Effective Negotiation Strategies and Tactics

Negotiation Styles

• Shark: Win/lose strategy. They are aggressive, competitive, uncreative, and individualistic. They assume that they have the best and only possible solution. They have no ability to take risks with different options or to learn from mistakes. They have difficulties in social relationships.
• Dolphin: Win/win strategy. They consider several options. They do not waste time with emotional issues. They are friendly and thoughtful. They feed and promote good relationships.
• Fox: They get results. They are reserved, manipulative, and friendly. They have a low level of honesty and ethics. They are cheat negotiators.
• Deer: They feed and promote relationships. They avoid conflict and flee before a threatening situation. They do not share their intentions. They allow the other party to control the process. They are not satisfied with what they have.

Negotiation Tactics

• Start with a high offer
• Make excessive demands
• Establish limits
• Remind the other party of previous deals between the parties
• Compare to other options
• Example: If an employee wanted a raise, we could tell him about the bad results (shape/limit)
• Handsaw: "I have spoken to the owners, and they have told me that..."
• Subjective benefit: If we want someone to sell to us cheaply, we could promise to recommend them
• Capture core values
• Fake or real rage
• Reducing time
• Silence

Bargaining Power

More alternatives (buyer > seller)

Walk Away Point

The minimum or maximum we are willing to accept.

BATNA

Best Alternative To a Negotiated Agreement

ZONPA

Zone Of Possible Agreement = between the walk away of each party (e.g., 100-120)

Negotiation Types

• Distributive (zero-sum): Each party takes a position and discusses to reach an agreement. Each party defends their position. There is a small interest in satisfying the other's view. The starting point is extreme. They try to hide their real position. It affects relationships and is a long process. They do not try to see the advantages of the other (inflexible).
• Harvard (interest-focused):
  • Think: Do you really want that?
  • Several options to find common ground
  • Good relationship after negotiation
  • Consider the other's interests and prioritize your own
  • Find alternatives even if they are not what you want 100%
  • Perception: Empathize. Do not deduce other's intentions. Do not blame. Be explicit. Propose things that align with the values of the other.
  • Emotion: Recognize them, keep calm.
  • Communication: Listen, speak in the first person, think first.

Negotiation Strategies

• Competitive: Results > relationship. Designed to change the other's position. Used by sharks. Short-term, to maximize the own result. Advantages: Gets their aim, used by unprepared negotiators. Disadvantages: You can underestimate the other party, it can be expensive and long, and it can be psychologically hard.
• Adaptation: When the relationship is more important than the outcome because the other party is important to you, the result is not that important. Long-term relationship. To win something else in the future. To unlock bargaining.
• Avoidance: Negotiation is a waste of time. Strong BATNA.
• Collaboration (Harvard): Win-win. Parties show interest. Creative.