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How to Create Added Value
If there is motivation, an open mind and enough freedom for
individuals in an organization to look for and find new paths, considerable
added value can be created only if negotiators know in which direction they
are to look. Added value increases the room for negotiation and the cake
which can be divided.
An arrangement which is exclusively based on one part’s victory over the other
is barbaric and can never be humanized. It can only be maintained as long as
the part who has the upper hand can force the opponent into submission. Sooner
or later it will collapse. The alternative is co-operation and partnership.
But the person who does not understand the theoretical reasoning behind the
idea of partnership and added value, is not motivated to be open and run the
risks inherent in a more open negotiation climate. In order to dare co-operate,
we must have accepted the theories.
The objective of partnership is to identify, develop and safeguard the added
value realized. Added value, which means that the business can develop and
grow, that there is a bigger cake to share. You have to test the limits and
find the solutions in a businesslike manner and try to secure as much as
possible for yourself. You should win the negotiation without leaving the
other party feeling like a loser. Partnerships or partnering is rewarding
companies who can get beyond traditional ways of conducting business, and it
is punishing companies who cannot get outside the traditional mindset.
Many people perceive the room for negotiation as the difference between the
highest price that a buyer is willing to pay and the lowest price a seller
can come down to. It will only be possible to strike a deal if the buyer can
pay a price above the seller’s threshold of pain. The real room for negotiation
becomes much larger if you learn how to create added value. Our studies
indicate that 40% of the actual room for negotiation is never exploited
because negotiators have not learned to identify and utilize the potential
added value. You will be able to locate the added value by finding the
answers to the following questions:
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Copyright © 2004, Iwar Unt
September 2004 |
Copyright © 2004, The Negotiator Magazine |