Building Value in Negotiations

Negotiations are often seen as mutually beneficial. However, a win-win mindset and adding issues to the discussion is the key to building value and getting things done.

Value formation allows the parties involved in the discussion to integrate through information exchange processes and other agreement-making strategies. For example, in negotiating the purchase of a used car, the problems that can be identified are certainly not just discussing price.

When involved in negotiations, the value creation process can be discovered in the common interest. Instead of allowing differences to dominate, value formation allows your partners to ask questions and various information related to interests and priorities that benefit both parties.

How to Build Value in Negotiations

Negotiation is a two-way process that not only claims a value, but also establishes it. Value formation can help resolve conflicts or make great deals. The following is how value is formed in a negotiation.

1. Build trust

Trust is a basic component of any effective negotiation strategy. Deal making has a level of risk attached to it. For this reason, it is important to build good relationships with other parties involved in negotiations.

Through the process of discussion or bargaining, you need to build relationships with other parties and share information. Avoid divulging details that could jeopardize your position. However, show that you are willing to provide some insight into your strategy and intent for reaching an agreement so that the other person will do the same.

Also express a genuine interest in understanding the other party's priorities. Ask open-ended questions that invite them to explain their stance and motivations. A more productive dialogue can be had that encourages both parties to explore opportunities for mutual benefit if there is mutual trust.

2. Find Common Ground

The formation of a value requires a focus on areas that are equally important to the parties involved. However, you and the other party have different interests and perceptions.

The key is to consider your differences on issues. If you focus on one thing at a time, you run the risk of getting caught in a series of win-lose scenarios in which one of the parties ends up winning.

Even though your highest priority is issue A, the other party's priority may be issue B. This may create trading opportunities that can benefit both parties without major sacrifices.

By finding and leveraging unconventional platforms, you can not only secure maximum value for your organization and yourself. You also strengthen cooperation by meeting the other party's needs.

3. Be agile

Being a successful negotiator means knowing how to think for yourself. Extensive preparation is an important part of the bargaining process. However, even the best plans can fail so you must be ready to adapt to changing conditions.

According to Mike Wheeler, Harvard Business School Professor in the online course Negotiation Mastery, skilled deal makers understand the importance of being agile and improvising. Wheeler also mentioned that each negotiator may have a different style for achieving success.

Keep your goals in mind during the conversation, but refine your tactics as you listen to the other person and learn more about their point of view. Think about the best and worst possible scenarios and prepare solutions.

With an agile and creative negotiation approach, you can discover new and exciting trade potential. Apart from that, you can also achieve greater results than you previously imagined.

In conclusion, negotiations don't have to be about winning or losing. When you find ways to add value to the agreement process, it will create better and lasting relationships for both parties involved. For a business context, you can also take advantage of Applied Negotiation Technique training, which is negotiation training that leads to achieving benefits with other parties.