6 Reasons Collaborative Negotiation is the Future of Business
6 Reasons Collaborative Negotiation is the Future of Business
In every business, there is a founder who wants to convert more deals faster, attract the best talent, increase team capability, create more profit and build an antifragile business. In the world of AI, only the brightest human minds will connect the dots and recognise that these desired outcomes lie in the value of the agreements their people make. Before an agreement can be reached, a conversation needs to be had – this conversation aimed at reaching an agreement is otherwise known as negotiation.
Let’s break down the six reasons why the future of your business lies in collaborative negotiation.
1. Increases the capability of our team
Collaboration and maximising value are more challenging than people think. Believe it or not, it takes more skill to negotiate collaboratively than competitively. Why? Because the archetype required to maximise both value in a deal and strengthen relationships is the diplomat. Not everyone on our team is skilled enough to be a successful diplomat. Diplomats have highly developed communication and emotional intelligence skills, such as empathy and emotional regulation, combined with creative problem-solving abilities. These skills not only make our team more effective in negotiation but also in day-to-day business operations.
2. Convert more deals
When we focus on collaborative negotiation, we focus on understanding the value in the deal for both parties. While competitive negotiation centres on self-interest, collaboration requires understanding the needs and interests of the other party. It’s this understanding of what the other party values that allows us to craft agreements that can be more readily accepted. Our ability to close deals increases through better understanding the needs and interests of the people we’re seeking agreement with.
3. Takes less time to close deals
Demonstrating understanding and care towards the other party fosters a more open and trusting environment, which in turn streamlines the decision-making process. When both parties have mutual trust and skill in knowing where to look and how to package value-accretive deals, it’s much easier to discover and exchange value in a negotiation. The efficiency created through trust and collaborative negotiation skills not only reduces the time to agreement but also builds a solid foundation for future deals.
4. Attracts more talent
The more capable our team is in creating value and building relationships, the more skilled they are in teamwork. Increasing curiosity levels means less judgement of each other and conflict within the business and with external stakeholders. A business with a strong negotiation intelligence culture is seen as a much better place to work and grow professionally. Not only this, but a culture of collaborative negotiation recognises the importance and power of influencing and increasing the perception of value for all future employees and stakeholders.
5. Creates more profit
Collaborative negotiation equips us to create value and discover hidden value with others. With more trust and more transparency, we have more opportunities to expand the value of the deal and find innovative solutions that wouldn’t be possible in more adversarial settings.
This ultimately leads to growing the opportunity and creating more profit for both sides. Competitive approaches may get us a short-term win but will cost us significantly more in undiscovered value and opportunities through a lack of trust and transparency.
6. Makes our business antifragile
Stronger, more resilient business relationships that create more value, combined with a team capable of adapting and thriving in uncertainty through developed negotiation skills, will make our business antifragile. Skilled negotiators are adept at planning, positioning and priming – they plan ahead and create value in how they design and set the table. Negotiation isn’t just what happens at the table. By fostering a culture of continuous learning and adaptability, our business can not only withstand shocks but also leverage them for growth, embodying true antifragility.
Negotiation, after all, isn’t just something we do but an expression of who we and our team are through the process. By developing our team’s capability in collaborative negotiation, we will not only transform the value of the agreements we make but transform ourselves and our business.
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