Strategic Incremental Negotiation: Building Blocks Tactic


This PPT slide, part of the 69-slide Negotiation Tactics PowerPoint presentation, presents an overview of the "Building Blocks" negotiation tactic. This approach emphasizes starting negotiations with a smaller portion of the overall demand or a shorter time frame. The idea is to gradually increase demands or extend the timeframe as negotiations progress. This method is particularly useful in establishing trust and demonstrating value before committing to larger demands.

The slide is structured into four main sections: Tactic, Quadrant, Definition, and Example. The tactic is clearly labeled as "Building Blocks," which indicates a foundational approach to negotiation. The quadrant categorizes this tactic under "Bargaining + Logic," suggesting that it relies on rational negotiation strategies rather than emotional appeals.

The definition section succinctly outlines the core concept of the tactic. It highlights the strategic advantage of negotiating smaller portions initially, which can lead to more favorable outcomes. This tactic is designed to avoid overwhelming the other party with extensive demands right from the start.

The expected outcome section reinforces the effectiveness of this approach. It states that using the Building Blocks tactic can yield better results than negotiating the entire demand or the longest acceptable contract duration at once. This suggests a more measured and strategic negotiation process.

An example is provided to illustrate the tactic in action. It describes a scenario where a company proposes a one-year contract instead of a three-year term. This strategy aims to build trust and showcase value, paving the way for future negotiations for an extension with enhanced benefits. This practical example helps clarify how the tactic can be applied in real-world situations.



This slide is part of the Negotiation Tactics PowerPoint presentation.

This framework is created by former McKinsey, BCG, Deloitte, EY, and Capgemini consultants and provides a reference guide to a diverse set of 26 negotiation tactics.

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