Much of the materials with the tag bfa comes from the Bargaining for Advantage book.
There are 4 steps to negotiations:
- Preparation
- Information Exchange
- Proposals & Concessions
- Commitment
In complex negotiations, they go back and forth between the stages.
. | . | Perceived Conflict Over Stakes | |
---|---|---|---|
. | . | High | Low |
Perceived Importance of Future Relationships | High | Balanced Concerns | Relationships |
. | Low | Transactions | Tacit Coordination |
Tacit Coordination: An example is a highway intersection, where one driver yields to the other. It usually involves less negotiation and more avoiding conflict. Strategies: Avoidance, accommodation, or compromise.
Transactions: Examples are house or car sales, divorce, etc. It can be as simple as haggling to win the most, but usually not. A working relationship may still be necessary. Strategies: Competition, Problem solving or compromise.
Relationships: Spouses, employees in well functioning teams, etc. Treating the other party well is a high priority. Strategies: Accommodation, problem solving, and compromise.
Balanced Concerns: Employment disputes, family business, partnerships, etc. Strategies: Problem solving or compromise.
If you are not comfortable with a given strategy for a given situation, find a 3rd party to act on your behalf.
In all 4 of the scenarios, compromise is not the best option. It is only good as a supplement to another strategy or when time is short.
Keep in mind that the opponent may view the situation differently from you (i.e. in a different quadrant). You may try to convince them to be in the same quadrant as you.
Also keep in mind that if you involve a 3rd party, he/she may also have different goals from either of you. That may be OK.
Based on all of this, make a list of specific questions to ask early in the negotiation.