Five Basic Negotiating Strategies - Key Concepts in Negotiation

Summary

This video explores five negotiation strategies from Kenneth Thomas and Ralph Killman, based on assertiveness (concern for outcome) and cooperation (concern for relationship). The strategies include: competing, suitable for one-off transactions; accommodating, prioritizing long-term relationships; avoiding, for low-importance deals; compromising, where both parties give up equally for a fair result; and collaborating, where both parties contribute equally for a win-win outcome. The video emphasizes that while collaboration is often ideal, it requires significant effort, and compromise can sometimes suffice for simpler negotiations.

Takeaways

• 🤝 The bargaining stage in negotiation involves five key strategies, based on assertiveness and cooperation, as developed by Kenneth Thomas and Ralph Killman.
• 💪 The 'Competing' strategy is used when the outcome is more important than the relationship, often suitable for one-time transactions.
• 🤲 The 'Accommodating' strategy prioritizes the long-term relationship over the immediate outcome, accepting less in the current deal to build future partnerships.
• 🚫 The 'Avoiding' strategy is chosen when neither the outcome nor the relationship is of high importance, saving time for more critical negotiations.
• ⚖️ The 'Compromising' strategy involves both parties giving up something of equal value to reach a fair and balanced agreement.
• 🤝 The 'Collaborating' strategy, or 'win-win' approach, aims to achieve the best outcome for both parties while maintaining a strong relationship.
• 🧩 Collaboration requires more time, effort, and commitment as both parties look for ways to contribute equally to the negotiation.
• 💡 Compromise is seen as a fair solution when collaboration is not worth the investment of time and effort.
• 📈 The effectiveness of each strategy depends on the importance of the outcome and the long-term relationship between the parties.
• 🎯 Collaboration is ideal for significant negotiations but is not always appropriate; sometimes, a simpler compromise may suffice.

Q & A

What are the two dimensions that Kenneth Thomas and Ralph Killman use to develop their negotiation strategies?

The two dimensions are assertiveness (concern for the outcome) and cooperation (concern for the relationship between the parties).

What is the competing strategy in negotiation, and when is it appropriate to use it?

The competing strategy focuses on achieving the best possible outcome, often at the expense of the relationship. It is appropriate when the outcome is more important than the long-term relationship, such as in one-off transactions.

Why might the competing strategy not be suitable for long-term relationships?

Using the competing strategy in long-term relationships may harm future negotiations because if one party feels disadvantaged, they may be unwilling to negotiate in good faith again.

What is the accommodating strategy, and when would it be used?

The accommodating strategy is when one party is willing to accept less than the ideal outcome to preserve or build a long-term relationship. It’s used when the relationship is more important than the outcome.

How can a business use the accommodating strategy to 'buy' goodwill in negotiations?

A business may offer goods or services at a lower price or accept less favorable terms to establish a strong relationship with the buyer or supplier, ensuring long-term benefits.

In which situations would the avoidance strategy be appropriate?

The avoidance strategy is suitable when neither the outcome nor the relationship is important enough to justify the time and effort of negotiation. For example, purchasing from a catalog or website without negotiation.

What is a compromise in negotiation, and what makes it 'fair'?

A compromise is when both parties are willing to give something up to reach an agreement. It is considered fair when both parties feel they are giving up an equal amount.

How does collaboration differ from compromise in a negotiation?

Collaboration focuses on both parties contributing equally to achieve a mutually beneficial outcome, without giving up anything unnecessarily. In contrast, compromise involves both parties sacrificing something to reach an agreement.

What are the challenges associated with the collaboration strategy?

Collaboration requires significant time, effort, and commitment to achieve the best possible outcome for both parties. It’s a complex process and may not always be justified if a simpler compromise would suffice.

What is the ideal negotiation strategy according to Thomas and Killman, and why might it not always be appropriate?

The ideal strategy is collaboration, as it seeks a win-win outcome that benefits both parties. However, it may not always be appropriate because it requires a lot of time and effort, which may not be justified in every situation.