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Pay close attention to your partner’s unique needs and interests. Negotiators need to listen carefully to one another’s thoughts and feelings. Meeting regularly to probe interests is a simple but effective way to build relationships.
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During negotiations with a highly valued partner, negotiators must balance the need to get the lowest price possible with the need to maintain and enhance the alliance. Even if your company is not deeply embedded in a supply chain, you probably face ongoing negotiations with partners whose trust you want to preserve for strategic reasons.
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By adjusting your approach when bargaining with a partner who is key to your strategy, you can build alliances in ways that will help you win at win-win negotiation.
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The key to value creation? Bringing a degree of optimism about the chances of expanding the pie to every negotiation. It is a lot easier to win at win-win negotiation— that is, claim a disproportionate share of the value being distributed—if you have done everything you can to creat as much value as possible.
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FOUR VALUE-CREATING MOVES:
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The practice of value creation almost always means playing the What-If Game. Specifically, to test whether a trade genuinely creates value, try it out on the other side.
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Value creation can be especially difficult when parties get snagged on an underlying value difference. When this happens, bridge the gap by identifying overarching values that could provide a motivation to work together.
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Herr’s another way to probe the same person’s interest: “Other clients have raved about some of our junior people—and we take only the best—assigning them entirely to a single account. This has allowed us to charge a lower hourly rate than usual while giving the client the attention they want. Would you like to talk to some of our clients who have used this approach?
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Note that if your style of listening isn’t listening isn’t sufficiently empathetic, it won’t elicit honest responses. Furthermore, you’ll have to ask a lot of questions to get a cleat picture of someone’s interests. Also, to model the type of response you’re seeking, you must be willing to reveal your own interests.
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When seated at the bargaining table, what’s the best way to uncover your negotiation counterpart’s unspoken interests? Ask questions, then listen carefully to his answers.
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