‘‘What a wonderful book on a difficult subject—an enjoyable read and a refreshing, natural, and straightforward approach to negotiation Business anywhere is conducted on the basis of relationships, and in my experience the best business is based on superior relationships We would all well to be reminded of these principles that transcend markets, business types, culture, and geography.’’ —Lane Kagey, COO, LG International ‘‘The greatest business lesson of the 21st century is that we have to think sustainably Beyond Dealmaking demonstrates persuasively how this process can and must start at the negotiating table Melanie Billings-Yun’s smart, friendly style makes her the perfect guide to show you how to negotiate long-term success by thinking beyond the deal.’’ —Russell Read, senior managing partner, C Change Investments ‘‘Beyond Dealmaking gets you thinking about what ‘the deal’ means to a long-term business relationship—much like the wedding is to a successful marriage, it is only a first step Melanie Billings-Yun gives the reader the insight and tools needed to plan for and negotiate agreements that will be the basis for longstanding and mutually beneficial business relationships.’’ —Matthew Gerber, president and CEO, SprayCool ‘‘In Asia we have long known the importance of relationships in creating a successful and sustainable business Unfortunately, this lesson is lost on many in the West who go after the quick deal, only to see their fortunes fall just as quickly Beyond Dealmaking is a great antidote to this short-term thinking I highly recommend it to all who negotiate in Asia or anywhere in the world.’’ —Young-Ho Park, president and CEO, SK Holdings ‘‘Beyond Dealmaking is a practical guide on how to think differently (and positively!) for lasting results, whether at home, in your community, or in corporate boardrooms around the world.’’ —William Tung, vice president of Latin America/ Asia Pacific, Columbia Sportswear ‘‘Melanie Billings-Yun’s insight and experience as a leading negotiation consultant have given her the unique opportunity to develop an innovative vision and a simple yet effective approach to negotiating, which will drive you and your business to higher levels of success.’’ —Ellen Devlin, former general manager, Nike Korea and Nike Thailand BEYOND DEALMAKING five steps to negotiating profitable relationships ; MELANIE BILLINGS-YUN Copyright © 2010 by Melanie Billings-Yun All rights reserved Published by Jossey-Bass A Wiley Imprint 989 Market Street, San Francisco, CA 94103–1741— www.josseybass.com 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 permitted under Section 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, Inc., 222 Rosewood Drive, Danvers, MA 01923, 978–750–8400, fax 978–646–8600, or on the Web at www.copyright.com Requests to the publisher for permission should be addressed to the Permissions Department, John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030, 201–748–6011, fax 201–748–6008, or online at www.wiley.com/go/permissions Readers should be aware that Internet Web sites offered as citations and/or sources for further information may have changed or disappeared between the time this was written and when it is read Limit of Liability/Disclaimer of Warranty: While the publisher and author have used their best efforts in preparing this book, they make no representations or warranties with respect to the accuracy or completeness of the contents of this book and specifically disclaim any implied warranties of merchantability or fitness for a particular purpose No warranty may be created or extended by sales representatives or written sales materials The advice and strategies contained herein may not be suitable for your situation You should consult with a professional where appropriate Neither the publisher nor author shall be liable for any loss of profit or any other commercial damages, including but not limited to special, incidental, consequential, or other damages Jossey-Bass books and products are available through most bookstores To contact Jossey-Bass directly call our Customer Care Department within the U.S at 800–956–7739, outside the U.S at 317–572–3986, or fax 317–572–4002 Jossey-Bass also publishes its books in a variety of electronic formats Some content that appears in print may not be available in electronic books Library of Congress Cataloging-in-Publication Data Billings-Yun, Melanie Beyond dealmaking : five steps to negotiating profitable relationships / Melanie Billings-Yun p cm Includes bibliographical references and index ISBN 978-0-470-47190-6 (cloth) Negotiation in business Deals Success in business I Title HD58.6.B53 2010 658.4’052-dc22 2009038854 Printed in the United States of America first edition HB Printing 10 Contents Preface ix Introduction xiii Part One why relationships matter The Goal Is Not a Good Deal, but a Good Outcome Even Monkeys Demand Fairness 29 The Power of Us 49 Part Two the mind of the negotiator 73 The Four Pillars of Relationship Negotiation Don’t Feed the Bears! Be Prepared 75 99 117 Part Three five steps to success 10 11 Goals—What You Really Want Routes—How to Get There Arguments—Making Your Case Substitutes—The Backup Plan Persuasion—Winning Them Over 131 133 157 181 203 225 Part Four conclusion 12 You Can Negotiate! 249 251 v vi Contents Appendix A: GRASP Negotiation Planner 257 Appendix B: Post-Negotiation Evaluation 263 Notes 265 Acknowledgments 269 About the Author 271 Index 273 To Joe, my husband, adviser, and lifetime negotiation counterpart ... —Ellen Devlin, former general manager, Nike Korea and Nike Thailand BEYOND DEALMAKING five steps to negotiating profitable relationships ; MELANIE BILLINGS-YUN Copyright © 2010 by Melanie Billings-Yun... Library of Congress Cataloging-in-Publication Data Billings-Yun, Melanie Beyond dealmaking : five steps to negotiating profitable relationships / Melanie Billings-Yun p cm Includes bibliographical... the steps in this book Organization of the Book Beyond Dealmaking has two objectives divided among three parts Part One, ‘‘Why Relationships Matter,’’ sets out to demonstrate the importance of negotiating