petek, 20. junij 2014

Fishing for right negotiation strategy

Let’s clear out – there is only one type of negotiation! 
In business, there are no “internal” or “external” negotiations.
  • There is no difference between negotiating on sales or on procurement. At the end of (successful) negotiation, you sign a contract of selling & buying “the thing”, right? 
  • Also when you are introducing the proposal for change to your boss or your colleagues, they have to “buy” what you are “selling”, right? 
  • When negotiating with unions for right-sizing, you have to reach a right agreement.
  • Also a lawyer uses same (negotiation) tactics while addressing the court, the jury or the accused to get the essence for the defense speech…

So you have to talk similar (but not same) language to reach success! 
Besides being argumentative on the subject of negotiation and convincing in communication, the negotiation power can make the difference! And, by rule, it’s on the side of the uniqueness or (and) money. And since money talks on the buying side of the negotiation table, the salesman usually uses more adjectives to try to balance that advantage. So we and up with negotiation tactics…

We said sales… Is there anything different in private life – when negotiating with your children or wife… ? You have to use strategy, tactics and not forget common sense…


“Only” a couple of strategies and a few tactics are used in every negotiation. 
Think about your personality, your communication ability, and the corporate culture of your company… No mater what you have heard in one of the negotiation coachings or trainings - you most likely have few of your favorites - those hadfull that you use most offten. Are few not enough? Hey, how many strategies would you like to have? A state has only one constitution, a company has only one strategy, newspaper has only one editorial policy…. A man has only one face… So, why should you have to have more than one negotiation strategy? You don’t!

Because your reputation does count! Think about yourself… Would you do business with someone who is known for his/her rapacity? You should be aware that you might just be his/her next 'victim'.

It’s important to obtain in preserve “your face” in negotiation. It means you can be recognized as tough, but always a fair negotiator on an overall level. To converge both - reputation and rumors about you…

But, it is a fact: you (need to) diverse the strategies of negotiation against the negotiation opponent, in relation to who sits in front of you. Either it is a business partner, or a company that you would invest your time and effort into because of the opportunities or risks associated, or “just” an universal, therefore easy changeable supplier with a low bargaining power, or you are in negotiation for a critical product, where a mistake of your supplier might jeopardize your business, adjust a pinch of strategies to greet and meet them. With each of them, connect your “editorial policy”:



And with each strategy you should align the tooling, the package of suitable negotiation tactics that should optimize the outcome of negotiation in your favor.




Strategy and tactics - Cooperative or Competitive? Negotiators Dilemma… Really? 
Not really – let’s do COOPETITION! By differencating opponents and within selected strategy changing tactics, you can mix cooperativeness and competitiveness. And by that effecitevlly select the path to the results avoiding pitfalls of the “prisoners dilemma”..


The prisoners dilemma or How to coopetite for best (risk adjusted) result!? 
Two prisoners are awaiting trial for a crime they committed. Each must decide between two courses of action: confess or not. If neither person confesses, in other words, they cooperate with each other; each prisoner will have to serve a prison term of one year. On the other hand, if both prisoners chose to ‘defect’ and turn evidence against one another, both prisoners will be faced with a 2 -year prison term.


With possible outcomes of the dilemma (and probability incounters together with risk awareness of both sides), it is soon clear that selecting tactical approach that is likely to build of even reinforce already existing relationship with an opponent might, with principled communication, consist of all element of conflict prevention or at least resolution, closes the negotiation with win-win situation.

What can we learn out of it? YES, having “one face” while negotiate - the negotiation strategy - is important and right thing to do. BUT YES, don’t be rigid! Design and /or tailor the strategy to “your face” and use it consistently.

Did you pay attention to colored words? Relationship, principled communication, win-win

Different strategies, but as you travel in upgrading the relationship with your opponent, can be efficiently combined.

In our next blog: negotiation strategies, tactics… Join us!




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