High Dependency negotiations are nothing more than a Collaborative Negotiation where the parties are mutually dependent upon each other.  The consequences of deadlock are often substantial.  Typical situations falling into this category are joint ventures, partnerships, union negotiations, strategic alliances, etc. (marriages if you count personal situations).  The difficulty with High Dependency situations is that information is transparent, the other side sees the P&L and knows how much each item costs.  Therefore discussions are often emotionally charged.  Even though it is emotion that generally creates potential impasses during the discussions.  It is paramount to manage the climate and take responsibility for how you say everything.  The danger is that emotionally heated discussions may cause the negotiation to devolve into a Hard Bargaining situation causing strikes, lockouts, dissolution, or legal action.  The words that you choose in delivering proposals and responding to proposals become more important than the meaning of the words.  You must eliminate all words that have a negative implication like “no, don’t, can’t or won’t”.  You must constantly think “under what circumstance could I accept that proposal” and even ask the other side that very question.

EXTERNAL CHARACTERISTICS: The balance of power is equal.  The deals are based on a mutual dependency.  All the characteristics of a Win Win negotiation are present with the added pressure that the parties cannot afford to deadlock.  Any alternative or substitute would be financially constrained.  Information is open to all parties.  Typical negotiations include Joint Ventures, Partnerships, Strategic Alliances, Labor Negotiations, etc.

BEHAVIORAL ELEMENTS: High Dependency requires a high level of trust as relationship plays a important role in shaping the business.  Satisfaction is received through understanding priorities, creating incremental value, and sharing value on primary issues.   Continue reading →