Preparing Your Strategy

Posted by Beetle B. on Sun 10 January 2016

Much of the materials with the tag bfa comes from the Bargaining for Advantage book.

There are 4 steps to negotiations:

  1. Preparation
  2. Information Exchange
  3. Proposals & Concessions
  4. Commitment

In complex negotiations, they go back and forth between the stages.

. . Perceived Conflict Over Stakes
. . High Low
Perceived Importance of Future Relationships High Balanced Concerns Relationships
. Low Transactions Tacit Coordination

Tacit Coordination: An example is a highway intersection, where one driver yields to the other. It usually involves less negotiation and more avoiding conflict. Strategies: Avoidance, accommodation, or compromise.

Transactions: Examples are house or car sales, divorce, etc. It can be as simple as haggling to win the most, but usually not. A working relationship may still be necessary. Strategies: Competition, Problem solving or compromise.

Relationships: Spouses, employees in well functioning teams, etc. Treating the other party well is a high priority. Strategies: Accommodation, problem solving, and compromise.

Balanced Concerns: Employment disputes, family business, partnerships, etc. Strategies: Problem solving or compromise.

If you are not comfortable with a given strategy for a given situation, find a 3rd party to act on your behalf.

In all 4 of the scenarios, compromise is not the best option. It is only good as a supplement to another strategy or when time is short.

Keep in mind that the opponent may view the situation differently from you (i.e. in a different quadrant). You may try to convince them to be in the same quadrant as you.

Also keep in mind that if you involve a 3rd party, he/she may also have different goals from either of you. That may be OK.

Based on all of this, make a list of specific questions to ask early in the negotiation.

tags : negotiations, bfa