Internal negotiations (3/3): Dealing with diverse goals

The previous article showed the need to bear in mind how our interactions may get tough if our counterpart has too narrow a view of the organisation because of their individual KPIs.

We also saw that we often don’t realise how we have been wrong about our colleagues. Frequently we rely too much on our subjective view of them and our impressions of other people as such are not easily changed.

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Internal negotiations are often treated by those involved as a zero-sum game. But is it really the case that it is nothing more than an internal fight over limited resources?

Whether it be a question of monetary resources, attention from top management or personal status, this "us vs. them" mentality leads to a struggle against invisible threats which may not even be real. Fortunately, it is often possible to find a solution which offers value creation, so there is no need to adopt a win-lose attitude.

Establishing constructive dialogue can, however, be a difficult task. This is the cautionary advice in an article on the INSEAD business school website. For example, marketing managers never want their budgets constrained; on the other hand, colleagues from finance must optimise spending as best as they are able because that is the basis of their performance assessment.

Then engineers from manufacturing may claim that marketing is useless because if money were to be invested instead in designing and producing better quality goods, there would be no need to spend so much on marketing.

Value creation-oriented negotiation can be hard

Disputes should not be settled on the basis of power or authority, or even escalation. Resources are generally not as limited as parties may perceive at the beginning.

When an appropriate collaborative strategy is applied and opportunity for additional value created, resources can often be expanded. It all begins with parties who are able to frame their negotiations correctly and put aside a zero-sum game approach.

In internal negotiations, moving towards the best alternative to a negotiated agreement can be a much harder option to follow. Usually there will not be two departments doing the same thing or managing the same resources.

With no other option available, tension and mini-monopolies may emerge in organisations. Such monopolies are tempted to use their power; they might also impose rules and regulations which decrease any incentives to find new creative, value-creating solutions. This is something you need to be aware of.

-jk-

Article source INSEAD Knowledge - INSEAD Business School knowledge portal
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