Win-Win Negotiating 101:
Inexperienced negotiators sometimes attempt to practice “win-win” negotiation, only to find themselves with the short end of the stick. They may be too eager to grant valuable concessions to the other side in their honest effort to achieve a win-win outcome. The problem is that giving away the farm only results in a win-lose – and you’re not going to be the one who’s happy with the outcome.
Less principled negotiators love it when they go to the table with someone who is trying for a win-win without fully understanding what they’re doing. These negotiators may take full advantage of the other party’s naivet, employing crafty tactics and playing the target’s desire to be magnanimous until they have sucked every drop of value from the deal for themselves.
“Win-win” negotiating is a principled approach to negotiations, one that is intended to foster and grow relationships between business partners by delivering value to each party. Instead of dividing a pie as a zero-sum, I-get-more-so-you-get-less transaction, win-win negotiation seeks to explore creative options and reach a settlement where each party feels satisfied with the outcome.
It may not make sense to use this approach in every negotiation circumstance: you’re not going to try for a win-win when buying a car, negotiating a commodity purchase where the only variable is price, or when dealing with an unscrupulous party who will only take advantage of your goodwill. Save the win-win negotiation approach for situations with multiple variables, and where both parties will benefit from a continued, mutually supportive relationship.
Keep in mind that a “win-win” outcome is an ideal to strive for: the best-case scenario is one where no value is left on the table, both parties achieve their critical strategic goals, and walk away with no regrets and an intact partnership.
Impossible, you say? Let’s look at how win-win negotiations are really supposed to work.
How To Work for the Win-Win
Plan ahead – The basis of a win-win outcome is both sides getting as much as possible of what they want. That means the first order of business is to identify exactly what it is that you want. What interests are you trying to satisfy? What is your pie-in-the-sky best-case scenario? What seems like the most fair or reasonable outcome? What is your bottom line, the point at which you would be better off walking away – and what is your best alternative to a negotiated agreement, in case that scenario occurs? How else can you meet your interests without making this deal?
Likewise, you should conduct whatever research is possible into the other party and attempt some conjecture around their probable interests, preferred outcomes, priorities, and resources. Prepare to offer some concessions you think they would appreciate – preferably of high value to them but low-cost for you. Plan to ask for some concessions that would be of value to you, but low-cost for them. These are the types of trades that win-wins are made of.
Ask good questions – You may feel that you have a good handle on their position, but don’t assume anything. Asking good questions will help you find out more about their underlying interests and discover ways that you can help them meet their own goals while also advancing your own.
Be honest – Be as open and honest as possible with the other party, and they will tend to reciprocate. Don’t attempt to mislead, intimidate, or conceal information that could be helpful to reaching a win-win. You want to know about their priorities and interests – if they are on a principled negotiation track, they’ll want to know about yours, too.
Get creative – Don’t put just one option on the table. Brainstorm with the other arty and come up with as many possibilities as you can. Trade creative concessions, negotiate around factors other than price, and look at all of the options available. When you both decide an option looks good, see what you can do to improve it even further! This is how both sides reach a mutually satisfactory agreement and end up with a win-win.
BONUS TIP:
Beware the compromise! A win-win does NOT mean a compromise or a 50-50 split. That sort of arrangement is usually not very satisfying for anyone, and results in something more like a Lose-Lose, or at least a Meh-Meh – assuming it’s an honest split to begin with. (Often, when a negotiating party suggests 50-50, it’s actually to their benefit in some way!)
Baker Communications offers leading edge Negotiations Training solutions that will help you address the goals and achieve the solutions addressed in this article. For more information about how your organization can achieve immediate and lasting behavior change that leads to bigger wins during negotiations in any setting, click here.
