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Extra info for 3-d Negotiation: Powerful Tools to Change the Game in Your Most Important Deals
The two-step payment process may make the deal sufficiently attractive to both parties—and more attractive than walking away. As we will demonstrate in later chapters, a host of other differences make up the raw material that skilled deal designers transform into joint gains. For example, a less risk-averse party can “insure” a more risk-averse one. A more impatient party can get more of the early money, while his more patient counterpart can get considerably more over a longer period. Differences in cost or revenue structure, tax status, or regulatory arrangements between two parties can be converted into gains for both.
Maybe it could have proposed licensing deals with existing competitors, to bring them on board. Maybe it could even have persuaded a few major potential customers to join this coalition. ) If the EPA had mandated the use of the best available technology to monitor storage tanks across the board, LockStore could have enjoyed enormous sales to a broad range of industrial customers. This postmortem 3-D audit suggests that LockStore faced a self-inflicted tactical barrier by keeping an inward focus and being guilty of the all-too-common failure to probe the other side’s real interests.
Deal designers know how to probe below this surface to uncover the sources of economic and noneconomic value. To unlock that value for the parties, they have a systematic approach to envision and structure creative agreements. Our third dimension—setup—extends to actions away from the table that shape and reshape the situation to the 3-D Negotiator’s advantage. In deal after deal we’ve seen the same result: once the parties and issues are fixed and the negotiating table has otherwise been set, much of the game has already been played.