Win-win deals

Posted by / February 9th, 2015 / No responses

We’ve been busily collecting some 360º feedback from clients recently, in order to enhance and improve our service offering. (Thank you so much to all who have contributed, it is greatly appreciated.)

Here is one interesting piece of feedback which I have been thinking about today:  “it’s fascinating how Rachel always manages to make the other side feel like they have somehow won out in the deal too!”

What’s your negotiation style?

I admit that I am fascinated by the psychology of negotiation and I love to observe different negotiation styles and how people approach “gameplay”.

I enjoy the end to end process of negotiation : from the homework stage – understanding the proposition and crafting the shape – to the early days getting to know the “other side” –  learning and listening to their needs and drivers-  through to documenting and carefully detailing the contractual positions ready for signing. [And then the champagne]

We are all familiar with the traditional concept of negotiation being a difficult and confrontational process. The opponents across a huge glass table, exchanging guarded statements, working to hidden agendas with secret tricks up the proverbial sleeve.

It’s a fine line between aggression and assertiveness and sometimes the urgency with which a deal needs to be done can bring out the wrong behaviours. Often, there is a lot at stake in the negotiation process and emotions run high and personal relationships can become fraught.

I don’t subscribe to that style of negotiation. It’s unpleasant and makes business life more painful than it needs to me.  It always makes me wonder why the parties are doing business together in the first place since the long term potential for that relationship is highly dubious.  Fast track to legal dispute.

So how to make negotiation easier, straightforward and more fun? Believe me, there are lots of interesting techniques you can employ during negotiation which are best deployed with big doses of honesty, trust, integrity and vision. I admit to being a bit of a geek and having read lots of books and research on the topic of negotiation. It’s something I am particularly passionate about in our training and education offering too.

Above all, it’s very important to listen carefully in negotiation, and to ask the right questions at the right time in order to thoroughly understand the positions and intents of those involved. Make sure you are getting the detail right and don’t be afraid to ask “noddy questions” if something is not making sense.

For me, the shaping of a deal is about some very simple components:

– What do the parties want to do together and and when, and why are they individually incentivised to deliver their side of the bargain?

– How will this relationship grow in the future and to what extent can we prepare the ground for that now?

– Understanding the things which are likely to go wrong in delivery of the contract in order that we can pre-empt or mitigate the risk of disputes.

So yes –  I do firmly believe that the process of negotiation should ideally result in a win-win on both sides. Not necessarily always equal, for a variety of reasons, but enough such that all parties are excited and incentivised about the journey ahead and the possibilities it offers their respective businesses.

Serenwood offers objective and experienced support in the negotiation process,  particularly helpful for smaller businesses which have operational relationships to maintain post-deal.

A clear, fair and well-negotiated contract provides the perfect springboard for happy, profitable long-term business relationships. Firing you on your way to commercial excellence.

Get in touch: hello@serenwood.co.uk