Two Sides to Every Story - Two Philosophies of Negotiation
There are two fundamental views to negotiating. A view of scarcity or a view of abundance.
Scarcity, also known as zero sum, approaches the negotiation with a limited mindset. What is gained by one side is lost by the other. The winner takes all.
The abundance mindset, referred to as expanding pie view, looks beyond obvious negotiable items. It requires good listening skills, creativity and in some cases more time. When you choose abundance, the rewards outweigh the work.
Zero Sum View – You and your counterpart compete over the distribution of a fixed sum of value. A gain by one side is made at the expense of the other. You split a fixed amount of the pie.
Expanding Pie View – Parties cooperate to achieve maximum benefits by integrating their interests into an agreement. These deals are about creating value and claiming it. Expand the pie means identifying all that is really negotiable.
Example: Zero Sum View - Tale of Two Sisters
There is only one orange left in the house. Two sisters want the orange and argue over it. Finally, mom solves the argument by cutting the orange in half and giving each girl one half. One sister eats the orange and throws the peel away. The other sister throws away the orange and uses the peel zest for a recipe. Half the orange and half the peel were thrown away.
Zero sum view, like the example above, takes a limited view of the negotiation. Never thinking beyond “I want it,” it is a closed, limited mindset. In Tale of Two Sisters, a much better outcome would have been possible if they had taken the expanding pie view. One sister could have had the peel, and the other the orange to eat.
The zero sum view negotiation approach forces a premature compromise. It requires both parties to lose something. If you get more, then I must be getting less.
Perhaps you have personal experience negotiating with someone that took the Zero Sum View. Send me your story by clicking on the contact tab.
Negotiation Tip
How you negotiate makes a difference. Your approach determines whether the pie is expanded or merely divided. You decide if you are looking for a positive relationship with the other side or a strained one. Collaboration takes longer than compromise but leads to a greater possibility of a win-win solution.
Want to explore more about how to prepare for your next negotiation? Check out the Negotiation Guide – Roadmap to Success. To get your copy select the “contact now” button, fill out the form and use this for the subject line “Request for the Roadmap to Success pdf.”