[The following is a “new and improved” version of the November 2011 edition of Resolution Strategies]

More than nine years ago — in the very first edition of Resolution Strategies, titled “THE ART OF NEGOTIATING: PAINT WITH NUMBERS” — I noted that “every demand or offer you make will be analyzed . . . to deduce your negotiating strategy. Be mindful, therefore, to choose numbers that paint the picture you want the other side to see.”

In order to choose numbers that paint the picture you want the other side to see, it will help to plot out your negotiating strategy in advance. When you do, don’t underestimate the value of using basic arithmetic — especially simple division — to design an effective strategy.

For example, counsel for plaintiff can paint a clear and unambiguous picture by dividing the difference between the opening demand and the intended “target” into a series of progressively smaller moves. For purposes of illustration, assume an opening demand of $510k and an intended target of $300k — a difference of $210k. Dividing the difference into six successively smaller moves of $60k, $50k, $40k, $30k, $20k and $10k would result in demands of $510k, $450k, $400k, $360k, $330k, $310k and finally $300k.

Another approach might be to make moves that bear a discernible mathematical relationship to the opposing party’s preceding move. For example, counsel for plaintiff might respond to an offer by making a move that is precisely 4 times the move made by defendant, followed by a series of moves that are precisely 3 times the moves made by defendant, followed by a series of moves that are precisely 2 times the moves made by defendant until an acceptable mid-point is reached, at which point counsel for plaintiff might match every move thereafter dollar for dollar, signaling exactly where plaintiff is prepared to settle the dispute.

Similarly, counsel for defendant can paint a clear and unambiguous message by dividing every move that plaintiff makes by “x” and increasing defendant’s offer by the resulting quotient, effectively telegraphing with every move exactly where defendant intends to end the negotiations.

Using simple math to identify numbers that paint the picture you want the other side to see can be enormously successful. In other words, those who divide may indeed be more likely to conquer.

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 . . .

FJS