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Tutorial: Being irritating can pay off
 Don't ever deliberately annoy the other side. But it can be useful to introduce an "irritant factor" that's unimportant to you but may irritate the other party.
For example, your "irritator" may be six months of free service on equipment that in the past has rarely needed servicing. If those on the other side are irritated by this request, offer to give it up--provided they agree to a concession that's important to you.
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Analysis: Deadlock has dire costs--proof is in the Twinkie
 After a last-ditch mediation between Hostess and its second-largest union failed, the company has begun the liquidation process. It could be the end for such iconic brands as Twinkies, Ding Dongs and Ho Hos. And more than 18,000 employees may be without a job. Some key questions: - Was Hostess squeezing the bakers' union by cutting salaries 8% company-wide and reducing its pension obligations and health insurance contributions?
- Was management greedy by taking a massive pay hike while the rest of the staff was sacrificing for the good of the company?
- Was the bakers' union foolish for calling the company's bluff to lay off workers if its terms were rejected?
In negotiations, we may deadlock to prove a point. We know there's a cost to negotiating around giving concessions, setting precedents or saving face. But not negotiating comes with a huge price tag-- devastating impacts on finances, social and political ramifications, and the time needed to reverse damage caused by deadlock. This story played out with the liquidation of a near-100-year-old company, 15,000 immediate layoffs, public attention gained, and support lost partially due to greed and running the clock out. Hostess lost on all parts. Hopefully we can learn from this loss, as individuals, as corporations and as a country. Deadlock has its costs. |
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Scotwork blog: Walk in their shoes and you'll understand
 To be an effective negotiator--as a buyer or seller--speak the language of those on the other side, or at least understand their perspective. What defines their success? How are they measured? And what makes them look good to their organizations? Without this information, you could be headed to confusion, frustration and deeper conflict. See why speaking the same language as others is critical--including for a woman trying to cure her dog's hearing! Read Alan Smith's blog post, "Cross Purposes." |
Supply chain report:
Global shift triggers need for segmentation--and sophisticated negotiation
With U.S. manufacturing expected to add $100 billion over the next decade and imports poised to drop by as much as 30% (according to the Boston Consulting Group), some experts are urging companies to embrace supply chain segmentation.
They recommend developing a specific supply chain process for each market at a given point in time to maximize profits and quality of service.
As your organization figures out how to prepare your supply chain for this global shift, you'll need to interact with more types of customers--and fine-tune your negotiation skills. Contact us and we'll explain how.
Read more about supply chain segmentation in Supply & Demand Chain Executive Magazine.
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Stay tuned for more negotiation tips in our next newsletter.
Happy negotiating,
The Scotwork NA Team
usa@scotwork.com | (973) 428-1991 | www.scotworkusa.com Join our alumni group Visit the Scotwork blog 
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