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“Some negotiators divide value. Master negotiators create value before they claim it.” -Dr. Greg Williams, The Master Negotiator & Body Language Expert
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“Why the Best Negotiators Create Value Before They Claim It”
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Click here to listen
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The Hidden Limitation in Most Negotiations
Most negotiators enter discussions focused on one objective: getting more. They want more compensation, more favorable terms, more influence. While that approach seems logical, it often limits the outcome before the negotiation truly begins.
When negotiators concentrate exclusively on claiming value, they overlook opportunities to create value. As a result, agreements are reached that appear successful on the surface while leaving substantial benefits undiscovered beneath it.
The strongest negotiators understand a fundamental truth: negotiation is not merely about dividing value. It’s also about creating it. That distinction frequently separates average outcomes from exceptional ones.
Different Questions Produce Different Results
Many negotiators ask, “How much can I get?” A more productive question is, “What can I provide that costs me little but matters greatly to them?” That shift changes the entire conversation.
Consider a salary negotiation. An employer may have limited flexibility regarding base compensation but significant flexibility regarding remote work, leadership opportunities, specialized training, scheduling, bonuses, or additional vacation time. A negotiator focused only on salary may miss benefits that create greater overall value.
The same principle applies in business transactions, partnerships, vendor agreements, and client relationships. The opportunity often exists. The challenge lies in recognizing it.
Where New Value Is Found
Value creation frequently emerges from differences. One party may value speed. The other may value certainty. One side may prioritize cash flow. The other may prioritize long-term commitments. One organization may place significant importance on implementation timing while another cares more about contract duration.
Too often, negotiators treat these differences as obstacles. In reality, differences often reveal hidden opportunities.
When something carries high value for one side and relatively low cost for the other, additional value can be created without significant sacrifice. That is where many of the best agreements are born.
The Importance of Understanding Priorities
Master negotiators spend less time defending positions and more time exploring priorities.
Positions tell you what people want. Priorities reveal why they want it. The why is often where untapped value exists. Uncovering it requires curiosity and disciplined questioning.
Instead of immediately arguing for a preferred outcome, effective negotiators seek to understand motivations, objectives, constraints, and concerns. The more clearly you understand what matters to the other side, the easier it becomes to identify opportunities for mutual gain.
In many negotiations, the breakthrough comes not from persuasion but from discovery.
The Value Creation Doctrine
The Value Creation Doctrine can be summarized through three simple principles.
Create First
Before discussing who receives what, identify opportunities to generate additional value. Explore interests before debating positions. Search for ways both parties can improve their outcomes.
Creation should precede allocation.
Expand Always
Assume there is more value available than initially appears. Look beyond obvious issues. Examine timing, information, risk allocation, relationships, operational flexibility, future opportunities, and available resources. Every negotiation contains visible value and hidden value. The negotiator’s responsibility is to uncover both.
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Claim Fairly
Once additional value has been created, negotiate confidently for your share of the expanded outcome. Value creation does not eliminate the need to advocate for your interests. It simply creates a stronger foundation from which to negotiate. A larger pie generally produces better outcomes for everyone involved.
The Cost of Claiming Too Soon
Many negotiators reverse the proper sequence. They begin by claiming value. As positions harden, trust declines. As trust declines, collaboration weakens. As collaboration weakens, opportunities disappear. The negotiation becomes a contest rather than a problem-solving exercise.
Unfortunately, by the time participants recognize additional opportunities, the environment may no longer support productive exploration. Then, potential value is lost.
Creating Better Outcomes
The next time you negotiate, resist the urge to focus immediately on what you want. Instead, identify what the other party values most.
Look for differences in priorities. Search for exchanges that create mutual benefit. Ask questions that reveal interests instead of assumptions.
Remember the sequence.
Create First.
Expand Always.
Claim Fairly.
Reflection
Value creation is the crux of greater negotiation outcomes. Accordingly, they rarely result from taking a larger slice of the pie. They result from discovering how to make the pie larger before deciding how to divide it.
That is the essence of value creation. When you adopt that principle, you’ll have greater negotiation outcomes, too. And everything will be right with the world.
Remember, “You’re always negotiating!”
Note: To discover more about GREG, GAIN, TEMPO, and WNA, register for the upcoming course with no obligations – https://TheMasterNegotiator.com/wna
If this resonates with you, drop me a comment at Greg@TheMasterNegotiator.com
Listen to Dr. Greg’s podcast at https://megaphone.link/CSN6318246585
After reading this article, what are you thinking? I’d like to know. Reach me at Greg@TheMasterNegotiator.com
To see more of Dr. Greg’s “Negotiation and Body Language Tips,” click here https://www.themasternegotiator.com/blog
