How to Create and Claim Value in Any Negotiation
Written by Courtney Chicvak, WIN Coach
Are you turning your negotiations into deal-making opportunities where everyone involved achieves more? Sounds ideal, right? This type of negotiation is called an integrative negotiation - where parties develop interest-based, “win-win” solutions to problems so that the negotiators achieve more positive outcomes compared to what they would have gained by using a distributive, “I win- you lose,” competitive negotiation strategy. But in order to attain an integrative outcome, you must learn how to create value and then how to claim it.
So what is value creation and value claiming?
What skill sets are required to execute a deal with value-creating and claiming?
What are the pitfalls that may prevent a negotiator from reaching an integrative deal and how can you best avoid them?
Let’s dive in!
“Win-Win” Agreements
As we said, integrative negotiations result in "win-win" agreements. While negotiators recognize that they have particular needs in the negotiation, they also know that they are interdependent and have overlapping interests. Negotiators also acknowledge that to claim value, they must work together first to create value. From a process perspective, to create value, negotiators begin by gathering and exchanging information, exploring both negotiators’ interests and needs, and then brainstorming solutions. It is not until all of the possibilities are developed that the negotiators can claim value, or evaluate and select the options that work best.
Let’s explore four examples of negotiated agreements based upon an identical set of facts, to illustrate creating and claiming value. The scenario is as follows: two co-workers negotiate over who should have the office desk with the window view.
Example #1: "Log Rolling"
“Log rolling” is where negotiators expand the number of topics discussed, identify which topics are most important to each and then trade off based upon the ordering of issues. In that example, the co-workers may expand the negotiation to include vacation days, parking spaces, and lunch break times, then exchange based upon their respective priorities.
Example #2: “Modify the Pie”
“Modify the pie" is where negotiators seek to reconfigure the negotiated resource. Using the co-worker example, they may agree to reconfigure the furniture in the office space, even though this means moving the water cooler ten feet further from both of their desks, so they can both have a window view.
Example #3: "Expanding the Pie"
This occurs when negotiators add more to the resource being negotiated. Continuing with the workplace example, the co-workers may convince the owner to install an additional window or build an office building extension.
Example #4: "Bridging Interests"
In this example negotiators focus on identifying and meeting underlying interests. The co-workers may agree to take turns working from home and rotating who sits at the desk depending upon their out of office meetings or schedule.
Communication, Trust, Rapport, and Creativity
Negotiators rely upon interpersonal communication, trust, rapport, and creativity to achieve an agreement with value created and claimed. The necessary skill set for interpersonal communications includes asking open-ended questions, engaging in active listening, and reflecting on clarifying meaning, primarily to facilitate gathering and exchanging information. By the conclusion, negotiators should be able to articulate, at a minimum, what matters most, what they are afraid of, what their ideal outcome would be, and what alternatives exist, from the perspective of each individual involved. To facilitate the open exchange of information, negotiators must establish trust and rapport. Negotiators earn trust by demonstrating alignment between actions and words and treating others with dignity, while negotiators establish rapport through professionalism, courtesy, positivity, and friendliness. Finally, creativity is critical to generate and develop novel solutions. Skills such as brainstorming, analogies, envisioning a better future, and using a third-party can aid the process.
Pitfalls to Avoid
Rushing to Claim Value
One of the pitfalls that are not unusual when negotiating agreements is rushing to claim value before creating it. Negotiators may resort to a competitive conflict style early on and begin making offers before they have all of the information about the situation or have taken the time to generate different options. Without having all of the critical information, negotiators may begin finding a solution for a problem that is not, in fact, the problem. Once this happens, negotiators feel frustrated because they have to start again. Similarly, even if negotiators have the information and issue defined, they may jump at the first offer without spending adequate time thinking about all possible opportunities.
To guard against problems with the speed of the process, negotiators may choose to redirect the conversation through an open-ended question, ask to take a break or share that they think it would be best to slow the pace down.
Lacking Confidence
The second pitfall is lacking the confidence to share your thoughts and opinions. Negotiators may adopt an overly accommodating conflict style and choose not to share creative solutions due to a fear of criticism, judgment, or a lack of trust. A negotiator limits the options available for consideration for a potential agreement by failing to share novel solutions. It may stem from a previous negative experience to address a lack of confidence, which a negotiator may choose to reflect upon and evaluate outside of the negotiation room. With respect to lack of trust, a negotiator may decide to address the root cause by examining what is causing the lack of trust and whether it can be resolved, or determine that they may want to pursue other options available.
Negotiators who seek to enter into deals that provide win-win solutions must master the art of value-creating and value claiming. By working with a Negotiation Coach through WIN Coaching, you can improve your negotiation and deal-making skills to facilitate those win-win solutions in your life. Don’t box yourself into a fixed inset around your negotiation skill set. Through practice, education, reflecting upon negotiation experiences and incorporating feedback consistently, you can learn how to both create and claim value with confidence and ease!
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ABOUT THE AUTHOR
Courtney Chicvak
Member & Mediator of Courtney Anne Chicvak Mediation, Associate Instructor at Columbia University, + WIN Coach
Courtney Chicvak is a WIN Coach and Trainer. As a founder and mediator of Courtney Anne Chicvak Mediation she negotiations commerical, divorce, employment, and family/elder disputes. She is an Associate Instructor for Introduction to Negotiation and Introduction to Mediation at Columbia University, and an Online Adjunct Instructor at Grand Canyon University, where she teaches Negotiation and Conflict as well as Argumentation and Advocacy. She is also a New York State Certified Long-Term Care Ombudsman.
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References:
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Coleman, P.T & Deutsch, M.. (2006). Some Guidelines for Developing a Creative Approach to Conflict. In Deutsch, M., Coleman, P.T. & Marcus, E. (Eds.). The Handbook of Conflict1 2
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Lewicki, R. J., Barry, B., & Saunders, D. M. (2016). Essentials of negotiation. New York: McGraw-Hill education.
Lewicki, R.J. & Tomlinson, E.C. (2006). Negotiation. In Deutsch, M., Coleman, P.T. & Marcus, E. (Eds.). The Handbook of Conflict Resolution: Theory and practice, 2nd edition. (pp. 795-816). San Francisco, CA: Jossey-Bass.