Rising Women Magazine
Business Development - Mentoring
Rising Woman - Janis MagnusonHOW YOU CAN WIN WITH NEGOTIIATION
   By Janis Magnuson of Magnuson Mediation Group

    Is there a businessperson alive that hasn't been bombarded with the phrase 'win/win negotiation'? Is there anyone else who'd like to shriek if she/he hears it again? Or, ban it from print, as I know one editor did…

    Although the phrase may seem cliché, it's hard to find a replacement to describe a process where the intent really is for those involved to come out feeling like ALL have succeeded in achieving their desired results. Personally, I prefer to call this 'mutual gain' negotiation.

    A negotiation occurs any time there are two or more parties (which could be individuals, organizations or businesses) that each have something the other party wants. If there isn't a mutual desire, there's no negotiation (e.g. "I want to sell you this vacuum cleaner." "No thanks, don't need one".) As soon as there is a mutual desire, there is an opportunity for negotiation, which really is a give and take process (e.g. "I want to sell you this vacuum cleaner." "Yes, I need one, let's talk".) It's give and take.

    Some people get carried away with the 'take' part of the process and forget that there's a 'give' part, too. These are often highly competitive negotiators who are far more concerned with getting the maximum result for themselves and care little about the relationship. (I sometimes call these folks the T-Rexs of the negotiation world.) Contrast that with folks who are so concerned with preserving the relationship and avoiding conflict that they will give up results and get a poor deal to keep good feelings. (I sometimes think of these folks as doormats as in, "Can I lay down any flatter for you to walk on me?")

    What we want is a balance between give and take - we want mutual gains. I'll compare and contrast this mutual gain process to another type of negotiation that I'll refer to as 'positional bargaining'. Positional bargaining is typical in many business situations and in many cases accepted as the norm. A party involved in positional bargaining will typically review the situation, decide what outcome she/he wants and then state their desired outcome (their position) to the other party. Sometimes it is stated softly as an offer, (e.g. "I'd like to buy your business for $x."), other times as a demand, (eg. "Sell me your business for $x or we'll go head-to-head with you.").

    What happens next is each side then attempts to persuade, cajole, sometimes threaten the other to accept what has been offered. It's an argument about solutions. In many cases, people will compromise - split the difference. I sometimes say those negotiations end when both sides walk away equally unhappy! This is not to say that compromise is always bad, there are times when it is the most appropriate resolution.

    What is missing in the positional bargaining process that is of prime importance in the mutual gains or (dare I say it) win/win negotiation is time spent on the parties' real concerns. What are the real issues that underlie the proposed solutions? What is REALLY motivating them?

        In mutual gains negotiating, you have to understand what the other party would like to achieve as well as knowing what YOU want to achieve. That way, you can then craft an agreement that meets both parties' needs. That's why it's called win/win - "I get what I want and you get what you want as long as our goals are not in direct conflict with each other."

    In mutual gains negotiating, much time is spent asking questions. That is how you find out what's really important to the other side. Think about the last negotiation you were involved in. Who was asking questions and who was listening?

    A good negotiator knows how to ask the right questions and, most importantly, she/he LISTENS to the answers!! You'll figure out exactly how to structure a deal to make it most attractive to the other side if you just ask appropriately and then be quiet. This is when you are well advised to remember why you have one mouth and two ears!

    A good negotiator is a master at extracting relevant information from the other party. He/she knows his/her own concerns and priorities, compares them to the other parties' needs and concerns and can then determine if a deal is possible. And then, as the song says, "ya gotta know when to fold", because sometimes no deal is the best deal.

   Janis, a negotiation coach and mediator, provides one-on-one coaching as well as negotiation workshops. She is a Registered Family Mediator and a past president of Alberta Family Mediation Society. She can be reached at Magnuson Mediation Group, 403 262 9200 or by email at  JLM@Magnusonmediation.com

 

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