The following items are tagged Renegotiate:

How to Renegotiate a Bad Deal

Posted by & filed under Dealing with Difficult People.

Think you have some stories from trying to renegotiate? Try this one on for size. Many viewed the deal to be a terrible one from the start.  Back in December 2008, Richard M. Daley, then Chicago’s mayor, announced that his administration had agreed to lease the city’s parking meters for 75 years to a private company … Read More 

What Is an Umbrella Agreement?

Posted by & filed under Dispute Resolution.

Business negotiators tend to want the best of both worlds. When reaching an agreement, they want to pin down parties’ respective rights and responsibilities, but they also want to retain the flexibility they need to deal with ever-changing business conditions. One solution to this apparent dilemma is to craft an umbrella agreement. … Read More 

5 Dealmaking Tips for Closing the Deal

Posted by & filed under Dealmaking.

When you’ve made progress on certain issues but remain stymied on others in a negotiation, it’s time to take a hard look at what’s standing between you and a mutually acceptable deal. Professor Robert Mnookin of Harvard Law School and his colleagues at Stanford University have created a catalog of common dealmaking barriers to agreement, … Read More 

Signing Bonus Negotiation 101

Posted by & filed under Business Negotiations.

After engaging in a successful salary negotiation for a coveted job, most people are ready to shake hands and start sharing the good news with friends and family. But these days, there may be one more negotiation you should consider launching before saying yes: a signing bonus negotiation. … Read More 

Take your BATNA to the Next Level

Posted by & filed under BATNA.

If your current negotiation reaches an impasse, what’s your best outside option? Most seasoned negotiators understand the value of evaluating their BATNA, or best alternative to a negotiated agreement, a concept that Roger Fisher, William Ury, and Bruce Patton introduced in their seminal book, Getting to Yes: Negotiating Agreement Without Giving In (Penguin, 1991, second … Read More 

Negotiation in the news: In a skirmish over scallops, it’s the French versus the British

Posted by & filed under Dispute Resolution.

When parties are fighting for scarce resources, disputes can become intense. Negotiation is often the answer, but agreements may need to be continually revisited to keep the peace. That’s the main takeaway from the dispute that erupted in the English Channel between French and British fishermen this August. Stormy waters In Europe, the European Union sets fishing … Read More 

Redoing the deal: Lessons from the NAFTA renegotiations

Posted by & filed under Dealmaking.

During the 2016 presidential campaign, then-candidate Donald Trump blamed the trilateral North American Free Trade Agreement (NAFTA) among Canada, Mexico, and the United States for the U.S. trade deficit with Mexico and lost American manufacturing jobs. Upon taking office, Trump said he was determined to either renegotiate NAFTA or walk away from the pact. Mexican president … Read More 

A Contingent Agreement Can Allow Negotiators to Agree to Disagree

Posted by & filed under Negotiation Skills.

Negotiators often try to overcome their differences of opinion about how future events will unfold through persuasion techniques. A more fruitful approach might be to “bet” on your differing views with a contingent agreement. By adding incentives or penalties based on future performance to your contract, you protect both parties against risk. … Read More 

Unlocking cross-cultural differences in negotiation

Posted by & filed under International Negotiation.

Hollywood film executives are known for being savvy negotiators, but they seem to have met their match over the past year as they struggle to renegotiate terms for showing American films in China. Back in 2012, Xi Jinping, then China’s vice president, and then–U.S. vice president Joe Biden negotiated a deal governing the distribution of American … Read More 

Preparing for the worst in business negotiations

Posted by & filed under Business Negotiations.

In the #MeToo era, entertainment companies are pushing for broad morality clauses in their employment contracts—and raising the larger question of how to manage risk in negotiation. After dozens of accusations of sexual abuse and assault against film producer Harvey Weinstein launched the #MeToo movement, entertainment companies began incurring significant financial and reputational damage from alleged misbehavior … Read More 

Conflict Negotiation Strategies for Business Negotiators

Posted by & filed under Conflict Resolution.

When closing a deal, new business partners are typically optimistic about the path ahead. But somewhere down the line, conflict is almost inevitable. One party may miss a deadline. The two sides may interpret contract terms differently. Changing economic conditions may make it difficult for one side to uphold its end of the deal. When a … Read More 

Bringing a Multiparty Agreement Back from the Brink

Posted by & filed under Business Negotiations.

In December 2015 in Paris, delegates from 195 nations celebrated reaching agreement on a landmark global climate accord. But a year and a half later, the future of the accord sank into doubt when American president Donald Trump revealed he was withdrawing the United States from the pact. With the move, the U.S. government joined … Read More 

Negotiating Controversial Issues

Posted by & filed under Crisis Negotiations.

When you’re trying to negotiate a hot-button issue, what’s the best approach to take? That was the question facing U.S. president Donald Trump as he and his administration attempted to convince the government of Mexico to fund a wall along the U.S.-Mexico border, in addition to negotiating other matters of concern to both governments. The … Read More 

Negotiation in the News: Lessons from David Cameron’s failed Brexit negotiations

Posted by & filed under International Negotiation.

In negotiation, we typically devote significant time to trying to convince a counterpart of the logic and appeal of our proposals. But sometimes our role becomes a more defensive one, as we face the challenge of trying to dissuade another party from pursuing a route that we believe could be disastrous. That was the task outgoing … Read More 

Successes and Messes: Ripping Up a Sweetheart Deal, Mid-Contract

Posted by & filed under Business Negotiations.

The Kansas City Royals didn’t have to give catcher Salvador Perez better terms—but did anyway. It was perhaps “the sweetest of sweetheart deals” negotiated by a Major League Baseball (MLB) team in today’s market, according to the New York Times. So why did the Kansas City Royals throw out their old agreement with star catcher Salvador … Read More 

Dear Negotiation Coach: Are You So Nice It Hurts?

Posted by & filed under Negotiation Skills.

Q: There have been a few times recently when I felt like others, including family members and colleagues, took advantage of me in negotiations. Most recently, a coworker asked me to take on some extra work but then didn’t reciprocate when I needed help. I feel it’s important to be considerate in negotiations, and it’s disappointing … Read More 

Are introverts at a disadvantage in negotiation?

Posted by & filed under Negotiation Skills.

In Washington, D.C., lawmakers in Congress are angry at President Barack Obama. They view him as aloof, distant, unwilling to forge agreement, and unsupportive of their causes. And we’re not even talking about Republicans: Democrats have grown increasingly frustrated with Obama’s standoffish leadership style, report Carl Hulse, Jeremy W. Peters, and Michael D. Shear in a … Read More 

Dealmaking: Bank of America’s Game of Chicken

Posted by & filed under Dealmaking.

What’s the difference between an effective bluff and an ineffective one? Last year’s financial meltdown offered an example of each. In last month’s issue, we described how a bluff by then–U.S. Treasury Secretary Henry Paulson scared off potential buyers for failing investment bank Lehman Brothers in September 2008. After Paulson told Wall Street CEOs that … Read More 

Master the Art and Science of Haggling for More Productive Business Negotiations

Posted by & filed under Business Negotiations.

Just like the prices of houses, cars, and other big-ticket items, the prices of furniture, electronics, wine, jewelry, another “medium-ticket” goods are now frequently up for discussion. The ancient art of haggling—the back-and-forth dance of offers and concessions between buyer and seller—is making a comeback, and you would do well to brush up on your … Read More 

Nothing but net profit: The NBA and “the greatest deal known to man”

Posted by & filed under Business Negotiations.

When we think of our worst negotiation disasters, they tend to be the blunders that are freshest in our minds. But what about mistakes whose repercussions accumulate over years, even decades? Those are typically the most significant negotiation messes of all. An agreement reached in 1976 in the realm of professional basketball illustrates how carelessly negotiated … Read More 

When investing abroad, negotiate a better deal

Posted by & filed under International Negotiation.

On April 19, Toyota announced that it would begin manufacturing its Lexus luxury car in the United States for the first time. The Japanese automaker is planning to invest $360 million in a new production line for its Georgetown, Kentucky, plant, which is expected to create about 750 jobs and churn out 50,000 Lexus ES … Read More 

What to Do Before the Deal Breaks Down

Posted by & filed under Dealmaking.

Whenever one side fails to meet its contractual obligations, renegotiation is more likely to succeed if the parties have a strong relationship. Ideally, the aggrieved party will value long-term relations more than potential gains from a claim for breach of contract. For example, a bank will be more willing to renegotiate a loan with a … Read More 

Dear Negotiation Coach: “Bad acts” and better contracts.

Posted by & filed under Dealmaking.

Q: I work for an international nonprofit that tries to eliminate “bad acts” around the world—not illegal activities, but ones that we consider unethical. We are currently negotiating with a U.S. business owner who is engaged in these bad acts. His business is generating losses, so we are trying to buy him out and put … Read More 

Finding the Right Process in India

Posted by & filed under Negotiation Skills.

In 1995, a new government came into power in the Indian state of Maharashtra and canceled a 20-year power purchase agreement with the Dabhol Power Company, a joint-venture formed by Enron, General Electric, and Bechtel. Claiming that the deal was improper and even illegal, the government declared publicly that it would not renegotiate. … Read More 

Negotiator toolbox: Capitalize on differences

Posted by & filed under Business Negotiations.

The problem: You and your negotiating counterpart express differing opinions about the future success, performance, or timeliness of an item or service. A homeowner might be skeptical of a contractor’s promise to complete an extensive remodeling project within six months, for instance. Differing forecasts can breed suspicion and stand in the way of agreement. The tool: … Read More 

Avoid conflict and broken trust

Posted by & filed under Conflict Resolution.

While negotiations are inherently risky, there are proven ways to reduce risk and improve your odds of success. To do so, you must focus on the very basis of your relationship with the other party: trust. Think about a time when you lost trust in a fellow negotiator. Did you try to renegotiate the terms of … Read More 

Why it pays to haggle

Posted by & filed under Daily, Negotiation Skills.

Adapted from “Master the Art and Science of Haggling,” first published in the Negotiation newsletter, August 2009. Businesses that never would have considered negotiating with customers before the global economic crisis are now willing, even eager, to make a deal. Just like the prices of houses, cars, and other big-ticket items, the prices of furniture, electronics, … Read More 

After the deal breaks down

Posted by & filed under Daily, International Negotiation.

Adapted from “Redoing the Deal,” by Jeswald W. Salacuse (professor, Fletcher School of Law and Diplomacy, Tufts University), first published in the Negotiation newsletter, August 2005. If you’re like many professionals in these uncertain times, you are probably spending as much time redoing old deals as you are negotiating new ones. Here are four suggestions on … Read More 

How to Avoid a Do-Over

Posted by & filed under Business Negotiations.

Remember that big sales contract you negotiated last fall, the one that got you a fat year-end bonus? Well, your manufacturing department has just told you that delivery will be two months late. So now it’s your job to persuade your customer to accept a new date without canceling the deal. And that’s not all. … Read More 

Keeping Your Cool when the Negotiations Get Hot

Posted by & filed under Daily, Negotiation Skills.

On the heels of an intricate negotiation, conditions change for the worse. Crops fail, the price of oil skyrockets, one side issues an earnings restatement, or the market as a whole is a lot less promising than it was when you negotiated the initial terms. Suddenly your agreement has lost its luster. How should you … Read More