What Our Approach To Negotiations Says About Us
Photo by Yibei Geng on Unsplash
Our business lexicon is rife with buzz-phrases such as “win-win” but it’s important to remember that that standard has to be met (and perceived to be met) by both sides. In other words, we have to be cognizant of such definitions not only for ourselves but for the other party as well. Deals are better in the long term when we do so.
In fact, our approach to negotiations says alot about us and also provides a good indicator of what we’re going to be like to work with.
If we go into negotiations as a war, as a winner-takes-all battle, then suffice it to say the deal is unlikely to hold for the long term.
If we go into the deal with better intentions, but don’t appropriately consider what’s meaningful to the other party (and instead assume our version of their needs should suffice), that’s unlikely to hold either.
Deals are unlikely to hold in any number of other situations as well.
When we don’t assume that the very fact that we’d be a paying customer gives us inordinate rights.
When we don’t assume (believe) that the power of our brand should be more than enough for the other party.
When we don’t have as our starting point a position so far weighted towards us that any compromise becomes unreasonable.
When we don’t assume the relative stature of the other party gives us the right to exercise unreasonable leverage.
In all of the above situations, we may yet get the deal, but, rest assured, we won’t get the best long term value. If there’s a chance for the other party to do just enough versus more than is needed, they will. If there’s a choice as to who they take their innovative propositions to, it won’t be us. If they grow to the point where they can get a better offer, there will be no second thoughts.
In those cases, we have no right to be upset.
But when we go into negotiations with a sense of openness, a willingness to listen, to discuss what we want but also what we’re ready to give, then we’re off to the right start. I’d suggest that our opening position - and how we communicate it - says a lot about who we are and what our potential partner can expect of us.
Operating in this manner requires a modicum of trust and, for many, that’s a very difficult thing.
