Negotiation is a fact of life, in and out of the office. Like it or not, we negotiate every day: with patients, employees, pharmacists, insurers, sales people, pharmaceutical reps, family members – everybody.
Unfortunately, most of physicians aren’t very good at it, for a variety of reasons, not least of which is our generally poor concept of compromise: We expect to get our way in the first place. When we don’t, we shy away; we don’t thrive on conflict and adversity, as good negotiators do, and we are not accustomed to rejection. We tend to take issues personally, rather than treating negotiation as an impersonal game.
We are also generally impatient, and often unwilling to listen carefully to what is being said (and not being said). And most of us have little experience with the chesslike discipline of sequential strategy: anticipating the other party’s sequence of moves and planning our own sequence in response.
While I can’t hope to make you a great negotiator in 700 words, I can pass along five essential rules that have stood me in good stead over the years:
– Do your homework. Before negotiating anything of significance, you need to learn everything you can about the issue and context, and whenever possible, about the other negotiating party. You cannot make accurate decisions without understanding the other side’s situation – needs, pressures, options, biases, and circumstances. Good negotiators start with questions, and listen to the answers. Car salespeople, for example, always do their homework: “So what do you do for a living? Are you married? Any kids?” That’s not small talk or idle curiosity; it’s information gathering. Knowledge is power, and frequently your most powerful negotiating tool. If you have left money on the table at negotiation’s end, it’s probably because your information wasn’t as good or thorough as your adversary’s.
– You can always walk away. Be a “reluctant” buyer or seller; make it clear that if a favorable deal cannot be reached, there will be no deal at all. Any time a salesperson senses a hint of emotional attachment – that you “have to have it” or “have to sell it” – your negotiating position falls off a cliff. Don’t be afraid to walk away from a managed care contract if the alternative is signing one that costs you substantial sums of money. Rarely is a bad deal better than no deal at all.
– Learn to “flinch.” Choke, snort, sputter, clutch your chest in pain. However you do it, you are trying to convey a visible sign of shock, and maybe a touch of indignation at the preposterous opening offer from the other side. It’s an essential technique, whether you are actually shocked or not; a buyer or seller who sees no reaction to an outrageous opening price will often conclude it’s not so outrageous after all. Even if flinching isn’t your style, keep in mind that it’s being used against you all the time; don’t mistake such tactics for genuine surprise!
– Beware of “nibbling.” You are most vulnerable to trickery when you think a negotiation is over. Your mind relaxes, and you concede things you otherwise would not. And that is when the other party may try to add or subtract something from the deal you thought was done. Salespeople add expensive options you thought were included; and buyers call back to say the boss “won’t okay it” unless you agree to new conditions, or a lower price. Counter those nibble attempts calmly but firmly: “Come on, we had a deal; you’re not going to kill it over a detail like this, are you?” Of course, turnabout is fair play; for example, remember at your next negotiation for office equipment, before you sign, that nothing prohibits you from saying, “You can give us 60 days on this, right? Your competitor will.”
– Decide when you will not negotiate. Some things are just not negotiable. Employees never stop looking for compromises or exceptions. (“You said we’re only getting cost-of-living raises this year, but that doesn’t include me, does it?”) Patients and pharmaceutical representatives (and kids) often request special treatment as well. If a rule or policy is non-negotiable, make that clear. And stick to your guns