Tactics are always an important part of the negotiating process. But
tactics don't often jump up and down shouting "Here I am, look at me."
If they did, the other side would see right through them and they would
not be effective. More often than not they are subtle, difficult to
identify and used for multiple purposes. A good example is the
authority limits tactic.
The essence of authority limits is that the negotiator lacks the
authority to conclude a final agreement - or claims that he or she lacks
that authority. In fact, there are three possibilities. (1) the
negotiator really does lack authority and will have to bring the
proposed agreement back to the individual or group with the final
authority, (2) the negotiator states that their authority is limited
when in fact they could conclude the proposed agreement, or (3) the
negotiator technically lacks the authority but knows that in all
probability the "higher authority" will approve their recommendations.
There are many uses for the authority limit tactic. One of the most
common uses is to obtain a delay without directly asking for one. In
this way, the absent authority provides an opportunity for the
negotiator to go back, think through the positions of each side, and
evaluate the proposed agreement.
The authority limit tactic can be used in a number of other ways as
well. For example, occasionally negotiators will go back and check with
the authority even though the negotiator knows that she can close the
deal based on what the parties have agreed to so far. The negotiator
might have been trying to show the other party that she "really went to
bat for him" with the higher-ups. Alternatively she might be trying to
indicate that it was hard to get approval and that the other party
really can't hope for any more concessions in this negotiation.
Another use of the tactic is to obtain a "no" from the authority even
when the negotiator could have said no themselves. The purpose here
might be to reinforce and cement the refusal to make concessions. It
might also be an attempt to make the negotiator appear to be the good
guy and the organization or the higher-ups the bad guys. (Be careful
about painting your own organization as the bad guy too often. This
tactic can tend to backfire.)
Purchasers occasionally use the authority limit tactic by delineating a
range where they can make the deal and indicating that anything in
excess of that amount requires lengthy review and approval. Thus, the
purchasing agent might indicate that he could purchase the instrument
for $10,000, but if the salesperson insists on $11,000, it has to go
through an approval process.
The salesperson might use the authority limit tactic by stating that she
knew that the boss would reject the offer proposed by the buyer if it
were just presented verbally. However, the boss "just might" approve it
if it were presented in the form of a signed purchase order.
You should always be concerned about the authority of the other party.
Try to determine as early as possible their level of authority, or at
least what they state to be their level of authority. If their
authority is limited, you can try to involve the decision maker. If
this is not possible or you feel that it is tactically inappropriate,
continue the negotiations with an acute awareness that the person you
are dealing with either does not have, or says that he or she does not
have, the final authority. One way to deal with this may be to use the
person on the other side of the table as messenger, getting points
agreed to by the person with authority step by step.
Finally, there are two caveats that apply to use of all negotiating
tactics. Tactics usually carry with them some degree of risk or can
backfire. For example, one of the most common counter-moves against the
authority limit tactic is the end run, i.e., "If you can't make the
decision, let me talk to the person who can.". Second, never utilize a
tactic or strategy that you are uncomfortable with or that you believe
to be improper. But always strive to recognize tactics and understand
how they work so that you can respond effectively when they are used
against you.
copyright 1997 - Michael Schatzki
A Master Negotiator
Michael Schatzki is a master negotiator whose high energy,
content-packed Negotiation Dynamics® keynotes, breakout
sessions and seminars draw rave reviews.
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His Negotiation Dynamics® system offers participants a
powerful set of tools that will give them a critical edge in
organizing and structuring all of their negotiations. His stories,
anecdotes and sense of humor bring to life his powerful
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Mike does his homework. He customizes every program, from a 45 minute keynote to a
two day seminar. He learns about your business or industry and tailors the program to
precisely fit the needs of his listeners. The result is that audiences take away ideas,
concepts and approaches that they can use immediately to negotiate the best possible
agreements.
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