Negotiator / Knowledge base  / Negotiation styles

Types of negotiation styles

A negotiation style is a collection of our behaviors and attitudes, which  we manifest throughout the negotiation process. A style should be aligned with strategy. There are three basic negotiation styles, which have been named after their most probable result. They aggregate a set of beliefs on our approach to negotiations and are a function of our life values. Below I have presented the most important information on each of them. I encourage you to reach out for more literature and reflect on your personal negotiating style. Loose-loose Neither of the sides achieve a real victory. This is a destructive style because each of the sides leaves the table with an agreement… failure. This means both sides have deprived themselves and their partner of the opportunity to satisfy their interests. Such a negotiating style is typical for people emotionally unstable, lacking up to date information and bad intentions. This style is characterized by uncompromising, applying pressure, manipulation, ruthlessness towards the partner, lack of concern for partner’s interests, stubbornness, dirty tricks, blind and egoistic pursuit of one’s goals. Win-loose Only one of the sides achieves a real victory. Due to poor understanding of interests, unsolidity, faults in information exchange, use of techniques etc. one of the sides leave the table defeated and probably won’t be willing to continue cooperation in the future. This style is characterized by strong orientation on only own goals or lack of understanding of the partner’s interests. Win-win Each side achieves a real victory, aligned with interests. This style ensures sustainability of relationships and joint business. Thanks to a common approach to figuring out an optimal option for fulfilling interests, parties achieve a constructive agreement through cooperation. This style is characterized by focus on interests, joint decision making, impartiality of criteria for options  consideration, approach to negotiations as to problem solving, respect for common interests, openness, trust. I think this is the most appropriate negotiating style in today’s business. The negotiator’s dilemma When approaching negotiations, we confront a dilemma if our partner has the same style as ours. It is a lot more comfortable and resolute to talk, when we know that the other person also wants all parties to leave the table victorious. Alas a question arises – what should one do upon confronting a partner who is set to achieve victory only for themselves. This surely is a situation, in which it is worthwhile to take time to rethink if we have any alternative partners – a change could save a lot of unnecessary obstacles. The most important thing which we can do is to set an example of win-win negotiations, so that there is increasingly more negotiators who apply this style. Thanks to this, civilization will benefit on the potential of collective creativity and strong organizations, countries and people.

Eagle’s view on negotiations – the process This article is a review of key elements in negotiations and therefore will help you to embrace them in their entirety. As a preface I want to clearly state something. The collection of knowledge presented below is what we call a negotiation process. It is a scheme of sorts with the main purpose to assist learning how the negotiation phenomena works. In reality, the elements described in it can be interlinked, appear in different order or may not come up at all. Nevertheless, the negotiation process makes us aware of what awaits us and when to expect certain things. This way we can plan our actions more accurately, keep the situation under better control and look at negotiation from a strategic perspective. Dear Reader, I invite you to learn about the negotiation process!

1. Preparation is thinking forward into the future. It helps us to realize what we want to achieve, so that we can analyze why we want to achieve it. We ourselves (or in our team) have to decide on what is really the goal and which of our needs it will satisfy. Preparation consists of collecting information about our partner and foreseeing his actions, so that we can swiftly respond to his moves. Preparation is a projection of the future. Thanks to it, we get acquainted with situations which we might encounter in the future so that they are not alien to us. Thanks to this, we feel more comfortable when they occur and can effectively operate.
2. Relationship Building is getting to know a person. We can get to know a person through history (how he wound up where he is, where he was, what he learnt, what network he built, which decisions he made etc.), presence (how he speaks, gestures, what he laughs about, how he reacts to the environment, how he experiences life, which attitudes and values he represents etc.) or future (what are his aspirations, ambitions, visions plans, how he thinks of the future – with energy and enthusiasm or pessimism).
3. Information Exchange is uncovering yourself to the other side. When we talk about ourselves (eg. our interest) we invite people to get familiar with us and our situation. Assuming that we talk authentically, we will position the other side in a space of acknowledging and understanding our reality. This requires courage and trust for the other side that their intentions are good (please distinguish intentions from goals – eg. someone’s goal could be to buy as cheap as possible and their good intentions will be shown by offering an open conversation and common search for a way to bring down our costs).
4. Persuasion is the act of causing people to do or believe in something. The effect has to be beneficial to them, or else we’re dealing with manipulation. When someone is persuasive towards you, the most important thing is to remember your interests and consciously make decisions after considering the new pieces of information.
5. Concessions is acknowledging the superiority of another need. When concessions are an option in our repertoire of actions, we happily don’t have to worry so much about the mistake of entrenching around our positions. Concessions are natural, because not all interests can be integrated. It is a true skill to make concessions with high style – in the name of relationships, good agreements and a constructive future.
6. Agreement is the building block of mankind. Where there is agreement, there is also progress because people don’t waste time acting against each other. Agreement is a crucial step, which often marks the beginning of cooperation with a partner. However, don’t push it – sometimes an agreement just won’t be the best way to go. You can always walk away from the table.

The above elements come to make the negotiation process. Having embraced negotiations from a broad perspective, you are ready to immerse in each of the six above elements and reach our for practical knowledge.

Negotiations are present in many aspects of life. Personally I specialize in trade negotiations. These can be business (purchasing, contract) as well as non-business (high value purchases, especially real estate). In this article we will take a look around the commonness of negotiations. The most important thing is that being aware of the diversity of negotiations broadens our cognitive horizons, giving us access to a wider inventory of tools and styles which we can then use during our negotiation challenges. Below I will outline the types of negotiations and point out what is special about them (by that I mean what one has to master in order to practice them or what can be learnt from people who already practice them). Let us  keep in mind that the set presented below is open to extension. There is so much richness in negotiation types that it would be too much information to include everything in an article like this. In general, negotiations can be grouped into three main types: business, judicially-diplomatic and non-business.

1. Business – negotiation in the name of a commercial organization or between its members.
   1. Trade – concerning buy/sell transactions of a good or service. Communication and an ear for listening to needs is highly valuable.
   2. Strategic – usually go on for months or years. The key aspect is negotiation strategy. Building trust over time can prove to be the tipping point of success.
      1. Fusions
      2. Mergers
   3. Internal – between members of the organization. Bosses need to agree on management strategies. Employees need to deal with the rat-race and things like fraud. Salary negotiations, contract terms etc. Social competencies are highly valuable.
2. Judicially-diplomatic – negotiations typical for the government sector.
   1. Court – negotiations based on normative acts. Negotiators must be familiar with the judicial system, within the boundaries of which everything takes place. Powerful logic and argumentation is highly valuable in the court room.
   2. Police – one of the sides represents the authorities and most usually there is an element of danger. A police negotiator must be familiar with psychology since he will have to handle people with disorders or socially not adapted. It is critical to remain cool and be resistant to fear and pressure.
   3. Diplomatic – negotiations in the name of a nation. They are held in a multicultural, multilingual and often also multi-faith environment. In order to make their way through, diplomats must be open to understanding the differences between mindsets and behaviors as well as show respect toward other cultures.
   4. Politic – one of the sides is a person of politics. The other side may be another politician or a group of citizens. In the latter case, it may be a challenge to reach people from different parts of the society structure. A skilled politician will have high competencies in adjusting the communication in respect to the receiver.
3. Non-business – we negotiate as private individuals.
   1. Trade – an individual can save some money in their pocket thanks to negotiations while buying a house, yacht, luxury limousine etc. The same goes for selling your goods. It is helpful to know the market situation of the good being the subject of transaction.
   2. Family – reaching agreements within a family can be a real challenge, because it is a very specific group in terms of sociology. It is helpful to be able to step out of a personality typical for family relations. Nota bene conflicting heritage issues will not qualify as family negotiations if they are taken to court or a mediator steps in.
   3. Friends – looking for agreements within a group of people bound by casual relationships. Usually you can learn how to talk with people thanks to the quantity of time spent with them.

Negotiator / Knowledge base  / Games

Negotiation games

Perfecting negotiation competencies is best done through practice. However, if you wish to improve your skills in a risk-free environment, in this article I describe the tool to do that. That is, negotiation scenarios. Scenario and case study A scenario is similar to a case study but there is one difference worth mentioning. A case is always based on a historical situation, while a scenario can also be fiction and even abstract. Each is valuable in some way. For example, abstract scenarios nurture creativity, which later comes in handy when solving real problem. Professional analyzes A scenario is a tool with big potential of value for players if certain measures are taken. Firstly, it is best to invite a professional negotiator to listen in to the negotiations and take notes. After the game ends, their role is to moderate the process of learning and help players to evaluate their own behaviors. Secondly, the negotiation could be captured on film. Then, after the game ends, the whole process can be analyzed in retrospect, including behavioral tendency analysis. Players enjoy watching themselves on video, which is an unbiased source of information and provokes swift changes. Thirdly, it is practical for players to note down three things to improve and keep this note till the next scenario, to help ensure progress. Scenario and reality There are several details distinguishing scenarios from real life. A person will behave differently in each of them. In reality, one is themselves and negotiates their real business, while during a scenario one plays a role and enters its world. Due to this, it is generally easier to think outside the box in real life, where we have much more information at hand. Moreover, when playing scenarios, players have more easy-going attitudes due to lack of risk. On the other hand, scenarios develop role playing and improvisation skills, which are both very useful in life. Games in the world of tournaments Scenarios are used during international championships in negotiations such as The Negotiation Challenge and Warsaw Negotiation Round. In Poland, probably the only institution which is a reliable source of scenarios is Student’s Scientific Association ‘Negocjator’ at the Warsaw School of Economics. They organize the Warsaw Negotiation Round. Its members and alumni prepare high class materials for the purpose of conducting national and international tournaments, which they organize under the patronage of the Marshall of the Senate. Some scenarios later show up as book publications. The most recent editions are smartly laid out and contain lots of additional materials such as author’s comments, score cards, introductory commentary etc. Read my interview with the organizers of Warsaw Negotiation Round 2015 Read my personal report from the Warsaw Negotiation Round 2015, where I coached the team representing Poland.

Negotiator / Knowledge base  / 10-principles

10 principles of negotiating

This article is special because it sums up important elements of professional negotiations covered in articles, which I published on this site and on my blog over the past months. It reviews principles which I chose based on my experiences. I am convinced that these several key-points below have a major impact on the way of reaching agreements.

1. Have a reason – if you don’t have to, don’t negotiate – create an offer your partner won’t reject. If you chose to negotiate, be convinced why you want to do it. Think about what other options there are to fulfil your needs. An authentic choice to negotiate will provide motivation to be professional throughout the process.
2. Be a humble partner – the world is full of things we have never encountered and people with possibilities we have not dreamt of. By opening up for possibilities, which you didn’t know before and restraining from judging the unknown, you will have more options for taking action. At the same time, keep to partnership equality for respect and assertiveness.
3. Prepare – looking into the future reduces uncertainty. Preparation is a projection of the future. Thanks to it, you get acquainted with situations which you might encounter in the future so that they are not alien to you. This will make you feel more comfortable when they occur so you can effectively operate.
4. Listen – the one who has more information also has more possibilities of taking effective action. Listening and understanding will make you the side with more information.
5. Look from different perspectives – looking from more points of view broadens understanding and makes seen what is unseen from a sole perspective. Go to the gallery to dissociate with your own view point and embrace the situation at the negotiation table. Go into the other side’s shoes to understand their requests and terms proposals.
6. Think in terms of interests – strife to understand what your partner want to achieve by their requests to turn the conversation into a joint problem solving force. Thanks to such transparency, sides will not hold onto their positions unconditionally. Moreover, the talks will be more productive and will increase the chances for a satisfying agreement.
7. Be respectful – respect can be shown under any circumstances. If your partner is disrespectful, it does not permit you to do the same. Being a professional is a basics.
8. Don’t engage emotions – regardless of how real an emotion is for us, it should not be related to reality. Emotions influence our behavior if we let them. Don’t let emotions influence you. Be the one to influence your emotions.
9. Act upon win – win strategy – care for your partner’s interests as you do for yours. This will align the thinking process to seek solutions beneficial for all. Moreover, embracing and keeping the interests of all sides will increase your control over the process.
10. Get agreements on paper – it is wise to note down the terms every now and then, even if they are not the final agreement yet. Should someone’s memory play games, written information can save a lot of trouble and explanations.

Learn & play – Each negotiations are unique. Let it be that each are an adventure, which is engaging, challenging and contributes to us (negotiators) being smarter, stronger, more thoughtful and good. To successful and valuable agreements! Paweł

Negotiator / Knowledge base  / Multicultural – Preparation

Multicultural negotiations – how to prepare?

If you have read about multicultural negotiations then you are probably curious how to prepare for them. In this article I have gathered the answer to that question. Fundaments The most important things stay the same as in every other negotiations. Everything described in the article on preparing for negotiations is true in the multicultural context. Moreover, we should define the crucial elements such as our interests and BATNA with more scrutiny. Why? Because our assertiveness and ability to focus on interests will be put to the test with behaviors which could be completely new for us – it will be easier to make a mistake. Information, information, information Depending on the type of negotiations you will require quality information to swiftly move around on new grounds. In most cases you will need to find out some of the following: international law and partner’s local law; tax systems; political situation; intellectual property protection laws; organization forms laws; contract law depending on the organizational form; fusion and mergers law; important state offices and their procedures. It is also worth finding out what amongst things allowed in our country is forbidden in our partner’s country (to prevent unintended trouble). Depending on the situation, it might be wise to invest in credible information sources – e.g. consultations with high class lawyers and negotiators, who have experience in a desired field. It is good to learn about the culture and most important information about the country or area – e.g. economy, international interests. This will allow us to engage in discussions more easily and show that we are well prepared and know the territory (such a demonstration will also  discourage our partner to use their advantage of knowing the territory to their benefits, if that was their intention). Moreover, get acquainted with typical behaviors of negotiator, which are a result of a cultural context. It is better to know more than less. We want to minimize the amount of surprises resulting from the multicultural environment so that we can focus on the task at hand. Other aspects worth considering Getting to know how etiquette is perceived by our partner’s culture will provide us with information thanks to which we can adapt our clothing and behaviors to local standards. It is in our best interests that our partner understands us the way we intend them to. That’s why it’s wise to consider the differences in precise communication resulting from high- and low-context languages. Even experienced negotiators will occasionally encounter new behaviors in multicultural negotiations. What we don’t know or don’t understand can be a source of frustration. Therefore, it is wise to get into an attitude of calmness. Be willing to show acceptance and communicate precisely.

Negotiator / Knowledge base  / Multicultural Negotiations

Multicultural negotiations

Negotiations in a multicultural environment are a challenge. This article will show you the way. Read it thoroughly to see what one should learn to successfully approach them. Perspective Everything we think is an interpretation. We perceive the world through filters we make throughout our entire lives. Every experience shapes our filters. If we were brought up in a Chinese metropole, we will be used to living in a collective society. If we spent two years working as programmers, we will have stronger logic skills and use them more often in out of work situations. Our experiences shape who we are. Therefore, a Vietnamese negotiator who has spent years in a reality different than that of a Norwegian negotiator will  encounter challenges during the negotiation talks. We will be more skillful at handling differences if we have an attitude of a respect and high communication & listening skills. The message: Accept how every person is different and how culture influences these differences. Cultural diversity Culture is a heritage of values and customs. They shape behaviors which we will encounter. It is most important that a negotiator understands what these behaviors are and how to respond to them. For example: being half an hour late is normal for an Italian, so he won’t find it necessary to excuse his behavior. For a German, being late is a sign of disrespect because it causes a fuss in plans. The message: Get to know the specific behaviors of negotiators of a certain culture to get used to new behaviors and establish rapport more easily.   Stereotypes Stereotypes are based on generalizations. Therefore, there are two reasons why one shouldn’t take them too seriously. Firstly, every person is different and within one culture, people differ from one another. Secondly, in many countries (i.e. Individualistic societies) people like to be approached individually and generalizations may play against relationship building. Stereotypes are not a source of valuable knowledge. It’s best to learn about cultural differences from specialized books or experienced professionals. The message: Don’t take stereotypes too seriously. Non-verbal communication In a situation, where we communicate in a foreign language with a person of another culture, (especially if it’s the first time) it will be handy to have a language we’re fluent in to support us. Body language can provide many valuable observations about our partner’s behaviors so that we can better understand their intentions. The message: Learn to read body language to enrich your options of interpreting messages.   This article is merely a road sign towards a very broad and complex subject. If you are facing multicultural negotiations in the near future, more information will be handy. Here are some other articles on multicultural negotiations. How to prepare for multicultural negotiations. Examples of negotiations in European countries. Examples of negotiations in Asian countries.

Negotiator / Knowledge base  / Multicultural – Asia

Examples of cultural differences – Asian countries

In this article I will outline the main differences which are worth knowing when negotiating in Asia, especially in China. Approach to negotiations At the center of all differences is the approach to business negotiations. While in Europe, negotiations often come down to the result we achieve and secure with a contract, in China the case is slightly more complex, or at least different. The one more important thing than the results we achieve is the way we do it. A way to put it plainly would be to say that one should take their time. Emphasis is put on getting to know the partner – as a person and as a representative of a culture – this is a way to show respect. A lot of time and effort is put towards understanding the partner – their interests, thinking process and way of making decisions. Trust is placed noticeably higher than in Europe. Actually, trust is considered to be the desired result of negotiations. The level of trust is so high, that partners still often don’t write up contracts. We could say that verbal agreements are an equivalent to our written contracts. Speaking of contracts, the Chinese have a different view on this tool too. For them it is a summary if sorts. In addition, they remain flexible and changing terms of an agreement after the negotiations is common. Values The two values which can be easily observed are respect and society. The Chinese culture is a social one, in contrast to the European individualistic cultures. Consequently, the Chinese are more aware of each other. They care about their honor and speak to others with respect. Indirect expression of objections and difficulty in rejecting propositions are also ways of expressing respect. Relationship building Due to high respect standards, the Chinese devote a long time for relationship building. Firstly, relationship should be developed prior to commencing talks on business (while for Europeans, a quality of a relationship is often wrongly perceived as a function of the quality of the contract). This is a complex process of discovering and comprehending the partner and his culture. We can expect to spend a few days sightseeing the area. Also, expect delights such as music, traditional cuisine and drinks. The appropriate way to act is to have fun and be grateful for the possibility which our host is granting us. Be open and try things, when presented with the opportunity – remember that rejection is a sign of disrespect. Communication As for verbal communication, it is good to know about two things. Due to the deep respect towards the interlocutor, Asians have a very subtle way of expressing objections. They do it so politely (so as not to harm the partner), that it can be tough to understand their intention. Another derivative matter is unclear (according to our standards) expression of one’s opinion. The above come to make Asians far from being direct communicators. Negotiations is Asian countries is a real adventure. I encourage you to use every opportunity to get acquainted with stories from people who did it.

Negotiator / Knowledge base  / Trust

Trust in negotiations

What is trust? When we trust someone, that person is trust worthy (and not the other way around). Whereas trust is not something that a person gains from us. Trust is a quality, which we own. It is a context which we grant people, when we choose to trust them. Such viewpoint of trust is important, because it assumes we are responsible for trust, which we give to people. If we trust someone and that person misuses our trust, then the problem is that we misjudged them of being trustworthy. Role of trust in negotiations Trust for negotiations is like oil for an engine – thanks to it talks go smoothly and relationships are not broken. In the context of trust we don’t lose energy for watching out if our partner is cheating on us and we ourselves don’t plot to cheat against them. Therefore, we can use more energy for listening and understanding, and constructive conversation. Trust is an indispensable ingredient of win-win negotiation based on interests. Trust games When there is not trust yet, or it has been taken away, the game for trust is on. Most people choose to give someone trust based on past experiences – whether a person was trustworthy or not. By thinking this way, we can easily close ourselves in a loop from which neither party will want to exit. This is why I described the thinking about trust above. It is helpful to perceive trust not as something we gain, but something we give. I give trust, because I choose to (not because you showed me you are trustworthy). Let us have the courage to be the first person, who gives others trust. How to build trust? Few words of practical advice:

• Explain your demands. According to psychology, by default we see people in a less brighter light than we do ourselves (especially people we just met). Therefore, when stating our demands we can be misunderstood because someone may judge our proposition as unfair. Behind every negotiator there are circumstances, which determine their shore lines and character of expectations towards the agreement. Sharing them with our partner and explaining our point of view can be a cement of trust. Firstly, this indicates our transparency which implicates honesty. Secondly, the unknown raises stress levels and comprehension lowers them.
• Speak their tongue. It is a standard to know all the technical terms and lingo – without them it is easy to take a fall in trust levels. Get to know the point of view of your partner. Embrace their situation, needs and history. This will be a display of your engagement and good will. Moreover, if you are entering negotiations in a context, which you do not know well, you can play safe: At the first stage of the negotiations, express how you wish to understand the situation so that you can work out a great agreement, but you realize there will be a lot of learning on the way. Ask for forbearance.
• Use reputation. If you have someone, who knows your future negotiation partner, it may be of benefit to engage them. They can write or call your partner and vouch for your competencies and experience. Remember that your partner will meet your reputation before he/she meets you.

Negotiator / Knowledge base  / Dirty tricks

Dirty tricks in negotiations

Just as any other industry, negotiations can be home to unfair players. This article has one aim – to give a broad display of what dirty tricks they use, so that you can spot them. Awareness is the first step toward dealing with them. Dirty tools

• Environment, which creates discomfort. Seating someone with the sun or light in their face, excessive heat or cold, noise – these are all signs to call a break and find a calmer place. Before beginning talks, sides should check if the environment is suitable and free of distractions.
• Alcohol, which dims rational thinking. Often motivated by cultural context or social proof. The facts say that even the smallest dose of alcohol alters the efficiency of the brain. As a defense, one can propose joint celebration after the signing of the agreement.
• Bribery, as a pick for desires. Presenting a shortcut to big money or other benefits can prove to work on people with weak values and a low self-esteem.
• Techniques, which lead to a downfall of a partner. Techniques are tools positioned on the verge of ethical action, and some even unethical. Before using any of them, a negotiator should think of possible consequences – one should never want the result to be other than a win-win.
• Bad intentions, which seed destruction. People driven by bad intentions are unstable in terms of values and emotions, which makes them unpredictable. They have no restrains from playing dirty tricks.

Example To finish this post, I will share a true story which is an example of an extreme dirty trick. A negotiator from Europe flew over to Asia to establish a contract. In respect with the eastern ways, the first two days were spent on seeking delight in tradition, sightseeing, food, music and alcohol. On the third day, the host announced that near the evening hours they will start to talk about business. The European was pleased. In the afternoon there was more food and alcohol. The Asian even persuaded the European to a game of table tennis. He mentioned repeatedly that it is his favorite sport and was clearly happy of being such a great host. Once they finished, the European was sweaty, tired and tipsy. He was informed that the talks on business will commence in 10 minutes. Indeed, 10 minutes later, the Asian returned in a clean, ironed short, looking fresh, focused and sober. The European was disorientated. During the negotiations he did a poor job and came back to Europe with a miserable contract. What was the dirty trick? Did you notice it? The Asian swapped with his twin brother after the game of table tennis. If the whole situation was based within one culture, the trick could probably be uncovered. Unfortunately, for a person who does not spend time daily with representatives of another race, the differences between twins were unnoticeable.