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