There is no single correct and effective style of conducting business negotiations. To achieve results, one must adapt to the specific situation. The good news is that there aren’t an overwhelming number of options. Thanks to psychologists, we have an understanding of what to choose from.
In this article, we will explore 5 negotiation profiles. After reading the material, you will be able to assess yourself, understand your basic (or natural) style, and consciously choose the optimal one, depending on the situation.
Here is the basic information about each of the profiles:
- Competition (I win – You lose) — both parties are focused only on their own aspirations and are unwilling to listen to the opponent’s opinion.
- Collaboration (I win – You win) — the essence of this profile is to achieve the desired result while helping the opponent to develop. Each party ends up winning.
- Accommodation (You win – I lose) — one must adapt to the opponent, pleasing their demands but ignoring their own needs.
- Avoidance (I lose – You lose) — parties avoid making a decision for one reason or another, or even ignore meetings.
- Compromise (I lose/win a little – You lose/win a bit) — both sides give in on certain aspects/aspirations to reach an agreement.
Now, let’s move on to a detailed review of each style.
- Competition (I Win — You Lose)
During such negotiations, each participant considers only their own goals, even if it means the opponent has to lose. This doesn’t imply a desire for the other party’s defeat; rather, they are overly focused on their own short-term objectives. Often, adherents of this style employ almost every available tactic, including negative ones like exerting power, force, economic threats, and personal attacks.
When to Use This Style
There are five common scenarios where employing this profile is justified:
- A need for quick results, especially when certain parameters no longer require discussion and previously agreed upon conditions must be adhered to.
- Confidence in one’s correctness. If you are 100% sure that you are right in a specific situation, the competitive style is a viable option.
- The necessity to make an unpopular decision, typically arising in complex and critically important situations.
- Your opponent plays unfairly and might start to mistreat you if you exhibit non-competitive behavior.
- Other negotiation styles are not feasible. There are instances when it is impractical to use other profiles.
Drawbacks of This Style
Several negative aspects are associated with the competitive profile:
- Limited mutual communication and a reluctance to consider alternative proposals.
- People always agree with your opinion. A “yes” team forms around you, as it’s challenging to disagree with a leader who adopts a competitive style.
- The relationship with the opponent gets damaged. A rigid stance can lead the other party to refuse dealing with you.
- The competitive style results in the bulk of responsibilities falling on you. The opponent hardly commits, leading to certain risks during the agreement’s implementation phase.
How to Protect Yourself if the Opponent Chooses Competition
The key in such a situation is to never give up!
Some believe it’s sometimes necessary to yield to a person with a competitive stance. However, showing the first sign of weakness lays the foundation for further concessions! In such cases, assert your position using strong words like “we demand,” “we require,” etc.
Personal Experience
I believe competition is my natural style. At the same time, I understand that opponents and colleagues might avoid interacting with me, knowing I’ll push my decisions through. Since I don’t want to be avoided, I strive to constantly control myself and refrain from using this style.
- Collaboration (I Win — You Win)
Many people mistakenly consider this style as a compromise. However, that’s not the case!
In reality, Collaboration is a “Win/Win” situation. Both opponents achieve their goals while creating as much mutual value as time and available resources allow. Typically, individuals who adopt the “Win/Win” profile are open to exploring other styles, meaning they will utilize one of the previously described profiles when the situation is favorable.
Note! People who operate on the “Win/Win” principle are adamant that their needs/demands must be met, but they also acknowledge the necessity to satisfy the opponent’s requirements.
When to Use This Style
Situations where the “Win/Win” profile is appropriate include:
- When aiming to achieve long-term goals.
- When the interests of both parties are too significant to settle for a compromise.
- When you want to develop and maintain a relationship with the opponent.
Remember, if business relationships are extremely important to you and involve a substantial amount of money, it’s advisable to thoroughly consider all possible methods and ways to build trust. This profile is also optimal if you want to better understand the opponents’ interests.
Drawbacks of This Style
Three negative traits of this profile are highlighted:
- It requires a lot of time to reach an agreement.
- Time is spent discussing trivial issues.
- An elevated level of trust in the opponent can lead to exploitation.
When sharing information, ensure it’s done at the same level of detail with your opponent. If you provide more data, you might be exploited. If you share less, the opponent is likely to become reserved.
How to Protect Yourself if the Opponent Chooses Collaboration
In reality, protection is only needed in one case — if you realize that it’s not beneficial to use this style in interaction with the opponent.
Personal Experience
I value collaboration. There’s always a third option — first, express your view of the situation, then listen to the opponent. Based on the information received, identify common ground and use it as a foundation for building relationships.
- Accommodation (You Win — I Lose)
People who choose this negotiation style believe that the optimal path to success is to provide the opponent with what they seek. However, they don’t just offer goods/services but also openly share crucial information.
This profile is particularly intriguing when the content of the negotiation isn’t as vital to you but is of utmost importance to the other party. You can benefit from relatively minor concessions, which may assist you in the future.
When to Use This Style
Relevant scenarios for this profile include:
- Recognizing your own mistakes.
- Demonstrating that you are a reasonable individual.
- Believing that a competitive style would harm business relations.
- Wanting to maintain a healthy relationship with the opponent.
- Aiming to minimize potential losses.
For instance, if you or your company is at fault for a particular issue, and restoring and normalizing productive business relations is paramount, and the company lacks other products/services that could genuinely benefit the opponent, then accommodating the other party’s needs becomes essential.
Another case is when you’re at a disadvantage. It’s recommended to make concessions. Thoroughly assess the situation. Is there a chance that opponents can completely outplay you? Calmly and subtly remind them that both parties will lose if you’re forced out of the market. Propose focusing on the long-term perspective, proving that future productive collaboration will benefit the opponent more than an immediate win.
Drawbacks of This Style
Two negative characteristics of this profile stand out:
- Ultimately, you’ll be dissatisfied as you neglect your own needs.
- Your self-esteem may suffer.
Accommodating in negotiations where the opponent uses highly competitive styles is a bad idea. The opponent might perceive your willingness to make concessions as a mere weakness, ripe for exploitation. By giving away your values early in negotiations, you might lose too much upfront, leaving you without any “trump cards” later. Moreover, you’re essentially signaling to the opponent that you have more to offer, leading them to expect even more valuable concessions in the future.
Some believe that being accommodating helps establish genuinely harmonious business relations. However, this isn’t always the case. There are numerous strategies that can foster long-term relationships. Typically, accommodation results in only one party benefiting from the negotiations, unfortunately not the one making the concessions.
How to Protect Yourself if the Opponent Chooses Accommodation
When accepting concessions from an opponent, exercise caution. You might end up having to give back something more valuable than what you initially received. Remember this when weighing the values and their significance. Also, ensure that the opponent is competent. Unprofessionalism in negotiations can lead to issues with the “opposing” company. For example, significant financial losses or even the opponent’s bankruptcy can become a major problem for you.
Personal Experience
I take a tactical approach, allowing others to win in the short term to build strategic relationships in the long run. I recognize when it’s better to concede now to gain later. This approach makes the relationship more effective.
- Avoidance (I Lose — You Lose)
This style is typically chosen by individuals who try to steer clear of conflicts. The “Avoidance” style is a classic reaction to an increased level of competition among negotiators. It’s advisable to opt for “avoidance” when the value of time to resolve a conflict significantly outweighs the potential benefit. This profile is also relevant if the issue under discussion is of little importance to both parties.
When to Use This Style
This profile is suitable in the following cases:
- The issue is not that important to you.
- You can’t get what you want anyway.
- You need time to cool off and reconsider the proposal/situation.
- You need more time to gather information.
- Other team members could negotiate better than you.
- The situation is just a part of a more significant issue.
There are times when an issue isn’t important enough to warrant risking a conflict. If a discussion is characterized by heightened emotions, it makes no sense to escalate them further. The optimal option is to allow people to calm down and breathe easy to normalize emotions. That’s where the “Avoidance” style comes in handy – it’s advisable to propose a pause. In most cases, 20 minutes is enough for emotions to completely dissipate.
Note! Avoidance is the optimal choice if you’ve been dragged into negotiations for which you were not adequately prepared. It’s recommended to decline the meeting, or if that’s impossible, suggest to the opponent not to discuss sensitive issues.
Drawbacks of This Style
Among the negative features of this style are:
- Decisions are made on “autopilot.”
- Your personal reputation may be harmed.
- You can’t improve the situation.
How to Protect Yourself if the Opponent Chooses Avoidance
The main rule is to set deadlines at the early stages of negotiations. Ideally, specify particular phases, tying them to clear dates. Then you’ll know exactly what and when should happen, how the project will be implemented, etc. The other party won’t be able to avoid responsibilities or obligations, as they are outlined in the contract or another official document accepted during the discussion.
If your opponent opts for the “Avoidance” style, consider intensifying the situation from one or both sides.
Tip! Understand the decision-making process on the opponent’s side and the degree of responsibility. This will help you grasp why avoidance is occurring. You’ll also be better aware of what might trigger escalation and tension in business relations.
If you’ve managed to build excellent relationships with the opponent beforehand, openly discuss the emerging disagreements and offer your perspective on resolving them.
Personal Experience
I choose this style when I’m pulled into unnecessary negotiations. Avoidance is also relevant for me when I realize I lack information or am not confident that I’m the right person to make a decision. For instance, when I’m told, “Make an urgent decision regarding the occurred event,” I take a pause — this is avoidance on my part. I don’t participate in such negotiations, maintaining the stance that I don’t consider myself the person who can make a decision in that specific situation.
- Compromise (I Lose/Win a Little — You Lose/Win a Little)
Unfortunately, many people confuse the meaning of the two words “compromise” and “negotiation.” In reality, a compromise is merely a bargain, without a substantial understanding and creation of real value. In most cases, a compromise implies that both participants are forced to settle for less than they expected.
When to Use This Style
There are three situations where this profile is recommended for conducting business negotiations:
- If you are short on time and are discussing with people you don’t trust. However, opponents should also understand that winning by a small margin is not in their best interests. Both sides will simultaneously win and lose in this case, but you need to ensure that you win the right things and lose the right things as well.
- Tension arose during the negotiations? Or has it existed in business relations for a relatively long time? A compromise can neutralize it, but the main value of the negotiations will remain untouched.
- Another situation where a compromise is prudent is when you have nothing to offer the opponent, and this style is the only option to close the deal.
Drawbacks of This Style
In the end, no one will be fully satisfied with the result. A short-term deal may be struck, requiring additional time from both parties. This profile should never be used if you are simply unprepared or inadequately prepared for the meeting. Remember, if the final result of the negotiations is extremely important to you, under no circumstances should you compromise on what truly matters to you.
The main problem with this style is that if you compromise without clear justification, the opponent will approach you again in the future, demanding concessions. A compromise will only be a win for those who start negotiations from a more ambitious initial position. Therefore, you need to prepare in advance and analyze how to behave if the situation leads to a compromise.
How to Protect Yourself if the Opponent Chooses Compromise
We strongly recommend giving up your initial position only when you have a justification. Is the opponent extremely open at the beginning of the negotiations? You need to try to bring them back to reality or also move to an extremely extreme position.
Remember! An extreme position will lead to prolonged negotiations, which can end in a deadlock.
Personal Experience
I don’t like compromises. In my opinion, a compromise is when each party agrees to back down a little from their position, and in the end, no one gets what they want.
In Conclusion
We have reviewed five common methods of negotiation. Before starting a conversation, ask yourself two questions:
- Which style is optimal for you? Once you’ve recognized your style, you will achieve greater flexibility. You will also achieve much more as part of the negotiation team if you understand your colleagues’ profiles.
- Which of the five styles best describes your business relationships between the client and the supplier? We recommend marking each profile in percentage terms and then analyzing whether you are satisfied with this balance. If something in the results does not suit you, prepare a plan for a gradual transition to priority styles.
In conclusion, it’s essential not to constantly use one style for all negotiations. Prepare a list of goals and consider which issues are better solved using a particular profile.