The_Essential_Manager_s_Handbook

CREATING WIN-WIN DEALS / 391

Bundling the issues

Effective negotiators do not negotiate

a single issue at a time because this

implies that there is a fixed pie and only

leads to a win–lose scenario. Instead,

they bundle several issues together.

Trade-offs can then be made between

negotiators because negotiators do not

place equal importance on every issue.

The principle of bundling issues involves

placing an issue that is of high value to

you (for example, price) with another that

you consider to be of low value (for

example, warranty).

When you trade-off on issues, you can

then keep your high-value issue (price)

and give your low-value issue (warranty)

away to the other party. The other party,

in return, will allow you to have your

high-value issue, because your low-

value issue is, in fact, of a high value to

them. If your low-value issue is also

considered to be a low-value issue by

the other negotiating party, then they

will reject the trade-off. Therefore, it is

important for you to know what the

other party considers to be their

high-value issues.

Capitalizing on risk

You can also capitalize on differences in

risk tolerance. Some negotiators are

more comfortable with high-risk

situations than others. As a win–win and

risk-taking negotiator, it is possible for

you to design a deal where you assume

more risk and receive more benefits

while your counterpart, who is also a

win–win negotiator but risk-averse

(avoider), assumes a lower level of risk

but receives fewer benefits from the deal.

SHOW THE WAY

If you are dealing with a win–

lose negotiator who thinks

that the idea of win–win deals

is naive and unrealistic, show

them how to create value and

reach superior agreements

by focusing on interests and

bundling issues together.

Tip

>> Negotiating on multiple

issues simultaneously

>>^ Understanding what is important^

to the other party

>>^ Identifying and leveraging

differences in the interests of

and the risks to the other party

>> Negotiating on only one issue

at a time

>>^ Focusing exclusively on your^

own interests

>>^ Ignoring differences in your

counterpart’s interests and risks

WIN–WIN NEGOTIATING

Do’s Don’ts

US_390-391_Creating_win_win_deals.indd 391 30/05/16 3:06 pm