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  • ...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?