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