Introduction
Negotiation is a wholesome skill that all managers must seek to nurture for a sustained business relationship. Negotiation, according to Winning negotiations that preserve relationships (2004, p. 5), is a vital management quality that ensures managers master good communication skills and critical thinking abilities to enable them to persuade and use the power within their capacity to negotiate effectively while going about their businesses.
Effective negotiation skills are instrumental in resolving circumstances under which individual treasures conflict with the treasures of another person. Win-Win negotiation skill is necessary for helping managers understand a situation and seek a solution acceptable to both factions (Sanibel 2014). In essence, a win-win negotiation strategy ensures that both the parties reach out to one another, find some compromise, and feel in the end that they have each won in their own separate ways. Management enlists various styles of negotiation, and this normally depends on the prevailing circumstances under which negotiation is necessary.
One thing though synonymous with a win-win negotiation is the fact that both the parties in a negotiation have to feel positive about the process and be content once it is over (The international negotiations handbook success through preparation, strategy, and planning 2007, p. 5). Without this acknowledgment, individuals may end up destroying good working relationships, thus slaying the business environment. In essence, contentedness is what makes a win-win negotiation strategy work. This is because it helps in governing the style and scope of the negotiation itself.
As McDevitt (2004, p. 3) notes, displays of emotions might be inappropriate during and after the negotiation process, and history reveals that they dent the rational basis of the process. Worse still, strong emotions may have a manipulative tag attached, thus tilting the process in favor of one party. Be it as it may, emotions can be necessary during this process, given that individuals’ emotional needs have to be taken into consideration (Sanibel 2014). This implies that if emotions are not put into consideration, then the truce reached can be less satisfactory, thus killing the win-win negotiation spirit. In sum, a win-win negotiation process has to enlist the interest of all the parties involved in a sustained business relationship.
The importance of win-win negotiation approaches
Decision-making, strategic planning, and good communication skills are some of the key aspects of a win-win negotiation stratagem. Studies in this field often view a win-win negotiation as a joint communique and a decision-making process. As Sanibel (2014) opines, this process could be demanding as it has to go through all the stages to make it a complete venture. The benefit of a win-win negotiation process is that it easily brings-forth an optimal way out to the parties involved in the entire process.
A win-win negotiation process is strategic to the wellbeing of a business since it ensures that the parties minimize conflicts while at the same time maximizing on the gains. Business executives often involve in negotiations to come into a compromise with both internal and external partners. Both managers and business partners, like Fisher, Ury, and Patton (2011, p. 65), note find it necessary to reach a compromise with their employees, vendors, business collaborates, and their customers.
Negotiations of this nature normally make it necessary for businesses to reach out to community members in their daily business interactions for the continued mutual support that each party expects. Moreover, by pursuing a win-win negotiation strategy, the business finds it necessary to strike deals with the regulatory organizations, thus making sure the business is not at loggerhead with the powers that might be (Winning negotiations that preserve relationships 2004, p. 5). This further ensures the smooth running of the business, giving the business a gross competitive advantage; this advantage in only tenable in the presence of an effective goal setting.
Goal setting
It is imperative that at the onset of a negotiation process, both the parties recruit a delegation to engage in groundwork. During this time, goals setting take center stage; both internal and external evaluation of the goals of each party takes place as well. While acknowledging that the objectives may be both short-term and long-term, McDevitt (2004, p. 4) observes that they have to be specific, broad, and cumulative of the organization’s position. Goal setting is a most essential stage in developing a win-win negotiation strategy.
Therefore, goal setting has to take place with adequate detached analysis necessary in a way that seeks to negate emotions that may sneak into the process. The involvement of technical experts and professional individuals such as legal counsel and business executives can be invaluable during this stage (The international negotiations handbook success through preparation, strategy, and planning 2007, p. 5). The parties tasked with the duty of fronting an organization’s win-win negotiation drive has to perform a thoughtful analysis that covers an accurate assessment of the organization’s strengths and weaknesses in light of the goals of the organization and the aspirations of the other party.
This primordial goal setting will permit the organization to focus its attention on issues that are critically pertinent to the organization, hence helping in avoiding time wastage and indulgence in irrelevant issues (Fisher, Ury, and Patton 2011, p. 65). Moreover, determining the goal of an organization in approaching the win-win negotiation has to take place well in prior. This goal setting, according to Winning negotiations that preserve relationships (2004, p. 45), is best executed by instituting an inter-party meeting where both the parties put-forth their ideas on the table.
The committee must encourage the ideas and treat each other’s concerns as necessary and healthful to the process (The international negotiations handbook success through preparation, strategy, and planning 2007, p. 5). As a rule, this often takes place in writing down the concerns in a large board where both the parties’ can view and verify the details entrenched in the win-win negotiation strategy simulation.
A win-win strategy formulation
It is good to acknowledge the fact that the fundamental codes that guide negotiations exist and are applicable in a win-win business negotiation. Normally, the first offer is the most essentially part in a win-win negotiation since all other factors benchmark on it (Sanibel 2014). Parties must be aware that they only get what they put on the table. So, it is essential to be aggressive when making bold demands. Notably, demands have to be central to the ideals of an organization. Moreover, making these demands will require great communication skills capable of persuading the other party to see the sense of what is available to them.
Any negotiation process may lead to dissatisfaction; it would be premature to own up when this does not seem to work out (Burden 2003, p 478). Some offers might bring joy; others might spell doom. It is imperative to be focused, and probably push for a better share of the bargain. The position maintained by a party may sometimes threaten the bargain point of the other. Therefore, it is vital to swallow some pride, especially when the other side is also willing to compromise (The international negotiations handbook success through preparation, strategy, and planning 2007, p. 6). When seeking to exploit the weaknesses of the other party, compromise has to remain the essence of a win-win negotiation strategy.
Discovering the Leverage
If the organization is the only source of the availability of a product or service, this must give them an advantage over others (Burden 2003, p 479). As Sanibel (2014) notes, an organization should identify its market strengths and use it as an advantage to advance its win-win negotiation priorities. On the other hand, it is essential for an organization to be oblivious of its weaknesses in the process of negotiation. If anything, some elements of weaknesses could be disguised to look like strengths, though they must not be used to scare the other party out of the negotiation (Sanibel 2014).
Moreover, where the prevailing economic conditions seem to create a market in which the organization’s products or services are in great demand should be of great reference point. According to Winning negotiations that preserve relationships (2004, p. 47), this trend creates greater opportunities for an organization in tabling its demands for a win-win negotiation strategy. In addition, it is imperative at this stage to establish a robust win-win negotiation foundation.
This can be done by ensuring that the panelists of an organization demonstrate their knowledge and expertise in negotiating their case. Normally, this position may be provocative and even intimidate the other party, playing hardball in a tight win-win negotiation table can be a great challenge, so it is imperative to take an initiative to steer the process in the best way possible.
The negotiation win-win offer
A win-win negotiation offer has to be the thing an organization is in dire pursuit of during the process of the negotiation, it has to incorporate all the features of the bargain, and normally comprises the foundation for a contract that formalizes a bargain (Sanibel 2014). In the event that the parties make offers without first fixing all the specifics, parties may discover later that a compromise was not effective enough to sustain a negotiation. The basis of a negotiation, as Sanibel (2014) notes, has to include a statement of agreement, the description of the offer, terms and conditions, performance incentives, and reference documentations signed by both parties before closing the win-win negotiation deal.
Conclusion
Win-win negotiation process is like a two horse race that requires effective timing, critical thinking, great communication skills, as well as the ability to understand and consider the other party. It is vital for organizations involved in a win-win negotiation agreement to approach the exercise with an open mind to explore and exhaust the choices available. An effective win-win negotiation business strategy ensures continuity of business partnerships. Above all, it is a powerful tool that brings sustaining business opportunity to organizations. Finally, a win-win negotiation process is strategic to the coexistence of businesses since it ensures that the parties minimize conflicts while at the same time maximizing on the gains.
References
Burden, K 2003, “We’re in it to win it- negotiating successful outsourcing transactions Introduction”, Computer Law & Security Review, vol. 19, no. 6, pp. 478-479.
Fisher, R., Ury, W., and Patton, B 2011, Getting to yes: Negotiating agreement without giving in (3rd ed.), Penguin, New York.
McDevitt, B 2004, “Negotiating the syllabus: A Win-win Situation?”, ELT Journal, vol. 58, no. 1, pp. 3-9.
Sanibel, M 2014, The art of negotiating: A practical guide to getting what you want, when you want it, at the price you want. Web.
The international negotiations handbook success through preparation, strategy, and planning 2007, Web.
Winning negotiations that preserve relationships 2004, Harvard Business School Press, Cambridge.