The Elements of Negotiation

ELEMENT 19Openness

If you want to locate better solutions than those already at hand, or if you want to obtain extra information about the counterparts interest and values, you should use a different negotiation method—the one I refer to as SMARTnership/partnership. It's characterized by constructive dialogue. The foundation for such cooperation is trust and openness.

Lack of openness means that when the negotiators are deciding on the terms they will ask for, or they are willing to accept, they will only look at the consequences to themselves. They do not have, nor have they attempted to obtain, information about the consequences of the terms and conditions to the other party. The decision leads to sub-optimization. The existing possibilities for rationalization and optimal distribution of costs aren't taken advantage of.

In a SMARTnership negotiation, the emphasis is on mutual gain and transparency, rather than the traditional zero-sum game where one party's gain is another's loss. Let's consider an example scenario where two negotiators are discussing the terms of payment, particularly focusing on the cost of capital.

EXAMPLE | Using Openness to Everyone's Advantage

Negotiator A represents a company seeking to purchase a large quantity of goods. Negotiator B represents the supplier of these goods. Negotiator A is concerned about the cost of capital—essentially, the cost of financing the purchase.

Negotiation example:

• Negotiator A: “We're interested in your products, ...