In the globalized 21st-century economy, the understanding of what creates an effective negotiator must drastically change. Many corporate cultures continue to rely on zero-sum strategies resulting in the loss of billions of dollars in the form of lost opportunity. Shortsightedness, fear, and the mistaken assumption that your interests are at complete odds with your counterparts are no longer effective approaches to maximize negotiation outcomes.
In the 21st century, effective negotiators strive for a cooperative interpersonal dynamic based on trust, honesty, and fair dealing to achieve mutual gains with the loyal opposition. Instead of operating from an adversarial, win-lose perspective, successful dealmakers aim to create a positive negotiation climate. Commercial transactions are considered a joint process aiming to reduce risk and allocate resources so that the value of the transaction is increased and there is more for the parties to share.
The development of competent negotiators is a leadership competency that can put an executive's career on the fast-track or derail it in a heartbeat. Business leaders in C-suite must have the skills and the judgment to manage relationships with employees, customers, competitors, suppliers, the board of directors, securities analysts, the media, and their own management team.
A successful negotiator will contribute to the company's profitability potential by creating long-term sustainable relationships with trading partners. Opening the flow of communication, developing good rapport and building trust will create a positive negotiation climate so that both parties' needs and requirements are clearly understood and factored into the bargain. High trust lowers transaction costs and increases profit.