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Table of Contents Table of Contents The Opening Salvo 21 What Are Negotiations? 21 Why Are Negotiations Important? 25 When Do Negotiations Take Place? 26 Are Negotiations Limited to the Purview of Rocket Scientists? 30 Should Negotiators Always Seek to Vanquish Opponents? 31 Costs and Risks of Negotiations 36 Some Negotiators are Duplicitous 45 Risks of Borrowing Money from Partners and Customers 47 Avoiding Negotiations 63 You Are Always Negotiating 63 Fundamental Tensions in Negotiations 67 Negotiations Are Pervasive and Eternal 74 LEVERAGE IN NEGOTIATIONS 79 The Importance of Leverage in Negotiations 80 Creating Negotiating Leverage 85 Plan Your Exit at the Beginning 85 Importance of Choosing Partners Wisely 87 Gaining Leverage Through Third Parties 89 Business Models Are a Factor in Successful Negotiations 93 The Anatomy of Argumentation 97 Lincolnian Argumentation 98 The Power of Process 101 Harmonizing the Negotiating Process 103 Voting Architecture 105 Selected Negotiating Process Issues 107 Preemptively Setting the Framework for Resolving Disputes 108 Auctions Versus Direct Negotiations 113 Benefits of Auctions Over Direct Negotiations 113 Benefits of Direct Negotiations Over Auctions 115 The Strategic Negotiator I 1 Sequencing Negotiations 118 Sequencing Contentious Issues 118 Negotiating Downrange 129 Hold-Up Tactics 132 PREPARING FOR NEGOTIATIONS 143 Conducting Due Diligence on Individuals 148 Conducting Due Diligence on Institutions 152 Conducting Due Diligence on Individuals Within Institutions 154 Elicitation Strategies 157 Heimlich Maneuvers 165 Question Deflection 169 Achieving Internal Alignment 171 Initiating Negotiations 179 Maintain Visibility 179 Pre-Empting Early Commitment Discounts 188 The Negotiating Venue 193 Negotiating from the Toilet 202 The Importance of Seating Arrangements 204 Developing and Managing Negotiating Teams 208 Dedicated Negotiating Teams 208 Traits of the Players on the Negotiating Team 209 Sizing and Managing the Negotiating Team 214 Composition of the Negotiating Team 217 The Importance of Listening 227 Preparing for the Negotiations 231 Create an Audience 235 Importance of Physical Stamina in Negotiations 238 Provisioning Before Negotiating Battles Begin 239 The Importance of Rehearsing for Negotiations 242 In the Negotiation 244 The Merits of Note Taking 247 Meeting Assessment 249 Momentum in Negotiations 251 Combatting the Opponent’s Momentum 253 The Strategic Negotiator I 2 Deal Structuring 266 Pay-to-Play 268 Managing Contingencies 269 Shutdown Moves 277 Set-Up Contracts 286 360° Contracts 287 Decision Rights 291 Floors 291 Magic Bullets 292 Crosses 293 Swaps 294 Escrows and Indemnifications 295 Contract Expiration and Release 296 Limits of Deal Structuring 298 Negotiating Nimbleness 312 Planting Seeds of Greed in Their Minds 317 Negotiating Cosmetology 337 Structuring Deals to Save Face 337 The Elegance of Arbitrariness 339 Texas Shootouts 341 Springing a Signatory from a Non-Compete Agreement 342 Game Theory in Negotiations 348 Deficiencies Associated with Game Theory 351 Negotiating with Numbers 353 Mental Accounting 363 Negotiating Around Valuation Methodologies 366 Never Forget: You Always Negotiate Against People, Not Numbers 373 THE WEAPONIZATION OF WORDS 378 The Silent Treatment 379 Specificity and Ambiguity in Agreements 382 The Power of Precise Word Selection 383 Constructive Ambiguity 386 Deal Economics Trump Agreements 389 Word Recoiling 391 Key Words and Phrases 397 Communicating Success and Failure 400 The Art of Deflection 401 Paraverbal Communications 402 Using Humor in Negotiations 405 Love Bombing a.k.a. Flattery 408 The Strategic Negotiator I 3 Grease the Wheels 412 Checkbook Negotiations 423 Philanthropic Blitzkrieg 426 Negotiating Written Agreements 428 Delegating Drafting 428 Contentious Issues 428 NEGOTIATING AGAINST PEOPLE 430 Fractionalizing the Adversary 431 Fractionalization Prevention 437 Negotiating Against Frenemies 441 Negotiating with Preventers and Enforcers 443 Negotiating with Preventers 443 Negotiating with Enforcers 443 Enforcers and Contract Compliance 446 Outside Forces Can Act as Enforcers 447 The Role of Agents in Negotiations 450 Deal Initiation 450 Deal Lubrication 450 Required Expertise 450 Tactical Advantages of Agents 451 Risks and Drawbacks of Retaining Agents 454 Agents Reduce Negotiating Flexibility 456 Retaining Agents 458 Qualifying Clients 459 Managing Agents 461 Negotiating with Bosses 464 Negotiating with the Board of Directors 466 Outflanking Insidious Venture Capitalists 467 Negotiating with Bullies 473 Bully Repellents 474 Emasculating Goliaths 479 Negotiating Against Their Interests 479 Use Your Rival’s Size Against Them 483 Leverage Alignment 484 Argument Delegation 484 Seek Reciprocity 485 Embedded Vendor 485 Gordian Knot 486 Resolve Disputes Beyond the Reach of a Goliath 486 The Strategic Negotiator I 4 Reputational Self-Immolation 487 Timing Negotiating with Giants 487 Negotiating from Weakness 489 Negotiating with Large Chinese Companies 495 Negotiating Lessons from Car Salesmen 502 Negotiating through Regulators 506 Leveraging Regulations 506 Shape the Regulations 507 Fighting the Regulator 508 Negotiating Against Civil Servants from the Top 509 Exceptions to Rules Do Not Set Precedents 510 NEGOTIATING AGAINST TIME 516 Negotiating Against Time 517 Timing Negotiations 517 Timing Negotiations with Mood Swings 520 The Importance of Setting Deadlines in Negotiations 521 The Downside of Deadlines in Negotiations 522 The Importance of Speedy Closure in Negotiations 525 Exclusive Negotiating Periods 527 NEGOTIATING PRINCIPLES 547 Adversary Removal 548 Always Articulate Your Pain 552 Concessions Management 558 Drawbacks of Anticipatory Surrender 558 Concessions Retardant 559 Intimidatory Concessions 561 Slicing 562 Concessions Trafficking 562 The Case Against Solomonic Division 565 Diminishing Concessions 568 The Final Concession 569 Defeating Deadlocks 571 Presenting Resolutions to Impasses 572 Framing Negotiations 574 The Power of Precedents 578 Setting Precedents 578 The Strategic Negotiator I 5 Precedent Smashing 579 Seeding and Sterilizing Negotiating Histories 580 The Rationality of Irrationality 582 The Merits of Acting Irrationally 582 Back Yourself into a Corner 583 Most-Favored Nation Clauses 585 Scorched Earth 587 The Samson Option 588 Signal Jamming 591 Strategic Sympathy 594 Strategic Transparency 596 Transparency Mechanisms 600 Truth and Honesty in Negotiations 602 Straddling the Truth 603 Truth Torpedoes 605 Diplomatic Doublespeak 607 Truth Testing 607 Soliciting a Serenade of Lies 608 Merits of Breaking Promises 609 Unwinding Ultimatums 611 NEGOTIATING TACTICS 613 Understanding and Defeating Common Negotiating Tactics 614 The Afterparty 615 The Alchemy of Altruism 615 Atomic Love 616 The Bop Bag 617 The Broken Record 617 Buffoon Boss 618 The Caged Animal Syndrome 618 Calculated Contamination 619 Carpet Bombing 620 Cherry Picking 620 The Corkscrew 621 Crazy Uncle in the Attic 622 Culture Whipping 623 Damsel in Distress 626 Defending Daddy Warbucks 626 Democratization Deluge 627 The Duplicitous Prospect 627 The Ego Booster 628 Fait Accompli 629 The Fallacy of the Slippery Slope 631 The Strategic Negotiator I 6 Flooding the Zone 632 Glass Housing 633 The Grinf*#k 635 The Hindenburg Gambit 635 Homicidal Harmony 635 Human Shields in Negotiations 636 Hyper-Literal Retorts 636 The Lackadaisical Lawyer 637 Leapfrogging 637 Morality Mongering 638 Negotiating Around DocuSign 641 Negotiating in Anticipation of Trade Shows 642 Negotiating from the Doorstep 642 Negotiating from the Grave 642 Negotiating from the Podium 643 Negotiating in the Shadow of the Future 644 Negotiating in the Shadow of the Law 645 Negotiating in the Shadows of SEC Disclosures 645 Negotiating Through Investor Conference Calls 646 Negotiating Through Press Releases 647 Negotiating Through Surveys and Research Reports 649 Negotiating Through Think Tanks 650 Negotiating with Respect to One’s Legacy 651 The Olive Branch 652 Onus Shifting 652 Pernicious Frugality 653 Predatory Graciousness 654 Perverse Praise 655 Relationship Rapscallions 655 Seduction by Symbolism 656 Shakedown Disinfectant 658 Shooting Stars 659 Spousal Squeeze 661 The Steamroller 662 Surgical Strike 662 Two Steps Back, Three Steps Forward 663 The Two-Step Dance 663 Valet Kidnapping 664 The Velvet Crowbar 665 Virtues of Stupidity 666 Window Dressing 666 The Wounded Dove 667 CONCLUDING NEGOTIATIONS 681 Managing the Closing 682 Sealing the Deal 682 Passing the Collection Plate 683 Signature Analysis 684 The Strategic Negotiator I 7 Post-Negotiations Behavior 686 Establishing No Gloat Zones 686 Post-Negotiations Assessment 688 Managing Renegotiations 690 Contract Compliance 694 Malicious Obedience 695 Compliance Safety Rails 695 Compliance Tripwires 696 Conclusion 700 Acknowledgements 701 Indices of Terms 702 Dramatis Personae 705 Events of Historical Consequence 714 The Strategic Negotiator I 8 The Strategic Negotiator I 9 .
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