Differences as a source of value

Quote:

“In negotiation, one of the most powerful ingredients of joint gain, are the differences that exist between parties. To find those differences, we have to probe beyond apparent incompatible bargaining positions to understand the other side's true interests.

Focusing on differences to create new sources of value may seem counter intuitive. But value-creating differences - those that one party can meet relatively easily but that offer significant value to the other side, and vice versa - are the key to joint gains. Negotiators can capitalize on their differences in interests, priorities, forecasts about the future, risk attitudes, and so on.

To take one example, differences in beliefs about how future events will unfold - e.g., what a key price will be or whether a technology will work - can form the basis of mutually beneficial contingent agreements. In a contingent agreement, the parties bet on their different predictions by stipulating what will happen if each side's expectations come true. Performance-based clauses in sports or executive contracts and milestone-based payments in strategic alliances are examples of contingent agreements.

In our personal and professional lives, we are taught to look for common ground. Though this is time-honored advice, it can lead us away from potential joint gains. By searching for differences in your negotiations, you and your counterpart are likely to discover numerous possibilities to create value and improve everyone's outcomes.”

Prof. SEBENIUS.
Co-author of “3D-negotiation: Powerful Tools to Change the Game in your most important Deals.” Gordon Donaldson professor of Business Administration at Harvard Business School.

Comment:
An interesting quote, right in the middle of Consentrust’s vision. If people started to understand their differences better, they would unlock the vast field of potential complementarities, instead of playing the odds of opposing games and adversities.
Bridging differences by Trust. That is what Consentrust stands for.

February 22nd, 2016.