When it comes to negotiation, many people assume that it is about getting your own way at all costs or ‘beating’ the other side in order to close the deal. Although ‘playing hardball’ in your negotiations may result in a successful outcome for you or your organisation in the short term, this isn’t a recipe for long-term success. Win-Win negotiation is a more balanced approach you can use to reach agreements which satisfy both sides of the table without detriment. Although some critics argue that Win-Win negotiation can be a soft option, when both parties are fully committed to it, it can be a highly effective. Here we provide an introduction to the concept of Win-Win negotiation and offer some practical guidance to help you maximise the benefits of this approach.
A brief look at negotiation outcomes
Before looking at Win-Win negotiation in more detail, it is useful to first consider the range of other potential outcomes of negotiation and what they mean for each party.
Win-Lose
Win-Lose negotiation is about ‘winning’ at all costs, even where the outcome of winning will have a considerable detrimental impact on the other party. In a Win-Lose situation, both parties will fight hard to get what they want, with little regard for what a win for them means for the other side. With Win-Lose, one party falls within their target range for the negotiation (or achieves a much better than anticipated result) whereas the other party falls far short of their intended target.
Lose-Lose
In a Lose-Lose scenario, neither party benefits from the negotiation. Either both parties concede bargaining positions which are well outside their target(s), or no deal is struck at all. In Lose-Lose, there is also a risk that both parties can end up in far worse situations than when they started the negotiation. A Lose-Lose outcome often develops when negotiations don’t go well, for example one side may upset the other or the terms of the deal are so outlandish that agreement simply cannot be reached.
Win-Win
Negotiation expert Jim Camp defines Win-Win negotiation as:
“One that meets the legitimate interests of each side to the greatest extent possible, resolves conflicting interests fairly, is durable, and takes community standards into account."
In a Win-Win scenario, both parties end up at the very least with an outcome that is satisfactory to them and which falls well within their target range for the negotiation. Another advantage of Win-Win is that, in many cases, a creative solution is found that actually improves the position of both parties.
Why use Win-Win?
The key advantages of Win-Win negotiation are that both sides will benefit from the negotiation and feel satisfied with the outcome. The results also tend to ‘feel fair’ to those involved. If you develop a reputation as someone who always drives a hard bargain and seeks a Win-Lose outcome, this can have a number of negative repercussions. If your negotiations are always made at the expense of others, this can damage your working relationships as people may come find you inflexible and difficult. If you need to work with the same people again, taking a tough approach also increases the risk of future negotiations turning sour as people who have been burnt by previous negotiations refuse to work with you again. A Win-Win strategy is useful when individuals and organisations need to be mindful of the bigger picture when negotiating.
Three steps for Win-Win negotiation
Here we outline some best practice advice to help you get the most from Win-Win negotiating:
1. Keep your relationships positive
Negotiations can often stall because people take things personally and get upset, hurt or angry during the process. If people disagree on something during a negotiation, it can often be taken as a personal slight and the discussion can quickly degenerate into an argument or a personal battle. Separating the people involved in a negotiation from the problem or issue you are trying to address will ensure you keep relationships intact and communicate in a positive, respectful manner. Remember that it is possible to maintain a positive relationship with the other party, even if you disagree with or reject what they are saying.
If you disagree with a point that is being made, the following phrases can help keep your responses balanced and, above all, non-confrontational:
“You’ve expressed your points very clearly and I now fully appreciate and understand where you are coming from on this issue. However, my stance is that...”
“It’s clear that you are very concerned about this issue, and the impact it is having. I am as concerned as you, and wish to reach agreement. Yet from my viewpoint...”
Another good way to minimise the potential for confrontation is to avoid blaming the other side for creating or contributing to the problem. Try to focus on the impact the problem or issue is having on your organisation or the situation, rather than trying to blame someone for them. Instead of saying:
“Your refusal to move on this issue is making me waste a lot of time”, you might say:
“I’m sure that both of us don’t wish to spend a lot of time on this problem. I wonder if there’s any way we could solve it between us quickly?”
Keeping any disagreements focused on the facts of the matter will help to ensure that positive relationships are maintained, regardless of the outcome of the negotiation.
2. Look for options that work for both parties
With Win-Win negotiation, there is often no single ‘best way’ to resolve things. Rather than sticking resolutely to a pre-prescribed list of outcomes from which you won’t deviate, instead try to keep an open mind about what a mutually beneficial solution might look like. A good place to start with Win-Win negotiation is to establish the other side’s interests early on, rather than trying to work out their bargaining position or protect your own self-interests. A good way of doing this is to brainstorm a list of possible options that could potentially work for both parties, and then decide which would be most suitable by looking at the pros and cons of each. You could do this in advance of the negotiation meeting, and also ask the other side for input during the meeting itself.
3. Maintain a positive attitude
Adopting a positive attitude and outlook from the beginning is an important strategy for Win-Win negotiators. Adopting a Win-Win approach doesn’t mean you have to give in to the demands of others or be seen as an easy option. It is about remaining open, honest and amicable throughout the process, even if there is conflict and disagreement. You can still remain strong yet positive in your negotiations while resisting any temptation to manipulate or bully the other party into accepting a deal.
Body language can also help you convey a positive stance. This means smiling, adopting a casual rather than a highly formal or confrontational pose, and keeping your hands open and relaxed. Remember that the other side will pay close attention to your facial expressions, your posture and your hand gestures, so use these to illustrate positivity and openness.
Summary
Despite the obvious advantages to Win-Win negotiation, critics have made some important observations about the applicability and relevance of the approach in today’s highly competitive business environments. Notably, Jim Camp argues that, in the real world, the neat solution offered by a Win-Win approach is rarely achieved when it comes to the many difficult, complex negotiations that organisations face. Furthermore, in the cutthroat world of business, one party’s willingness to opt for a Win-Win approach and search for compromise can be exploited by the other side. For Win-Win negotiation to work, both sides need to be fully committed to its core principles of openness and honesty and not simply use it as a smokescreen for a more confrontational style of negotiation.
Reference: Jim Camp, Start With No: The Negotiation Tools the Pros Don’t Want You to Know (Crown Business, 2002).
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