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A straight "No" robs you of influence and will quickly earn you a negative reputation among your colleagues. I like Shawn Wood's version of saying some version of "Yes, but ..."
Yes. I can do this in your timeframe and in your budget. (A full yes)
Yes. I can do this in your budget but I am going to have to change the timeframe. (Yes, but)
Yes. I can do this, but not in your timeframe or your budget. Let's negotiate. (Yes, but but)
Yes. I can do this, but I do not think it is the best way. May I make suggestions? (Yes, however)
Yes, I can have someone else do this for you. (Yes, but not me ...)

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