Step 1 - Engage
- Recognize you are in a negotiation and quickly review the viable strategies
- Evaluate your tendency to use each of the negotiation strategies, as well as the tendencies of the other side
- Select the proper strategy for this particular negotiation
4 strategies in Negotiation
1. Avoidance (low cooperation / reactive) - grey
- like ostrich putting head in ground to avoid confrontation
2. Accommodation (high cooperation / reactive) - yellow
- basically giving in and providing or allowing the other side to take what they ask for
3. Competition (low cooperation / proactive) - red
- Win / Lose scenario
- fighting over same piece of pie. someone has to lose
4. Collaboration (high cooperation / proactive)
- Win / Win
- working on ways to make the pie bigger so no losers, only winners
Assessing Tendencies of Others
1. Analyticals (slow paced / task force) - numbers person
- least emotional in negotiations
- want hard data, accurately presented, and the time to study
- tendency to use the AVOIDANCE negotiation strategy
- they avoid making decisions without adequate data and significant time to process it
- often strongly resist making decisions and expressing opinions in public forums
- they really don't want surprises
- STRATEGY - makes sure you have all the data on hand before making the pitch. once its presented and they decide, it will be hard to change their minds
- short attention span, unemotional task orientation, and direct nature
- you generally know exactly where they stand
- often come with an overly COMPETITIVE strategy
- they want to see what you're made of and how prepared and confident you are in terms of the issues being negotiated
- if pass their first round of tests, you have a very good chance of collaboration
- they will have ONE BIG ISSUE in any negotiation, and if you can confidently address that point, they will have very limited interests in other "minor" aspects of the deal (once the big issue is removed, very few hurdles to path to success)
- generally aggressively attack price to check your confidence in the value of your proposal
- need to build credibility with a drive, because the one thing they fear most in any negotiation is failure
- they don't mind a few mistakes a long the way
- very little patience for discussions of the details of a deal
- STRATEGY - use the COMPETITION strategy and be prepared to tackle their one big issue
- they love the idea of collaboration but rarely have the attention span or discipline to follow through with the strategy
- lack focus to be great collaborators
- when you capture their attention, you better move rapidly and enthusiastically to get a deal done
- may love you today, but tomorrow will often not even remember your name. they have moved on the road and are now working on other, more exciting negotiations
- novice negotiators are frequently offended when expressives lose interest and move to avoidance
- are impulsive and sometimes flighty
- STRATEGY - best bet is to understand their goals and visions and respond to them in a stimulating manner in an attempt to secure their commitment
- very useful is to find someone in the expressive's organization to work with to collect info necessary to understand needs, develop options, create an action plan, and them come back to the expressive for a decision.
- don't be afraid to be diligent in pushing an expressive to stick with the process. the need this prodding and will ultimately respect it
- number one thing they dislike in negotiations is boredom
- STRATEGY - come up with solutions respectful of the expressive's goals, present them in a brief and energetic manner, and you might be surprised when they grab them in a nanosecond
- not in a hurry to make decisions
- likes to keep relationships good so resists conflicts at all costs to keep a friendly mode
- will postpone a decision until they are certain of an outcome that will not offend anyone on their team as well as on the other teams competing for their attention
- is the most likely group to ACCOMODATE
- in order to stay away from conflict, they will often accommodate beyond which is even necessary
- very big on using complaining and guilt to try to get the accommodations back later in the game
- in their mind, if they wait long enough, the issue in question will solve itself or totally disappear
- try to get to know them as well as possible
- do research on them and see how they view other clients...usually they will negotiate in a similar fashion
- start with a collaboration mind (instead of competitive)
- much easier to switch from collaboration to competitive than the other way around
- generally, better to to be proactive (competition / collaboration) than reactive (avoidance / accommodation)
- when the topic is a minimal issue (but if avoided, the issue might grow to something big later)
- or when a superior option is readily available elsewhere - when you don't have interest to continue the negotiate and rather work with another party as they will give you a better solution
Times when ACCOMMODATION strategy is appropriate
- when in a significantly weaker leverage position that is obvious to all sides
- or when have no other options with which to negotiate
- when negotiation involves an opponent not inclined to or capable of collaborating, or one simply not worth the effort
- when the opponent is using strong COMPETITION strategy
- must be careful as this strategy can damage relationships
- during any situation presenting a significant opportunity with capable and willing decision-making teams on all sides of the table
- is the strategy that allows for both parties to win as well as their future relationship
- only about 1 in 5 negotiations can be settled in this way...rare to find other party ready and able to collaborate
- is about making a bigger pie to bake properly, not how to take a bigger piece of it
p31 - Do not Accept the first offer
- accepting the first offer if it sounds good is actually not efficient as it does not guarantee that both parties will feel great about the outcome
- "while and up-front agreement sounds like total bliss, it is in reality only through the time and effort we invest in a negotiation that we can reach an agreement both sides feel is in their best interests"
p31 bottom - Price vs Terms
-there are 2 sides of an agreement, the price as well as the terms. Remember that if a party always agrees to the price but is also allowed to set the terms that he is the one that WINS, not the one setting the price
- most people emphasize the price too much...that is only 1 aspect of it
- "almost all people overemphasize price"
- "a savvy negotiator will tell you that if they let u set the price and u let them set the terms, conditions, and deliverables, they will beat you every time"
32 bottom - "Negotiaphobia"
- "signs of negotiaphobia include telling yourself that now is not the time to rock the boat It is longing for the good old days when things were easier"
p 71 1/2 - Competitive = Low Chance of Collaboration
- when the other side determines that they will use a competitive strategy, unless you can move to change their mind, you simply no longer have the option of collaborating.
- You can avoid, accommodate, or compete with them, and maybe appropriately try the late-game compromise tactic, but you simply can no longer accommodate
p 72 bottom - Fight Competitive with Competitive
- When the other side goes competitive, and u are actually more likely to compete than to simply give in, and the and the other side promptly and clearly recognizes this tendency, you will be given many more collaborative opportunities
-this is because most of the time then the other side goes competitive, they do not expect to face competition in return.
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