Business negotiators realize the value of win-win negotiations: the chances of a long-lasting and successful business relationship are far higher if both parties are happy with their agreement. Yet specific approaches to build a win-win negotiating deal still seem elusive
Win-win bargaining strategy
- Make several proposals simultaneously: You'll know very little when you put just one bid on the table at a time if the other party turns it down. In comparison, consider what happens when you pose several offers simultaneously, each of which is equally important to you. When the other side does not consider all the proposals, ask her which one she likes best. Her preference for a specific offer will provide you with a clear hint as to where you could find value-creating, win-win trades and mutual benefit. In addition to recognizing possible win-win moves, you show your welcoming and versatile disposition when you make several offers at the same time.
- Have a right in play: This can be a classic win-win move in negotiation, having a reciprocal right in your deal — a promise that one side will match any offer the other side later gets. Imagine you are a landowner negotiating with a prospective tenant. You want to retain the capacity to sell the apartment in the future to someone else, While the prospective tenant needs an agreement to rent the apartment as long as they want. Offering a reciprocal right to the tenant — the ability to match any valid third-party offer — would allow you to maintain your own flexibility while allowing the tenant the opportunity to avoid interrupting a transfer. Matching rights in this way will increase the chances of a win-win agreement.
- Seek a contingent deal: Parties often hit impasse in negotiation, since they have conflicting expectations about the probability of future events. For example, you may be persuaded that your organization will produce a project on schedule and under budget, but the customer may perceive your plan as unrealistic. A contingent arrangement in these situations — negotiated "if, then" agreements aimed at minimizing the likelihood of potential uncertainty — offers a way for parties to agree to disagree before going forward. Contingent obligations also establish enforcement opportunities, or non-compliance penalties. A contingent arrangement will significantly improve the chances of satisfying yourself with whatever remedies exist and help pull about a win-win contract.
- Negotiate up front for losses: Since contingent agreements can not foresee all potential occurrences, another way to promote a win-win arrangement is to include in the contract provisions on liquidated damages that stipulate how much will be paid if the contract is broken. Of example, agreeing up front precisely how much will be paid for each late or missed delivery will streamline any potential dispute settlement mechanisms or litigation that occur. Additionally, damage mitigation brings a new problem on the table — and thereby increases the scope for value development. Adding new problems to the equation in this manner enhances the potential for win-win negotiations.
- Search for settlements following settlement: Imagine only having come to an understanding. You 're pretty pleased with the offer but think you could have eked out more interest from it. According to traditional wisdom, you should stop talking to your counterpart about the negotiation, and move on, so as not to break the deal. The other side will be able to look at the arrangement again and see how it could be changed. Explain to your counterpart that if it doesn't change any of your results you will both be able to refuse a revised contract. This form of post-settlement settlement can lead to a division between you of new sources of value.