Tag Archives: bargaining

The Wheel of Negotiation

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The Wheel of Negotiation is a visual representation demonstrating the relationship of the different negotiating styles across many different characteristics.    The right-hand side of the Wheel captures the distributive negotiations while the left-hand side illustrates the  integrative or collaborative types of negotiations.  The model is circular based on the relationship between High Dependency and Auctions.  High Dependency occurs when trust is high, dependency is high, relationship is high, deals are complex, information is open, and parties can’t afford to walk away without substantial loss (unions, JVs, strategic partners, problem solving, marriage etc.).  When High Dependency negotiations fail, the parties typically end up on the right side of the Wheel haggling over remaining elements.

Negotiations are not static and do not occur in only one sector of the Wheel, quite often as things change (especially behaviors and reactions) the style of the negotiation will move clockwise or counter-clockwise in response.  You will have a natural pendulum motion except at the very extremes as noted above.  For additional information on each style see the Negotiation Basics page.

Differentiating Characteristics

  1. Your Behaviors – your behavior is the most important determinant when it comes to the negotiation style.  See “Style is Everything” Continue reading →

Common Negotiating Tactics

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Here is a list of 25 common tactics I’ve encountered and even used over my career.  I absolutely love to hear stories about tactics, so if you have a good story about a tactic that was used on you or by you, drop me a comment or link.

  1. Exploding Offers (artificial deadlines) – an exploding offer contains an extremely tight deadline creating pressure on the other party to conclude quickly.  The purpose of the exploding offer is to limit the time the other party has to consider alternatives.
  2. Russian Front – Presented with 2 options, A and B, one worse than the other.  Designed to pressure you into choosing the lesser of two evils.  Remember two wrongs don’t make it right, attach your own considerations as condition of acceptance.
  3. Good Cop Bad Cop – based on law enforcement interrogation techniques.  One party opens with a tough position often accompanied by threats, arrogant behavior, and unwillingness to consider anything else (parental).  After leaving the room, a second negotiator attempts to secure major concessions before the return of the first Bad Cop.  Sometimes disguised and used only when certain issues are brought up or certain thresholds are crossed.
  4. Highball / Lowball – when your extreme opener is beyond the realm of realistic outcomes.  The idea is to cause the other party to reconsider their own opening position and move closer towards their breaking point.  Danger is the increased risk of deadlock before the negotiation even begin, crossing the “Piss Off” point.
  5. Bogey ­– presenting a relatively minor issue as one of huge importance.  Later during the negotiation, the bogey will be conceded for major concessions on issues that are of real importance.  Danger is the other party may actually structure proposals to give you the bogey or worse yet, you may lose credibility when conceding on the bogey.
  6. The Nibble – after considerable time has elapsed during a negotiation and a level of commitment has been reached, an issue Continue reading →