💡 Key Concepts

Master Concepts

38 concepts to master

Calibrated Questions / Illusion of Control

Concept

Open-ended questions designed to give the other side the illusion of control, encourage thinking, remove aggression, and guide towards solutions, creating a perception that they are in charge while you guide the conversation.

How It Works

By asking questions that require the other party to think and provide answers, you shift the focus, gain information, and guide them towards solving your problems, while making them feel in control and heard. This encourages them to suggest solutions that align with your desired outcome.

System 1 & System 2 Thinking

Concept

System 1 is fast, instinctive, and emotional thinking, while System 2 is slow, deliberative, and logical thinking; System 1 heavily influences System 2.

How It Works

Emotional reactions (System 1) precede and shape rational thoughts (System 2); influencing someone's System 1 can modify their System 2 responses.

Tactical Empathy / Active Listening / Forced Empathy / Understanding the Other Party's Perspective

Concept

Listening as a martial art, balancing emotional intelligence and influence to gain access to another person's mind and increase your influence. Encompasses actively focusing entirely on the other person, prioritizing their perspective, and creating situations where they are compelled to consider your needs, including understanding their worldview and values.

How It Works

By actively listening and demonstrating understanding, you build rapport, gain trust, elicit needs, anticipate actions, and persuade the other party by showing empathy, leading them to become less defensive and more open to your viewpoint. Use calibrated 'How' questions to prompt reciprocity and engage the other party. Understanding core beliefs builds rapport and allows for tailored solutions. Similarity increases rapport and facilitates trust. Tactical empathy uses labeled emotions to create a safe environment.

Loss Aversion

Concept

The concept that people are statistically more likely to act to avoid a loss than to achieve an equivalent gain; also involves the certainty effect.

How It Works

People feel the pain of a loss more strongly than the pleasure of an equivalent gain, making them more motivated to prevent losses; people prefer certain outcomes over probabilities.

Assumptions vs. Hypotheses

Concept

Good negotiators use multiple hypotheses and test them with new information, rather than relying on untested assumptions.

How It Works

Assumptions limit perception and agility by creating a flawed, unchanging view, while hypotheses allow for flexibility and adaptation based on new information gathered during the negotiation.

Slowing Down Negotiation

Concept

Slowing down the pace of a negotiation helps to calm the situation and allows for better information gathering and rapport building.

How It Works

By avoiding rushing to a quick solution, you allow the other party to feel heard, build trust, and prevent undermining the negotiation process, while also providing time to gather information.

The Voice (Late-Night FM DJ Voice)

Concept

Using a deep, soft, slow, and reassuring voice to convey control and calm in a negotiation.

How It Works

The downward-inflecting tone of voice communicates that you are in control, which calms the other party and creates a sense of safety, making them more receptive to what you have to say.

Mirroring (Isopraxism)

Concept

Imitating the other person's speech patterns, vocabulary, or key words to create rapport and trust.

How It Works

Repeating the last three words (or the critical few words) of what someone has just said triggers an unconscious mirroring instinct, making the counterpart feel understood and encouraging them to elaborate.

Labeling / Neutralize the Negative, Reinforce the Positive / Summary (Paraphrasing + Labeling)

Concept

Validating someone's emotion by acknowledging it, giving it a name to show you identify with how that person feels. Involves addressing and diffusing negative emotions while reinforcing positive emotions. Also involves combining rearticulating the meaning of what is said with acknowledging the underlying emotions.

How It Works

By verbally acknowledging someone's emotions, you diffuse their intensity and create a sense of understanding and connection, which then makes the person more receptive to rational discussion; reinforces positive emotions. By identifying and verbalizing the underlying negative emotions, you make them seem less frightening and reduce their power, while emphasizing positive emotions promotes collaboration and trust. By accurately summarizing both content and emotion, you demonstrate deep understanding and validate their perspective.

Accusation Audit

Concept

Listing every terrible thing your counterpart could say about you to defuse their negative perceptions from the outset.

How It Works

By proactively acknowledging potential criticisms, you disarm your counterpart and create a sense of openness and honesty, which makes them more receptive to your perspective; inflames loss aversion.

Beware 'Yes', Master 'No' / 'No' is Protection

Concept

Prioritize eliciting 'No' responses to create a safe environment for negotiation and uncover true objections, rather than pushing for superficial 'Yes' answers. Recognizing that 'No' provides the speaker with feelings of safety, security, and control.

How It Works

Saying 'No' provides a sense of control and safety, encouraging honesty and revealing underlying concerns that can be addressed, while pressuring for 'Yes' can lead to insincere agreement and hidden resistance. When someone says 'No', they feel in control of the situation, and safe from potentially negative consequences.

Types of 'Yes'

Concept

Distinguish between different types of 'Yes' to gauge true agreement and commitment in a negotiation (Counterfeit, Confirmation, and Commitment).

How It Works

A counterfeit 'Yes' is used to avoid conflict or gain information, a confirmation 'Yes' is a simple affirmation, and a commitment 'Yes' is a genuine agreement that leads to action; recognizing these distinctions prevents manipulation and ensures meaningful progress.

Persuade in Their World

Concept

Influence others by understanding and addressing their needs and perspective, rather than imposing your own.

How It Works

By focusing on the other party's needs for safety, security, and control, you create an environment where they feel understood and are more likely to be receptive to your proposals.

Behavioral Change Stairway Model (BCSM)

Concept

A five-stage model for negotiators progressing from listening to influencing behavior: active listening, empathy, rapport, influence, and behavioral change.

How It Works

The model proposes five stages that take any negotiator from listening to influencing behavior, building trust and connection to establish unconditional positive regard.

Unconditional Positive Regard

Concept

Accepting a person completely as they are, which fosters real change.

How It Works

By accepting a person's current state without judgment, you create a safe environment where they feel understood and are more open to changing their thoughts and behaviors.

"That's Right"

Concept

A statement of agreement from the counterpart that signals a breakthrough in negotiation.

How It Works

It indicates the counterpart feels understood and has independently validated your understanding of their perspective, leading to a shift in their position.

"You're Right" Trap

Concept

An agreement that is insincere and merely dismissive.

How It Works

People use You You you’re right You to get someone to stop bothering them without actually agreeing with their position.

Leverage / Leverage in Negotiation

Concept

The ability to influence a negotiation by understanding the other party's unspoken needs and expectations, encompassing positive leverage (the ability to provide or withhold something the counterpart wants), negative leverage (the ability to make the counterpart suffer if they do not comply), and normative leverage (using the other party's norms, values, and standards to advance one's position).

How It Works

By uncovering the subterranean world of unspoken needs and thoughts, a negotiator can find variables that can be leveraged to change the counterpart's needs and expectations. Leverage works by creating a sense of potential loss or withholding desired gains, influencing the other party's decisions and actions. Positive leverage controls access to desired outcomes. Negative leverage exploits loss aversion. Normative leverage highlights inconsistencies between beliefs and actions.

No Deal is Better Than a Bad Deal

Concept

A principle stating that it is better to walk away from a negotiation than to accept an agreement that is unfavorable or detrimental.

How It Works

A bad deal can lead to negative outcomes and dissatisfaction, whereas walking away preserves resources and allows for future opportunities.

Deadlines

Concept

A time constraint that can be used as a tool to pressure the other party or be exploited by them.

How It Works

Deadlines create a sense of urgency, prompting impulsive decisions; understanding and managing deadlines can shift leverage.

The Illusion of Fairness

Concept

The subjective perception of equitable treatment that greatly influences emotional responses and decision-making in negotiations.

How It Works

People are highly sensitive to fairness; perceived unfairness can trigger strong negative reactions, leading to irrational choices.

Emotional Drivers

Concept

The underlying emotions, needs, and pain points that motivate a person's decisions and actions.

How It Works

By uncovering the emotional drivers behind what the other party values, it allows a negotiator to frame a deal that resonates with those emotions and unmet objectives, thus making their proposal a perfect solution.

Suspend Unbelief

Concept

Reducing or eliminating the other party's resistance and skepticism towards your proposals or ideas.

How It Works

By acknowledging their concerns and asking calibrated questions, you create an environment of understanding and collaboration, making them more receptive to your point of view.

Negotiation as Coaxing

Concept

Approaching negotiation as a process of gently persuading and guiding the other party, rather than overpowering or defeating them.

How It Works

Instead of forceful demands or ultimatums, use empathy, active listening, and calibrated questions to encourage the other party to see your perspective and voluntarily move towards an agreement.

Team Behind the Counterpart / Level II Players

Concept

Recognizing and understanding the influence and dynamics of the team or individuals supporting your counterpart in a negotiation, including those not directly involved but who can influence or block implementation.

How It Works

Negotiation efforts must consider the stakeholders and influences impacting your counterpart to ensure that agreements are sustainable and not undermined by internal conflicts or hidden agendas. These "behind the table" players can affect outcomes by supporting or undermining agreements, so understanding their motivations and addressing their concerns is crucial for successful implementation.

Guarantee Execution / Ensuring Commitment and Discovering Hidden Information

Concept

Negotiation isn't just about reaching an agreement, but ensuring it's implemented successfully. Focuses on guaranteeing follow-through and uncovering critical hidden information.

How It Works

Dynamically design verbal and nonverbal elements to gain consent and ensure the other party follows through, understanding that the true value lies in the implementation of the agreement, not just the agreement itself. Execution guarantee involves detecting deception and setting clear expectations. Black Swan Discovery requires deep questioning and active listening.

Decision Architect / Strategic Communication and Influence

Concept

A negotiator must proactively shape the negotiation through communication. Employing specific communication techniques to influence the other party, including setting boundaries with 'no', gaining agreement to be heard, shaping their perception of fairness, and creating the perception of control.

How It Works

By carefully crafting the message of the negotiation, the negotiator can influence the other parties into agreement and action. 'No' clarifies wants and defines boundaries. Permission triggers receptiveness. Reality shaping presents information to shift understanding. Illusion of control uses questions to guide the conversation.

7-38-55 Percent Rule

Concept

A communication model suggesting that only 7% of a message is conveyed through words, 38% through tone of voice, and 55% through body language.

How It Works

By paying close attention to tone and body language, negotiators can identify inconsistencies with the spoken words, indicating potential deception or lack of conviction.

Rule of Three

Concept

Securing agreement on the same point three times in a conversation to ensure genuine commitment.

How It Works

Repeatedly confirming an agreement, using different phrasing and tactics, uncovers potential falsehoods or hesitations that might undermine implementation.

Pinocchio Effect

Concept

Liars tend to use more words, third-person pronouns, and complex sentences to distance themselves from the lie.

How It Works

Recognizing these linguistic patterns can help identify deception during negotiations.

Bargaining / Aggressive Negotiation Tactics

Concept

The process of negotiation involving offers and counteroffers to reach an agreement on price or terms, negotiating aggressively to achieve the best outcome.

How It Works

It involves psychological strategies, tactics, and understanding the other party's motivations to influence the outcome. Using strategies such as anchoring, bracketing, and concession patterns to influence the final price.

Negotiation Styles (Analyst, Accommodator, Assertive)

Concept

Three distinct behavioral profiles that influence how individuals approach and conduct negotiations.

How It Works

Each style has different priorities (data, relationships, or speed), interpretations of silence, and preferred communication methods that affect negotiation dynamics.

Extreme Anchor

Concept

An initial offer that is intentionally very high or very low to influence the other party's perception of value and negotiation range.

How It Works

It sets a reference point that can skew the subsequent offers and concessions, often leading to a more favorable outcome for the anchor.

Strategic Umbrage

Concept

A well-timed expression of offense or indignation to signal strong disagreement and potentially influence the other party to reconsider their position.

How It Works

By conveying strong conviction, strategic umbrage can make the other party question their own assertiveness and be more willing to make concessions.

Ready-to-Walk Mindset

Concept

The willingness to abandon a negotiation if the terms are not acceptable, indicating a clear bottom line and preventing being taken hostage.

How It Works

It gives negotiator power by signaling independence and preventing them from making desperate concessions to avoid a failed negotiation.

ZOPA (Zone of Possible Agreement)

Concept

The range between the seller's reservation price (the lowest they'll accept) and the buyer's reservation price (the highest they'll pay), within which an agreement can be reached.

How It Works

If the reservation prices overlap, a ZOPA exists, and a deal is possible; if they don't, no agreement can be reached unless one party changes their reservation price.

Black Swan

Concept

An unpredictable event or piece of information, previously considered impossible or never imagined, that has significant and game-changing effects.

How It Works

Black Swans operate outside regular expectations and cannot be predicted based on past experiences, rendering traditional predictive models useless and requiring a shift in mindset to recognize and adapt to them.

Knowns and Unknowns

Concept

A framework for categorizing information and uncertainty, encompassing known knowns (facts and information one is aware of and certain about), known unknowns (uncertainties one is aware of but lacks specific knowledge about), and unknown unknowns (information one is unaware of and has never imagined).

How It Works

Known knowns guide decision-making based on established knowledge. Acknowledging known unknowns allows for contingency planning. Uncovering unknown unknowns requires a shift in mindset to more intuitive ways of listening and questioning.