The Keys to a Successful Negotiation

A few days ago, a friend of mine shared a story his negotiation with a car dealer's maintenance shop. Its result was less than satisfactory. His car had broken down, and a part needed to be replaced. Later, while out of town, the car died again. He was furious and decided to let the service manager know how he felt. He walked into the negotiation with assumptions, and he reacted to the situation. I asked, “How did that go for you?” “Not well,” he said, “I didn’t prepare for the negotiation at all. I let my emotions drive my decision making, and it turned out poorly. I reacted instead of responded.”

I’ve been helping physicians and other healthcare providers with their negotiations for many years. I have seen them improve their results by implementing a system to control their emotions. I want to share a few key points of the system I use every day.

Have a Plan

When you compare those individuals who negotiate well to those who don't,...

Continue Reading...

In Negotiations, to be Successful Know What You Want and Need

Many negotiators fall into the “trap of need.” More often than not, they confuse what they need with what they want. Sometimes it happens because they weren't prepared for the negotiation. Other times it's because they fall into a trap laid by the other side. Many times your adversary will try to label what you want as a need. They will attempt to make you think you need them and their business. They are trying to leverage your own psychology against you, your fear of loss. Who enjoys losing something they need? “It’s your contract to lose,” they might suggest. When they say this, they are trying to use prospect theory against you. You become more worried about the risk of losing something than you are about the risk of gaining something. To protect yourself from these predatory tactics, understand what you want and need.

What is a Need?

A need is something that is required for you to survive. Food, water, shelter, and oxygen are some items that fall...

Continue Reading...

Pick the Right Goals So You Can Succeed

The other day I was helping my daughter prepare for her volleyball team tryouts. She was getting frustrated as she was comparing herself to some of the other girls who were also trying out for the team. She kept focusing on “the numbers.” How many times she could serve a ball properly. How many times she could bump the ball. The problem was she wasn’t hitting her desired numbers. I asked, “What are you focusing on?” “I’m trying to get at least this number on this drill.” Then I asked a question, “What do you think will happen if you just focus on making the best hit you can?” She said she didn’t know and I suggested she try that first. Soon after focusing on hitting each ball the best she could, her performance on the drill dramatically improved. She even exceeded her own expectations. This encounter reminded me of what we face in our practices and business.

Monitor What’s Important

When we set out to perform...

Continue Reading...

How to Keep Yourself Safe in Any Negotiation

Safe decision making is essential for any negotiation. If the outcome is to be meaningful and profitable, you must make solid decisions, your team, and the adversary. Unfortunately, sometimes we can get into trouble and make poor decisions. When we do just that, we get into trouble.

Why we get in trouble 

The first step toward poor decision making in a negotiation is your mindset. Your mindset is how you think and feel about any person, place, thing, or event. Control your thoughts and emotions, and you’ll control your actions. Work on developing a growth mindset when you’re negotiating, and you’ll go a long way towards avoiding the display of neediness and fear at the table. When you don’t feel fear, your decision making becomes clearer and safer.

The next step is to avoid having any assumptions and expectations. These two stumbling blocks come from a fixed mindset; one in which you believe you have all the answers and know exactly how the negotiation...

Continue Reading...

Understanding the Capital Structure of Your Practice

When making investment and financial decisions in your small business you will need a clear picture of the capital structure of your company. Capital is generally referred to as the source of cash for investment in the company. There are two sources of capital, selling ownership and borrowing money either as loans or selling debt such as bonds. Deciding which source and the balance between the two sources is an important decision.

Factors to Consider When Determining Your Capital Structure

Equity. Equity refers to the ownership of the company. Equity can and often equals control. When you raise capital by offering equity, you are selling an ownership stake in your company in exchange for capital, typically cash. Depending upon how you’ve structured the offering, the investor will keep certain rights and powers. They might want a seat at the board, be involved in the decision making of the company, and have a return they expect to earn. Selling equity can come with many...

Continue Reading...

A Guide to Financial Decision Making

As physician leaders, we make financial decisions all the time. These decisions aren’t necessarily hard, but they can be stressful and complicated at times. This stress and complexity can keep us from making the best decision possible. Here’s a guide to help you make better financial decisions.

An Algorithm to Follow in Financial Decision Making

The very first step in the algorithm is identifying your mission and purpose. What is your business all about? What is it that you do and why do you do it? Answering these questions will serve as a guide for the rest of your decision-making process. It will be your guiding light and help you stay focused on what’s really important. What are your core obligations? What are your duties as a firm and practice?

The next step is to ask, "What is the issue you’re facing?" Is it an opportunity to invest in growth? Or, is it an opportunity to remove an underperforming asset? Sometimes you’re presented with an...

Continue Reading...

Donā€™t Let Fear Hold You Back

A few days ago, I had a conversation with my son. He did not want to participate in a particular event. Reading between the lines, I knew he was afraid of what the other kids at the event would think of him. He was nervous he would look foolish. He was scared he would fail. He was letting his fear of what others think of him hold him back. I’ve seen many physician leaders do this very same thing. A strong leader recognizes their fears and knows how to overcome them.

Watch Your Self-talk

One of the first things I find myself doing when I’m anxious about a particular situation is to ask “What am I thinking? What am I feeling?” Sometimes I have to ask this question out loud. I do get some odd looks sometimes, but saying it out loud helps snap me into focus. I can remember the first time I when on a solo flight. It was only me at the controls, the only person in the plane. I was nervous and remember thinking I might crash and die. Then I began to focus on other...

Continue Reading...

Avoid Making Assumptions When Youā€™re the Leader

Recently, I was having a conversation with a friend about some very controversial issues facing our business. At the end of our of coffee, he said he started the conversation planning on dismissing everything I was about to say. He assumed he knew what I was going to say and the reasons behind my statements. He was asking me for advice, but rather than preparing to listen; he was spending time making his rebuttal and prove his point. I could tell his defenses were up and it would be fruitless to argue with him point by point. Instead, I helped him see the situation differently by asking questions. He said he caught himself holding an assumption about me and the situation when I asked a specific question he hadn’t expect. It jarred him, woke him up if you will.

Too often in life, in leadership, and in negotiations, we assume we have all the knowledge and information available or needed. Many times we don’t listen to the other side or anyone else because we’ve...

Continue Reading...

Overcoming the Assumptions Otherā€™s Make of You

Recently, I discussed how you could identify and overcome your assumptions. I shared a story about talking with a friend some issues in our business. Early in the conversation, I could tell my friend came to argue his point. His body language shouted. I'm ready for a debate and argue my point. He was a little bit sterner in his facial expressions; his body language was defensive. I recognized I needed to get him to lower his defenses. So how did I get him to do that? I asked good open-ended questions. I inquired about his thoughts and feelings on the topic. I also let him know he did not have to answer my questions too. If he didn’t want to respond to any or just one of my questions, that would be okay. I wasn’t going to angry. You'll find most people will talk, especially if you invite them to. As they began to talk, they will share more information you can use to help gain a greater understanding of their positions and feelings.

Questions Are the Key to Understanding

...

Continue Reading...

Emotions Are Dangerous in a Negotiation

Let us never negotiate out of fear. But let us never fear to negotiate. - John F Kennedy

Negotiations are stressful. They’re challenging, and you might frequently feel as if you have been backed into a corner. Like any other creature that might feel trapped, we get emotional. Emotions can lead to behaviors and thoughts that can harm our interests. Many times we are not even aware of our feelings while at the negotiating table.

Emotions are natural, and most of the time they can help protect us, but in negotiations, they frequently hurt us. The two most dangerous emotions we experience at the negotiation table are fear and greed. Both come from a fixed mindset and focus our attention on ourselves and our needs. A skilled negotiator will pick up on our emotions much like an experienced poker player can read other players “tells.” Therefore, we must control our emotions or rather how we display our emotions. Honestly, that is easier said than done.

Be Aware to...

Continue Reading...
1 2 3 4 5 6 7 8 9
Close

50% Complete

Sign up today

Sign up for my newsletter. You'll get a monthly email from me sharing valuable business knowledge you can use to have the business you desire.