Good drivers and good negotiators share a number of things in common. Both are able to anticipate the actions and reactions of others, and make necessary adjustments accordingly. Both recognize that sudden and unexpected maneuvers and/or changes in speed can lead to a loss of traction or, worse yet, send things careening out of control. Perhaps most importantly, both fully understand and appreciate the importance of communicating their intentions before coming to a stop, and the risks inherent in failing to do so.
As is true with driving, slamming on the brakes abruptly during settlement negotiations can lead to unintended consequences, delaying or even preventing you from reaching your ultimate destination. Usually, the better approach is to gently but consistently apply more pressure, letting those around you know – well in advance – that you are preparing to stop.
For example, if you have only $10,000 with which you are willing or able to negotiate, putting it all on the table at one time – essentially declaring “take it or leave it” – is not likely to lead to resolution. Despite your insistence to the contrary, the opposing party will probably assume that you still have more room to negotiate. Similarly, moving uniformly in $2,500 increments until your $10,000 has been exhausted, and then refusing to budge any further, is equally likely to communicate the wrong message to the opposing party, potentially frustrating your efforts to reach a resolution.
Unlike the above examples, moving $4,000, then $3,000, then $2,000 and then $1,000 sends an unmistakable signal – well in advance of the limit line – that you are planning to stop, giving your opponent ample time to figure out how to best avoid an impact impasse.
If you want to sit in the driver’s seat during settlement negotiations, it helps to know the most effective way to apply the brakes.
As always, it would be my pleasure to assist you and your clients in the dispute resolution process. Please don’t hesitate to contact me if I can be of service.
Best regards,
Floyd J. Siegal
fjs@fjsmediation.com