In business, and in life, many people see negotiation as a battle of wills. The goal is to dominate the other side in order to get the best possible deal. While a winner-take-all approach may make sense when you need to obtain a clear win or get quick results, in the long-run you may risk losing more than you gain.
Ann Frost, Associate Professor in Organizational Behaviour at the Ivey Business School, explains that a competitive process that yields a winner and a loser reduces the chance for future negotiation. “And most sales relationships are not a one-off deal,” she notes.
That’s where collaborative negotiation comes in.
A win-win approach to negotiation
The goal of collaborative negotiation is to build a long-term relationship that is beneficial to both sides.
“Having a collaborative mindset is about looking for opportunities to do things for others and to welcome the things others can do for us,” says Fernando Olivera, Associate Professor in Organizational Behaviour and Troost Professor in Leadership at the Ivey Business School. “It’s about building healthy relationships that produce value for all parties involved.”
Collaborative negotiation can only happen when everyone is open about their interests, says Olivera. That requires - and builds – trust. When parties are willing to negotiate in good faith, they are more likely to find creative solutions that benefit everyone at the table.
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Nicole Laidler is a freelance reporter, copywriter and content creator, serving clients in London, Toronto and throughout Southwestern Ontario. She helps people grow their success, one word at a time.