The Kremlin School of Negotiation

No one has ever squeezed better terms out of a supplier than those the supplier squeezes out of themselves.

Negotiations cannot be won or lost. What you can do, however, is determine exactly where you are in the negotiation process, and what the next steps need to be. Beyond Win-Lose. Viewing negotiations as a win-lose battle is detrimental. Instead, see it as a process with multiple stages and potential outcomes. Focus on understanding your position and your opponent's motives, and plan your next steps accordingly. Identify Motives. Before entering negotiations, determine your opponent's primary motive. Are they seeking to extend an agreement, normalize relations, redistribute resources, reach a new agreement, gather information, mislead, or provoke? Understanding their true goal is crucial for selecting the right strategy. Types of Negotiations. Recognize the type of negotiation you're in: extending agreements, normalizing relations, redistributing resources, reaching new agreements, gathering information, misleading, or provocation. Each type requires a different approach and strategy.

A ruler who just plays the lion and forgets the fox doesn’t know what he’s doing. Lion's Strength. Like a lion, a negotiator must be able to defend their interests with strength and determination. This involves knowing your goals, having the willpower to pursue them, and being prepared to fight for what you believe in. Fox's Cunning. Like a fox, a negotiator must be able to manage their emotions and the emotions of others. This involves being observant, strategic, and able to see the "snares" that emotions can create. It's about using emotions to your advantage, not letting them control you. Balance is Key. Effective negotiation requires a balance of both lion-like strength and fox-like cunning. You must be able to defend your interests while also managing the emotional dynamics of the negotiation process.

To make an adequate forecast, you must look at the situation – and at yourself – from your opponent’s perspective. Forecast Matrix. Before entering negotiations, use a forecast matrix to assess your position from your opponent's perspective. Rate yourself on a scale of 0 to 10 for both "importance" (how much they need you) and "irreplaceability" (how hard it would be to find a substitute). Four Categories. Based on your ratings, you'll fall into one of four categories: "Supermarket" (low importance, easily replaced), "Opportunity" (low importance, unique), "Lever" (high importance, easily replaced), or "Partner" (high importance, unique). Each category requires a different negotiation strategy. Maneuver or Combat. If you fall into the "Supermarket" or "Opportunity" categories, focus on maneuvering to strengthen your position before engaging in combat. If you are a "Lever" or "Partner," you can be more direct in pursuing your benefit.