But there is a differentiator that separates the good negotiators from the best. That is the ability to negotiate from a "win-win" perspective. Best practice supply chain executives have mastered this skill and use it frequently.

Win-win negotiation is one of those concepts that appears self-evident. Isn’t it obvious? If I negotiate so that I get some or most of what I wanted and you get some of what you wanted, we both win, right? The negotiation is successful, right? Unfortunately, that is the understanding most people – those who haven’t studied the concept – have of win-win negotiation. The reality is far different.

The concepts of win-win negotiation come from the Harvard Negotiation Project and date back to the 1970s. This is not a new concept by any means. The theory behind the concept is that negotiations do not have to be a zero sum game. Most negotiations are adversarial, where each party tries to get the other party to move towards their position at the expense of the other party’s position.

Instead, win-win posits that by following five basic principles the parties can both get more value than either expected to get through the normal adversarial process. It’s not that we both get some of what we wanted – it’s that we both get more. That is the magic of win-win.
The five principles of win-win negotiation are:

• Cooperation. This is the guiding principle from which all the others flow. The parties must position themselves as partners in a search for a solution that is beneficial to both. While there are techniques that an experienced negotiator can use to engender this cooperative spirit, at some point it must exist for win-win to be successful.

• People, not problems. People must be separated from the problem. Each negotiation is conducted at two levels, the substantive and the interpersonal. We cannot let our egos and need to win get in the way of finding a solution. By understanding the normal human emotions and drivers and developing an empathy with the other party, we can move the negotiation, along. By the end of the negotiation the relationship between the parties should be better than when it began.

• Interests, not positions. In most negotiations the sides take positions and try to get the other side to accept their positions. But each side has many interests that are driving the positions. While the positions they select will satisfy many of their interests, rarely will they satisfy all or even most. In fact most of us don’t even realize all the interests we have. By understanding your interests and discovering the other party’s interests we set the stage for the fourth principle.

• Creative options. This is where you brainstorm to find many different solutions that may satisfy both parties. In particular, you look for small concessions from one party that will have greater value for the other. As each side gives up little things in exchange for big things the value to each grows.

• Objective standards. Finally, win-win negotiators look for fairness. This can be demonstrated by pointing to fair standards – things that are independent of will and both legitimate and practical, and using fair procedures – those that both parties agree treat them both equally.

These basics of win-win negotiation are fairly simple. To learn more I encourage you to read the original book on the subject, "Getting to Yes: Negotiating Agreement Without Giving" by Roger Fisher and William Ury (1981). The follow-up book by William Ury, "Getting Past No: Negotiating With Difficult People" (1991) will give you even more insight.

But learning about win-win is not the same as using it. This "simple" technique takes lots of practice to enable one to use it effectively. It can be a lot of work trying to negotiate from a win-win perspective, especially if the other party does not want to or just does not understand it. It may seem easier to revert back to a more comfortable style. Don’t allow this to happen. The benefits of using win-win are just too substantial to ignore.