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Microsoft and Samsung finally settle their royalties’ dispute over Android
If you follow technology or corporate news, you would have seen that the technology oligarchs Microsoft and Samsung have ended their royalties’ dispute over Android. We will never know much Samsung will continue to pay Microsoft for Android royalties, but Microsoft has earned around $1 billion from Samsung in the form of patent-licensing royalties during 2013! Needless to say this was one case which would require the art of a great arbitrators – the super negotiators.
Whether it’s arbitration in massive corporate cases like this, negotiation is a way in which people resolve their differences, where compromise or agreement is reached (hopefully) avoiding argument.
In the process of negotiation, not only are different opinions taken into account, but also individual needs, aims, interests and differences in background and culture.
Here are 5 Top Tips including the WIN-LOSE approach (also known as bargaining), and the WIN-WIN approach to negotiation which is preferable to build a meaningful and strong relationship:-
1. Win-Lose
Negotiation is sometimes seen in terms of ‘getting your own way’, ‘driving a hard bargain’ or ‘beating off the opposition’.
While in the short term bargaining may well achieve the aims for one side, it is also a WIN-LOSE approach - while one side wins, the other loses – and this outcome may damage future relationships between the parties. It also increases the likelihood of relationships breaking down or of people walking out, or refusing to deal with the ‘winners’ again and the process ending in a bitter dispute.
Win-Lose is probably the most familiar form of negotiating. Individuals decide what they want, then each side takes up an extreme position, such as asking the other for much more than they can expect to get. Through haggling - the giving and making of concessions – a compromised is reached, and each side’s hope is that this compromise will be in their favour.
For example, haggling over the price of a car:-
“What do you want it for?”
“I couldn’t let it go for under £2,000”
“I’ll give it to you for £1,000
“You must be joking!”
“Well, “£1,100 and that’s my limit”
“1,900”…£1,300…£1,700…£1,100”
“Done”
While this form of bargaining may be acceptable in the used car market, for most business situations it has its drawbacks and can have serious consequences. For example:-
- It turns the negotiation into a conflict situation and can damage any possible long term relationship.
- It’s essentially dishonest – both sides try to hide their real views and mislead the other
- The compromise solution may not be the best possible outcome – there may have been some other agreement that was not thought of at the time – an outcome that was both possible and would have better served both parties.
2. Win Win: Tee it up
In most business negotiations a win-win outcome is the only sustainable option if you want to build a productive, ongoing relationship with the other party.
However, as we said in Tip 1, most people are familiar with the win-lose approach to negotiation – they are already likely to be anticipating confrontation and disagreement.
So…don’t sit back and simply hope for the best – be proactive, take the initiative and set the tone for the win-win outcome you’d like to achieve with them – right from the outset.
- Be upfront and honest about the win-win outcome you seek
- Restate the benefits of both sides working together, rather than against each other
- Seek out their support and commitment to work together towards a win-win result
- Openly share information to demonstrate your desire to cooperate not compete
- Focus on your common interest in this negotiation, not your different positions
- Jointly agree on a timeframe to complete the negotiation
3. Win Win: Focus on the Relationship
In business, disagreements and negotiations are rarely ‘one offs’. It is important to remember that you may well have to communicate with the same people in the future – so always consider whether ‘winning’ the particular issue is more important than maintaining a good relationship.
All too often, disagreement is treated as a personal insult. Rejecting what an individual says or does is seen as a rejection of the person. Because of this, many attempts to resolve differences collapse into personal battles or power struggles with those involved getting angry, hurt or upset.
Win win negotiation is about finding an agreeable solution to a problem, not an excuse to undermine others – so to avoid negotiation breaking down into an argument, it is helpful to consciously separate the issues under dispute from the people involved.
It is quite possible to like a person, respect them, their feelings and beliefs and yet to disagree with the particular point they are making. The best approach is to continue to express positive regard for an individual even when disagreeing with what they are saying.
“You’ve expressed your points very clearly. I can appreciate your position. However…”
“It’s clear that you are very concerned about the issues, as I am myself, but from my viewpoint…”
Another way of avoiding personal confrontation is to avoid blaming the other party for creating the problem. It is better to talk in terms of the impact the problem is having, rather than pointing out any errors.
So instead of saying “You’re making me waste a lot of time by carrying on with this argument”, say, “I can’t spend a lot of time on this problem. I wonder if there’s a way we could solve it quickly?”
By not allowing ‘disagreements over issues’ to become ‘disagreements between people’ a good relationship can be maintained – regardless of the outcome of the negotiation.
4. Win Win: Clarify Meaning
Good communication skills are essential for negotiation including:-
- Listening
- Questioning
- Reflecting and clarifying
- Verbal Communication and Body Language
By developing a good understating of communication you increase the possibility of successful negotiation and most importantly, maintain the relationship for the future.
Spending time to clarify and agree what all individuals have said (rather than assuming what they intended to say), will ensure that misunderstanding of meaning is kept to a minimum.
Good negotiation also involved offering your viewpoint in an assertive manner, rather than taking an aggressive stance or passively listening to different views. By being assertive you will help to ensure that the needs of all concerned are met.
5. Win Win: Get a Variety of Options
Rather than looking for one single way to resolve differences, aim to consider a number of options that could provide a resolution - and offer gains to both parties – then to work together to decide which is the most suitable for both sides.
Techniques such as brainstorming could be used to generate different potential solutions.
In many ways, negotiation is a problem solving exercise, although it is important to focus on all individuals’ underlying interests and not merely the basic difference in positions.
Good negotiators spend time finding a number of ways to meet the interests of both sides – rather than just meeting their own self-interest - and then openly discuss the possible solutions.
Want to read the rest of the Top Tips for The art of Win Win Negotiation?
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