Estimated reading time: 3 minutes.
TODAY’S IDEA: Win-Win or No Deal
— From The 100 Absolutely Unbreakable Laws of Business Success by Brian Tracy
Following along the same path as yesterday’s post on Thinking “both,” I wanted to focus on its application in business by looking at Bryan Tracy’s Law of Win-Win or No Deal from his book The 100 Absolutely Unbreakable Laws of Business Success. This law states that:
“In a successful negotiation, both parties should be fully satisfied with the result and feel that they have each ‘won’ or no deal should be made at all.”
Tracy says, “Remember, you always reap what you sow. Any settlement or agreement that leaves one party dissatisfied will come back to hurt you later, sometimes in ways that you cannot predict.” And he goes on to tell a story of a tough negotiator who was boasting “about a hard deal he had wrung out of a [distributor] of his company’s products. He had demanded and threatened and negotiated an agreement that paid him considerably more, both in up-front payments and in percentages of sales, than any of the other clients for which this company distributed.”
The author happened to know the people on the other side of the negotiation well, so he asked them to tell the story from their angle. They confirmed the discomfort and toughness of the negotiation and said “they had agreed to pay higher prices and royalties on everything they sold, but they had not agreed to sell any.”
The deal backfired: “the businessman had negotiated a ‘win-lose’ with him winning and the others losing. But those on the losing side had no incentive to fulfill the implied commitment to market the products. They had no incentive to go forward with this person, and no reason to ever want to do business with him again.”
In a zero-sum game, someone always loses. In business it does not have to be that way: aim always for a win-win or no deal. Be clear in your intentions that what you want is the best for both parties. Now, “this doesn’t mean that you [or the other party] have to accept any arrangement that you consider second best.” On the contrary, “when you are determined to achieve a win-win solution to a negotiation, and you are open, receptive, and flexible in your discussions, you will often discover a third alternative that neither party had considered initially but that is superior to what either of you might have thought of on your own.”
ACTION
TODAY: If you are negotiating something today—even if its’ the smallest thing—that’s great! Think win-win, communicate it to the other party, and find out what it is that each of you wants/needs from the deal to consider it successful. Work together to make it happen. If you don’t have any negotiations on your plate now, think about one in the past where you experienced a win-lose (no matter which side you were on). The good thing about hindsight is that it’s always 20/20 and, with that view, you can reconstruct the deal (at least in your mind) to make it a win-win. Learn from it: what would you have changed for the better? How would you have structured the deal differently? Think creatively.
FUTURE: Think win-win from now on professionally and personally. Commit to doing deals where the Law of Win-Win or No Deal applies. Actively seek to find ways to achieve what each party needs and wants out of the situation in a satisfactory way and without feeling that you have to settle for less.
Know someone who could benefit from reading today’s post? Please share it via email, Facebook or Twitter!