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Category: Investing

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Highlights of the 2017 Tax Cuts & Jobs Act

CHANGES TO INDIVIDUAL RATES AND BRACKETS– lowered top bracket from 39.6% to 37%

  • Married Individuals highest bracket starts at $600,000; Single Individual $500,000; Trust and estate $12,500
  • NEW-Dependent children aged 18-24 in school must use trust rates not Parent’s rate
  • Capital gains rates remain unchanged
  • NEW-three year holding period for carried interest distributions, sales or redemptions for Long-term capital gains
  • AMT thresholds increased

CHANGES TO INDIVIDUAL DEDUCTIONS

  • Only deductions available: medical expense, Interest expense, charitable deductions and tax expense and business casualty loss
    • Taxes limited to total of $10,000; Mortgage debt for existing loans limited to $1,000,000 and New home purchase $750,000.  Cash contributions limit increase from 50% to 60% of adjusted gross income
  • No longer deductible expenses-Alimony paid for and alimony received under divorce contracts entered after 2018, tax prep fees, employee business and investment expenses and other miscellaneous itemized deductions moving expenses; personal casualty theft loss except for federally declared disasters
  • New 529 plans for elementary or secondary public private or religious schools.
  • Like kind exchanges now limited only to Real property so fast-food restaurant franchise licenses and patents; aircraft, vehicles, machinery and equipment, railcars, boats, livestock, crypto-currency, artwork and collectibles are no longer eligible.
  • Current year business operating losses including passive losses limited to $500,000 joint and $250,000 for other filers.  Anything in excess cannot offset capital gain or investment income.
  • No carryback of Net operating business losses. Carryforward of future losses limited to 80% of taxable income.
  • Increased limits for expensing capital assets up to $1,000,000 for new & used property.
  • Non-owner of some private company employees may get up to 5 years to defer income on exercise of stock options or RSU’s.

CHANGES TO ESTATE TAX

  • Life time gift & GST exemption-2018 $11,200,000 single & $22,400,000 married couples.  Will be adjusted for inflation each year.  
  • Annual gift tax amount-2018 Increased to $15,000

CHANGES TO BUSINESS (SCHEUDLE C) AND PASS THRU ENTITIES

  • NEW- 20% deduction for pass thru or Schedule C qualified business income done at individual level
  • Limitation of business interest deduction limited to 30% of the business’s adjustable taxable income, exception for real estate companies who elect longer depreciable life for real estate.
  • NEW-Taxpayer’s average $25 million gross receipts- can use cash method of accounting and don’t have to use UNICAP rules for inventory capitalization.

At GROCO, we assist high net worth clients and their families with wealth creation, family transfers, taxes and charitable giving. Please give me a call at 510-797-8661 if you need assistance or have questions on these new rules or would like to know how to make, keep and/or transfer your wealth.

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The Long, Hard Road

I recently interviewed Rick Wartzman for my Business Builders Show podcast. Rick is the Director of The KH Moon Center for a Functioning Society at the Drucker Institute, a part of Claremont Graduate University. Rick has written a great book, The End of Loyalty, The Rise and Fall of Good Jobs in America.  This book has 363 pages and 25 pages of citations and sourcing. This is a very well -written, well documented account of the topic of the book. At the beginning of the interview I pointed out that he started the book in 2009 and it was not published until 2017. I asked him why did it take that long? After he made a joke about him being “slow”, he pointed out that it took that long to check on and validate all the information he wrote about in the book. It simply was the long, hard road to get the book done right.

Todays blog from Seth Godin is “Low & Slow (vs.fear)”. He talks about how he rushed the baking of sourdough rye bread. He did not let the dough ferment enough and he turned up the oven, so he could get it done faster so he could meet someone. It did not turn out well. Then he points out a flipside to the story – “Sometimes, we mistakenly believe that we’re building something that takes time, but what we’re really doing is hiding. We stall and digress and cause distractions, not because the work needs us to, but because we’re afraid to ship.”  BTW, remember that Seth Godin has been blogging for I’m not sure how long (a long time) and has not missed a day.

When do we decide to take the long and sometimes difficult road? I see the value in the long view. Just like baking bread correctly, getting a story (your work) right so you can share your insights usually takes time. Be patient. Stay focused. Believe the work you are doing is worthy of the time and effort. So, unless there is an immediate need for speed, consider the long term. Think of the lasting impact your work can have if you take the time to complete all the steps in the process. Those steps will include diligent study, bouncing ideas off family, friends and colleagues and being committed to producing work which will have a positive, lasting impact.

Rick Wartzman, congratulations on taking the time, the long, hard road, to write a terrific book. Seth Godin, slow down and better luck next time with the sourdough rye bread.

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Accounting Economics Entrepreneurship Industries Investing Personal Development Taxes

Maximizing the Value of Your Carried Interest

After the passage of the 2017 Tax Cuts and Jobs Act (ACT), many people are wondering how to maximize the value of their carried interest. There are some changes in the ACT that might affect how you proceed when selling or transferring your carried interest to achieve long-term capital gain treatment. These rules apply to taxable years ending after December 31, 2017.

NEW THREE-YEAR HOLDING RULE

Perhaps you’ve heard of the new three-year holding rule but you’re not sure if it applies to you.

Distributions and gains passed thru to you because of your carried interest

To receive long term capital gain rates (20%) on gains or distributions associated with your carried interest from the fund, the underlying investment at the fund level must be held for more than three years.

Sale or redemption of your Carried interest

If you decide to redeem or sell a portion or all your carried interest, your interest must be held for more than three years to get the long-term capital gain rate treatment.

Additional guidance from the IRS is needed to see if the underlying investments at the fund level must also be considered when you sell or redeem your interest.

Planning Point: The good news is that if stock is distributed to you and it has not yet met the three-year requirement, you can use the fund’s purchase date of the stock and hold on to it until it satisfies the three-year requirement to achieve long-term capital gain rates.

TRANSFERS OF CARRIED INTEREST-HIDDEN TAXABLE EVENT

Prior to the ACT, when you gifted your carried interest to a non-charity, typically your accountant would inform you that you may incur some gift taxes or if the proper structure was in place, no gift taxes at all.

Now, with the passages of the new ACT, you may get a call from your accountant asking you to not only pay gift taxes, but income taxes as well.

What? Income taxes? Yes.

Now, when you sell, transfer or gift your carried interest to a person related to you, you may recognize a short-term capital gain.

How much? Well, it’s complicated. That’s tax simplification.

Who is this person related to you? Well, that’s changed too. Now it includes not only your relatives but your colleagues, vendors and current or former employees.

Planning Points: Make sure that you talk to your tax advisor before making the transfer. Try to do the transfer on January 1 or December 31 when the fund can value the fund assets.

ENTITIES SUBJECT TO THESE RULES

These rules apply to individuals, trusts and estates, but not corporations.

Planning Point: It may be possible to hold the carried interest in an S Corporation and avoid these rules.

TYPES OF BUSINESS SUBJECT TO THESE RULES

The ACT only applies to partnership interest (which may include limited liability companies) that hold entities that raise or return capital from investors (VC’s, PE’s and hedge fund managers), investing in, disposing of, or developing securities, commodities, cash options or derivatives, (investment fund managers) and real estate held for rental or investment.

Entities not subject to the ACT

Farmers that hold land in which they actively farm are not subject to these new rules. Additionally, these rules generally should not apply to “profit interest,” granted to service providers who are employed by a related but separate entity (e.g. a management company).

The rules also do not apply to gains attributable to any asset not held for portfolio investment on behalf of third-party investors. We will have to wait for more guidance for this definition.

There are still many unanswered questions regarding these new rules, with hopefully more guidance coming from the IRS and Congress. Practically speaking, if you’re involved in investments, and hold the assets for more than three years, then these new rules will not have much impact. Furthermore, California has not adopted these rules.

However, there are still numerous traps for the unwary. At GROCO, we assist high net worth clients and their families with wealth creation, family transfers, taxes and charitable giving. Please give me a call at 510-797-8661 if you need assistance or have questions on these new rules or would like to know how to make, keep and/or transfer your wealth.

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Accounting Best Practices Body Language Economics Entrepreneurship Investing Management Marketing Negotiations News and Politics Skills Women In Business

8 Words That Will Make You a Better Negotiator – Part 2

“Words have an impact! Choose impactful words carefully when negotiating, they’ll determine your degree of effectiveness.” -Greg Williams, The Master Negotiator & Body Language Expert

This article is part 2 of a two-part article. It contains an explanation of the second group of 4 words that complete the 8 words you can use to become a better negotiator. Here’s the link to part 1 of this 2 part article  http://www.themasternegotiator.com/8-words-will-make-better-negotiator-part-1-2-negotiation-tip-week/

Now imagine the new you, not limited, because you are instantly free.

There are 4 words contained in the sentence above that will make you a better negotiator. Do you know which words they are, how to use them, and why they’ll give you an advantage when negotiating? After reading this article, you’ll know why those 4 words have such power, and how to use them in your negotiations.

Communications can be challenging when negotiating. That’s one reason why you should always be mindful of the words you use, the impact they’ll have, and how such words will position you in a negotiation.

The 4 words are, now, imagine, limited, and instantly.

4. Now – The word, ‘now’, implies in the moment. You’re not in the past or future, you’re in the present moment. That’s the power of ‘now’. It makes you focus on the situation at hand while clearing the cloudiness that other aspects of the negotiation might present.

Use the word, ‘now’, to focus the other negotiator’s attention on what’s being discussed in that moment. The word can also be used to distract from items that may attempt to conflate matters that may or may not have relevance to the negotiation.

6. Imagine – ‘Imagine’ is a wonderful word to use in a negotiation. It can take the negotiation from the here-and-now to a place where happiness or dread awaits.

You can use the word, ‘imagine’ when you want to transform the other negotiator’s perspective from a more or less agreeable point to one that is more aligned with what you seek from the negotiation. Use the word, ‘imagine’, to allow him to become transfixed in an emotional state where harm does not exist or where it looms voluminously.

7. Limited – This word implies that there’s not a lot of what you’re discussing; “if you don’t grab this soon, it’ll be gone and you’ll miss out.” That’s what, ‘limited’ implies.

Good negotiators will test you when you state that something is limited. Still, if your boast is proven to be true, you’ll move the other negotiator to action by using this word as a call to action. Just be mindful of how and when you use it. If its use is proven to be untrue, you might cause irreversible harm to the negotiation.

8. Instantly – Everyone seeks gratification. For some, the need for such acquisition is greater than others. The word, ‘instantly’, implies that you can have what you seek, right now.

You can enhance a negotiation by giving the other negotiator a sample of what he seeks from the negotiation; make sure it’s something that he really wants. By doing that, you’ll be instantly giving him a taste of what he can acquire if he adopts your position. If this tactic works with him, you will have also uncovered his need for gratification, and to what degree he’s willing to control it to obtain what he wants from the negotiation.

You now have new insights into how the above words can instantly increase your negotiation abilities, and just imagine, you acquired these words for free because you read this article. Imagine what this new knowledge will do for you. Don’t let yourself be limited, use these words in your negotiations … and everything will be right with the world.

 

After reading this article, what are you thinking? I’d really like to know. Reach me at Greg@TheMasterNegotiator.com

To receive Greg’s free 5-minute video on reading body language or to sign up for the “Negotiation Tip of the Week” and the “Sunday Negotiation Insight” click here http://www.themasternegotiator.com/greg-williams/

Remember, you’re always negotiating.

#HowToNegotiateBetter #CSuite #TheMasterNegotiator #psychology

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What Causes Fear in You?

“If you don’t know what to be fearful of, you’ll be susceptible to fearing anything.”  -Greg Williams, The Master Negotiator & Body Language Expert

Are you truly aware of why you deal with fear the way you do, the source of your fear(s), and the impact it has on your psyche? Fear can paralyze you if it’s not controlled. Do you control your fears?

… ‘This is really messed up. I’m really afraid!’ Those were the words that a friend stated to me. He was speaking of a situation that had instilled fear in him. When I probed to understand why he was fearful, he said he wasn’t sure, but, he had a gut feeling to be cautious.

Fear ignites a sense to protect yourself. It may do so to prevent what’s perceived as being harmful. It may also do so to keep you within the boundaries that you deem to be mentally safe; just an FYI, preventing what’s perceived as being harmful and keeping you within the boundaries that you deem to be mentally safe are two separate thoughts. They stem from two different sources of motivation. I point that out as something to be cognizant of (i.e. what really causes fear to become born within you and then what causes the flame of angst to burn brighter).

We come into the world with only two fears. They are the fear of falling and the fear of loud noises. The rest of what we learn of fear becomes a part of us that we obtain as we go through life.

It’s important to know what you fear because without knowing, you don’t know what to combat. Without knowing, you don’t know why you’re fearful. Without knowing, you don’t know if what you fear is real.

As you go throughout your daily activities, pay more attention to what at first appears to be angst, anxiety, an uncomfortable feeling, or whatever label you assign to the beginning of uneasiness. That will be the conscious point that fear begins to grip you. If you note when fear begins to grip you, you’ll have a greater chance of defeating it, before it has a greater chance of defeating you.

Here’s the point. Once you consciously recognize that fear has a hold on you, it’s already elevated from your subconsciousness to your consciousness. That means it was already living in your psyche like a virus waiting to potentially harm you. The sooner you recognize it, the sooner you can deal with it. The sooner you deal with it, the less severe it will be. The less severe it is, the better you’ll be able to control what occurs in your life … and everything will be right with the world.

What does this have to do with negotiations?

In a negotiation, fear is always at the heart of broken deals, impasses, and the impediment to a successful negotiation outcome. Sometimes, you’re right to be fearful. If that’s the case, you need to identify the source of those feelings. Even if it’s imaginary, there’s a problem because of the way you’re thinking.

In a negotiation, once you become fearful, take note and assess to what degree it will impede the negotiation. Based on its severity address it then, or put it to the side to possibly be addressed later. Don’t ignore it until and unless your sense the fear has abated.

What are you thinking? I’d really like to know. Reach me at Greg@TheMasterNegotiator.com

To receive Greg’s free 5-minute video on reading body language or to sign up for the “Negotiation Tip of the Week” and the “Sunday Negotiation Insight” click here http://www.themasternegotiator.com/greg-williams/

Remember, you’re always negotiating.

#HowToNegotiateBetter #CSuite #TheMasterNegotiator #ControlEmotions #Psychology #Truth #Perception #fear

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Do You Know the Hidden Secrets of Good Negotiators?

“Good negotiators know negotiation secrets that allow them to be good. To become better when negotiating, learn the secrets that good negotiators know” -Greg Williams, The Master Negotiator & Body Language Expert

Good negotiators know a wide range of hidden negotiation secrets, when to use them, and which ones to use in their repertoire of secrets when negotiating. That’s one of the things that distinguishes good negotiators from not so good negotiators.

So, what are some of the hidden secrets that good negotiators use? The following are a few of those hidden secrets. Using them will give you an advantage in your negotiations.

Reading Body Language:

Being adept, when it comes to accurately reading the other negotiator’s body language, will give you insight into his train of thought, and an edge in the negotiation. As one example, if face-to-face, note the consistency with which his eyes move when assessing information to questions you pose. If you pose questions that he should have to call on by referencing past occurrences, note the direction he looks in to obtain that information. When that pattern breaks, note it, along with the question that caused it to occur. They’ll be insightful information that you can use in that action.

Know What’s Really Important:

If you’re attempting to successfully entice a venture capitalist to invest in your business, you should know the main question she has about the potential investment is, will I make a decent return on my money and how long might it take to do so? The question is important to keep in mind because it’ll be the answer to that question that will determine what motivates her and what it will take to keep her engaged with you.

Throughout any negotiation, know the main points that will keep a negotiator engaged and determine how you’re going to use that information throughout the negotiation.

Emotions/Hot-buttons:

Always attempt to control emotions when negotiating. Emotions add an extra dimension to what is said.

In controlling emotions, you should know the hot-buttons that will push you and the other negotiator from one point to another, per the state of mind you or he will possess once in that state; you should already be well aware of your own hot-buttons.

To gain insight into the other negotiator’s hot-buttons, gather information beforehand about what ticks him off, and what makes him experience bliss. Then, during the negotiation, take note of his reactions when you push his buttons. If he doesn’t react the way you know he’s reacted in the past, you’ll gain insight into what he may be attempting to keep disclosed. If that’s the case, pick at that thing like a bad itch that begs to be scratched.

Good Listening Skills:

Good listening skills encompass not just listening to what’s said, but also listening for what’s omitted, the word choice used, and the way such words are conveyed; we’ve all heard a statement that sounded like a question. Unless you intentionally mean to pose a statement as a question, don’t do it. Also, note when the other negotiator sends hidden meanings inside of his verbal messages; it may mean he’s unsure of what he’s saying, or that he wants you to believe he’s unsure. Probing will uncover his intent.

When momentum is on your side, accelerate the negotiation. When you’re on the defense, slow the negotiation down. It’s the little strategies that you utilize in a negotiation that will pay the biggest dividends. Thus, when negotiating, don’t take small things for granted. It’s the implementation of small things, such as what’s mentioned above, that will allow you to accomplish bigger outcomes in your negotiation. Master those things … and everything will be right with the world.

 

After reading this article, what are you thinking? I’d really like to know. Reach me at Greg@TheMasterNegotiator.com

To receive Greg’s free 5-minute video on reading body language or to sign up for the “Negotiation Tip of the Week” and the “Sunday Negotiation Insight” click here http://www.themasternegotiator.com/greg-williams/

Remember, you’re always negotiating.

#HowToNegotiateBetter #CSuite #TheMasterNegotiator #HiddenSecrets

#psychology

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How to Overcome Lost Trust When Negotiating

“One way to overcome the loss of trust when negotiating is not to lose it in the first place.” -Greg Williams, The Master Negotiator & Body Language Expert

Trust is the hidden variable when negotiating that possesses silent power in the negotiation. Once trust is lost, a negotiation takes on a persona from which it may never recover. Thus, depending on the severity of lost trust, it may be the death knell of the negotiation.

There are multiple factors that play a role in regaining trust when it’s lost. The implementation of those factors are directly tied to how you wish to proceed from the point of disruption, the outcome you seek from the negotiation, time factors related to future events, and any mitigating circumstances that may cause you to engage/disengage in/from the negotiation.

This article will give you insights as to how you can overcome the loss of trust when you negotiate and turn your efforts into winning actions.

Point of Disruption:

Be observant as to how trust is being evaluated during the negotiation. Such signs will be conveyed through the possible reluctance to believe, follow, or acquiesce to a request and/or concession. Once you sense such hesitancy, address it right then. Don’t let a possible festering thought about trust linger. If you do, you may be setting up the rest of the negotiation to be addressed from a deeper entrenched position on both sides.

Outcome Sought:

Be crystal clear about the outcomes sought by you and the other negotiator. To the degree you have commitments, shine a bright metaphoric light on those agreements and make those commitments known to stakeholders with lots of fanfare. As an aside, be mindful of whom you show the commitments so that they don’t tear them down. In a best-case scenario, you tie/lock the other negotiator to the commitments he states he’ll abide by. Also, limit finger pointing, gloating, and be aware of your verbiage when highlighting agreed on commitments. The wrong word(s), gloating, and/or finger pointing can easily lead to the unraveling of a commitment. To ensure that commitments will be adhered to, discuss with the other negotiator how they will be conveyed when presented to the outside world.

Time Factors and Future Events:

You should always consider the time factor and how today’s negotiation will impact future events. To that end, to restore lost trust:

  1. Sign-off on agreements at specific points in the negotiation and wait to see if deliverables are made
  2. Know hidden power players and their possible reaction(s) about the direction of the negotiation
  3. Have contingency plans in place to persuade power players to positions that are advantageous to you

Mitigating Circumstances:

There are mitigating circumstances that can encompass any negotiation. Such can be caused by the misperception of a word, a misperceived gesture, or just a dislike amongst the negotiators. If you’re aware of any mitigating circumstances that may cause the negotiation to be headed to the negotiation graveyard, consider changing negotiators. New negotiators can see the negotiation through new eyes.

A loss of trust can be a silent death knell in a negotiation but that doesn’t have to be so. The best way to offset its occurrence is to be as forthright as possible as you engage in a negotiation. Of course, that forth righteousness is a two-way street that the other negotiator must also be willing to traverse. Use the suggestions above to offer him the opportunity to do so … and everything will be right with the world.

 

After reading this article, what are you thinking? I’d really like to know. Reach me at Greg@TheMasterNegotiator.com 

To receive Greg’s free 5-minute video on reading body language or to sign up for the “Negotiation Tip of the Week” and the “Sunday Negotiation Insight” click here http://www.themasternegotiator.com/greg-williams/

Remember, you’re always negotiating.

#HowToNegotiateBetter #CSuite #TheMasterNegotiator #Trust  #psychology

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Don’t Play With Your Emotions

“Exerting greater control over your emotions will allow you to exercise greater control of your life.” -Greg Williams, The Master Negotiator & Body Language Expert

 When you engage in life, don’t play with your emotions. Anytime you’re unsure of which path you should take, don’t play with your emotions. That doesn’t mean that you should consider options devoid of your emotions, it means, attempt to think of your options without the emotional attachment that might saddle itself to those options.

By eliminating the emotional aspect that might go into your decision-making process, you allow your thought process to be driven by logic. After you’ve assessed a situation from a purely logical perspective, you can test your sense of direction by considering the emotions that might be the co-pilot of your decision.

Sometimes people allow their emotions to lead their actions. They toss logic aside. Allowing your actions to be driven by emotions alone can lead you into dangerous situations; “I don’t know why I did it; I must have been temporarily insane.” Those may be the afterthoughts you have if you don’t control your emotions before delving into a situation.

To maintain greater control of your life and those that surround you, always seek to control your emotions. Don’t play with them! Once you learn to have greater control of your emotions, you’ll have greater control of the environments you engage in. You’ll also find that your emotions serve you better. So, always seek to keep your emotions in check … and everything will be right with the world.

What does this have to do with negotiations?

In every negotiation (you’re always negotiating), emotions dictate how you’ll engage in the negotiation. Thus, your emotions will drive your actions if you don’t curb them. It may not be very easy to control your emotions at times when negotiating, but if the opposing negotiator senses that he can control you by controlling your emotions, he’ll play you like a drum. You’ll dance to any tune he decides to play.

Before entering into a negotiation, know the hot points that may cause you to lose control of your emotions; your hot points are also called triggers. Being aware of the triggers that may provoke different emotional reactions in you, allows you to prepare the demeanor you wish to display, versus one that would hijack your real-time display of emotions. Such displays can cause you to lose control of the negotiation. By not displaying a demeanor the other negotiator expected, you’ll initiate doubt within him about the strategy he’s employing in invoking such triggers to maneuver you.

Suffice it to say, controlling your emotions allows you to have greater control of yourself and the other negotiator, and everyone knows, he who controls the negotiation has a greater chance of controlling the outcome of the negotiation.

 

What are you thinking? I’d really like to know. Reach me at Greg@TheMasterNegotiator.com

To receive Greg’s free 5-minute video on reading body language or to sign up for the “Negotiation Tip of the Week” and the “Sunday Negotiation Insight” click here http://www.themasternegotiator.com/greg-williams/

Remember, you’re always negotiating.

#HowToNegotiateBetter #CSuite #TheMasterNegotiator #ControlEmotions #Psychology

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How to Use Reverse Questioning to Win More Negotiations

“The degree of success you experience in life and in negotiations is based to a degree on asking the right questions successfully.” -Greg Williams, The Master Negotiator & Body Language Expert

You no doubt know what reverse engineering is, right? Reverse questioning in a negotiation is the process of identifying the questions you need to ask in order to obtain the answers that will lead to a successful negotiation outcome. It’s also a way to identify how you’ll control the flow of the negotiation.

As a quick example, if you wanted to exit a negotiation paying $1,000 for a product you’d work from the outcome sought back to the beginning of the negotiation; you might also consider working back from that point to how you would position yourself prior to entering into the negotiation. To perform the latter, you’d assess the requirements needed (i.e. how you’d position yourself) to have your persona projected in a certain light/manner.

The following is what the step-by-step process would look like.

  1. Identify the most and least favorable outcome you’ll seek from the negotiation, along with why you’ve identified those points of juxtaposition. As a benefit, having that insight will help you identify exit points from the negotiation.
  2. Assemble a list of questions that might be asked of you as you would go through the negotiation.
  3. Create answers to the questions posed in step 2 that are needed to drive your efforts towards a winning negotiation outcome, while formulating questions you’ll ask to keep the negotiation on track; these will be your defensive questions. Identify points where you can answer a question with a question; remember, the person asking the questions is the person controlling the negotiation. That’s due to the fact, that person is gaining more information.
  4. Once you create and address step 3, create a list of questions that you might ask of the other negotiator that’s separate from the ones you might use to respond to his questions; these will become your offensive questions. Offensive questions are questions that move your negotiation efforts quicker towards the end of the negotiation; they are questions that the other negotiator has to agree with because they’re based on what he’s previously stated as his beliefs or truths; you’ll be weaponizing his thoughts and questions against him. Some of these questions will also come in the form of questions that answer questions.
  5. Assess how the opposing negotiator might respond to your scenario.
  6. Continue going over steps 1 through 5, in an attempt to uncover additional questions that you’d not considered that need to be included in the process.
  7. Once you feel you’ve honed the questions to a point that the other negotiator has to follow a prescribed path that you’ve created for the negotiation, test your hypothesis in a mock negotiation. This will allow your questioning process to become more refined and may uncover better/additional questions.
  8. Once you feel totally prepared to utilize your questions in a negotiation, do so. Engage with the confidence in knowing that you’ve created a stealthy way of capturing better information as you go throughout the negotiation.
  9. Save your questions in a repository to be used for comparison to past and future negotiation situations.

 

The wrong question asked at the right time in a negotiation may do incalculable harm. The wrong question asked at the wrong time in a negotiation may lead to a negotiation impasse. Create and test your questions before entering into a negotiation and you’ll have more of a chance to reach a successful negotiation outcome … and everything will be right with the world.

After reading this article, what are you thinking? I’d really like to know. Reach me at Greg@TheMasterNegotiator.com 

To receive Greg’s free 5-minute video on reading body language or to sign up for the “Negotiation Tip of the Week” and the “Sunday Negotiation Insight” click here http://www.themasternegotiator.com/greg-williams/

Remember, you’re always negotiating.

#HowToNegotiateBetter #CSuite #TheMasterNegotiator #Bully #Question

#psychology

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Don’t Hurt the Leader’s Position

“A leader is someone that possesses the ability to successfully lead others from the front or the rear. Always know the position of your leader.” -Greg Williams, The Master Negotiator & Body Language Expert

When someone is serving as the leader of your team and you’ve agreed to give them your support, follow their lead; don’t hurt them or your team by engaging in intended or unintended subterfuge.

In the daily activities of everyone’s life, everyone follows someone. Thus, those that you follow have influence by the fact that you anoint them as someone to lead you. You embolden them with that privilege by the fact that you follow their edict/mandate/suggestions. That being the case, don’t undermine the leader by:

  1. Going off-point per a strategy that has been discussed and agreed upon (e.g. going around the leader to gain attention for yourself, etc.)

 

  1. Engaging with outside sources that have not been agreed upon – make sure the leader knows what you’re planning to do

 

  1. Creating ad-hoc strategies when you’re in the midst of interactions with those that are not on your team/group

When you subvert the direction of the lead that you’ve granted to someone, you forgo potential opportunities, and diminish your team’s ability to implement the plan that’s been agreed upon; that can be costly in time and opportunities. You may also be cloaking into darkness the light of opportunities that may have shown themselves to you in the future (i.e. if you prove not to be a team player, no one will want you on their team.)

If you’re going to be a team player, play follow the leader by supporting the person that you’ve chosen to follow. Do so to the degree that such returns are beneficial to you and the team. Once you decide that you no longer wish to engage, inform the leader of your intent and disengage. Don’t just drop out without any communication. If you restrict the flow of communications, you don’t know what potential door(s) you’ll close that might have offered opportunities that could lead you to higher heights.

As long as you’ve decided to follow the leader, don’t hurt her. You’ve made a conscious decision to allow her to lead. So, follow her lead as long as it serves you and her … and everything will be right with the world.

What does this have to do with negotiations?

In a team negotiation environment, the leader of the team can position and pose as any of its members; it doesn’t have to be the person that projects the image of a leader at the negotiation table. Depending on the strategy chosen by the team, the leader may pose as someone that’s in a strategic position for a particular negotiation. He may also be positioned as someone that a senior person on the team can replace once the negotiation has reached a certain point.

The point is, once you have a strategy in place, don’t undermine it by undermining the person that’s the lead for the negotiation. Not only will you be weakening her, you’ll also be weakening your team’s negotiation position and the perspective beneficial outcome of the negotiation for all of you.

 

What are you thinking? I’d really like to know. Reach me at Greg@TheMasterNegotiator.com

To receive Greg’s free 5-minute video on reading body language or to  sign up for the “Negotiation Tip of the Week” and the “Sunday Negotiation Insight” click here http://www.themasternegotiator.com/greg-williams/

Remember, you’re always negotiating.

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