The Law of Futurity
The
purpose of a negotiation is to enter into an agreement such that both parties
have their needs satisfied and are motivated to fulfill their commitments and
enter into further negotiations with the same party in the future. This is a
foundation law of negotiating, and it applies especially to negotiations where
you will be dealing with the same party again. In business, it is quite common
for people to be in and out of business transactions and negotiations with each
other over many years. This fundamental futurity must be kept in mind at each
stage of each negotiation.
First Purpose
Let's
break this law down into its constituent parts. First, "the purpose of a
negotiation is to enter into an agreement." It is assumed, but not always
true, that both parties want to do business together. If one does not and is
merely negotiating for some other purpose, the other party can be at a
considerable disadvantage.
Second Purpose
The
second part says, "such that both parties have their needs
satisfied." This means that an agreement where one or the other party
feels that he or she has lost does not fulfill the basic requirement of a
successful negotiation. Both must feel that they have come out ahead.
Third Purpose
This
law then goes on to say, "and are motivated to fulfill their agreements
and enter into further negotiations with the same party in the future."
This means that both parties are satisfied enough with the outcome that they
are motivated to fulfill whatever commitments they have made, and they feel positively
enough about the deal that they are willing to negotiate again and enter into
subsequent agreements in the future. Your job in every negotiation where you
will be dealing with this person again is to assure that the other party will
want to continue doing business with you in the future.
The Final Agreement
Look
for ways to make the final agreement acceptable to the other party. Think of
negotiating with this party again in the future based on the terms and
conditions you are finalizing today. How could you improve the terms without
sacrificing things that are important to you?
Action Exercise
Analyze
your current negotiating style. In what areas have you been more focused on
winning in the short term without really considering the long-term damage that
you might be doing to the relationship?
