Was it a lose-lose situation that couldn't be overcome?

Suddenly, I realized that any common ground would not be attractive enough. We had to do something outside the box to turn this negotiation into a win-win situation for both parties.

Traditional negotiation practice teaches you to optimize your position when trying to establish a common ground. Common ground negotiations are straight forward and usually the fastest way to achieve an agreement. In most cases, they require compromises from one or both parties. Common ground negotiations are the appropriate procedure if the compromises are still attractive for both parties. Unfortunately this is often not the case.

So what do we normally do?

We either compromise our desired position through a sub-optimal compromise or we pressure the other party into an undesirable compromise, or both. In the worst-case scenario, we exit and let the negotiation fail.

Some might think, well, no problem if the other party compromises their position as long as we get what we want. A win-lose situation is a win for us and therefore is o.k.

I wholeheartedly disagree with this concept.

I strongly believe that if one party loses, both parties lose. Any win-lose situation eventually ends up as a lose-lose situation and is therefore not desirable.

So what else to do?

The answer is "Higher Ground Negotiation" which means to leave the common ground and to look for a higher ground that is attractive to both negotiation parties. To do this successfully, we need to have a few pre-conditions in place:

1. True trust between both parties

I elaborated on the issue of trust and it's three key elements in our July edition of this E-Zine. Kindly refer to this section.

2. The willingness of both parties to create win-win situations

Of course, many hardcore negotiators still believe that a win-lose outcome is desirable. You may attempt to change your negotiation partners' beliefs on this by coaching them through the potential consequences of win-lose situations. However, if this turns out not to be fruitful, you will need to decide on whether or not you want to continue doing business with people who want you to lose every time you deal with them.

3. A thorough understanding of what is important to the other party

If you have built some trust with your negotiation partners, they will help you understand what is truly important to them...and that may go way beyond the price of your product or service. You need to gain a thorough understanding of the other party to find a higher ground that is attractive to both them and you.

Once you have these three pre-conditions in place, you can start exploring an attractive higher ground. You will have to think outside the box and be creative. A solution might not be evident right away, so you might need to do some meaningful brainstorming.

In the case of our French customer, we discovered that there was an upcoming need for certain other products this company would typically source from our competitors. For a long time, my colleagues had tried to sell these kinds of products, but without success. I knew that we had rather big margins on them and could compensate for the loss of margin caused by selling the other instrument at 260,000 USD.

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