Joanna Shea is the Managing Partner of the Negotiations Collective. She brings almost 20 years of experience in the corporate world working on major acquisitions and divestments to the team. They blend the corporate world and behavioral psychology to help negotiators realize success.
What is the difference between intelligence (IQ) and emotional intelligence (EQ)? How is a blend of both of them important to the success of a negotiation? In this episode of Negotiations Ninja, Joanna shares why negotiation without EQ is useless. Don’t miss it!
Outline of This Episode
[1:24] Learn all about Joanna Shea
[2:26] Negotiation without EQ is useless
[3:38] How to deal with conflict in a negotiation
[6:24] How to ask better questions to uncover information
[13:42] Why negotiators default to blaming others for mistakes
[17:11] Intelligence versus emotional intelligence
[22:09] Why people fear dissecting their mistakes
[26:28] The proximity complex explained
[29:06] Use your power of persuasion for good
Negotiation without EQ is useless
What a negotiation is depends on the type of transaction. There are one-off negotiations—like real estate—where you may never see who you’re sitting across from ever again. You may negotiate with a vendor or supplier many times over many years.
But whatever a negotiation is, it won’t be successful without emotional intelligence (EQ). You can have a Mensa member at the table, but if they don’t have EQ, the likelihood of them closing a deal is low. Negotiations are about the value of the content and the people in the room.
Intelligence versus emotional intelligence
Joanna emphasizes that you must never force someone to choose between their ego and the right choice. If someone thinks their company is worth $250 million and another buyer can’t justify that price, the buyer will try to walk the seller through their reasoning.
They justify how they can’t get to that number and will offer a different number. But the seller is emotionally committed to their number, so they walk. The value degrades year after year.
Joanna worked with a company that had an asset they were offered $120 million for. The company said “no.” The next year the offer was $80 million. They said “no.” That company still owns that asset, and the last offer they got was for $15 million.
The best time to sell is when people are buying. The need and desire are there. It may not always be. How you perceive the value is very different from how a buyer may perceive the value.
Balance EQ and IQ in your negotiations
Just because you’ve got the numbers on the balance sheet to back up the value, it doesn’t mean that’s what it’s worth. The market defines what it’s worth. If people are buying, that means it’s time to sell. It takes discipline—and it takes EQ.
If a transaction moves from a six-month close to a 12-month close to an 18-month close, you forget what you were doing in the first place. If you’re buying a company because of the optimization potential and get emotionally committed, things can get dicey. You feel like you have to get to the finish line. The price you’re paying incrementally increases, and your profit margin decreases.
That’s why a balance between intelligence and emotional intelligence is key to successful negotiations. Hear more of Joanna’s opinion on EQ in negotiation in this episode of Negotiations Ninja!