Negotiation is an important part of dealmaking, but it also impacts your business success as a whole. It is something that I cover extensively in my book, Authentic Negotiating, so I wanted to outline my fundamental framework in this episode of Fueling Deals. In thirty-five years of dealmaking, I have seen many tactics and counter-tactics. Some are manipulative and unsophisticated, and others are effective on the margins. But sound tactics will not take your deal across the finish line with the best outcome unless you have clarity, detachment, and equilibrium.
Clarity is the first fundamental principle of authentic negotiation, and it is composed of both an internal and an external body of work. Externally, you need all of the research and due diligence that will put you in a position to understand the party across the table, what the market is like, and what is fair. Internally, you need to do a deep inquiry into exactly what is acceptable to you and what is not. Very few people do the work necessary to get the level of clarity that is necessary for true negotiating success.
Detachment is the second principle, meaning you need to distance yourself emotionally from the outcome of your deal. After you establish clarity and understand each party’s terms, you should be prepared to walk if the deal doesn’t meet yours. It needs to be done from a place of clarity and reason rather than anger and frustration. Many people forget to check their egos at the door, but actively maintaining your detachment will help you rise above that.
Equilibrium is the third fundamental process. Even when you are coming from a place of clarity and detachment, it is possible to be overwhelmed by emotion in a tense negotiation. Your equilibrium will enable you to stay calm and connected to your sense of clarity and detachment. Anything that helps you center yourself in life can be used in a negotiation.
By including the fundamental principles of clarity, detachment, and equilibrium in your deal strategies, you will instantly see results. We are going to build on these in future solocasts as well, covering the top six reasons negotiations fail; the five steps to being a negotiator; authentic negotiation techniques; and the principles of CPR. But if you are able to get to clarity, detachment, and equilibrium, you will have an advantage over 90% of other negotiators. If you want to hear more about CDE, listen to my solocast episode, Clarity, Detachment, and Equilibrium, with Corey Kupfer.
Corey Kupfer is an expert strategist, negotiator and dealmaker. He has more than 35 years of professional deal-making and negotiating experience. Corey is a successful entrepreneur, attorney, consultant, author and professional speaker who is passionate about deal-driven growth. He is also the creator and host of the DealQuest Podcast.
If you want to find out how deal-ready you are, take the Deal- Ready Assessment today!