Daily Business & Success Tips


Quote of the day

"Hard work has made it easy. That is my secret. That is why I win."
Nadia Comaneci (1961 – ) Romanian Olympian, first gymnast to score a ‘Perfect 10′ scored seven ’10s’ at the 1976 Olympics

The Law of Futurity


The purpose of a negotiation is to enter into an agreement such that both parties have their needs satisfied and are motivated to fulfill their commitments and enter into further negotiations with the same party in the future. This is a foundation law of negotiating, and it applies especially to negotiations where you will be dealing with the same party again. In business, it is quite common for people to be in and out of business transactions and negotiations with each other over many years. This fundamental futurity must be kept in mind at each stage of each negotiation.

First Purpose
Let’s break this law down into its constituent parts. First, "the purpose of a negotiation is to enter into an agreement." It is assumed, but not always true, that both parties want to do business together. If one does not and is merely negotiating for some other purpose, the other party can be at a considerable disadvantage.

Second Purpose
The second part says, "such that both parties have their needs satisfied." This means that an agreement where one or the other party feels that he or she has lost does not fulfill the basic requirement of a successful negotiation. Both must feel that they have come out ahead.

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Third Purpose
This law then goes on to say, "and are motivated to fulfill their agreements and enter into further negotiations with the same party in the future." This means that both parties are satisfied enough with the outcome that they are motivated to fulfill whatever commitments they have made, and they feel positively enough about the deal that they are willing to negotiate again and enter into subsequent agreements in the future. Your job in every negotiation where you will be dealing with this person again is to assure that the other party will want to continue doing business with you in the future.

The Final Agreement
Look for ways to make the final agreement acceptable to the other party. Think of negotiating with this party again in the future based on the terms and conditions you are finalizing today. How could you improve the terms without sacrificing things that are important to you?

Action Exercise
Analyze your current negotiating style. In what areas have you been more focused on winning in the short term without really considering the long-term damage that you might be doing to the relationship?

about TA fastrack

TA Fastrack is Australasia’s most successful travel and tourism industry consulting, business coaching, eCommerce solutions and training solutions provider. With a vision to provide the travel and tourism industry with the ‘world-best’ solutions, TA Fastrack guarantees a fastrack in your profits and personal performance. With Australasia’s most experienced team of industry consultants and coaches based in Australia, New Zealand and now in Singapore, we can deliver business solutions wherever you are.

To learn more about how TA Fastrack can ‘fastrack’ your profits email us or visit www.tafastrack.com. To talk to us call +61 7 3630 1298.

Source = Adrian Caruso & TA Fastrack
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