Negotiation Matrix

Summary

This lesson introduces Lewicki and Hiam's Negotiation Matrix, a tool designed to help negotiators choose the right strategy for any situation. The matrix is based on two factors: the importance of the outcome and the importance of the relationship. The video explores five negotiation strategies—avoiding, accommodating, competing, collaborating, and compromising—each suited for different priorities. Practical examples show how to apply these strategies in workplace scenarios, such as dealing with suppliers or managing team conflicts. The lesson emphasizes preparation and strategic planning to achieve effective and balanced negotiations.

Takeaways

• 🤝 Negotiation skills are crucial in both big deals and everyday workplace tasks, like managing deadlines, solving team conflicts, and even choosing between pizza or tacos.
• 📈 The Hayam's Negotiation Matrix helps in choosing the best strategy for any negotiation based on two key factors: importance of outcome and importance of the relationship.
• 📝 Preparation is key for successful negotiations. 80% of a negotiator's effort should be spent on preparation, according to Lee Thompson's book *The Mind and Heart of the Negotiator*.
• 🎯 First step in preparation is setting a clear goal, knowing exactly what you want to achieve in the negotiation.
• ⚖️ Concessions: Be prepared to make compromises to achieve your desired outcome.
• 🔄 Look at alternative scenarios, which provide fallback options if the main goal cannot be achieved.
• 💪 Leverage: Understand your power versus your counterpart's power in the negotiation.
• ❌ Avoidance: If neither the outcome nor the relationship is important, it may be best to avoid negotiation altogether.
• 🙋‍♀️ Accommodating: When the relationship is more important than the outcome, it's best to accommodate, prioritizing the relationship over the result.
• 🤜🤛 Collaborating: If both the outcome and the relationship are important, a collaborative approach should be adopted to achieve a win-win solution.

Q & A

What is the purpose of Hayam's negotiation matrix?

Hayam's negotiation matrix is a tool designed to help you choose the best negotiation strategy based on the importance of the outcome and the relationship. It doesn't guarantee a specific outcome, but it helps you approach negotiations in the most effective way for the given situation.

Why are negotiation skills important in the workplace?

Negotiation skills are crucial in the workplace for various tasks, such as salary negotiations, resolving team conflicts, agreeing on deadlines, allocating responsibilities, and more. Strong negotiation skills can lead to better outcomes and even win-win situations for all parties involved.

According to the transcript, what percentage of a negotiator's effort should be spent on preparation?

According to the transcript and the book 'The Mind and Heart of the Negotiator' by Lee Thompson, 80% of a negotiator's effort should be invested in the preparation stage.

What are some key steps to follow when preparing for a negotiation?

Key steps for preparing for a negotiation include: 1) Having a clear goal, 2) Determining concessions you're willing to make, 3) Exploring alternative scenarios, 4) Understanding leverage, 5) Setting clear authority limits, and 6) Choosing the right negotiation approach.

What are the two main factors that determine which negotiation strategy to use according to Hayam's negotiation matrix?

The two main factors that determine the negotiation strategy are: 1) The importance of the outcome (e.g., money, time, or accomplishment), and 2) The importance of the relationship (e.g., maintaining or building rapport with the counterparty).

What is the 'avoiding' strategy in the negotiation matrix, and when should it be used?

The 'avoiding' strategy, also known as lose-lose, should be used when neither the outcome nor the relationship is important. In this case, there is no value in entering the negotiation, so you withdraw or avoid negotiating altogether.

When is the 'accommodating' strategy appropriate, and what is its goal?

The 'accommodating' strategy is appropriate when the relationship is more important than the outcome. The goal is to maintain or build the relationship, even if it means losing on the outcome, making it a 'lose to win' strategy.

What is the 'competing' strategy, and in what situations should it be applied?

The 'competing' strategy, also known as win-lose, is used when the outcome is more important than the relationship. It involves negotiating hard to get what you want, even if it damages the relationship with the counterparty. It is appropriate when winning the outcome is the priority.

What is the 'collaborating' strategy, and why is it considered a win-win approach?

The 'collaborating' strategy is used when both the outcome and the relationship are important. It involves working together creatively to find solutions that benefit both parties, ensuring that everyone gets what they want while maintaining a strong relationship. This makes it a win-win approach.

In what scenario would a 'compromise' strategy be most suitable?

The 'compromise' strategy is suitable when both the outcome and the relationship are important, but full collaboration is not possible. In this strategy, each party gives up a little of what they want to reach a middle ground, ensuring both parties get some of what they want while minimizing damage to the relationship.