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  • This is part three of our negotiation book, preparing strategies. So we've

  • already covered some of the basic, basic ideas which is negotiation is very

  • normal. It happens in many different ways, in many different places, not just

  • business, but also in family, everyday life. We've also covered that in negotiation

  • you need to have a goal. You need to make your goal clear. So if you have a goal,

  • then what do we look at next? And the next thing we need to look at is this

  • idea of how to implement that goal, how to make that goal actually happen. So

  • when we talk about how to make a goal happen, what we're talking about is this

  • idea of making a plan, making a plan. Now, In business we talk about plans, don't we?

  • We have a business plan. When we talk about finance, we have some kind of cash

  • flow plan, how are we going to generate cash flow for the next year. So in

  • business, we're very used to making plans. It's very normal. However, in negotiation, I

  • think we often skip over that idea of making a plan. We often just jump into

  • negotiation because we're always thinking, "I want to get the best. I want

  • to get more. I want to get a lower price." But if you have a goal, it's very clear.

  • Now, you need to think how to get from the beginning to the end of that goal,

  • very important in a business negotiation. And it can help you in a social

  • negotiation also to understand this idea. Now, it could be a little bit complicated

  • because maybe you had a business class on strategy before. Maybe you've studied

  • strategies, a very popular business topic. And there's a lot of thick books, and it

  • can become very complicated. Well, in this case, I think we're very lucky because

  • it's not very complicated luckily. So let's go ahead and look at this idea of

  • making a plan and creating a strategy and executing tactics. So a plan is a way

  • that you you know get your ideas together, you formalize. Of course, it's

  • best when you make a plan to discuss with your team members, and to write

  • things down, so you get clear, and you get unified. Now, for the

  • plan, you're going to have two basic parts of the plan--your strategy and your

  • tactics. And remember strategy. Strategy is that overall big picture, the big idea

  • the big thing you're going to do. And tactics are how do you execute that

  • strategy. What is the.. what are the behaviors you actually do to accomplish

  • that. So strategy is the bigger part. Tactics are the specific, smaller part. So

  • strategy is a kind of plan and it emphasizes, you emphasize this during

  • your negotiation, but, of course, it's only useful if everyone on your team is on

  • the same page, and you all know the same strategy. If everybody's mixed up and have

  • different strategies, it's not going to work. Tactics are the behaviors. And again,

  • you want to share this with your team because you want your team all to be

  • using tactics that are helpful. It doesn't mean everyone uses the same

  • tactic, so that's an interesting point. Of course, everyone's working on the same

  • strategy, towards the same goal, but then the tactics may differ because different

  • team members execute different tactics to achieve things or they may be good at

  • different tactics. Or different players, different, in our game, players, different

  • negotiators on the team could actually be helping each other by using different

  • tactics. For example, we say good cop bad cop, right? One person acts tough, one

  • person acts friendly. That's one kind of way to do it. Okay. So let's think about a

  • simple example like a child. So, of course, everyone knows this. When you are children,

  • if you have a brother or a sister, you know that you often have a conflict with

  • your brothers or sisters. And what do you do? You, of course, appeal to the parents.

  • you go to your parents and you try to Get what you want from your parents. Now,

  • how do you do this? Well, your strategy may be emotion. That is a child will use

  • emotion. And then the tactic may be for example saying, "I love you mommy. Can I

  • please have this new toy?" So this strategy is the big idea. It's emotion.

  • And how do you execute it? one is to go tell your mommy you love her so

  • much or maybe to clean the dishes, wash the dishes and say, "I clean the dishes.

  • Now, I deserve a reward." So that is a way to execute that strategy. Now in

  • negotiation, we're quite fortunate that there's a very simple idea here that we

  • can use. And this is really quite amazing and quite powerful. In negotiation, there

  • are four basic strategies, and I want you to pay attention because when we

  • have our RPGs, you need to sit down and think in your group, which one of this is

  • for you. You can only have one. You can only choose one of these four strategies, and

  • the beautiful thing is there's only four. So let's take a look at the four core

  • strategies. Accommodation, collaboration competition, avoidance. So let's take a

  • look at each one of these very quickly. Accommodation-- so what are we talking

  • about when we're doing accommodation? Accommodation, of course, means that you

  • just give in whatever the other side wants. You give it to them. You go ahead

  • and you give in. Why would you use accommodation? Well, maybe there's some

  • kind of special situation in accommodation, where if you give in now,

  • you'll get something later at a different negotiation. Or maybe your

  • position is just so weak, that you're really not going to gain much or this

  • negotiation is not very important so you go ahead and give in. Anyway, there are

  • many reasons. We'll talk about in a minute, but accommodation is one of the

  • strategies. You give in. The next one is collaboration. Collaboration-- now

  • collaboration is a way to work together. And it's often, very thought of, very

  • close to the word cooperation, like cooperation, collaboration, working

  • together. Avoidance-- of course, avoidance means you don't negotiate at all, and that's

  • different than collaboration because collaboration is working together. It's

  • different than accommodation, which means you just give in. And then the last one

  • is competition, where you try your best to win. So let me see if I can highlight

  • these. I got a little bit mixed up here, come back here. So we've got

  • accommodation, you give in. Competition-- you fight for everything you can get.

  • Collaboration-- you work together, and avoidance-- you just walk away. You don't

  • negotiate. All right. Let's look at these a little bit closer. Now, the great thing

  • here is it's actually not hard to figure out. You have two questions to ask. If

  • you ask these two questions, and you answer them honestly in your team, with

  • your team members, looking at your company's position, what's our beginning

  • position? If you answer these questions, you'll have your strategy. There's four

  • possible answers, right? So four strategies. Let's look first at question

  • number one. How important is the negotiation outcome to your team? So that

  • is how important is the outcome? This negotiation, right now, the result of this

  • negotiation, how important is it? Now, usually, when you work in a company, this

  • is not up to you. This comes from your boss, from your managers. And they'll tell

  • you this negotiation is very important. And when we play our RPG, each

  • negotiation, for each group, is going to have an importance level. So let's say,

  • for example, this negotiation is just not important. Your company's already making

  • a lot of money doing something else. This is a small cookie, small potato. It's not a

  • big deal. So your boss tells you, "I want you to go do this negotiation." But he

  • does not emphasize this is important or key to the company, so the outcome of

  • this negotiation is maybe not that important. On the other hand, if the

  • negotiation is very important because maybe the company is on the verge of

  • bankruptcy, it's out of money, something's going wrong, so this negotiation is very

  • important. We have to make money on this negotiaon. The importance is very high. So that

  • outcome importance is the first question. And you can break it into, you know, just

  • high or low. It's very important, high or it's not so important, low. Now then

  • question number two. "How important is it to keep a good relationship with your

  • counterpart, with the other side" you're negotiating with. How important is that

  • relationship? So in this case, again, very simple question. I'm negotiating with you.

  • WWe have a relationship. In the future, are we going to have a relationship? and in

  • the future is that relationship important? Now, of course, you may think

  • yes. And I may think yes or you may think no and I think yes or you may think

  • yes, and I think no. There's all possible combinations, but right now, I'm

  • just asking myself, my team, how important is this relationship in the future? How

  • important is this relationship in the future? very important? not important? So,

  • for example, I'm going to buy from you one time, but there's many suppliers. I

  • can buy from many, so you know if our relationship is not good, not a big deal.

  • I'll find another seller that I can buy from. On the other hand, maybe your

  • product is very special, or has some kind of patent or copyright, and I need to get

  • it from you. And it's very important to my business. So therefore, I must have a

  • good relationship with you in the future. So I'm going to do everything I can to

  • create a good relationship, so that would be high. So we're looking at two

  • fundamental questions, so simple, so easy. Question one: how important is the

  • negotiation outcome? question 2: How important is the relationship? You ask

  • these two questions, and you're going to have your strategy. I'm going to talk

  • more about that when we have a follow-up. Thank you!

This is part three of our negotiation book, preparing strategies. So we've

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A2 US negotiation strategy accommodation collaboration relationship plan

Preparing Negotiation Strategies

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    Tony posted on 2019/05/22
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