GETTING TO WE GETTING TO WE Negotiating Agreements for Highly Collaborative Relationships Jeanette Nyden , Kate Vitasek , and David Frydlinger GETTING TO WE Copyright © Jeanette Nyden, Kate Vitasek, and David Frydlinger, 2013. All rights reserved. First published in 2013 by PALGRAVE MACMILLAN® in the United States— a division of St. Martin’s Press LLC, 175 Fifth Avenue, New York, NY 10010. Where this book is distributed in the UK, Europe and the rest of the world, this is by Palgrave Macmillan, a division of Macmillan Publishers Limited, registered in England, company number 785998, of Houndmills, Basingstoke, Hampshire RG21 6XS. Palgrave Macmillan is the global academic imprint of the above companies and has companies and representatives throughout the world. Palgrave® and Macmillan® are registered trademarks in the United States, the United Kingdom, Europe and other countries. ISBN 978-1-137-60283-1 ISBN 978-1-137-34415-1 (eBook) DOI10.1057/9781137344151 Library of Congress Cataloging-in-Publication Data Nyden, Jeanette. Getting to we : negotiating agreements for highly collaborative relationships / Jeanette Nyden, Kate Vitasek, and David Frydlinger. pages cm Includes bibliographical references and index. ISBN 978–1–137–29718–1 (alk. paper) 1. Negotiation in business. 2. Interpersonal relations. 3. Organizational behavior. I. Vitasek, Kate. II. Frydlinger, David. III. Title. HD58.6.N93 2013 658.4(cid:2)052—dc23 2013003785 A catalogue record of the book is available from the British Library. Design by Newgen Imaging Systems (P) Ltd., Chennai, India. First edition: August 2013 10 9 8 7 6 5 4 3 2 1 DEDICATION We would like to dedicate this book to our partners, who selflessly give us their time, support, and encouragement. Together, we live the principles embodied by Getting to We each day. Tim, Greg, and Caroline: we are in your debt and appreciate all you have done for us. Tim Lohraff (husband) and Isabella and Elizabeth Lohraff Jeanette Nyden Greg Picinich (husband) and Austin Picinich Kate Vitasek Caroline Frydlinger (wife) and Rebecka, Oskar and Klara David Frydlinger CONTENTS List of Figures ix Introduction 1 Chapter 1. What Are You G-e-t-t-i-n-g To? 7 SECTION I STEP 1: ESTABLISH A FOUNDATION OF TRUST, TRANSPARENCY, AND COMPATIBILITY Chapter 2. Trust 25 Chapter 3. Transparency and Compatibility 41 SECTION II A SHARED VISION AND COMMON GUIDING PRINCIPLES Chapter 4. Step 2: Creating a Shared Vision 63 Chapter 5. Step 3: Establishing the Six Essential Relationship Principles 79 SECTION III STEP 4: NEGOTIATING AS WE Chapter 6. Four Rules for Collaborative Negotiations 123 Chapter 7. WIIFWe Styles, Strategies, and Tactics 135 Chapter 8. Negotiating Money for Mutual Benefit 155 S ECTION IV LIVING AS WE Chapter 9. Step 5: Relationship Management 1 83 Chapter 10. The Power of We 207 Conclusion We Are All Winners 215 viii GETTING TO WE Acknowledgments 219 Notes 223 Index 231 FIGURES 3.1 Comparison of P&G and Jones Lang LaSalle corporate cultures 51 3.2 Value Map 5 4 3.3 Spider graphic: Low gaps 56 3.4 Spider graphic: High gaps 57 7.1 We and Me strategies 140 7.2 Initiating the relationship among multiple parties 142 7.3 Creating the team 144 8.1 Balanced exchange 163 8.2 Unbalanced exchange 1 64 8.3 Value exchanges 165 8.4 Rocky Flats Closure Project pricing model 176 9.1 Global relationship management 198 9.2 Escalation process 204 INTRODUCTION I n 2009 Kate Vitasek and Dr. Alex Miller, then associate dean of the University of Tennessee’s Center for Executive Education, got together over a beer. They wanted to unwind and discuss the find- ings of a recent research project conducted by the university, which had been funded by the United States Air Force. Vitasek was the lead researcher. The casual discussion between colleagues turned out to be a pro- phetic conversation; you will realize why in a moment. Vitasek and her fellow researchers were studying highly successful performance-based, collaborative business relationships. They wanted to know what made those relationships successful. The key finding was that the parties involved had created symbiotic relationships where “win-win” was not a glib marketing term. Rather, win-win thinking was deeply embedded in the parties’ relationship. It influenced how they worked together with shared goals to drive innovation and create value that did not exist before. The research was codified into five rules and their emergent methodology was called Vested. If followed, Vested had the power to help all companies design their own hyper-collaborative win-win rela- tionships, just like the companies studied in the research. The team realized early on that the methodology had the transformative poten- tial of Lean and Six Sigma, other well-known business management philosophies. That evening, Vitasek and Dr. Miller lamented the reality that the business world does not typically adopt or embrace academic research. Instead, great research often remains trapped inside university walls and bureaucracy. They wondered, “Just how could the researchers get the business world to adopt their emergent methodology and business model?” 2 GETTING TO WE Vitasek and Miller had an epiphany. They already knew the answer before they asked the question. The answer was in their own research: take the emerging Vested business model and apply the rules and principles to create their own highly collaborative Vested relationships with thought leaders and experts from the academic and business world. These experts could help them take the Vested concept and institutionalize it across all businesses, in all industries, all across the world. That meeting was in 2009. The potential Vitasek and Miller glimpsed that night is a reality. The work behind this book is the product of one of those Vested collaborations. THE EVOLUTION OF GETTING TO WE Vitasek shared the Vested mindset and an advance copy of the first Vested book, Vested Outsourcing: Five Rules That Will Transform Outsourcing , with Jeanette Nyden. Vitasek had known Nyden for several years and considered her a trusted friend. A lawyer by trade, Nyden had created a successful nego- tiation training company. She agreed to provide feedback to Vitasek about the book. Nyden read the book and immediately saw a tremendous opportu- nity that also had the potential to solve a systemic flaw in how compa- nies negotiated. To make the Vested mindset and the methodology truly transformative, business people would have to adopt a different way of negotiating. The atmosphere of gamesmanship present in most com- mercial negotiations needed replacement, but with what? As a young trial attorney, Nyden saw firsthand the impact of good intentions gone wrong. She had grown weary and frustrated watching clients spend hundreds of thousands of dollars and countless hours fighting over what was “fair.” She transitioned her practice and began helping companies negotiate fair and balanced deals that would not end up in court. Nyden realized that a complete paradigm shift was needed in nego- tiation. From teaching strategies and tactics for negotiating a specific deal to the specifics of how to create a powerful relationship that could
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