Negotiating Flashcards
What is negotiation?
The (often) ongoing process through which two or more parties, whose positions are not necessarily consistent, work in an effort to reach an agreement
Do you need to know how to negotiate?
Yes, everyone will negotiate many times throughout their life, even if it’s not in an official capacity
What is “negotiaphobia”
Disease of attitude and skill deficiency: when people are so terrified of having to negotiate that they avoid it at all costs
Describe the three-step EASY treatment process for negotiation: what does EASY stand for?
- Engage
- Assess
- Strategize
- Your One Minute Drill
What is the first step in the negotiation process? Describe it
Engage: recognize you are in a negotiation and quickly review the viable strategies
What is the second step in the negotiation process? Describe it
Assess: Evaluate your tendency to use each of the negotiation strategies, as well as the tendencies of the other side
What is the third step in the negotiation process? Describe it
Strategize: select the proper strategy for this particular negotiation (based on the context and the other person’s strategy)
What do you do before each negotiation?
Your One Minute Drill: take a minute to review the three steps
What are three conditions you need to meet before you can effectively use compromise?
- Late in the negotiation process after legitimate strategies are fully used
- When only a small gap remains on one issue
- Always directly tied to an agreement
What are the four negotiating strategies?
- Competition
- Collaboration
- Accommodation
- Avoidance
Describe the win/lose situation of competition
You win, they lose
Describe the win/lose situation of collaboration
You both win
Describe the win/lose situation of accommodation
You lose, they win
Describe the win/lose situation of avoidance
You both lose
Describe competition
Low cooperation, proactive. Not a relationship building strategy; a “hard line” approach. “I need it my way, or nobody gets anything”
Describe collaboration
High cooperation, proactive. A relationship building strategy, both people end up happy
Describe accommodation
High cooperation, reactive. You are willing to meet their conditions
Describe avoidance
Low cooperation, reactive. The people who don’t want to negotiate because they don’t have the skill set
What are the labels on the axes on the negotiation graph?
Proactive (north), High cooperation (east), Reactive (south), Low cooperation (west)
What really matters in negotiation? Why?
How the other side sees you, because it affects how they negotiate with you
What are the two categories of collaborators?
- Sages
2. Dreamers
Describe what sages are; what are their characteristics?
Sages are wise, they understand that collaboration is not always possible. The sage looks to see if the other person is ready and able to collaborate, and is wise enough to recognize that they need the other person in order to collaborate effectively
Describe what dreamers are; what are their characteristics?
Dreamers are the people who don’t understand that collaboration is not always possible. They think that both parties will win each time. They are a little bit naïve; they believe you will collaborate immediately in all situations
What does “unilateral collaboration is de facto accommodation” mean?
You can’t collaborate without the other people as well
How do you know if you are a sage or a dreamer?
If second highest score is competitive, you are most likely a sage. If second highest score is accommodative, you are mostly likely a dreamer
Why is there a concern when the number for any strategy is way too high?
That means that you deploy this strategy regardless of the situation and the strategy used by the other party, which often results in non-effective negotiation
How can you recognize someone else’s negotiation tendency?
You need to be observant enough to recognize it based on their behavioural style and/or company culture
What do you do if you can’t tell what someone else’s negotiation strategy is?
Lean towards collaboration; not permanently, but just until you get a sense of what strategy they are using
What are the four interaction styles? What DISC style does each relate to?
- Drivers (D)
- Expressives (I)
- Amiables (S)
- Analyticals (C)
Describe the drivers’ interaction style
Commanding, proactive. They are very big picture, and are not as focused on the details. They don’t want to be taken advantage of. You always know where you stand with the driver; they are blunt and transparent. You have to show them you also have conviction with your ideas. They are willing to be flexible as long as they feel they can still meet their needs
What is the drivers’ biggest fear?
Failure
Describe the expressives’ interaction style
Talkative, enthusiastic, distracted. Moves quickly and enthusiastically. Be mindful that they move to accommodation if they are more of a dreamer than a sage
What is the expressives’ biggest fear?
Boredom
Describe the amiables’ interaction style
People-focused, hate conflict. They want to figure out how everyone feels. They can be hard to read; they clam up when they are anxious. Sometimes they will agree to something in person, and then get stubborn later (you thought you reached an agreement but you actually didn’t)
What is the amiables’ biggest fear?
Conflict
Describe the analyticals’ interaction style
They want hard data and time to study it and run the numbers; they need time to think about it and digest the information. They think before speaking. It can sometimes look like they’re avoiding because they take so long to do research and review, but once they’ve run the numbers and feel confident about what they’re going to say they can get stubborn because they know they’re right, and then they can move into the competitive approach
What is the analyticals’ biggest fear?
Making a mistake
What are the labels on the axes of negotiation?
Fast pace (north), people focus (east), slow pace (south), task focus (west)
Are any of the strategies universally applicable or appropriate?
No
When do you use the avoidance strategy?
Very rarely, and only for minimal issues that will pose no future importance. Be aware that sometimes small issues grow into big ones. Make sure that you use avoidance in a way that preserves the relationship (“no charge” vs. just letting it go; make sure the other party knows that you are letting it go and why, so that it’s an isolate event)
What is a caution about another party using avoidance?
If the other party is avoiding you, it could mean that there is a superior option elsewhere. Objections are a sign of interest: they are not always a bad thing. It means they are still thinking about and considering you
When do you use the accommodation strategy?
In significantly weaker bargaining positions, when you have no leverage or influence (perhaps because you made a mistake). Try to make it an isolated event
How can you improve your leverage
With knowledge. If one side is really well prepared and the other side decided to wing it, it will put them at a disadvantage
What should you never do when accommodating?
Don’t make excuses. You have to be held accountable, and make sure that it doesn’t happen again in the future
When do you use the competition strategy?
When your opponent is not inclined to or capable of collaborating (if they don’t have the authority)
What is one caution about competition?
Some people think that it’s not worth the effort to collaborate because it’s a small deal and/or they don’t think that there’s a long-term relationship that’s worth protecting
Why should you be careful to look for the true potential of negotiation?
Sometimes a company will send you a small negotiation in order to test you out and see what it would be like to work with you; don’t assume that just because it’s a small deal you have to dig in and fight for what you want
When do you use the collaboration strategy?
When a situation present a significant opportunity with capable and willing decision makers on all sides
Explain how collaboration can be a win-win-win situation
You win, they win, and the relationship wins and becomes stronger (the working relationship isn’t damaged in the negotiation)
What is the 80/20 rule?
True collaboration only happens 20% of the time, but when it does happen it is so effective that you can generate 80% of your negotiating results
What do you need in order for collaboration to be effective?
Preparation, need identification (you need to ask each other WHY you are each looking for what you are looking for in order to understand the underlying needs and identify some alternative good options), and candor. This all forms trust
What is a prerequisite for external collaboration?
Internal collaboration: you are negotiating with teammates all the time, and if you want people to collaborate externally, they need to work on collaborating internally to build those skills and see how it’s effective
What are “positional” negotiations?
When people state their positions (what they want). It means that they put a line in the sand, and each person sticks to their position and wait or argue until one person caves (“soft”) and one person gets what they wanted (“hard”). This is a very black and white approach to negotiation
What does it mean to say that positional negotiations are “distributive”?
It’s like saying there’s only one pie, and in order to get the amount you want, someone else has to have less
What does it mean to say that principled negotiations are “integrative”?
The resources aren’t fixed: they can grow the resources to meet both party’s needs
What strategies use positional negotiations?
These negotiations are used in competition, compromising, and accommodating strategies
What strategies use principled negotiations?
These negotiations are used in collaboration
For what three reasons are the outcomes better after using principled negotiation instead of positional negotiation?
- Wise agreement
- Reached efficiently
- Reached amicably
Describe how wise agreements are a beneficial outcome
It covers the needs of the two parties, it’s better thought out, and it’s a much more comprehensive and better agreement for both sides
Describe how being reached efficiently is a beneficial outcome
Even though it might seem like principled negotiation takes a long time, if both parties refuse to change their position it can also take an extremely long time (months, or even years)
Describe how being reached amicably is a beneficial outcome
You don’t want the parties to come out of negotiations hating each other. You want to continue to have a positive working relationship because you will most likely be working together for a long time
What four things do you do to use principled negotiations?
- Separate the people from the problem
- Focus on interests not positions
- Generate a variety of options before deciding what to do
- Insist that the result be based on objective criteria
How/why do you separate the people from the problem?
You don’t want to attack each other or let your egos take over. Theoretically, instead of sitting across the table from each other, sit beside each other and attack the problem together
How/why do you focus on interests not positions?
If you look at why the other firm is asking for something, you can come up with alternative solutions that work best for everyone (even if it’s not what they originally had in mind)
How/why do you generate a variety of options before deciding what to do?
You do this by brainstorming and integrating ideas. This will force you to think outside of the box, and come up with more creative solutions for how each party can meet their own needs
How/why do you insist that the result be based on objective criteria?
You need to establish a list of neutral and mutually accepted criteria for your solution, and then compare your final proposed solution to that list. This makes the negotiation friendlier and more neutral
Is it possible to separate people from the problem in negotiation?
Yes - you can’t separate them from their emotions, but you can separate them from the problem. You can’t allow your emotions to overwhelm you in a negotiation
Why might you have “negotiaphobia?” (3 reasons)
- Lack of control
- Unpredictability
- Absence of feedback
How do you “warm up” for negotiating?
- Acknowledge your concerns and recognize your hot buttons
2. Recognize your counterparts are feeling emotions as well
