390 / SETTING YOUR STYLE
Creating win–win deals
Getting the conditions right
Effective negotiations, unlike competitive
sports, can produce more than one
winner. However, it takes motivation by
both parties to find creative alternatives
that fulfill their interests to create a
win–win outcome. To promote win–win
deals, effective negotiators focus on both
the substantive issues of the deal (price,
terms of payment, quality, and delivery
schedule) and on formulating a social
contract between the negotiators—the
spirit of the deal. This involves setting
appropriate expectations of how the deal
will be negotiated, implemented, and
revisited, in case future disputes arise.
If, by contrast, negotiators believe that
negotiations are a zero-sum game that
must inevitably be won at the expense
of the other party, a win–win deal is
not possible.
Some negotiators talk about wanting to create win–win deals, but when
they hit major roadblocks leave the negotiating table prematurely, thus
missing out on an opportunity to make a good deal. Effective negotiators
utilize techniques to ensure they can create win–win deals.
To promote win–win deals,
negotiators focus on the
substantive issues and on
formulating a social contract
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CREATING WINWIN DEALS / 391
Bundling the issues
Effective negotiators do not negotiate
a single issue at a time because this
implies that there is a fixed pie and only
leads to a win–lose scenario. Instead,
they bundle several issues together.
Trade-offs can then be made between
negotiators because negotiators do not
place equal importance on every issue.
The principle of bundling issues involves
placing an issue that is of high value to
you (for example, price) with another that
you consider to be of low value (for
example, warranty).
When you trade-off on issues, you can
then keep your high-value issue (price)
and give your low-value issue (warranty)
away to the other party. The other party,
in return, will allow you to have your
high-value issue, because your low-
value issue is, in fact, of a high value to
them. If your low-value issue is also
considered to be a low-value issue by
the other negotiating party, then they
will reject the trade-off. Therefore, it is
important for you to know what the
other party considers to be their
high-value issues.
Capitalizing on risk
You can also capitalize on differences in
risk tolerance. Some negotiators are
more comfortable with high-risk
situations than others. As a win–win and
risk-taking negotiator, it is possible for
you to design a deal where you assume
more risk and receive more benefits
while your counterpart, who is also a
win–win negotiator but risk-averse
(avoider), assumes a lower level of risk
but receives fewer benefits from the deal.
SHOW THE WAY
If you are dealing with a win–
lose negotiator who thinks
that the idea of win–win deals
is naive and unrealistic, show
them how to create value and
reach superior agreements
by focusing on interests and
bundling issues together.
Tip
Negotiating on multiple
issues simultaneously
Understanding what is important
to the other party
Identifying and leveraging
differences in the interests of
and the risks to the other party
Negotiating on only one issue
at a time
Focusing exclusively on your
own interests
Ignoring differences in your
counterpart’s interests and risks
WIN–WIN NEGOTIATING
Do’s Don’ts
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