07/25/2017
Series: Creating Value in Business Negotiations
In a negotiation, it’s common to slip into a “win at all costs” mentality. Discover how to re-focus on value creation and consensus building in today’s
When disputes crop up in our business lives, our carefully honed negotiation skills sometimes go out the window. We become so focused on trying to “win” that we forget that the same value-creating opportunities we seek in negotiation may be well within reach.
In particular, we may be able to bridge our differences by—somewhat paradoxically—focusing on our differing preferences across issues. Alter your perspective to get what you want.
To take one example, parties often bring different visions of the time frames relevant to their dispute to the table. Imagine, for instance, that a design firm has completed web design and hosting work for a small, growing business. The design firm added a significant charge for “scope change” to its bill, noting several requests its client made during the process of constructing the website. The client disputes that the changes to the scope were great enough to warrant the extra charges and has refused to pay them. The parties could haggle over price and perhaps reach a compromise.
But a more promising strategy might be to explore time-frame differences. Suppose the client is facing cash-flow difficulties. If so, it might propose structuring payments over time instead of disputing the total bill. Similarly, if the design firm is concerned about retaining long-term clients, it might consider counting part of the monthly payment as an ongoing retainer fee. In this manner, the client would secure ongoing design support, and the design firm would convert a one-time customer into a more stable revenue stream.
Summary: To resolve a dispute, consider making tradeoffs based on differences in the time frame that each party has in mind.
Robert C. Bordone
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