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Who are you negotiating your contract with? (Part 2)
This is the second of a series of three articles, each reviewing a model that describes three types of contract negotiators.
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One of the most important factors for a successful contract negotiation outcome is your ability to "put yourself in the shoes" of the person(s) you are negotiating with. However, each person is different and negotiates in a different way. What "types" of negotiators exist? In a series of 3 articles we will summarize three different models that each categorize negotiators into three different types. While these models and types are oversimplifications, it will help to detect patterns, classify behavior and ultimately achieve a more succesful negotiation outcome.
In this second post of three articles we will review The Poker School, The Idealist School and the Pragmatist School.
You can read part 1 about Hard, Soft and Principled Negotiators in our blog archive.
This second model was developed by R. George Shell, a Professor at the Wharton School of Business Ethics and Negotiation whom classified negotiators into the following three schools:
- The Poker School
- The Idealist School
- The Pragmatist School
This model, and the types that it describes, are centered around the ethical side of negotiation and how different negotiators may think about telling the truth during a negotiation.
The Poker School
Those negotiators that are in the Poker School see every negotiation as "a Game" and will behave similarly to how a Poker Player plays their poker games.
There are several implications when the person you are negotiating with perceives the negotiation as a game. Firstly, that means that for them, there can be a "winner" and a "loser" in the negotiation (or perhaps a "draw"). Additionally, there are some "rules" to abide by, for example that each side alternates in stating their negotiation position.
As-in Poker, a negotiator may have a "strong hand" or "weak hand", which refers to the strength of their negotiation position or to the potential power imbalance that may exist between the negotiating companies or individuals. Similar to Poker though, a strong or weak hand will help but not necessitate the outcome.
Information about the counterparty's position is crucial, especially when that information is not explicitly verbalized (ie. they hold their cards against their chest) but is derived from subtle cues.
The most defining factor of the game Poker is of course the concept of 'Bluff'. For those negotiators believing in, and following the Poker School, bluff can also be fundamental in winning a negotiation. This can get tricky both from a legal point of view as well as from a long-term trustworthy relationship point of view hence in these situations they may never actually "show their cards".
If you are negotiating with someone who is behaving like it's a game of poker, then it's critical to recognize this early on in the negotiation. Noticing this early will help to classify behavior, predict potential moves, limit any give-aways of "subtle cues" and help you question anything that may look like a potential bluff. Also this article comparing poker and negotiation may help recognizing behavioral patterns.
The Idealist School
Negotiators classified as part of the Idealist school behave very differently from those in the Poker School. Behaving ethically and focusing on the long-term relationship are some of the key characteristics of those in the idealist school.
Lying to, or misinforming of, your counterparty in order to achieve a better negotiation outcome for yourself is "not done".
It's interesting to note that behaving ethically may mean different things to different people, especially if you are considering cross-cultural negotiations.
One may see similarities with the type that is described in Harvard's model as "soft negotiators" but that is not necessarily true. In fact, some idealist negotiators may behave a lot more like "principled negotiators" when drawing comparisons to the Harvard model described in part 1.
Recognizing early on that you are negotiating with someone who abides by the Idealist school will help to be certain that you are unlikely to get "tricked" into negotiation outcomes that will end up severely damaging your and your companies' interests.
The Pragmatist School
Negotiators that are part of the Pragmatic school of negotiating will be more difficult to pin point, since they are in some ways in-between the 'Poker school' and the 'Idealist School'. Pragmatic negotiators may act based on what is in their their best interests (considering short and long term). With that in mind they differ from the Poker School since they will not be 'bluffing' unless it is the only way to get where they want to end up. Pragmatist negotiators also differ from the Idealist negotiators because they are not as dogmatic that they'll never bend the truth - as long as that could help them achieve better outcomes.
If you are interacting with a pragmatist negotiator, be mindful that they may not always be entirely truthful but also that they are not necessarily trying to trick you. The pragmatist negotiator is probably the hardest to classify (especially if you consider pragmatic poker players or pragmatic idealist exists) and potentially also the hardest to negotiate with, after you were able to classify them.
Conclusion
Wharton's model describes three types of negotiation profiles, largely through the lens of ethical behavior in the contract negotiation context. Being able to classify your counterpart early on in the negotiation process will help you achieve better negotiation outcomes. The hardest to classify and negotiate with, will be the Pragmatist school, given they tend to adjust their behavior towards the situation and counterpart.
In our next article in this series we will review The Assertive, Accommodator and Analyst negotiator types. Described by Chris Voss from the Black Swan Group, whom is seen as an authority in the negotiation field and wrote the bestselling book "Never Split the Difference". Stay tuned and like us on LinkedIn or Twitter to receive a notification when it's published.
About Canveo
Canveo is a contract negotiation and management platform. Contact us if you are interested to learn more about what we do or would like to see a demo.
