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This is part three of our negotiation book, preparing strategies. So we've
this is part three of our negotiation book preparing strategies so we've
already covered some of the basic, basic ideas which is negotiation is very
already covered some of the basic basic ideas which is negotiations very normal
normal. It happens in many different ways, in many different places, not just
it happens in many different ways in many different places not just business
business, but also in family, everyday life. We've also covered that in negotiation
but also in family everyday life
you need to have a goal. You need to make your goal clear. So if you have a goal,
we've also covered that negotiation you need to have a goal you need to make
then what do we look at next? And the next thing we need to look at is this
your goal clear so if you have a goal then what do we look at next and the
idea of how to implement that goal, how to make that goal actually happen. So
next thing we need to look at is this idea of how to implement that goal how
when we talk about how to make a goal happen, what we're talking about is this
to make that goal actually happen so when we talk about how to make a goal
idea of making a plan, making a plan. Now, In business we talk about plans, don't we?
happened what we're talking about is this idea of making a plan making a plan
We have a business plan. When we talk about finance, we have some kind of cash
now in business we talk about plans only we have a business plan when we talk
flow plan, how are we going to generate cash flow for the next year. So in
about finance we have some kind of cash flow plan how we're going to generate
business, we're very used to making plans. It's very normal. However, in negotiation, I
cash flow for the next year some business we're very used to making plans
think we often skip over that idea of making a plan. We often just jump into
very normal
negotiation because we're always thinking, "I want to get the best. I want
however negotiation I think we often skip over that idea of making a plan we
to get more. I want to get a lower price." But if you have a goal, it's very clear.
often just jumped into negotiation because we're always thinking I want to
Now, you need to think how to get from the beginning to the end of that goal,
get the best I want to get more I want to get a lower price but if you have a
very important in a business negotiation. And it can help you in a social
goal it's very clear now you need to think how to get from the beginning to
negotiation also to understand this idea. Now, it could be a little bit complicated
the end of that goal very important in a business negotiation and it can help you
because maybe you had a business class on strategy before. Maybe you've studied
know social negotiation also to understand this idea now it could be a
strategies, a very popular business topic. And there's a lot of thick books, and it
little bit complicated because maybe you had a business class on strategy before
can become very complicated. Well, in this case, I think we're very lucky because
maybe you studied strategies a very popular business topic and there's a lot
it's not very complicated luckily. So let's go ahead and look at this idea of
of thick books and it can become very complicated
making a plan and creating a strategy and executing tactics. So a plan is a way
well in this case I think we're very lucky because it's not very complicated
that you you know get your ideas together, you formalize. Of course, it's
luckily so let's go ahead and look at this idea of is making a plan
best when you make a plan to discuss with your team members, and to write
and creating a strategy and executing tactics so a plan is a way that you you
things down, so you get clear, and you get unified. Now, for the
know get your ideas together you formalize of course its best when you
plan, you're going to have two basic parts of the plan--your strategy and your
make a plan to discuss with your team members and to write things down so you
tactics. And remember strategy. Strategy is that overall big picture, the big idea
get clear and you get unified now for the plan you're going to have two basic
the big thing you're going to do. And tactics are how do you execute that
parts of the plan your strategy and your tactics and remember strategy strategy
strategy. What is the.. what are the behaviors you actually do to accomplish
is that overall big picture the big idea the big thing you're going to do and
that. So strategy is the bigger part. Tactics are the specific, smaller part. So
tactics are how do you execute that strategy what is the what are the
strategy is a kind of plan and it emphasizes, you emphasize this during
behaviors you actually do to accomplish that
your negotiation, but, of course, it's only useful if everyone on your team is on
so strategies the bigger part tactics are the specific smaller part so
the same page, and you all know the same strategy. If everybody's mixed up and have
strategy is a kind of plan and emphasizes you emphasize this during a
different strategies, it's not going to work. Tactics are the behaviors. And again,
negotiation but of course it's only useful if everyone on your team is on
you want to share this with your team because you want your team all to be
the same page and you all know the same strategy everybody's mixed up and have
using tactics that are helpful. It doesn't mean everyone uses the same
different strategies is not going to work
tactic, so that's an interesting point. Of course, everyone's working on the same
tactics are the behaviors and again you want to share this with your team
strategy, towards the same goal, but then the tactics may differ because different
because you want your team all to be using tactics that are helpful
team members execute different tactics to achieve things or they may be good at
it doesn't mean everyone use the same tactics that's an interesting point of
different tactics. Or different players, different, in our game, players, different
course everyone's working on the same strategy towards the same goal but then
negotiators on the team could actually be helping each other by using different
the tactics may differ because different team members execute different tactics
tactics. For example, we say good cop bad cop, right? One person acts tough, one
to achieve things or they may be good at different tactics for different players
person acts friendly. That's one kind of way to do it. Okay. So let's think about a
different in our game players different negotiators on the team could actually
simple example like a child. So, of course, everyone knows this. When you are children,
be helping each other by using different tactics for example we say good cop bad
if you have a brother or a sister, you know that you often have a conflict with
cop right one person acts tough one person acts friendly that's one kind of
your brothers or sisters. And what do you do? You, of course, appeal to the parents.
way to do it
you go to your parents and you try to Get what you want from your parents. Now,
ok so let's think about a simple example like a child so of course everyone knows
how do you do this? Well, your strategy may be emotion. That is a child will use
this when your children if you have a brother or sister you know that you
emotion. And then the tactic may be for example saying, "I love you mommy. Can I
often have a conflict with your brothers or sisters and what do you do you of
please have this new toy?" So this strategy is the big idea. It's emotion.
course appeal to the parents you go to your parents and you try to get what you
And how do you execute it? one is to go tell your mommy you love her so
want from your parents
much or maybe to clean the dishes, wash the dishes and say, "I clean the dishes.
now how do you do this while your strategy maybe
Now, I deserve a reward." So that is a way to execute that strategy. Now in
emotion that is a child will use emotion and then the tactic maybe for example
negotiation, we're quite fortunate that there's a very simple idea here that we
saying I love you mommy can you please have this new toy
can use. And this is really quite amazing and quite powerful. In negotiation, there
so this strategy is the big idea its emotion and how do you execute it one
are four basic strategies, and I want you to pay attention because when we
way is that
have our RPGs, you need to sit down and think in your group, which one of this is
go tell your mommy you love her so much or maybe to clean the dishes wash the
for you. You can only have one. You can only choose one of these four strategies, and
dishes that I clean the dishes now I deserve a reward
the beautiful thing is there's only four. So let's take a look at the four core
so that is a way to execute that strategy now in negotiation were quite
strategies. Accommodation, collaboration competition, avoidance. So let's take a
fortunate that there's a very simple idea here that we can use and this is
look at each one of these very quickly. Accommodation-- so what are we talking
really quite amazing and quite powerful in negotiation there are four basic
about when we're doing accommodation? Accommodation, of course, means that you
strategies and and I want you to pay attention because when we have our RPGs
just give in whatever the other side wants. You give it to them. You go ahead
you need to sit down and think in your group which one of these for you can
and you give in. Why would you use accommodation? Well, maybe there's some
only have one you can only choose one of these for strategy and the beautiful
kind of special situation in accommodation, where if you give in now,
thing there's only four so let's take a look at the four core strategies
you'll get something later at a different negotiation. Or maybe your
accommodation collaboration competition
position is just so weak, that you're really not going to gain much or this
avoidance let's take a look at each one of these very quickly accommodation so
negotiation is not very important so you go ahead and give in. Anyway, there are
what are we talking about what we're doing
many reasons. We'll talk about in a minute, but accommodation is one of the
accommodation accommodation of course means that you just give in whatever the
strategies. You give in. The next one is collaboration. Collaboration-- now
other side once you give it to them
collaboration is a way to work together. And it's often, very thought of, very
you go ahead and you give in why would you use accommodation well maybe there's
close to the word cooperation, like cooperation, collaboration, working
some kind of special situation and accommodation where if you give in now
together. Avoidance-- of course, avoidance means you don't negotiate at all, and that's
you'll get something later at a different negotiation or maybe your
different than collaboration because collaboration is working together. It's
position is just so weak that you're really not going to gain much for this
different than accommodation, which means you just give in. And then the last one
negotiation is not very important to go ahead and give given anyway there are
is competition, where you try your best to win. So let me see if I can highlight
many reasons we'll talk about in a minute but accommodation is one of the
these. I got a little bit mixed up here, come back here. So we've got
strategies you give in the next one is collaboration collaboration
accommodation, you give in. Competition-- you fight for everything you can get.
collaboration is a way to work together and it's often very very close to the
Collaboration-- you work together, and avoidance-- you just walk away. You don't
word cooperation like cooperation collaboration working together avoidance
negotiate. All right. Let's look at these a little bit closer. Now, the great thing
of course avoidance means you don't negotiate at all and that's different
here is it's actually not hard to figure out. You have two questions to ask. If
than collaboration because collaboration is working together is different than
you ask these two questions, and you answer them honestly in your team, with
accommodation which means you just give in and then the last one is competition
your team members, looking at your company's position, what's our beginning
where you try your best to win so let me see if i can highlight these little bit
position? If you answer these questions, you'll have your strategy. There's four
mixed up here come back here so we've got accommodation you give in
possible answers, right? So four strategies. Let's look first at question
competition you fight for everything you can get collaboration you work together
number one. How important is the negotiation outcome to your team? So that
and avoidance you just walk away you don't negotiate all right let's look at
is how important is the outcome? This negotiation, right now, the result of this
these a little bit
negotiation, how important is it? Now, usually, when you work in a company, this
closer now the great thing here is it's actually not hard to figure out
is not up to you. This comes from your boss, from your managers. And they'll tell
you have two questions that ask if you ask these two questions and you answer
you this negotiation is very important. And when we play our RPG, each
them honestly in your team with your team members looking at your company's
negotiation, for each group, is going to have an importance level. So let's say,
position what's our beginning position if you answer the questions you have
for example, this negotiation is just not important. Your company's already making
your strategy was for possible answers right so for strategies
a lot of money doing something else. This is a small cookie, small potato. It's not a
let's look first question number one how important is the negotiation outcome to
big deal. So your boss tells you, "I want you to go do this negotiation." But he
your team so that is how important is the outcome this negotiation right now
does not emphasize this is important or key to the company, so the outcome of
the result of this negotiation how important is this now usually when you
this negotiation is maybe not that important. On the other hand, if the
work in a company this is not up to you this comes from your boss from your
negotiation is very important because maybe the company is on the verge of
managers and they'll tell you this negotiation is very important and when
bankruptcy, it's out of money, something's going wrong, so this negotiation is very
we play RPG each negotiation for each group is going to have an important
important. We have to make money on this negotiaon. The importance is very high. So that
level so let's say for example this negotiation is just not important for
outcome importance is the first question. And you can break it into, you know, just
companies already making a lot of money doing something else this is a small
high or low. It's very important, high or it's not so important, low. Now then
cookie small potatoes not a big deal
question number two. "How important is it to keep a good relationship with your
so your boss tells you i want you to go to this negotiation but he does not
counterpart, with the other side" you're negotiating with. How important is that
emphasize this is important or key to the company so the outcome of this
relationship? So in this case, again, very simple question. I'm negotiating with you.
negotiation is maybe not that important
WWe have a relationship. In the future, are we going to have a relationship? and in
on the other hand if the negotiation is very important because maybe the company
the future is that relationship important? Now, of course, you may think
is on the verge of bankruptcy it's out of money
yes. And I may think yes or you may think no and I think yes or you may think
something's going wrong so this negotiation is very important we have to
yes, and I think no. There's all possible combinations, but right now, I'm
make money on this negotiation then it's very important very high so that outcome
just asking myself, my team, how important is this relationship in the future? How
importance is the first question and you can break it into you know just higher
important is this relationship in the future? very important? not important? So,
low is a very important
for example, I'm going to buy from you one time, but there's many suppliers. I
hi or it's not so important low now then question number two how important is it
can buy from many, so you know if our relationship is not good, not a big deal.
to keep a good relationship with your counterpart with the other side you're
I'll find another seller that I can buy from. On the other hand, maybe your
negotiating with how important is that relationship so in this case again very
product is very special, or has some kind of patent or copyright, and I need to get
simple question
it from you. And it's very important to my business. So therefore, I must have a
I'm negotiating with you we have a relationship in the future are we going
good relationship with you in the future. So I'm going to do everything I can to
to have a relationship and in the future is that relationship important now of
create a good relationship, so that would be high. So we're looking at two
course you may think yes and I may think yes or you may think know and i think
fundamental questions, so simple, so easy. Question one: how important is the
yes or you may think yes and i think--not there's all possible
negotiation outcome? question 2: How important is the relationship? You ask
combinations right now just asking myself my team
these two questions, and you're going to have your strategy. I'm going to talk
how important is this relationship in the future
more about that when we have a follow-up. Thank you!
how important is this relationship in the future very important not important