Of the potential outcomes in a negotiation, only Win-Win is truly a good result. Reaching a Win-Win outcome depends on parties negotiating in good faith and seeking a mutually fair deal. A positive outcome from a Win-Win negotiation increases the likelihood that the parties involved will negotiate with each other again, having established a level of trust from the transaction.
Win-Lose is a bad outcome since one of the parties is not satisfied and probably unhappy with the results. People on the ‘losing’ end of a Win-Lose outcome may avoid negotiating with the other party in the future because they may feel they were not treated fairly. That means that even the ‘winning’ party in a Win-Lose outcome could lose in the long run as mentioned above.
Of course, the worst possible outcome is Lose-Lose since neither party’s needs are met. A deal where both parties feel they ‘lost’ is a truly ugly outcome as it means the negotiation was a complete failure. It is also an indication that at least one of the critical factors (covered below) went terribly awry. Bad and ugly outcomes often stem from adversarial stances or people taking unreasonable positions. When people enter a negotiation intending to take advantage of the other party, the chances for a good outcome are diminished.
The best way to achieve good results in any negotiation is for parties to respect each other and to aim for a mutually acceptable transaction. That might require both sides to concede certain things or compromise on some aspects of the transaction. Rather than viewing this as ‘giving in’, the approach of ‘finding common ground’ should be seen as competitive collaboration. That is often the best path to a mutual agreement where both sides can have their primary interests met. Compromise, requiring extra time and effort, is often a necessary and appropriate path to reach a Win-Win outcome.
Continue Reading: Critical Factors of Negotiation