01_045220 ffirs.qxp 12/27/06 7:47 PM Page i Negotiating FOR DUMmIES ‰ 2 ND EDITION by Michael C.Donaldson Foreword by David Frohnmayer President,University of Oregon 02_045220 ftoc.qxp 12/27/06 7:47 PM Page viii 01_045220 ffirs.qxp 12/27/06 7:47 PM Page i Negotiating FOR DUMmIES ‰ 2 ND EDITION by Michael C.Donaldson Foreword by David Frohnmayer President,University of Oregon 01_045220 ffirs.qxp 12/27/06 7:47 PM Page ii Negotiating For Dummies®, 2nd Edition Published by Wiley Publishing, Inc. 111 River St. Hoboken, NJ 07030-5774 www.wiley.com Copyright © 2007 by Wiley Publishing, Inc., Indianapolis, Indiana Published by Wiley Publishing, Inc., Indianapolis, Indiana Published simultaneously in Canada No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as permit- ted under Sections 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of the Publisher, or authorization through payment of the appropriate per-copy fee to the Copyright Clearance Center, 222 Rosewood Drive, Danvers, MA 01923, 978-750-8400, fax 978-646-8600. 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Library of Congress Control Number: 2006939585 ISBN: 978-0-470-04522-0 Manufactured in the United States of America 10 9 8 7 6 5 4 3 2 1 01_045220 ffirs.qxp 12/27/06 7:47 PM Page iii About the Author Michael C. Donaldson is an ex-Marine. As a 1st Lieutenant, he was selected to be Officer-In-Charge of the first Marine ground combat unit in Vietnam. He went on to earn his law degree from the University of California at Berkeley (Boalt Hall) where he was student body president. He raised his three lovely daughters (Michelle, Amy, and Wendy) as a single parent and is now the proud grandfather of two healthy and happy grandsons (Soul and Caden). He is an avid skier, worldwide hiker, and award-wining photographer. He com- peted in the Senior Olympics in Gymnastics, win- ning gold medals for the parallel bars in 1996, 1997, and 1998 and a silver metal for rings in 1998. In his successful entertainment law practice, Michael represents writers, directors, and producers. He was co-chairman of the Entertainment Section of the Beverly Hills Bar Association and is listed in Who’s Who of American Law.His book Clearance and Copyrightis used in 50 film schools across the country. Michael travels extensively to universities, annual meetings, and corporate headquarters throughout the United States, Asia, and Europe to lead work- shops on the topic of negotiating. His expertise, developed over a lifetime of experience and learning, makes him a highly sought-after speaker. Michael’s expansive knowledge of negotiating coupled with his energetic and engaging style delivers powerful results to each seminar attendee. Michael C. Donaldson 2118 Wilshire Blvd, Suite 500 Santa Monica, California 90403-5784 [email protected] 01_045220 ffirs.qxp 12/27/06 7:47 PM Page iv Speeches, Seminars, and Consulting Michael’s expansive knowledge of negotiating coupled with his energetic and engaging style delivers powerful results at seminars and keynote speeches. (cid:1)45 minute keynote speech on negotiating. (cid:1)21⁄ hour negotiating workshop ideal for a break-out session at annual meet- 2 ings. Includes printed hand-out. Material is tailored for each audience. (cid:1)Two- and three-day intensive negotiating seminars for corporations. These seminars are specially designed for each corporate client after a thorough needs analysis. Ideally, the seminars last from 8:30 in the morn- ing to 9:00 p.m. with programming covering lunch sessions. The third day ends at 4:30 p.m. The participants typically have a dinner together before the evening session and are all housed in the same hotel. (cid:1)Seminars: “Working with the Jerk at Work” is a fun and exciting full day or half day course that helps smooth out the noisiest of office battlegrounds. Free Negotiating Stuff As a Dummiesreader, you can visit Michael’s Web site, www.michaelc donaldson.com, and get the following free materials: (cid:1)Ten ways to become a master negotiator (cid:1)Ten common negotiating mistakes (cid:1)Ten-step preparation sheet to prepare you and your team for any negotiation (cid:1)20% discount on a 1-hour negotiating DVD Use this special code: NEGOTIATINGCHAMP 02_045220 ftoc.qxp 12/27/06 7:47 PM Page ix Table of Contents Foreword.....................................................................xix Introduction..................................................................1 Who Needs to Read This Book?.....................................................................1 Foolish Assumptions.......................................................................................2 About This Book...............................................................................................2 How This Book Is Organized...........................................................................3 Part I: Preparing to Negotiate...............................................................3 Part II: Getting Your Point Across.........................................................4 Part III: Getting Past the Glitches to Close It Up.................................4 Part IV: Conducting Cross-Cultural and Complex Negotiations.......5 Part V: The Part of Tens.........................................................................5 Icons Used in This Book..................................................................................5 Where to Go from Here....................................................................................6 Part I: Preparing to Negotiate........................................7 Chapter 1: Negotiating for Life . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9 When Am I Negotiating?................................................................................10 The Six Basic Skills of Negotiating...............................................................10 Prepare...................................................................................................11 Set goals and limits..............................................................................13 Listen......................................................................................................13 Be clear..................................................................................................14 Push the pause button.........................................................................17 Closing the deal....................................................................................17 Handling All Sorts of Negotiations...............................................................18 When negotiations get complicated..................................................18 International negotiations...................................................................19 Negotiations between men and women............................................19 Negotiation on the phone and via the Internet................................20 Chapter 2: Knowing What You Want and Preparing to Get It . . . . . . .21 Creating Your Vision......................................................................................22 Envisioning your future.......................................................................23 Making a commitment.........................................................................26 Identifying your values........................................................................28 Deciding How You Are Going to Achieve Your Vision...............................29 The three-year plan..............................................................................29 Putting your plan into action..............................................................31 01_045220 ffirs.qxp 12/27/06 7:47 PM Page v Dedication This book is dedicated with love and respect to: Sally Tompkins Anne Laidlaw Susie Kittleson (1941-2006) Author’s Acknowledgments I gratefully acknowledge the contribution of so many beloved people whose talent and willingness to help were indispensable: (cid:1)My daughters, Michelle (and Ray) Rapko, Amy Donaldson (and Eddie), and Wendy (and John) Friess, who have taught me more than I ever wanted to know about negotiating with children. (cid:1)My partner, Tim Kittleson, for his sharp eye and wise counsel. (cid:1)Betty White, whose genuine enthusiasm encouraged me from the earli- est stages of the first edition all the way through this sequel edition. (cid:1)An army of typists, proofers, and commenters led by Gus Avila, Katheleen Ebora, and Ryann Gooden. (cid:1)The dozens and dozens of people who provided quotes, quips, informa- tion, and insights that enrich the book, including such professional writ- ers as Howard Rodman, Melinda Peterson, and Phil Proctor. James Greenwood, your donated time is particularly appreciated. (cid:1)My clients, with whom and for whom I hone my skills every single day. (cid:1)Mimi Schwied Donaldson, who aggressively supported me to write the book that would eventually become Negotiating For Dummies and to find a publishing home for the book. When I decided to join the For Dummies team, Mimi became coauthor of the first edition by making substantial contributions to what is now Chapter 2 and Chapter 9. She also con- tributed virtually all the material that is gathered into Chapter 17 on negotiating between men and women. (cid:1)And, from beginning to end, the wonderful, supportive, and flexible staff at Wiley Publishing, Inc.: Kathy Cox, who commissioned the second edi- tion; Tim Gallan, my fabulous editor, who shaped the book; Vicki Adang, the world’s best copy editor; and all the wonderful people in Production, Marketing, and Sales who delivered this book from the press to you. 01_045220 ffirs.qxp 12/27/06 7:47 PM Page vi Publisher’s Acknowledgments We’re proud of this book; please send us your comments through our Dummies online registration form located at www.dummies.com/register/. Some of the people who helped bring this book to market include the following: Acquisitions, Editorial, and Composition Services Media Development Project Coordinator: Jennifer Theriot Senior Project Editor: Tim Gallan Layout and Graphics: Carl Byers, Acquisitions Editor:Lindsay Lefevere Joyce Haughey, Shane Johnson, Laura Pence, Heather Ryan Copy Editor: Victoria M. Adang Anniversary Logo Design:Richard Pacifico Technical Editor: Barbara Findlay Schenck Proofreaders:Laura Albert, Editorial Manager: Christine Meloy Beck Christine Pingleton, Techbooks Editorial Assistants:Erin Calligan, Joe Niesen, Indexer:Techbooks David Lutton Cartoons: Rich Tennant (www.the5thwave.com) Publishing and Editorial for Consumer Dummies Diane Graves Steele, Vice President and Publisher, Consumer Dummies Joyce Pepple, Acquisitions Director, Consumer Dummies Kristin A. Cocks, Product Development Director, Consumer Dummies Michael Spring, Vice President and Publisher, Travel Kelly Regan,Editorial Director, Travel Publishing for Technology Dummies Andy Cummings,Vice President and Publisher, Dummies Technology/General User Composition Services Gerry Fahey,Vice President of Production Services Debbie Stailey,Director of Composition Services