Negotiation Strategy

Main strategies

Relationship focused strategies

Assign enough time to build up a win-win mentality before starting to bargain

Builds a foundation of trust and fairness

Prioritizes mutual benefit and open communication to foster long-term relationships

May not suit short-term and competitive scenarios

Works only if both sides are committed to a win-win outcome

Staying in touch and reinforcing agreements keeps strong relationship

Personality type oriented strategies

Tailors to individual motivations and intentions

Analyses personal traits

Influencing with empathy

Kennedy theory with "red" and "blue" negotiation styles

Fritz Riemann 4 basic forms of angst in his personality theory

Longing for self-preservation

Its opposite motivation for self-sacrifice and affiliation

The longing for duration and security

Its opposite longing for change and risk

Those fears have to be discerned to be able to use them

Communication focused strategies

Efficient communication, appropriate selection of verbal and body language

Prerquisite is the intention to find a mutually beneficial solution and showing real interest in the needs of the counterpart

Gordon 3 different approaches to the communication partner

Method 1 - win/lose method one's position is recklessly presented and pushed through

Methof 2 - the opposite. needs and interests are suppressed. Reversed premises.

Method 3 - approach without losers

Applying I-messages instead of You-messages expressing needs without defensiveness

Employs active listening - clarifying questions

Knows when to end - if other part is unyielding, notices the"minus" situation and avoids wasting resources

Plus-situation where counterpart says "yes" to your offer without much deliberation is basically luck

Creativity and option-focused strategies

Encourages brainstorming while utilizing creative thinking methods like mind mapping to explore many options

Outside the box solutions - reframes challenges and looks for unconventional win-win outcomes

Avoids zero-sum thinking, instead tries to expand the pie

Balances imaginativ ideas with practicality

Builds on trust - creativity can flow if both parties are open to share and explore ideas

Adapts to changing dynamics - flexibility which is helpful in case of discussions stalling or reaching a deadlock

Tactical and technique-oriented strategies

Emphasizes precise and planned tactics (argumentation techniques, stress application)

Good in high-stakes, short-term or competitive cases

Less focus on relations-building which is disadvantage in case of repeated interactions

Politically inspired strategies

Derived from political negotiation tactics, it values calculated flexibility and empathy

Sees counterparts interests as a whole while safeguarding one's own

Useful in case of negotiaions with diverse interests, because it balances assertiveness with adaptability

President Nixon principles

Always be prepared to negotiate, but never negotiate without being prepared

Never be belligerent but always be firm

Never seek publicity that would destroy the ability to get results

Always leave your adversary a face-saving line of retreat

Never give up inulaterally what could be used as a bargaining chip. Make sure your adversaries give something for everything they get.

The principles of Robert McNamara

Empathise with your enemy

Rationality will not save us

Never say never

The Master Strategy

Competition negotiations

Focuses on short-term and high conflict objectives

Little to no emphasis on relationship building, energy is directed towards winning outcomes

Techniques like argumentation, stress tactics, "thick skin" approach

Structured tactics like detailed bluffs and counter-arguments

Partnership negotiations

Aims to balance conflict resolution with long-term relationship building

Worth time to explore the interests of your negotiation partner

Creativity and communication focused strategy

Interests of the partners wishes and ideas

Avoids aggressive tactics

Relationship negotiations

Relationship over specific negotiation outcome

Avoids tactical manipulations, focuses instead on trust-building

Best if ongoing positive rapport is crucial

Empathetic communication, emotional balance

Co-ordination negotiations

Resource-conserving approach for situations with minor conflicts

Allows participants to save time and energy

May serve as a training ground

Negotiation

General guidelines

Chosen strategy does not predetermine any concrete actions

There's no one formula/strategy which would always work

Master Negotiator strategy depends on several factors that are different for every negotiation situation

Guidelines consist of principle considerations and the situational matrix that serves as a matrix for strategic choices

Strategic considerations

1. Principles for the choice of strategy provide orientation before starting the negotiation

2. A summary of different negotiation theories/concepts will give a good overview of the main approaches

3. While organizing theories and choosing appropriate one we put them on a graph. This can be used while assessing the situation and keep track of turbulent negotiations

Components which set the framework for the entire strategy

The objective setting

The personality

The personal ethic

Machiavelli's prince principles

The principles he mentioned can only be recommended in a limited way

Short-term planning, conflict potential incredibly high

Those succeed who break their promise at the right moment

Advantageous to be able to put on different faces

Being both loved and feared is desirable - if they cannot be combined fear is preferable

People are ungrateful, inconsistent, deceiving, cowardly in time of danger and greedy for profit

While love tears at every opportunity like a ribbon, fear of punishment never wanes.

Machiavelli's strategy does not extend outside of the competition negotiation

Mixed theories: The Harvard Concept

1. Separate people from problems

Maintain respect

Focus on interests, not personalities

Open communication - active listening and acknowledging emotions

Distinguish relationship from the issue - negotiation as a problem-solving exercise not personal conflict

2. Separate interests from positions

Identify underlying needs

Prioritize interests over rigid demands

"Why" and "why not" questions - clarifies true motivations

Create solutions that satisfy underlying interests

3. Develop options

Expand the pie

Avoid a fixed-pie mentality

Explore shared interests

Generate multiple options - Brainstorm

4. Find objective criteria

Establish fair standards - objective benchmarks

Separate discussion from bargaining

Defend criteria-based solutions

Encourage mutual acceptance of criteria - builds trust, both parties know the outcome is based on fair standards

If humans are motivated to prefer one direction within the pair, their intrinsic motor endures angst from the opposite direction