When you don’t win, is there a better alternative? If you don’t set out to win, why play the game in the first place? Before you say it, the answer is not compromise.
When you compromise, both sides lose
Quite a while ago, I heard Ricky Gervais in an interview. He made the statement that he would rather throw an idea out that he and his creative partner didn’t agree on 100%, than to put something into the program that is less than perfect. By putting something together that is less than perfect, he was doing himself and the audience a disservice. In other words compromise is never an option.
If you take less than what you want, as does your sparring partner, it is less than perfect for everyone involved. How can accepting something that isn’t perfect ever be okay? That’s not a win/win is it?
Your body of work that you want to promote and negotiate with your partner should include the things you both believe are perfect. You need to begin the process of negotiations by identifying what is truly a throw away, and what is truly a principle. Never compromise on principles; it reduces the value of the deal substantially, and also reduces your own credibility.
7-Key things to remember when searching for that win/win
Remember the other person's goals
When negotiating with someone, it's helpful to remember what the other person might want out of this situation. If negotiating a pay raise, you might keep in mind your employer's need to stay within a certain budget, which might be outside of their control. When negotiating with a contractor, remember that both their time and resources have value reflected in the payment they receive.
Remember that all sides in a negotiation often have a similar goal. In a negotiation, that usually means that both sides feel that what they receive is fair.
Evaluate your expectations
Since a win-win resolution means that both sides think the outcome is beneficial, it's important to make sure that what you expect from the other party is fair to them. If an employee wishes to negotiate a pay raise, it's helpful to remember the work expected of them and evaluate whether the pay reflects the value of that work to you. In the contractor example, consider whether you expect something beyond their original estimate and make adjustments.
Create mutually beneficial opportunities
If the negotiations don't seem to include a way of reaching a win-win situation, it's sometimes possible to create a new situation that does. In a business negotiation, this can mean creating a path to promotion for a hard-working employee who desires more pay that can't currently fit into the company budget. This can help you protect the budget in the short-term while providing an opportunity to improve business by giving an excellent employee more responsibility for more pay later on.
Remain objective
During negotiations, it's best to keep a focus on the objective facts of that specific situation instead of the potential outcome. These facts might include things such as:
The actual work completed and its success
The established pay rate
Work completed beyond an employee's job description
Any previous estimates or unwritten agreements
Consider whether the resolution isn't just fair to the parties involved but that it's fair when accounting for the objective facts.
Determine your best alternative
Instead of focusing on your most desirable outcome, it's helpful to determine which alternative outcome might have benefits for you. During the negotiation process, consider creating a list of alternative outcomes that still work well for you. Deciding which of these you feel is a positive resolution can give you something to negotiate toward if it's clear your most desirable resolution isn't likely to happen. By determining this beforehand, you can still feel you have something to win once the optimal outcome is no longer a factor.
As the picture of the dice above depicts, there are a few ways you can roll 7!
Work together toward a common goal
It's sometimes helpful to work together with the other party to determine which outcomes you both want. By doing this, the negotiations can involve figuring out what it takes to meet both goals. When working together this way, it's helpful to keep consistent communication about what works, what doesn't and why. Through this communication, you can determine together what specific tactics work best to bring about a mutually beneficial solution.
Be honest about any potential issues
In negotiations like these, it's helpful to remain honest about the things that conflict with your desired goal. This lets both parties either work around those potential conflicts or resolve the issues themselves. Consider doing the same for the other party's conflicts. If these issues can get resolved, it might help your negotiations reach win-win solution more easily.
Summary
Everything is a negotiation … whether you and your husband are discussing where to go for dinner, or you are working with a prospect on becoming their new partner. There are obstacles that have to be overcome, side-stepped, or just avoided. Know what the boundaries are, respect your opponents principles, and define in advance when you are willing to walk away.
If you are a sales manager running a team, make sure they are also aware of your position. Having them go back to the prospect over and over again, because you have failed to communicate or commit to your lowest alternative, is confusing to the team and the customer.
Having trouble racing to the bottom with your competitors? Give us a call at Kole Performance Group - where we work hard today to improve your tomorrow!
Podcast version: Is a win:win the same as compromise?