Strategy Vs Tactics Vs Tools
These are often-confused terms while discussing about negotiation as a skill. Examples for negotiation strategies are 1) Positional Bargaining 2) Principled Negotiation based on the Harvard Negotiation Project.
[Note: Our workshops use Principled Negotiation as the strategy.]
Now, let us consider the term ‘tactics’ and its relevance in negotiation. The most widely accepted strategy for successful negotiation; the Harvard Negotiation Project (principled negotiation) suggests five golden rules to follow while negotiating. They are 1) separate the people from the problem 2) focus on interests and not on positions 3) invent options for mutual gain 4) insist on using objective criteria. As per principled negotiation, we create value by expanding the pie, by expanding options, which meets both party’s interests. However, as we know negotiation has two elements, creating value and claiming value or it contains both integrative and distributive elements. The integrative part or creating value part by understanding each other’s interest (and increasing the pie) of a negotiation is often a communication dilemma and it is only half the story in a negotiation. After expanding the pie, claiming value by claiming a fair share of the pie or more is a matter of influence where the other party accepts the outcome. However, how do you communicate with influence, create, and claim value in a negotiation?
To answer the above stated problems, we need to look at some example tactics and tools.
There are various influencing tactics in negotiation. For example, one could consider Cialdini’s Psychology of influence as a negotiation tactics.
[Note: Our workshops cover various negotiation tactics and are customised based on the target audience.]
When we breakdown the skills to effectively negotiate and procure, we may need to consider some tools also. For example, one may need a tool for effectively creating options while negotiating. Specifically for procurement negotiation, a calculator for Total Cost of Ownership (TCO) is a tool while preparing for the negotiation.
[Note: During our workshops, we use at least one tool like Six Thinking Hats for effectively designing options.]
