivers' in the act.

Detection Strategy 5: Use Contingency Contracts
When the other side makes a dubious claim regarding some future prospect, you do not have to take their word for it, nor do you have to argue about who is right. Instead, ask them to 'put their money where their mouth is' by proposing a contingency contract.

NOW WHAT?

Q1: Was It Really a Lie?
Don't call your counterpart a liar, but explain that you feel you were misled or deceived, then discuss whether the deception was intentional or not. Before labeling your negotiation counterpart dishonest, audit your cultural assumptions.

Q2: Do I Want to Continue with This Negotiation?

Q3: Do I Need to Warn Them or Confront Them?
If you are not particularly upset about the lie, but want to discourage your counterpart from lying in the future, you should use a 「Warn script」. If the lie was more egregious, and you want to extract an apology or concession in exchange for your willingness to continue negotiation you should use a 「Confront script」.

Warn Script: 'You mentioned that the cost of these materials is $1.05 per unit. I think that you may need to check your date. We have strong tie with a number of suppliers and are certain that the cost is $0.90. Perhaps you are working with old data or were misinformed along the way. In any case, let's try to be more careful about facts and figures as we go forward with this deal.'

Confront Script: 'You mentioned that the cost of these materials is $1.05 per unit. I feel the need to point out to you that, unlike some of your other customers, we have strong ties with a number of suppliers. Because of this, we know when someone is inflating costs. We have been negotiating in good faith with you and are taking part in this negotiation to create value for both sides. But we are now a little uneasy about the way in which you have negotiated with us. Perhaps there is a simple explanation for the discrepancy in our numbers; perhaps you were misinformed. BUT I would just like to make you aware that we are disappointed with this exchange. Can you help us understand your perspective and suggest some way for us to overcome the anxiety we are now feeling?'

You will notice that both scripts provide an opportunity for the other side to save face. This is critical if you have already decided that you wish to continue the negotiation or the relationship.

It is often tempting- but not always judicious- to retaliate quickly when you feel you have been deceived. Negotiation geniuses take the time to evaluate whether the other side might have been misinformed or had considered their behaviour to be appropriate to the context.

They also keep an eye on their own interests, which may require a response that is powerful enough to fix the problem but controlled enough to allow the other side some room to navigate.

SMART ALTERNATIVES TO LYING

Strategy 1: Incorporate reputation and Relationship Costs in Your Calculus

Most negotiators are myopic; they do not see past the current deal or the current relationship. Those who do adopt a more long-term perspective find it much easier to be truthful and honest- even if this costs money in the short run- because the long-term payoff is worth it.

Strategy 2: Prepare to Answer Difficult Questions

Prepared Response: 'No, this is the only offer that I currently have. But I only recently sent out my resumes, and I have many interviews scheduled.'

Strategy 3: Try Not to Negotiate or Respond to Questions While Under Time Pressure

Strategy 4: Refuse to Answer Certain Questions

'This is a discussion that we can have later on, once we have both committed to the deal. I don't feel comfortable divulging this info a the moment.'

'As you undoubtedly understand, we cannot share that info for strategic reasons.'

'The answer to your question depends on many other factors that we need to discuss.'

Strategy 5: Offer to Answer a Different Question
The idea is to be up front about your inability or unwillingness to respond to the specific question, then to offer a concession by providing other useful info.

'Unfortunately, I am not at liability to divulge specific oat info, but I can appreciate why you're asking for it. You want to make sure that you're getting high value product for th price you're paying. Well, let me provide you with some info that i‘ll give you that confidence. I can share a lot of info regarding our production process and some info regarding our pricing model.'

You avoid lying, you give them info that is of value to them, you appear reasonable and forthcoming, and you make it more likely that a deal will be consummated.

Strategy 6: Change Reality to Make the Truth More Bearable
When you are tempted to lie or to deceive, take some time to think about why you feel the need to portray a false realty. Is it because you are embarrassed or ashamed of your situation? If so, can you do something to change instead of lying about it?

Strategy 7: Eliminate constraints That Tempt You to Lie
Often, our own honesty (and that of others whom we label unethical) is constrained by rules, policies, time pressure, and incentive systems. It is fine to argue that a 'truly' ethical person would be honest despite these constraints. Nonetheless, it behooves us- and our organizations- to try to create the kinds of environments that encourage rather than discourage truthful and honest behavior.