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Which strategy...compete or cooperate?

Feb. 12, 2016
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Which strategy...compete or cooperate?

  1. 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. 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, in some cases, that is the best action strategy. Image of being badImage of being good
  3. 3 Why get involved in major collaboration and cooperation activities if it is not needed? Cooperative (Open) Competitive (Closed) 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. 4 Cooperation Continuing relationship Competition One-issue interaction Cooperation Complicated problems Competition Simple problems Cooperation Lengthy completion process with milestones Competition Project quickly completed Cooperation Final solution not clear Competition Final solution understood Human relations importance Problem simplicity Knowledge of solution Project Processing & duration
  5. 5 Cooperative (Open) Competitive (Closed) 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) Competitive (Closed) 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 cooperative strategy (80% of strategy) Minimum competitive strategy (20% of strategy) * A major strategy to reach a successful outcome ** Of lesser importance, but still has some influence over the outcome
  6. 6 Cooperative (Open) Competitive (Closed) Minimum cooperative strategy (20% of strategy) Maximum competitive strategy (80% of strategy) Cooperative (Open) Competitive (Closed) 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 cooperative strategy (80% of strategy) Minimum competitive strategy (20% of strategy)
  7. 7 Cooperative (Open) Competitive (Closed) Cooperative (Open) Competitive (Closed) Minimum cooperative strategy (20% of strategy) Maximum competitive strategy (80% of strategy) Maximum cooperative strategy (80% of strategy) Minimum competitive strategy (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. 8 Cooperative (Open) Competitive (Closed) Minimum cooperative strategy (20% of strategy) Maximum competitive strategy (80% of strategy) Cooperative (Open) Competitive (Closed) 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 cooperative strategy (80% of strategy) Minimum competitive strategy (20% of strategy)
  9. 9 Cooperative (Open) Competitive (Closed) Minimum cooperative strategy (20% of strategy) Maximum competitive strategy (80% of strategy) Cooperative (Open) Competitive (Closed) 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 cooperative strategy (80% of strategy) Minimum competitive strategy (20% of strategy)
  10. 10 Cooperative (Open) Competitive (Closed) Cooperative (Open) Competitive (Closed) Minimum cooperative strategy (20% of strategy) Maximum competitive strategy (80% of strategy) Maximum cooperative strategy (80% of strategy) Minimum competitive strategy (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. Source: FRIEND & FOE, Adam Galinsky, Maurice Schweitzer, Penguin Random House UK, 2015
  11. 11 Cooperative (Open) Competitive (Closed) Minimum cooperative strategy (20% of strategy) Maximum competitive strategy (80% of strategy) Cooperative (Open) Competitive (Closed) 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% cooperative strategy 50% competitive strategy
  12. 12 Cooperative (Open) Competitive (Closed) Minimum cooperative strategy (20% of strategy) Maximum competitive strategy (80% of strategy)
  13. 13Source: FRIEND & FOE, Adam Galinsky, Maurice Schweitzer, Penguin Random House UK, 2015 Cooperative (Open) Competitive (Closed) Maximum cooperative strategy (80% of strategy) Minimum competitive strategy (20% of strategy)
  14. 14 Cooperative (Open) Competitive (Closed) Maximum cooperative strategy (80% of strategy) Minimum competitive strategy (20% of strategy)
  15. 15 Cooperative (Open) Competitive (Closed) Minimum cooperative strategy (20% of strategy) Maximum competitive strategy (80% of strategy)
  16. 16 Competitive (Closed) 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 Source: FRIEND & FOE, Adam Galinsky, Maurice Schweitzer, Penguin Random House UK, 2015 Maximum cooperative strategy (50% of strategy) Minimum competitive strategy (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.
  17. Maximum competitive strategy (80% of strategy) 17 Cooperative (Open) Competitive (Closed) 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 cooperative strategy (20% of strategy)
  18. Cooperative (Open) Competitive (Closed) Maximum competitive strategy (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 cooperative strategy (20% of strategy) If direct contact is not productive, an arbitrator should be considered.
  19. 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. Source: FRIEND & FOE, Adam Galinsky, Maurice Schweitzer, Penguin Random House UK, 2015 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.
  20. 20 Source: FRIEND & FOE, Adam Galinsky, Maurice Schweitzer, Penguin Random House UK, 2015 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 cooperative strategy (80% of strategy) Minimum directive strategy (20% of strategy) Minimum cooperative strategy (20% of strategy) Maximum directive strategy (80% of strategy) A strong directive style hierarchy is ideal when members have individual and independent tasks.
  21. 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. Source: FRIEND & FOE, Adam Galinsky, Maurice Schweitzer, Penguin Random House UK, 2015
  22. 22Source: FRIEND & FOE, Adam Galinsky, Maurice Schweitzer, Penguin Random House UK, 2015 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.
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