Subtitles section Play video Print subtitles ...Our follow up here. And for the follow-up, we're just going to kind of discuss a little bit more of what this all means. So a strategy guides your negotiation overall. So you need a strategy before you begin your negotiation. It's especially important if you have a team, more than one person, two people, three people. You need to be working together. How do you all work in the same direction? You must, before hand, plan your strategy. If you don't plan your strategy, you'll be doing things in a different direction. You also need your strategy, so you know what to say, how to act, what time to show up, how to use your body language, what information to offer. Those are all related to tactics. So let's go back here for a second look at this slide. There are four basic strategies: competition, accommodation, avoidance, collaboration. Now, there's an easy way to remember that. Strategies lead to tactics as this picture here shows. We have a strategy and that helps us decide how do we act, how do we behave, what are the things we do that the other side sees. How can we remember these four strategies? or let me jump over here and show you. This is not hard at all. (I get my slides working.) The way you think of the four strategies is this. Ask these two questions. Question one: how important is the negotiation outcome to you? This negotiation, right now, how important is this negotiation, right now, to you? That's the number one question you need to ask. The number two question you need to ask is how important is the relationship over time? Okay. So let's jump back to the slide here. Take a look at this. Think of the first question as being one axis. How important is the outcome to you, right now. This negotiation, this negotiation right now, how important is it. Not important, very important. Okay. Not important, very important. How about the relationship? How important is the relationship. Think of the relationship as being another axis, not important, very important, not important, very important. Okay. Now, then, let's take these two axes and put them together to really get a very simplistic view of how we decide our strategy. If we look at these two axes, we can see how important is the relationship to you, how important is the outcome to you. High,low on both.High, low on both. So now, then let's just go ahead and make quadrants inside of there. Let me show you the first quadrant. Accommodation-- accommodation is a strategy for negotiation. What does accommodation mean. Accommodation means you give what the other side wants, not necessarily one hundred percent, but what they need, you give to them. If they need a lower price, you give them a lower price. If they need faster shipping, you give them faster shipping. If they need a higher quality, you give them higher quality. Now, if we look inside the quadrant, here, accommodation means how important is a relationship, very important. How important is the outcome, not important. So why do we choose accommodation? because I need the other side to have a good relationship with me over a long time. I need the other side, over a long time, to have a good relationship with me. Right now, this deal is not so important. So right now this deal, if it gives me something not so good, well, that's okay I'll survive. My company will do okay, but I need this other partner I need my negotiation counterpart to have a good relationship with me in the future. Therefore, we use accommodation. Let's look at another strategy. The next strategy, opposite of accommodation, would be competition, competition. So accommodation was up here. competition's down here. So competition means what? Competition means you fight for everything. You want to win those two points in the basketball game no matter what. You need to get those two, and stop the other side from getting their two points. So every thing I get, the other side loses. And everything I lose, the other side gains. So I want to win more, gain more, and lose less. That way I can win on everything. So why do I choose competition? because the relationship for the future is not important to me. So if I give the other side pressure, and I say I need a lower price. I need higher quality. I give them a lot of pressure, and they get very angry. They get very frustrated, and they don't like me. They don't like my company. They don't like this deal. I don't care because over time I don't need that relationship. Maybe my company's bigger than them. Maybe my company is an important buyer, and they are just a supplier, and I have many other suppliers I can choose from. Or maybe they're an important supplier, but I don't need their product today. I can get another kind of product. Maybe they're not successfully with their recent product. It could be any kind of thing like this. I just don't need them in the future. I don't think I need them. But right now, it's very important that I have a good deal. Maybe my company needs that money. Maybe we need a good profit margin on this deal. Maybe I'm going to lose my job if I don't make a good deal. My boss has told me, "Hey, Warden, if you don't make a good deal this time, you're fired. Until I feel I must get a good deal, and so I don't care what happens in the future. I just care to keep my job. Now, so that could be on an individual level, on a company level competition strategy. Okay. Let's take a look at another strategy on the other dimension here. Just take a look over here, and what do we have? Avoidance--avoidance, avoidance, what does avoidance mean? Well, you can see in the slide avoidance's relationship not important and outcome not important. So what does this tell us? I don't need this company over a long period of time in the future, not important to me. And right now, today, this deal is this important? No, we don't really need this deal now. So in this case, I use the avoidance strategy, which means that when I negotiate I'm very easy to say, "Well, you know what? I withdraw. We don't want to negotiate anymore. Now, we don't need this deal. We're just going to walk away." So the other side always is worried I can just give up. That's my strategy, avoidance. I don't really want to negotiate. "If you don't like my price, well, okay I don't sell to you then. If you don't like this, okay, never mind, go somewhere else. I don't need you in the future and I don't need this deal today, so that's the avoidance strategy. Okay. Let's look at our final strategy. Our final strategy is collaboration, collaboration. Now collaboration means that we try to work together. That's not exactly the same as cooperation, similar but a little bit different meaning. But anyway, the point is we're doing things together. We're trying to work together. Collaboration, how does this answer the two questions? Do I need this relationship in the future? Yes, very important. Do I need this deal now? Yes, very important. I need a good deal now, very important to me. And I need to have a good relationship with my counterpart, the other company in the future. So what do I do? I collaborate. What does that mean? I give some things. I asked for some things. I try to get them to give me what I want, and I try to give them what they want. Hopefully, by giving them what they want and they give me what I want, we can both get what we want, and that would be collaboration. Okay. Let's put these all together here. So here, we have our four strategies and our two questions. I think this is really quite amazing. And it's something you need to really keep in mind because it's not as complicated as one would think. What we're looking at are two basic questions and four fundamental strategies. How important is a relationship? how important is this outcome right now? Accommodation, competition, avoidance, collaboration. Okay. Now, that seems pretty straightforward and pretty easy i think, not complicated. That's really a great insight. If you can keep this in your mind, as you prepare for your negotiation, this will be super helpful to you. However, just because there's four strategies, doesn't mean negotiating now has become easy. The reason it's not easy, we can think about very quickly. If i want to collaborate but you want to compete, how can we negotiate? In other words, I want to keep a good relationship with you, and I want to have a good outcome now. But you don't care about the relationship. You only want a good outcome now. So our two strategies are fundamentally different. Of course, if your strategy was collaboration, and my strategy was collaboration, probably we'll have a much easier negotiation. We both want the same thing. We can try to find out where can I give you something, where can you give me something. However the problem is very, very often, the two sides have different strategies. They have different answers to these two questions, and by having different answers to these two questions, their approach is going to be very different. And when you put those different strategies together, in negotiation, that's where the negotiation gets tough, gets hard, not easy to come to an end, to a conclusion. And lots of times, it means somebody's going to win, and somebody's going to lose. Okay. We have some exercises in the textbook, specifically, some fill in the gap. It's not hard. It's not meant to be hard. These exercises are actually meant to be easy. The reason I give them to you is I want you to begin thinking in this way, right? What are the two questions? What are the strategies? What are the 245 00:12:15,230 --> 00:12:19,640 words that I can use in a regular negotiation. Because when we execute our negotiations in our virtual space, I want you to be using that as much as possible, thinking like a business person, thinking with his vocabulary, and I hope using English. OK. So please take a look at that exercise A there. Ok, so I think we're going to wrap it up here. Pretty straightforward, right? Can I ask you how many strategies are there? Can I ask you what are the two most important questions to form your strategy? I think I can do that, and you're going to answer quickly, "When we negotiate, before you enter the negotiation, before you see the other side, ask these two questions, right?