The Elements of Negotiation

ELEMENT 41Confirming a Mandate

Here's a crucial, albeit sometimes challenging, guideline: Always ensure you're negotiating with someone who has the authority to finalize the agreement.

Picture this scenario: You've been in discussions with Jeff all day, reaching a mutual verbal agreement. You confidently present the contract for his signature, only to be taken aback when Jeff reveals he's not authorized to sign. Instead, he must refer it to his superior, although he expresses optimism about its approval.

However, the following day brings an unexpected twist. Jeff's boss contacts you, approving only 8 of the 10 negotiated terms and requesting a renegotiation of the remaining 2 items. Suddenly, you're thrust back into a negotiation you believed was settled just a day prior. This could be a strategic move on their part, employing a “salami slicing” tactic to incrementally gain more concessions.

To prevent such scenarios, initiate every negotiation by clarifying if your counterpart possesses the necessary mandate to make binding decisions. Equally, confirm your own authority to represent your side in the discussions.

What If Direct Negotiation with Decision-Makers Isn't Feasible?

In certain situations, like union negotiations, immediate decision-making at the negotiation table isn't always possible. Representatives may need to seek approval from their higher-ups or the “back office.” It's essential to understand these procedural nuances—the rules of the game—before diving into ...