The concept of win-win was introduced by Stephen Covey. A win-win situation is one where both parties in an agreement ‘win’. For example a customer of mine wants a special software application. I know that I can sell the same application to another customer, with a few minor modifications. So I give my customer a discount (his win) in return for the right to sell the application to another customer (my win).
In this situation I have applied 3 rules for creating a win-win. If you use these rules you will make sure that any agreement you will make is a win-win agreement.
Rule 1: What don’t you want?
The first rule is to make sure you know exactly what you don’t want. If we use the above example, I don’t want to give a discount without a benefit on my side.
The idea behind the first rule is to get yourself comfortable with the option of not making an agreement. If the agreement can only be made with you ending up in a situation you do not want; then don’t make an agreement.
Always remember: it is not a bad thing to not make an agreement!
Rule 2: What do I have to offer?
The second win-win rule is that you identify exactly what you have to offer the other party. In our example, I have a certain discount to offer. I could decide to be willing to offer a 5-10% discount, so that is what I have to offer. Another possibility would be to offer extra functionality for the same price.
Again this rule determines, in a way, what you do not have to offer. I do not have 25% discount to offer. If you have a clear picture of what you have to offer, it makes the process of making a win-win agreement much easier.
Rule 3: What do I want?
The final rule is concerned with specifying exactly what you want from the other party. In the example, this would be the right to sell the application to another customer, including minor modifications.
This final rule is used to identify whether what the other person has to offer to your own needs.
Preparation is key
Whenever you are about to make an agreement, make sure you use these rules before going into the meeting. Just make a quick note for yourself with the answers to rule 1, 2 and 3.
This way you will make sure that you do not give away things you don’t want to give away. It also makes sure that you know what you want in return. And above all, that you do not end up in a situation that you absolutely don’t want to be in!
Wed, Apr 21, 2010
Entrepreneurship