the WHEEL of negotiation

The Wheel of Negotiation represents the relationship between the different styles of negotiation.  The right-hand side of the Wheel captures the transactional styles while the left-hand side illustrates the collaborative styles.

FREE PREVIEW

CLICK HERE FOR COMPLETE OVERVIEW PDF

AUCTIONS

Auctions aren’t just for eBay and Sotheby’s anymore. The primary characteristic is a one-to-many relationship. Auctions are always one-off transactions where price is the dominant driver of the deal. The purpose of any auction is to utilize competitive behavior to maximize value.

hard BARGAINING

Hard Bargaining is probably the most recognizable type of negotiation.  Buying a house, buying a car, buying anything in a marketplace, selling an asset, buying close out inventory, disposing of equipment, etc.  Because motives are clear (it’s all about the price) trust is not a factor.  A lack of trust combined with high levels of conflict breeds an environment filled with all sorts of negotiating tactics.

FREE PREVIEW

CONCESSION trading

The balance of power is much more equal during Concession Trading.  This is the most common form of business negotiation.  Now relationships start to play an important factor.  Typical negotiations include supplier agreements, business customers, accounts, your personal accountant, event planning, etc.

FREE PREVIEW

win WIN

The balance of power is equal. The deals are based on profit and are characterized by a long-term, strategic focus. Incremental value is created by leveraging each others comparative cost and value advantages. Typical negotiations include long-term strategic partners, key customers, key suppliers, licensing agreements, etc. Power comes through the ability to unlock both tangible and intangible value for both sides.

FREE PREVIEW

HIGH dependency

High Dependency negotiations are nothing more than collaborative negotiations where the parties are mutually dependent upon each other. The consequences of deadlock are often substantial. Typical situations include internal discussions, joint ventures, partnerships, union contracts, etc. (marriage). Discussions are often emotionally charged given the transparency of information.