Tuesday, March 23, 2010

Integrative or win-win negotiations

In business, essentially integrative negotiations are more likely to take place

  • in structuring complex, long-term partnerships or other collaborations
  • after financial terms (or the competitive aspects) of a deal have been set
  • among partners or co-venturers who value their long-term relationship
  • between professional colleagues or superiors and subordinates whose long-term interests benefit from the other’s satisfaction.

In a win-win negotiation, your task is to "create" as much value as possible for you and for the other side. Often, the two sides’ interests do not compete at all. Their task is to arrive at a deal that integrates their interests as efficiently as possible. Agreeing to more of what one negotiator values does not require the other to take less of anything he or she values. The ability of one to claim or win what one side wants or needs in the deal does not detract from the other’s ability to claim or win just as much. Cooperation carries no cost here; indeed, cooperation and disclosure of information make you more effective.

In a win-win negotiation, there are often many items or issues to be negotiated; opportunities for creativity abound and the relationship between the two negotiators is often highly valued.

When participating in a win-win negotiation, do the following:

  • Provide significant information about your circumstances. Explain why you want to make a deal. Talk about your real interests or business constraints. Reveal and explain your preferences among issues or options. Consider and reveal any additional capabilities or resources you have that might meet their interests, and could be added to the deal. However, if the parties’ interests are in conflict at all, it is generally not wise to reveal your BATNA or to state your minimal requirements for a deal.
  • Learn as much as possible about the other side’s circumstances and preferences—including why they want to make a deal, what their real interests and business constraints are, what their preferences among issues or options are, and what additional capabilities or resources they have that might meet your interests and could be added to the deal.
  • Use what you learn to find creative options that will meet both of your interests to the greatest extent possible.

No comments: