Normalization is a part of the negotiating process, during which the parties discuss elements of the agreement that may not go smoothly. This is a very important step in negotiations, as what it does is establish rapport and understanding between parties, while serving as a kind of an action plan in an event of a crisis (Malhotra, 2015). If both parties are honest with one another about their capabilities and potential issues they might encounter along the way, then the other side can prepare for these issues.
While exposing weaknesses about one’s own position may be seen as a mistake during the negotiating process, which could potentially result in less beneficial agreements, it would result in better long-term relations. If the companies agree to a deal despite various shortcomings that might be expressed by either side, they are much more likely to retain that deal once problems start cropping up (Malhotra, 2015). On the other hand, if a deal was made without these problems being taken into account, this will result in tensions, financial compensations, lost profits, and potential breaking of the contract. These eventualities would deal more damage to the company than any concessions made during the negotiation process.
Thus, implementing normalization processes during and before negotiations would benefit the company, increasing the organization’s chances of creating a more productive interaction and achieving a more profitable outcome. It would also make the organization achieve a reputation for professionalism and honesty among its peers, making it a favorable negotiating partner (Malhotra, 2015). In combination with the other three factors described in the article, the company would be able to establish more profitable, honest, and long-term deals and contracts.
Reference
Malhotra, D. (2015). Control the negotiation before it begins. Harvard Business Review, 93(12), 67-72.