Negotiation Techniques & Strategies

Techniques vs. Strategy

• Techniques refer to the specific methods, skills, or procedures used to complete a task or achieve a goal
• Strategy refers to the overall plan or approach to achieve long-term goals, involving decision-making, resource allocation, and anticipating challenges
• Strategy requires the execution and mastery of individual skills

Forbearance/Tolerance

• This strategy is characterized as "waiting in haste/impatient"
• It is used by young negotiators eager to expedite deals
• The elements of this strategy can provoke anger, frustration, and impetuous actions; when applied correctly, it yields great rewards

Surprise

• This happens when a negotiation style suddenly shifts
• This is a swift, drastic and emotionally dramatic technique
• An example involves lowering voice and slowing tone to be unpredictable

Fait Accompli

• Involves taking a chance by making an offer and awaiting the other party's response, which is risky

Apparent Withdrawal

• Requires a mix of forbearance, self-discipline, and deception

Reversal

• Successful investors typically buy when pessimism is high and sell when optimism prevails

Probing/Testing

• Commonly involves a person seeking additional information
• Should avoid tactics that intimidate, undermine, criticize, or cause discomfort or anger to the other party, which can cause them to become defensive

Setting Limits

• Stating that one will only negotiate under certain conditions, location, timing, or manner
• Can challenge the power dynamics of a negotiation
• Can be done verbally or nonverbally in what's known as a "silent barter"

Feinting/Misleading

• Best described as "Look to the right, go to the left"
• The 3 elements involve concealment, disclosure and diversion

Association

• Used when a party advises you that a group, company, association, or other party whom you respect has done business with them
• Consumers then associate a product with a celebrity

Disassociation

• A company distances itself from other organizations when those other firms are under investigation

Crossroads

• Introducing multiple matters or issues into the discussion to gain concessions or ground

Blanket

• Attempting to overwhelm the other party with as many issues as possible in hopes some resolve

Randomizing

• Selecting a sample with the assumption that it represents the whole
• An example is to let the other party use the product free of charge

Bracketing

• Directs you toward where it is best to concentrate
• It shows you where the majority of troops and equipment are located -- isolates the best opportunities for successful negotiation

Salami

• Gathering information and forming a deal piece by piece
• It is common in construction: "By taking one slice at a time, you can end up with the whole salami"

Quick Close

• Used when a deadlock must be managed
• Occurs when you split the difference to get a contract signed

Agent of Limited Authority

• Using "I'm not at liberty to make that concession"

Deadlock

• A situation where no progress or advancement is possible

Overcoming a Deadlock

• Take a break or caucus, to brainstorm with the other team members
• Parties review and discuss what's been agreed upon and what's causing the disagreement
• Mutually decide and determine what will be lost if negotiation ends
• Express your feelings to appear more relatable
• Change the subject by introducing another issue, view, or approach
• Attempt to Secure an Agreement-in-Principle as mutual goals to which the parties commit themselves
• Try Bridge-Issue Agreements which are innocuous issues that can be easily agreed to
• Discuss What Alternatives Remain to switch from negative to positive
• Make an Important Disclosure, since negotiating is finding what others don't know
• Ask a Hypothetical Question for its effectiveness
• Use empathy to relate and potentially understand the other's position
• One or both sides sense that a "quick close" may work, indicating a possible resolution
• Diagram Differences using visual aids as key to opening up closed doors
• Finding out when to give something to get something is the many different reasons for making compromises
• Bring Up Future Needs or goals
• Discuss Good Association and all the favorable and productive dealings the two sides have shared

Other considerations for resolving deadlock:

• Change locations to save your negotiation
• Call it quits, only as a last resort to stand up and leave when things aren't going well