Jointly Creating and Claiming Value in Sustainable Way – Part III

This issue is Part III of the three-part Knowledge Letter on Creating and Claiming Value in a sustainable way. If you missed the Part I and Part II of this topic, you will find them on my blog.

For stronger and lasting relationships, always solve a joint problem of crafting a deal for all. An agreement which is better than any of the no-deal options.

Understand how the customer sees the fundamental negotiation problem. Know the deal from the other party’s perspective. Be sure that you and the other side is looking at the problem in the same way. Then, solve the joint problem by “creating value” in a sustainable way and not merely “claiming value.” Creating value is an important piece of the “value proposition.” Just “claiming value” could be dividing the pie. “Creating value” is the vital process for simultaneously increasing the worth of the agreement to each side.

A router company wanted to sell hardware to a telecom operating company in Australia. The operating company wanted to first assess the ability and scalability of their existing OSS (Operating Support System). OSS was not the hardware company’s strength.

Instead of waiting for the telecom company find someone to make an assessment, the router company hired a qualified consultant to do it for them. Conducting evaluation increased the revenue for the hardware company and decreased the risk of investment for the telecom operating company. The supplier gained insights into the customer’s operations which is useful for making more sales, and it helped the operating company find areas that needed strengthening.

Does this apply to you?

If you have questions, ask. I will reply. It may take a few days due to the volume of email.

Satish

“Negotiate less out of habit and more out of Intent.”

P.S. Let me know what issue keeps you up at night. Maybe I can help you in your negotiation.