Which strategy...compete or cooperate?

1Source: FRIEND & FOE, Adam Galinsky, Maurice Schweitzer, Penguin Random House UK, 2015

When is best to be more open and pursue more openness from people you are negotiating with?

When is best to offer little information in fear of weakening your position and when to expect the other person to do the same?

2

Cooperative (Open)

Competitive (Closed)

Being overly competitive can lead to bad behavior, but that does not mean

that competition is totally bad in general. In many cases, it can be highly

motivating for all parties. Professional sports show the value of

competition very clearly. Cooperation and competition must be balanced.

Competition, profit, deception and being closed can get a bad name.

But, is some cases, that is the best action strategy.

Image of being badImage of being good

3

Why get involved in major collaboration and

cooperation activities if it is not needed?

Cooperative (Open)


Collaboration and cooperation require effort and hard work, particularly internationally.

Maximum energy &

effort to reach a

successful solution

Minimum energy &

effort to reach a

successful solution

4

Cooperation

Continuing relationship

Competition

One-issue interaction

Cooperation

Complicated problems

Competition

Simple problems

Cooperation

Lengthily completion

process with milestones

Competition

Project quickly completed

Cooperation

Final solution not clear

Competition

Final solution understood

Human relations

importance

Problem simplicity

Knowledge of solutionProject Processing

& duration

5

Cooperative (Open)


Minimum

cooperative strategy

(20% of strategy)**

Maximum

competitive strategy

(80% of strategy)*

Source: FRIEND & FOE, Adam Galinsky, Maurice Schweitzer, Penguin Random House UK, 2015

Cooperative (Open)


Both parties are trying to get something greatly

needed, but it is in short supply. Therefore,

they tend to push for all they can get.

Both parties tend to try to equally

share available resources. They are

not threatened if they do not get it.

Maximum


(80% of strategy)

Minimum


(20% of strategy)

* A major strategy to reach a successful outcome

** Of lesser importance, but still has some influence over the outcome

6

Cooperative (Open)


Minimum


(20% of strategy)

Maximum


(80% of strategy)

Cooperative (Open)


Both parties are trying to get as

much as possible, as they assume

there will be no future projects

with each other.

Both parties are trying to equally

gain from this initial project,

because it will affect the

success of future projects.

Maximum


(80% of strategy)

Minimum


(20% of strategy)

7

Cooperative (Open)


Cooperative (Open)


Minimum


(20% of strategy)

Maximum


(80% of strategy)

Maximum


(80% of strategy)

Minimum


(20% of strategy)

Both parties agree this project

is not important. Without great

discussion they would like to

complete it quickly.

Both parties agree this

project is very important

and must cooperate greatly

to make it successful.

8

Cooperative (Open)


Minimum


(20% of strategy)

Maximum


(80% of strategy)

Cooperative (Open)


Both parties are experts on the

project. They both have a very

good idea how it should evolve.

Both parties will have to get

additional information, skills and

expertise to be successful.

They need each other’s help.

Maximum


(80% of strategy)

Minimum


(20% of strategy)

9

Cooperative (Open)


Minimum


(20% of strategy)

Maximum


(80% of strategy)

Cooperative (Open)


Both parties agree the

project can be

achieved very quickly.

Both parties know the project

will be completed after many

tasks. Time will be required.

Maximum


(80% of strategy)

Minimum


(20% of strategy)

10

Cooperative (Open)


Cooperative (Open)


Minimum


(20% of strategy)

Maximum


(80% of strategy)

Maximum


(80% of strategy)

Minimum


(20% of strategy)

One party has a great deal of

power over the other. His needs

are less, regarding the outcome.

He is in a position to be very

forceful if he wants.Both parties have equal influence

over the other. Together they

both can be successful. Without

an agreement, they both will

suffer similarly.


11

Cooperative (Open)


Minimum


(20% of strategy)

Maximum


(80% of strategy)

Cooperative (Open)


Make sure the organization

stays profitable

Protect own expertise.

Find trusted partners to

share information

Find partners with needed

expertise

Small, somewhat successful

businesses can survive by

purely competitive effort.

But, if a small company wants to

grow in size, particularly to the IPO

level, cooperative skills will be

required to grow. A more balance

approach will be necessary.

50%


50%


12

Cooperative (Open)


Minimum


(20% of strategy)

Maximum


(80% of strategy)


Cooperative (Open)


Maximum


(80% of strategy)

Minimum


(20% of strategy)

14

Cooperative (Open)


Maximum


(80% of strategy)

Minimum


(20% of strategy)

15

Cooperative (Open)


Minimum


(20% of strategy)

Maximum


(80% of strategy)

16


Cooperative (Open)

Seeks second opinion from neutral party

Observes deception and challenges it

Asks probing confirmation questions

Closed but promotes openness

Offers few suggestions

Offers vague responses

Ignores probing questions

Avoids disclosing situation


Maximum


(50% of strategy)

Minimum


(50% of strategy)

When a project needs a great deal of cooperation to be successful, but one of

the parties is not willing to be open and cooperative, the same style should be

mimicked. Then, slowly together try to move toward open cooperation.

The other party

starts out closed

and deceptive.

Then, he slowly

opens up in steps

and observes

response.

One party closed

and deceptive.

Maximum


(80% of strategy)

17

Cooperative (Open)


When deception is extremely high, the below is important:

1. The projects initially should be small and low of risk.

2. The projects should be short-term in nature.

3. There should be a confirmation and verification system in place throughout the project.

4. Written confirmation and non-binding, binding, verifiable contracts could be important.

Minimum


(20% of strategy)

Cooperative (Open)


Maximum


(80% of strategy)

18

When the project is very important but

the parties have a toxic relationship….

Determine if the parties can speak openly

with each other at all.

Minimum


(20% of strategy)

If direct contact is not productive,

an arbitrator should be considered.

19

Hierarchy strengths

Hierarchy weaknesses

Reduces open information

sharing

Reduces front-line feedback

Reduces diverse thought

Generates order and roles

Improves coordination of

activities

Leaders know tasks/how to orchestrate completion.


Balanced organizational

structure, roles and

responsibilities

Balanced front-line openness, group

discussion and the ability to make

quick decisions when needed

When great cooperation, interaction, openness and creativity are required,

organizational information flow and interaction must be carefully planned. There must

be a balance between activity coordination and open discussion and participation.


The hierarchy should be more

loosely followed when more

cooperation, interaction, creativity

and joint studies are required.

Loose Hierarchy

Strong Hierarchy

Loose Hierarchy

Strong Hierarchy

Maximum


(80% of strategy)

Minimum

directive strategy

(20% of strategy)

Minimum


(20% of strategy)

Maximum

directive strategy

(80% of strategy)

A strong directive style hierarchy

is ideal when members have

individual and independent tasks.

21

Cooperative

•When resources are abundant

•When relationships are important

•When members are voluntarily open, creative and share information

•When members are willing to jointly problem-solve complicated issues

•When continuing transactions/long-term relationships are important

•Leader ideally facilitate discussion, as opposed to 1-way directives

•Group dynamics & care for other’s important

•Belief in other’s competence important

Competitive

•When resources are scarce

•When relations are of little importance

•Resistant to giving information

•Deceptive suggestions common

•Common for simple tasks

•Common for single transactions/short-term relationships

•Leaders push their positions

•Combative wording common

•Human relations and care of others’ interests not extremely important

•Common where great effort is not required.



Being open and very cooperative

Being competitive and very shrewd

I hope this little presentation gives

you a feeling for the ideal balanced

strategy in any situation.

Business

Which strategy...compete or cooperate?