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1.5 Aim for win-win outcomes

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Whether you are a buyer, a seller, or involved in industrial relations, you will usually negotiate with the same people on a regular basis. You will want to develop a relationship with them so that they want to do business with you again. You will both want to feel that you have made a good agreement – we call this feeling ‘win-win’.

We are going to consider outcomes – the end results of negotations. It is crucially important to know your own objectives – where you want to finish up – before you set off. There are four possible outcomes to any negotiation:

1 Failure to agree. When it is appropriate for the negotiators to go their separate ways, because there is simply nothing on which they can possibly agree.

“Begin with the end in mind”

Stephen Covey, author of The Seven Habits of Highly Effective People

2 Lose-lose. When both parties refuse to move, when it was in both their interests to do so. Neither side achieves its objectives nor do the two parties generate solutions to their problems. This leads to total disillusion and frustration with the negotiation process and a danger of souring long-term relationships through a loss of respect and trust. When they come to reflect on this after the event, both parties are likely to regard it as an opportunity missed and will not be proud of themselves.

3 Win-lose. When movement is predominately one-sided. The side that did not move ‘wins’ whilst the side that did all the moving ‘loses’. In a win-lose situation, individuals are usually more concerned with victory rather than relationships. Too much effort is put into achieving short-term goals rather than long-term objectives. A ‘them and us’ attitude is created and the long-term relationship between the parties is jeopardized.

4 Win-win. The experienced negotiator will work towards creating two-way movement that is felt to be reasonably split between the two sides. Movement is aimed at bridging any gaps between them. During the negotiation, channels are developed and kept open for two-way communication. With an emphasis on flexibility, solutions are proposed that enable both sides to achieve their objectives. Satisfactory decisions are arrived at and long-term relationships are enhanced. There is a perception that both parties have demonstrated reasonable movement, the lifeblood of negotiations. Once the meeting is finished, there is a spirit of partnership as the two parties set about making the agreement work.

If you want to do business with someone in future, aim for a win-win result from every negotiation.

Negotiating

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