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Your style or profile of negotiation can define whether you grind into a deadlock, or create value and an endur- ing relationship. So what do you do when your needs are incompatible and your path to agreement starts to fade? Most of us tend to have one or two preferred strategies that we use unconsciously in most conflict situations. Why? Either because our preferred styles have worked for us in the past, or because of our temperament (nature) or our upbring- ing (nurture). But the key to effective negotiating is knowing which of the following is likely to reward you with the biggest profit prize in a given scenario. Compete (I win - You lose) Competitive style negotiators pursue their own needs. Yes, even when this means others suffer. They usually don't want to cause others to suffer and lose, they are just so narrowly focused on their shorter-term gains that they plunder obliviously through negotia- tions like a pirate. They often use whatever power and tactics they can muster, including their personality, posi- tion, economic threats, brand strength, size or market share. At its extreme, negotiators call their behavior aggressive or psychotic. When to use? When you need to act or get results quickly this is a great option. Competition is critical when you are certain that something is non-negotiable and immediate compli- ance is required. It also can be an effective defense or counter to use against negotiators with a competitive- conflict profile. However, we would recommend that you use a blended approach, as both negotiation parties locking horns in a competitive battle can result in a spiraling deadlock. When you're buying or selling something as a once off (e.g. selling your own home or car to a stranger), then your negotiation will likely be more competitive than if you were selling to a close friend or family member, or if you were in a business-to-business negotiation. If you're buy- ing or selling a commodity product or service and you have strong competition, get used to competing. What's the Danger? The difficulty with people who are high-compete (which a large percent- age of buyers are) is that competitive styles overuse competition. This means that the other party knows exactly what behavior to expect and can prepare more easily. In a negotiation of roughly equal power, high-compete behavior is very likely to lead to a deadlock— which will get you nowhere. They may also be more interested in winning than reaching an agreement. If you're recruiting a negotiator, proceed with caution when considering someone with a very low-compete profile score. Some negotiators combine high-compete with high-avoid. These negotiators will compete first, and if they don't claim an easy scalp, they walk away from the negotiation table. Unchecked competition can leave business relationships in burning tatters. Those with accommodating profile styles tend to lose the most against competitive styles. So if a relationship is important to you, and if your market reputation is important, then be careful to curb your competition. How to Defend It The most important thing to remember is don't cave in. Some people say that they make concessions in the face of a competitive negotiator to create goodwill. Don't listen to these self-deluders, they're bleeding profits. Appeasing competitive negotiators doesn't create goodwill, it just creates requests for more concessions. What's more, a competitive-style negotiator will see you as weak and come back for more. Restate your position firmly using strong language (not "we'd like" or "want" but "we require" or "need"). Never reward bullies. Accommodate (I Lose - You Win) Negotiation style No. 2 is the opposite of competing. For accommodating style negotiators, the relationship is every- thing. Accommodating profiles think that the route to win- ning people over is to give them what they want. They don't just give products and services, they are generous with infor- mation. Accommodators are usually well liked by their col- leagues and opposite-party negotiators. When to use? When you're at fault or your company is at fault it's better to accommodate. Being accommodating is also a good strategy when you're in a very weak position. Think about it: If they can crush you, and they know it, what is likely to be the outcome if you resist? Yes, bring your own bandages. It may be worth (humbly) reminding them that you will both stand to lose if they put you out of business. If you both intend to work together long term, then refocus the negotiations, reminding the other party that taking advantage of you now may hurt them in the future. What's the Danger? It's almost always a bad idea to accommodate. We when negotiating against high-compete styles. Your generosity may be seen as a sign of weakness. It can signal to your negotiation counterpart that you have deep pockets, and your gift is just a Your style or profile of negotiation can define whether you grind into a deadlock, or create value and an endur ing relationship. So what do you do when your needs are incompatible and your path to agreement starts to fade? Most of us tend to have one or two preferred strategies that we use unconsciously in most conflict situations. Why? Either because our preferred styles have worked for us in the past, or because of our temperament (nature) or our upbring ing (nurture). But the key to effective negotiating is knowing which of the following is likely to reward you with the biggest profit prize in a given scenario. Compete Compete Competitive style negotiators pursue their own needs. Yes, even when this means others suffer. They usually don't want to cause others to suffer and lose, they are just so narrowly focused on their shorter-term gains that they plunder obliviously through negotia tions like a pirate. They often use whatever power and tactics they can muster, including their personality, posi tion, economic threats, brand strength, size or market share. At its extreme, negotiators call their behavior aggressive or psychotic. When to use? When you need to act or get results quickly this is a When you need to act or get results quickly this is a When you need to act or get results quickly this is a When you need to act or get results quickly this is a When you need to act or get results quickly this is a When you need to act or get results quickly this is a When you need to act or get results quickly this is a great option. Competition is critical when you are certain great option. Competition is critical when you are certain great option. Competition is critical when you are certain great option. Competition is critical when you are certain great option. Competition is critical when you are certain that something is non-negotiable and immediate compli that something is non-negotiable and immediate compli that something is non-negotiable and immediate compli that something is non-negotiable and immediate compli that something is non-negotiable and immediate compli ance is required. It also can be an effective defense or ance is required. It also can be an effective defense or counter to use against negotiators with a competitive- counter to use against negotiators with a competitive- counter to use against negotiators with a competitive- conflict profile. However, we would recommend that conflict profile. However, we would recommend that conflict profile. However, we would recommend that conflict profile. However, we would recommend that conflict profile. However, we would recommend that you use a blended approach, as both negotiation parties you use a blended approach, as both negotiation parties you use a blended approach, as both negotiation parties locking horns in a competitive battle can result in a locking horns in a competitive battle can result in a locking horns in a competitive battle can result in a spiraling deadlock. spiraling deadlock. When you're buying or selling something as a When you're buying or selling something as a When you're buying or selling something as a When you're buying or selling something as a When you're buying or selling something as a once off (e.g. selling your own home or car to once off (e.g. selling your own home or car to once off (e.g. selling your own home or car to a stranger), then your negotiation will likely be a stranger), then your negotiation will likely be a stranger), then your negotiation will likely be more competitive than if you were selling to a more competitive than if you were selling to a more competitive than if you were selling to a close friend or family member, or if you were in close friend or family member, or if you were in close friend or family member, or if you were in close friend or family member, or if you were in close friend or family member, or if you were in a business-to-business negotiation. If you're buy a business-to-business negotiation. If you're buy a business-to-business negotiation. If you're buy ing or selling a commodity product or service ing or selling a commodity product or service ing or selling a commodity product or service and you have strong competition, get used to competing. What's the Danger? What's the Danger? The difficulty with people who are high-compete (which a large percent age of buyers are) is that competitive styles overuse competition. This means that the other party knows exactly what behavior to expect and can prepare more behavior to expect and can prepare more behavior to expect and can prepare more easily. In a negotiation of roughly equal power, easily. In a negotiation of roughly equal power, easily. In a negotiation of roughly equal power, Once you know your strength, you've taken the first step to gaining flexibility in your negotiations. continued on page 26 By Calum Coburn 12 FEDA News & Views