22nd July 2010

How to Recognise the Difference between Skill and Luck in a Deal

One of Maubisson’s insightful comments in his must read book Think Twice (2010) is how to recognise the difference between skill and luck.

Many human activities are a mix of skill and luck. Compare a golfer’s scores over 3 or 4 rounds. An exceptional score over one round is often the result of skill combined with exceptional luck. That’s why exceptionally skilled players triumph over 4 rounds. Great luck rarely holds for four rounds. Over time skill shines through as luck runs out.

If you can deliberately lose a game then skill is the driving factor. If you can’t, it’s luck.

Think of chess. Chess is a game of skill. You can deliberately lose. Roulette by contrast is a game of luck. You can not deliberately lose.

Negotiation is a process of combining skill and luck. However the prime driver of success is skill. It is clearly a game you can deliberately lose.

To lessen the role of luck, negotiators should focus on management of the process. That’s the best way to drive results.

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1st July 2010

Use the GRASP Formula to Reach Agreement

In her book, Beyond Deal Making (2010) international negotiation expert and mediator Melanie Billings-Yun outlines her five step GRASP method for negotiating long-term sustainable relationships.

The acronym GRASP is not just a mnemonic device.  By following the GRASP method you can increase the odds of creating a sustainable agreement.

The GRASP Method

Goals: What do I/they want to achieve or avoid?

Routes: How can I best achieve my goals by supporting theirs?

Arguments: What reasons support my/their routes?

Substitutes: How else could I/they accomplish this?

Persuasion: What’s in it for them?

The GRASP method is practical and easy to follow. Beyond Deal Making offers a fresh innovative approach to negotiation.

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