creating value in negotiation
What is Creating Value in Negotiation?
Add the collaborative element of negotiation to the table, and you’ll be creating value in negotiation and making the process more enjoyable and also more rewarding.
Negotiations involving multiple issues are known as integrative negotiations, or value-creating negotiations because they allow parties to integrate various sources of value through tradeoffs and other creative dealmaking strategies. This process of creating value in negotiation encourages negotiators to make the most of differing priorities.
In fact, those differences often are opportunities for creating value in negotiation, write Harvard Business School professor Max H. Bazerman and the University of California, Berkeley professor Don A. Moore in their book Judgment in Managerial Decision Making.
If you aren’t sure where to begin, try breaking the problem down into more easily managed component parts. This constructs a multi-issue negotiation out of what at first is a single-issue negotiation, allowing both parties to make tradeoffs based upon their differing preferences.
When you and your counterpart can uncover additional value, make useful trades, and put together a package that exceeds your party’s expectations, you’re creating value in negotiation.
Remember that situations that appear to be zero-sum rarely are. The key to value creation? Bringing a degree of optimism about the chances of expanding the pie to every negotiation.
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