“Win-Win or No Deal
by Chris Reinhardt, feedlot specialist
I recently had the opportunity to listen to a cattleman speak at a conference on the subject of, among other things, loyalty and building informal alliances in your business. The general take-homes were very useful, and included concepts such as: make “the pie” bigger so that both parties’ share of the pie is bigger than before the relationship; business is not a zero sum game where one party must lose for the other party to win; and building seller-buyer relationships based on loyalty can move both parties to a higher plane of business success than simply basing the transaction on lowest price vs. greatest margin.
But one message that also stood out was based on one of “The 7 Habits of Highly Effective People” by Stephen R. Covey, the concept of “think win-win”.
Loosely, the “think win-win” suggests that for any relationship to be sustainable over a long time period, especially a business relationship, the relationship must benefit both parties. One party may sacrifice profit over the short-term while the other party benefits, in an attempt to build trust and loyalty, but if the partnership does not result in improved profitability long-term for both parties, one party will move away from the relationship because the partnership has become “win-lose”. However, if the partnership results in benefits—financial, logistical, or otherwise—for both parties, long-term, this is considered “win-win”.
A critical element of this concept is that if one party decides that there is no long-term benefit for them from the relationship, they must move away and say, “No deal.” Obviously, the party on the short end of the bargain will likely make this call, but the astute manager on the winning end of this partnership should also be wise enough to know that this partnership will not last; we can only drain our partners’ resources for so long. And the sooner both parties agree to end the relationship amicably, the greater will be the opportunity to (a) move on to forge new partnerships elsewhere and (b) prevent hurt feelings in order to possibly forge a partnership together in the future.
This concept actually extends to employer-employee relationships as well.
The astute manager is constantly on the lookout for excellent individuals to add to the team, and throughout the interview and hiring process, is evaluating for the individual’s skills and qualifications, but is also considering how the person will fit in with the rest of the team. The more thoroughly the interview and screening process is designed and implemented, the more likely that the person will be not only qualified but also a good fit for the organization. However, no system can guarantee 100% hiring success, and eventually the organization will hire a person who just doesn’t fit.
This is a business relationship too, just like any other. The employee agrees to provide a service, and the employer agrees to pay a fee for that service. And just like a win-lose business partnership, it’s important for the astute manager to recognize, as early as possible, a win-lose hiring relationship.
Obviously, if the employee proves to be either unqualified or a poor fit with the organization’s vision and structure—a “lose” for the organization—the relationship must be terminated. But the astute manager will also recognize when an employee’s qualifications, abilities, and ambitions greatly exceed the opportunities provided by the existing position—a “win” for the organization but not necessarily a “win” for the employee. It’s important for the manager to either (a) identify an advancement path for this individual within the organization or (b) recognize that this employee will not stay in the organization long-term, and start looking to identify a replacement.