Threats, Refusalsand Ultimatums:Dealing withHardball Negotiators

Stephen Boyle

Programme Director

UCD Smurfit School

Phillip Matthews

Director, Executive Education

UCD Smurfit School

Threats, Refusalsand Ultimatums:Dealing withHardball Negotiators

Presenter: Stephen BoyleModerator: Phillip Matthews

AGENDA• Threats and typical responses

• Assessing the threat

• Disarming threats

• Fighting back, surrendering

25 minutes

• Questions and Answers

15 minutes

Threats, refusals and ultimatums:

Tactics used by the other sideto take control of the negotiationand force you to accepttheir terms and conditionsat the expense ofyour own interests

The desiredeffect…

Surrender

…And the typical responses

Counter-threaten

BAR the threat

• Break

• Assess

• Respond

Assessing the threat1. Will they follow through?

2. What are the consequences for you?

3. What caused the threat– what are their underlyingconcerns?

A better response

Disarm andNegotiate Surrender Counter-threaten

Disarm and negotiate

Tips for disarming threats• Treat the relationship as a partnership

• Understand what’s behind the threat– what really matters to them

• Get all the issues on the table– and keep them linked

• Know your facts in order todisarm theirs

• Understand their alternatives

Essential DON’Ts!• Don’t try to negotiate unless you’re prepared!

• Don’t become dependent on one customer

• Don’t bluff – know the facts

• Don’t whinge – take a problem-solving approach

What if they won’t negotiate?• Ask why

• Use active listening

• Acknowledge their emotions

• Make proposals and invite criticism

X

Fighting back

Tips for fighting back• Say NO

• Stand up for your interests

• Be prepared to walk away

Manage the emotions• Don’t counter-threaten

• Address the problem, not personal issues

• Allow your opponent to save face

Tactics for dealing with ultimatums

• Refuse to accept the ultimatum– Keeps the negotiation moving

• Play for time– Reduces the likelihood of the threat

being carried out

• Develop your alternatives– Strengthens your ability

to resist

Surrendering(when to do it, and what to do next)

Think twice about it!• Do you really have little or no power?

– What’s your BATNA?– Where does their power come from?

*BATNA = Best Alternative To Negotiated Agreement

When to surrender• When you’ve exhausted all options for

improving the deal for both sides

AND

• When your BATNA (best alternative)is worse than the offeron the table

*BATNA = Best Alternative To Negotiated Agreement

After surrendering to a threat• Figure out why you had to,

and remedy the situation– Improve your alternatives– Reduce your dependence– Benchmark your offer– Develop a partnership

approach

Final thoughts• Threats can be self-invited:

Are you “needy” when you negotiate?

• Threats can be self-perpetuating:Have you conceded to threats in the past?

Summary

Summary• Avoid knee-jerk responses to threats

• Disarming your opponent should always be your first option– Change the nature of the negotiation– Take the emotion out of the situation

• If you’ve got to fight it out, stand up for your interests

Questions and Answers

‘Winning Negotiation Strategies’, a 2-day training programme led by Stephen Boyle,takes place on 24-25 February

Please contact Gillian Brown,Programme Manager at (01) 716 8818or email gillian.brown@ucd.ie