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((Chapter 10 - The Real Budget and How to Build It : The Importance of…
Chapter 10 - The Real Budget and How to Build It : The Importance of Time, Energy, Money, and Emotion
Introduction
Invalid behavior
Misdirected Focus and Counterproductive Actions
How:question:
Example of Kids Playing Baseball
Players are distracted by
pay attention to fans :red_cross:
watching the ball :red_cross:
observing the field :red_cross:
coach for approval :red_cross:
Instead of running directly and at full speed to the base :check:
Distraction by time
How:question:
contestants on Game Show
concentration on time :red_cross:
instead of the task itself :check:
Same in negotiations
Self-Defeating attitude
Valid behavior
Camp System
Seen in previous chapter
blank slating :check:
not needing :check:
being unokay :check:
painting pain :check:
and ...
The concept of budget :check:
What is the concept of budget :question:
Emotions budget :three:
Emotions Are Powerful in Negotiations
influence the outcome of the negotiation
How :question:
"The pain of losing"
the fear of financial loss
"The excitement of winning"
the desire to secure a good deal
Tough negotiators use it against you by
Emotional Manipulation
threats
promises
deadlines
ridiculous requests
sudden exclamations
you must control your:!:
Emotions budget is limited as time-energy and money
At the same time, you build your adversary
.
fears
positive and negative expectations
egos
needs
control your emotional reactions
manage your behavior
Time and Energy budget :one:
Valuing Your Time :alarm_clock:
why :question:
Finite and precious resource
Skilled negotiators waste your time budget
how:question:
Canceling at the last minute
Arrive late but cut the meeting short
making unreasonable demands
excessive emails and faxes
Stand you up
why:question:
Overcommitting time in negotiation is a danger
1 more item...
Create a sense of urgency and time pressure
2 more items...
how :question:
Clear Vision of the negotiation
what you are walking into ?
knowledge about adversary's
2 more items...
"Patience, my friend, always patience"
Prioritize your long-term mission and purpose:check:
"
Have clear mission and purpose make time becomes your ally, not an enemy.
"
utilize time as a strategic asset rather than viewing it as a constraining factor :check:
the mindset of
"I have all the time in the world."
:check:
Time is a Mutual Resource
Every minute of your time in a negotiation is a minute of their time as well. Two can play that game
Handle Being Stood Up
Not being emotionally affected:red_cross:
this can weaken your negotiation position:red_cross:
Make another appointment by estimating your budget :check:
All time is energy
Energy Management is important
Negotiations can consume energy beyond time.
They can be mentally and emotionally draining
How to conserve energy :question:
Preparation and Research :bulb:
3 more items...
Controlling Your Behavior
Know Your Endurance Limits
Is building the adversary's budget just silly gamesmanship :question:
NO :red_cross:
A strategy to focus your adversary's attention on their pain
An integral to painting the pain for your adversary
Example of the Vietnam War
Vietnamese strategy:question:
Prolong the conflict :alarm_clock:
Impact on Americans :question:
Causing the them to invest more time, resources, and lives
They found themselves to a "endless" War
So :!:
Building the time budget played an important role in pushing the Americans to recognize the pain of their position and the need to reach a resolution
Building Americans Time budget :alarm_clock:
Money budget :two:
Value Increase with Money
enhances product value.
higher pricing can create a perception of quality and value.
enhances service value.
Self-funded students vs Students receive scholarships
Financial factors significantly impact negotiation outcomes
"what the value of money means to a negotiation: everything"
Same as Time and energy budget
Increase adversary's costs
Beware if you are constrained by money and adversary is not
why:question:
big companies aim to make negotiation process costly
How :question:
3 more items...
why :question:
1 more item...
Continuous financial budget assessment.
Stay within your budget
by fulfilling your mission and purpose.
Author's clients who traveled to Ireland for a meeting. These clients spent $20,000 on the trip, only to be stood up upon arrival
Instead of reacting emotionally, they made another appointment which leads to a good outcomes later
response strategically rather than emotionally
money was already accounted for in their budget
Understand the adversary's money budget
example of Craig's story
he hesitated to ask the seller for more money but he did
The seller immediately offered the additional funds without hesitation
he realized that he was $50,000 short for the project but he already spent $200k
so :question:
understand the true value of the negotiation
3 more items...
Not only about financial budget
:chart_with_upwards_trend: It can increase your financial budget
Control the true costs involved in a negotiation
:chart_with_downwards_trend: It can decrease your financial budget
System is divided into three components
Time and Energy budget :one:
Money budget :two:
Emotions budget :three:
The goal :dart:
Know your adversary budget
Increase the adversary budget by decreasing yours
Know your buget
.
Mastering the Rules
Know their budget
Build their budget
Know your budget.
Control your budget.
"
When you master them, you really can't
fail.
"