Guest Speaker: Catherine Stewart. Former Chief Business Officer of Automatic (WordPress) & COO of Shippo.
General Background/Context:
- We are always negotiating- what we are going to do and how we are going to work together. Often we are not even negotiating for ourselves - we are negotiating for our friends, families, children, employees, etc.
- Reasons to study negotiation: practical (due to frequency); to have better outcomes & get our needs met; very misunderstood - a lot of negotiation is about creating even more value for both parties; many negotiations are the beginning of a relationship - defining how you will work together as partners
- Negotiation vs persuasion. We are selling whenever we are trying to persuade someone else of our perspective and when that perspective has real-life consequences. A negotiation is a form of persuasion.
- Negotiation is often about creating even more value for both parties and do not take place in a vacuum.
Principles & Tips:
- For workplace/job negotiation - reflect on what is most important to you. Negotiate for the resources you need to be successful (e.g., headcount, budget); you have the most leverage before joining; remember that there are many possible dimensions to negotiate on (e.g., work location, flexible scheduled); by asking for what you want upfront you will likely be happier in the job and less likely to leave
- Think about the other person’s interests and speak to their perspective. (e.g., “I am really excited about the future of this company when I have skin in the game” vs “I want more equity”)
- Value Creation Negotiation: Define what matters most to you and advocate accordingly. The best negotiations evolve from both parties being able to have their highest priority “wins”.; The more information that you have; the more you are able to negotiate effectively (e.g., make trades that lead to “win wins”
- Defining the Parameters: ensure you know all the different elements you can negotiation on; makes for easier trades
- We are humans driven by feelings: We have a sense of what is “fair” and have our own personal pride/ego. We often need to feel like we left “winning” as does your counterpart. Start by listening and hearing your counterpart’s needs. People want to feel understood and appreciated. (Catherine recommends 1.5-3 hrs of listening to start)
- Fairness: All negotiations are the beginning of a relationship. Extending an olive branch or showing an extra bit of generosity can go a long way and create a sense of goodwill. You want people to leave a negotiation feeling excited and ready to participate.
- Bartering/BATNA: Best Alternative to a Negotiated Agreement. If you have a great BATNA, you can walk away. If you don’t, you have less leverage and may need to accept something lower. You can make something more favorable if you have more leverage. Don’t bluff.
- Anchoring/Framing are shortcuts for how we attach meaning and value to outcomes: Gives you a sense of where the “range” is for both parties. (e.g., you can anchor on a specific price); How we approach negotiation and how we “fumble” a negotiation comes from having a perception of “unfairness”. Fair is subjective. Most people want to treat people fairly and want to be treated fairly themselves.
- Gender Norms in Negotiation: Take your ego out of the negotiation process and check your feelings at the door. Pitch your salary and other requests in a way that is in your employer’s interest. Remember that if all goes well you will be working together - hopefully for many yes to come. The way you ask is as important as what you ask for. As a woman you can have an advantage in being underestimated.
- Do Your Research: Always research who you are going to speak with as well as learn about the company.