Uncertainty in the business environment is becoming a bigger concern due to the unstable political and economic situations currently plaguing the globe. Reaching agreements where the levels of mutual trust are high and the effort on the part of all parties to any agreement to actually put in their best to reach the end of a win-win deal is becoming imperative.
Prof Deepak Malhotra of the Harvard Business School who teaches Negotiations, Organisations and Markets began the third and final day of the Nasscom India Leadership Forum (NILF) with a session titled, "Solving the trust problem: Six strategies for resurrecting relationships and making money when negotiations get ugly." The strategies, explained with the help of examples from corporate world, behavioural research data and anecdotes from landmark historical events are simple and known, but most often, not thought of when we are actually dealing with relationships or professional agreements.
"Don't mistake mistrust for greed, "said Prof Malhotra, explaining that sharing details with the other party can help them understand what you can offer and what limitations you are bound by. Avoid partial trust - either go all the way, or tell them honestly that you are not willing to take the risk. Sometimes, giving some things away for free is a bigger motivation to get people to act in your favour, rather than giving them an incentive for favourable action on their part. When people feel important enough by being made part of your plans, they want to make things easier for you.
An interesting fact Prof Malhotra revealed was that not many people recommend a hotel where their stay was the perfect experience, but where they did have issues and which were attended to satisfactorily and immediately. Normalising the process helps create a better understanding between the parties and enhances the trust factor. Also, understanding and respecting the other party's script is essential to avoid mistrust arising out of lack of awareness of the cultural norms, assumptions or constraints affecting their behaviour or way of working. Finally, "Beware of the curse of knowledge," Prof Malhotra said. "It means, once you know something, you forget what it was like to not know it. Allow others to absorb it and come to a conclusion over a reasonable period of time," he explained.
Prof Malhotra said that it is sometimes important to highlight what we have done for someone, rather than what we cannot do for them. Trust is bigger than any clause put down in any contract and forms a channel for the seamless flow of ideas and an atmosphere for mutual benefit.