The Elements of Negotiation

ELEMENT 21Tru$tCurrency

Negotiations carried out in a spirit of cooperation and trust are more efficient and achieve better results for the parties. Unnecessary conflict can be avoided by creating a positive negotiation climate built on a foundation of open, honest communication. This is best achieved if the negotiators make an investment in the interpersonal dynamic before getting down to business. When the personal chemistry clicks, delegates often make decisions based on their feelings rather than logic and rationality. Their perception of the situation becomes so positive that their decision-making may become skewed in favor of the opponent's solutions.

Trust is vital in the pursuit of creating a SMARTnership, the advanced collaborative approach, and generating NegoEconomics (see Element 20). Negotiations can be concluded without trust, and they do every day, but the negotiators are leaving considerable value on the table.

The Water Bottle Experiment

I have tested the importance of trust in a simple experiment with more than 3,000 people globally. They are confronted with a very simple choice. They must buy plastic water bottles for their operations. Here's the scenario.

For the last five years, you have purchased the water from supplier A for a total of $4 million. You really like supplier A. The relationship is great. You got the same humor, communicated well, and trust is present.

A new supplier enters the market, and they are able to deliver exactly the same product. ...