When most people think of an auditor they envision a man wearing a green eyeshade hunched over a multitude of ledger books with one hand on the adding machine. Rarely does the vision include a skilled negotiator sitting around the table with the landlord trying to work out the best possible solution for all parties.
Negotiation skills are every bit as important to the lease audit process as good accounting techniques and a thorough knowledge of the commercial real estate industry. After all, what is accomplished if noncompliance issues with the lease terms are identified but the associated dollars are not recovered? A successful negotiation results in commitments that satisfy each party’s interests while maintaining a working relationship among the parties.
The key to building relationships through negotiations is to be “tough on the issues, not on the person.” Whether you negotiate with superiors, subordinates, salespeople, your spouse or children (the world’s toughest negotiators), the process involves efficient communication techniques.
Strong emotions often impede effective communication, as most people have learned through trial and error. The best policy is to leave your emotions at the door. Do not bring them to the negotiating table. Instead, bring a solid understanding of the issues to the table and know your BATNA (Best Alternative To a Negotiated Agreement). Emotions, pride and ego all get in the way of digging underneath the other parties’ stated position. You need to learn the other parties’ interests: what they really want to achieve. Once all parties have explored and revealed their underlying concerns, it is time to brainstorm.
Brainstorming is a non-committal method of exploring options to maximize potential gains. Some ideas may turn out to be impractical while others will encourage further exploration. It is in this manner that the overall “pie” can be expanded, instead of simply divided among the participants. This process fosters effective communication from which creative solutions emanate. From this point, attempts to resolve issues may need to be legitimized by referring to industry operating procedures, market standards or outside third-party opinions. Before committing to a proposed resolution to the issues, always compare it to your BATNA. If the proposed resolution is better than your Best Alternative to a Negotiated Agreement, commit to the resolution; if your BATNA is better than the proposed settlement, be prepared to walk away from the table and exercise your options.
The goal at the end of the negotiation session is to emerge with a fair and equitable solution for all parties while maintaining a working relationship among the tenant, landlord and auditor.
It is this skill and professionalism that Chelepis & Associates, Inc. can bring to the negotiating table to resolve lease audit issues on your behalf.
Resource: Getting to Yes: Negotiating Agreement Without Giving In - by Roger Fisher, et al
