...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?
How important is the outcome to me now,
to my company, to my team? and how
important is the relationship with the
other side over time, into the future,
right? And then choose one of your four
strategies. OK. So see you next time for
negotiation. Good luck in your
negotiations!