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What are some effective negotiating strategies?
Effective strategy and planning are the most critical precursors for achieving negotiation objectives.
- Claiming Value – Claiming value is a hallmark of a distributive negotiation. It focuses on securing value for oneself at all costs (namely at the expense of the other party). This strategy generally leads to a loss of value in an integrative negotiation.
- Interests vs Positions – Attempt to address needs and interests (not positions) of all parties. Understanding the others needs, realizing the other partys priorities are not the same as your own, can stimulate more exchange of information, have a better understanding of the nature of the negotiation, and achieve higher joint profits.
- Free Flow of Information – Parties create and foster the free flow of information. Creating and choosing a free flow of information promotes the development of good integrative solutions. Negotiators must be willing to reveal their true objectives and to listen to each other carefully.Willingness to share information is not a characteristic of distributive bargaining situations, in which the parties distrust one another, conceal and manipulate information, and attempt to learn about the other for their own competitive advantage.
- Commonalities – Focus on commonalties rather than differences. Emphasizing the commonalities between the parties and minimizing the differences. To sustain a free flow of information and an effort to understand the others needs and objectives, negotiators may require a different outlook or frame of reference. Individual goals may need to be refined through collaborative efforts directed toward a collective goal. At times the collective goal is clear and obvious, and other it is not clear or easy to keep in site.
- Options for Mutual Gain – Searching for solutions that meet the needs and objectives of both sides. The success of integrative negotiation depends on the search for solutions that meet the needs and objectives of both sides. In this process, negotiators must be firm but flexible. A low level of concern for the others objectives may drive one of two forms of behavior. Making sure that what the other obtains does not take away from ones own accomplishments. Attempting to block the other from obtaining his or her objectives because of a strong desire to win or to defeat the opponent.