By James A. Baker
Founder and Chairman
Baker Communications
September 2011
Negotiations can be either collaborative or competitive. Competitive negotiations are the zero-sum game, where one side wins and the other loses. This type of negotiation is typified by aggressive negotiation, manipulative tactics, and high levels of conflict. One party ends up wielding the power and “winning” the negotiation. This approach to negotiation is generally inadvisable in the world of modern business, where every company is interconnected and partnered with so many other organizations. Preserving relationships and reputations is of paramount concern. Competitive negotiations burn bridges; collaborative negotiations build them.
In negotiating situations where you want to establish or maintain a long‑term relationship with the other party, you should approach the negotiation collaboratively. Both parties should feel that they have gained something from the agreement. Both parties should feel that they have power in the negotiation, and they agree to share that power with each other. The goal in a collaborative or “win-win” negotiation is to create an agreement that benefits both parties without serious detriment to either.
The following factors are important to negotiating collaboratively and building bridges with your business partners.
Open Communication
Good communication is absolutely essential in a collaborative negotiation. Effective communication helps ensure that all parties are working from a similar base of knowledge, and that they are able to influence one another. Relationships are built on communication, and the better the relationship, the more power each party has.
The real key to good communication is openness. Both parties need to be forthcoming about their interests and willing to discuss alternatives. When there is an honest and mutual understanding of what each party wants, needs, and is willing to concede, a “win-win” solution becomes much easier to achieve.
Patience & Persistence
In a competitive negotiation, the negotiator who is the most patient and persistent has a much higher chance of being satisfied at the end. In a collaborative negotiation, patience and persistence leads to greater satisfaction for both parties.
Even when the negotiations are collaborative, there will be disagreements and frustrations. The more patience and persistence is exercised by both parties, the more effectively they can reach a mutually beneficial outcome.
Risk-Taking
When one party takes all the risk in an agreement, the solution is not an ideal “win-win” arrangement. If both parties are willing to assume some shared risk, it can lead to a more satisfying and truly collaborative solution. Discuss how any risk can be shared more equitably between the parties.
Fair & Reasonable
The concept of “fairness” doesn’t enter into a competitive negotiation, but in a collaborative negotiation, being reasonable and fair is essential. Always consider what represents a reasonable and fair outcome. Assess what objective criteria can be used to determine fairness. Discuss with the other party and try to agree on a range of what seems reasonable and fair; the settlement should fall within this range.
Identification
Find some way to identify with the other party and step to their side, instead of facing them across a battlefield. This is a disarming technique that can turn a competitive negotiation into a collaborative process. If you make yourself an ally instead of an adversary, you end up with a side‑by‑side problem-solving situation instead of a face‑to‑face confrontation.
In collaborative negotiations, discover the other party’s interests and see where they align with your own. Working with them to fulfill their needs as well as your own will produce outstanding win-win results.
The Benefit of Win-Win Negotiations
The business world of today is one of connection and networking, more than cut-throat competition and strong-arm negotiation tactics. Instead of burning bridges using competitive negotiations, keep your suppliers, clients, and business partners for the long term. Build lasting bridges with collaborative negotiations and “win-win” solutions.
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