May 26, 2020 9 minutes read Viewpoints expressed by Entrepreneur contributors are their own.
This is an excerpt is from the classic best-seller, The 7 Habits of Highly Effective People, and has been modified for brevity. Routine 4 talks about many techniques to negotiation and why one strategy stands out from the rest. The 30th-anniversary edition of the renowned book by the late author is being released next month by Simon and Schuster.
Win/Win is a state of mind and heart that continuously looks for shared benefit in all human interactions. Win/Win implies that contracts or options are equally useful, equally satisfying.
With a Win/Win option, all parties feel great about the decision and feel committed to the action plan. Win/Win sees life as a cooperative, not a competitive arena. Many people tend to believe in regards to dichotomies: strong or weak, hardball or softball, lose or win.
That kind of thinking is essentially flawed. It’s based upon power and position rather than on concept. Win/Win is based upon the paradigm that there is plenty for everybody, that a person individual’s success is not accomplished at the expenditure or exemption of the success
of others. Win/Win is a belief in the third alternative. It’s not your method or my method; it’s a much better way,
a higher method. Of the 5 viewpoints talked about– Win/Win, Win/Lose, Lose/Win, Lose/Lose, and Win– which is the most effective? The response is, “It depends.” If you win a football game, that indicates the other team loses.
Weigh options for the long term
If you work in a regional workplace that is miles away from another regional workplace, and you don’t have any functional relationship in between the offices, you might wish to contend in a Win/Lose circumstance to stimulate organisation. You would not want to set up a Win/Lose scenario where you require cooperation amongst individuals or groups of people to accomplish optimal success.
If you value a relationship and the problem isn’t really that essential, you might want to choose Lose/Win to truly affirm the other person. “What I want isn’t as important to me as my relationship with you. Let’s do it your way this time.” You may also choose Lose/Win if you feel the expenditure of time and effort to attain a win simply isn’t worth it.
There are circumstances in which you would wish to Win, and you wouldn’t be extremely concerned with the relationship of that win to others. If your child’s life were in threat, for example, you may be peripherally concerned about other people and situations. However saving that life would be very important.
The very best option, then, depends on reality. The obstacle is to check out that reality properly and not to translate Win/Lose or other scripting into every circumstance.
The majority of circumstances, in reality, belong to an interdependent truth, and then Win/Win is really the only viable alternative of the 5.
Regard your equivalent
Win/Lose is not practical since, although I appear to win in a conflict with you, your feelings, your mindsets towards me, and our relationship have been impacted. If I am a provider to your business, for example, and I win on my terms in a particular settlement, I may get what I want now. Will you come to me once again? My short-term Win will truly be a long-term Lose if I don’t get your repeat business. An interdependent Win/Lose is really Lose/Lose in the long run.
If we come up with a Lose/Win, you may appear to get what you want for the moment. However how will that affect my mindset about working with you, about satisfying the agreement? I might not feel as anxious to please you. So we enjoy Lose/Lose again. Lose/Lose certainly isn’t practical in any context.
And if I concentrate on my own Win and don’t even consider your point of view, there’s no basis for any kind of productive relationship. In the long run, if it isn’t a win for both people, we both lose. That’s why Win/Win is the only real alternative in synergistic truths.
If individuals can not come up with a synergistic option– one that is acceptable to both– they can go for an even greater expression of Win/Win– Win/Win or No Offer.
Walking away can make sense
No Offer basically implies that if we can’t find a service that would benefit us both, we agree to disagree agreeably– No Offer. No expectations have been developed, no performance agreements developed. I don’t employ you or we don’t handle a particular project together due to the fact that it’s obvious that our worths or our objectives are entering opposite directions.
It is a lot better to recognize this up front rather of downstream when expectations have been developed and both parties have actually been disillusioned.
When you have No Offer as an option in your mind, you feel liberated since you have no need to manipulate individuals, to push your own agenda, to drive for what you desire. You can be open. You can actually attempt to understand the deeper issues underlying the positions.
With No Offer as an option, you can honestly state, “I only wish to opt for Win/Win. I wish to win, and I want you to win. I would not wish to get my method and have you not feel good about it, due to the fact that downstream it would ultimately appear and develop a withdrawal. On the other hand, I do not believe you would feel great if you got your way and I gave in. So let’s work for a Win/Win. Let’s truly hammer it out.
And if we can’t discover it, then let’s concur that we will not negotiate at all. It would be much better not to deal than to deal with a choice that wasn’t right for us both. Then maybe another time we may be able to get together.”
The idea can cause larger fish
At some point after finding out the concept of Win/Win or No Deal, the president of a little computer system software application business shown me the following experience.
“We had actually developed new software which we sold on a five-year contract to a particular bank. The bank president was delighted about it, however his people weren’t really behind the decision.
“About a month later, that bank altered presidents. The new president came to me and said, ‘I am uncomfortable with these software conversions. I have a mess on my hands. My individuals are all saying that they can’t go through this and I truly feel I simply can’t push it at this moment in time.’
“My own company was in deep financial problem. I understood I had every legal right to enforce the agreement. But I had actually ended up being convinced of the value of the principle of Win/Win.
“So I told him, ‘We have a contract. Your bank has secured our products and our services to transform you to this program. However we comprehend that you’re not happy about it. So what we want to do is give you back the contract, give you back your deposit, and if you are ever searching for a software solution in the future, come back and see us.’
“I literally ignored an $84,000 contract. It was close to financial suicide. I felt that, in the long run, if the concept were real, it would come back and pay dividends.
“3 months later on, the brand-new president called me. ‘I’m now going to make changes in my information processing,’ he stated, ‘and I want to work with you.’ He signed an agreement for $240,000.”
Constantly weigh cost-benefit
Anything less than Win/Win in a synergistic truth is a bad second best that will have an effect on the long-lasting relationship. The expense of that effect requires to be thoroughly thought about. If you can’t reach a true Win/Win, you’re very typically much better off to go for No Offer.
The Win/Win or No Deal approach is most sensible at the beginning of a company relationship or enterprise. In a continuing company relationship, No Deal might not be a viable choice, which can develop serious problems, particularly for family companies or services that are begun initially on the basis of friendship.
In an effort to maintain the relationship, individuals often go on for many years making one compromise after another, thinking Win/Lose or Lose/Win even while talking Win/Win. This creates severe problems for individuals and for the business, particularly if the competition operates on Win/Win and synergy.
Without No Deal, lots of such companies just deteriorate and either have or stop working to be committed professional supervisors. Experience shows that it is typically better in setting up a household company or service in between buddies to acknowledge the possibility of No Offer downstream and to develop some type of buy/sell arrangement so that business can flourish without completely harming the relationship.
Obviously, there are some relationships where No Offer is not practical. I wouldn’t desert my kid or my partner and opt for No Offer (it would be better, if essential, to opt for compromise– a low type of Win/Win). In many cases, it is possible to go into a negotiation with a full Win/Win or No Offer attitude. And the liberty because mindset is extraordinary.
Article curated by RJ Shara from Source. RJ Shara is a Bay Area Radio Host (Radio Jockey) who talks about the startup ecosystem – entrepreneurs, investments, policies and more on her show The Silicon Dreams. The show streams on Radio Zindagi 1170AM on Mondays from 3.30 PM to 4 PM.