Are you ready to negotiate?
When it comes down to the bottom-line of making deals, possessing great talent, dedication, education, and an enduring work ethic can only take you so far. The most powerful people in society have the ability to negotiate at the highest level. Striking deals and getting to ‘yes’ is second nature to them. It seems they were born to influence others to their way of thinking.
Predictability
Typically, during a negotiation, I can evaluate the likely outcome before most anyone else at the table just by using predictability modeling. I turn the facts, players, and driving forces into a mathematical equation that spits out the likelihood of our success for each opportunity. John Nash describes this concept as ‘cooperative games’ or ‘gaming theory’.1 Nash suggests developing a strategy that, given the driving forces of the parties involved, asks:
“What reasonable condition would be needed to be agreed upon?”
He shows that, once the needs of the parties were established and if they remain constant, then he could successfully narrow down the number of potential outcomes. These driving forces reflect how much the transaction is worth to each party.
1. McMillan, John. Games, Strategies, and Managers. Reprint. New York: Oxford University Press, 1996.
Predicting the future may sound like magic. However, we all know that most magic tricks are rooted in actual physics. There is no magic here; just an evaluation of needs and applied mathematics to identify the possible outcomes. It takes analysis and deep thought over the best scenarios for each party’s interest to become apparent. If you find the likely outcome acceptable to the company objectives, then paved road is in front of you. The deal you desire is steps away with consistent and predictable execution. If it is not acceptable, then make the decision to modify the comparison criteria, or don’t waste any more time and instead move on to a better alternative which has a higher success factor and will provide better economic flexibility and physical functionality.
Forrest Blake
Commercial Real Estate Negotiator
1-310-850-2381
fblake1000@gmail.com
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