Value creation in negotiation helps both parties get what they want.
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. Even in a negotiation over a used car, for example, you might be able to look beyond price to identify other issues to add to the discussion. If you have a PR business, you might negotiate a lower price in return for giving the dealership some PR advice—potentially a beneficial tradeoff for both parties.
How can you make the most of integrative negotiations, creating as much value as possible?
- Before you sit down at the bargaining table, imagine a wide-range of options and packages, including some that may seem far-fetched.
- When talks begin, remember that getting down to business too quickly can stand in the way of building trust.
- Emphasize to your counterpart the importance of separating the “inventing” from “deciding,” as Fisher, Ury, and Patton suggest in Getting to Yes.
- Don’t worry about adding complexity. Bringing new issues, options, and parties to the negotiation is likely to create value.
- Avoid artificial deadlines, though it can be helpful to decide when it’s time to concentrate on the packages you’ve identified.
Coming up with innovative ideas for value creation in the middle of the collaborative process can be difficult, so how does the skillful negotiator change her mindset to become more creative?
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The below resources on value-creation will help you improve the chances of meeting everyone’s interests at your next negotiation:
1. Finding More Value at the Bargaining Table
Before you sit down at the bargaining table, imagine a wide-range of options and packages, including some that may seem far-fetched
2. Why First Impressions Matter
When talks begin remember that getting down to business too quickly can stand in the way of building trust.
Emphasize to your counterpart the importance of separating “inventing” from “deciding,” as Fisher, Ury, and Patton suggest in Getting to Yes.
4. Bringing Outsiders to the Negotiating Table
Don’t worry about adding complexity. Bringing in new issues, options, and parties to the negotiation is likely to create value.
Avoid artificial deadlines, though it can be helpful to decide when it’s time to concentrate on the packages you’ve identified.
How do YOU work on value creation when positioning your negotiations?
Learn how to negotiate like a diplomat, think on your feet like an improv performer, and master job offer negotiation like a professional athlete when you download a copy of our FREE special report, Negotiation Skills: Negotiation Strategies and Negotiation Techniques to Help You Become a Better Negotiator, from the Program on Negotiation at Harvard Law School.
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