By David A. Lax
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Additional resources for 3-d Negotiation: Powerful Tools to Change the Game in Your Most Important Deals
Should it be a staged agreement, perhaps with contingencies and risk-sharing provisions? If there’s a contract involved, should it be an unusual kind of contract—one with a more creative concept and structure than we’ve used before? One that meets ego needs as well as economic ones? A Few Deal-Design Examples Conventional wisdom says that we negotiate to overcome the differences that divide us. So, typically, we’re advised to find win-win agreements by searching for common ground. While identifying common ground almost always helps, many of the most frequently overlooked sources of value in agreement arise from differences among the parties.
To them, preparation and execution are mainly about process and tactics. But all too often, this one-dimensional approach leaves money on the table. It is inadequate for the tough negotiations in which the other side seems to hold all the cards. It isn’t well-suited to common deal-making challenges such as multiple—not just two—parties, tricky internal as well as external negotiations, and shifting agendas. It leads to suboptimal deals, creates needless impasses, and fosters conflicts that could have been avoided.
If you don’t like the way the table is set, reset it by attacking the scope and sequence of the negotiations. Creating and Claiming Value Let’s back up a step and ask a fundamental question whose answer underlies our approach: whether we act in one, two, or three dimensions, what are we actually trying to do by negotiating? On one level, everyone will answer this question differently, depending on the specifics of the negotiations at hand. ”) But on a deeper level, the answer to our rhetorical question is always the same: Your negotiating objective should be to create and claim value for the long term by crafting and implementing a deal that is satisfactory for both (or all) parties.
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