Win-Win Together
A transaction is an agreement between 2 or more people that affects all involved.
While obvious, some interesting observations can result from the simple thought experiment below. In which, 'ME' represents the identity of the primary person or group & 'YOU' stands for the "other party under discussion."
ME Vs YOU
Although there are multiple parties to nearly all transactions, it is simpler to understand the dynamics as a binary ME & YOU process.
In many (perhaps most) transactions, each side is negotiating to gain a perceived benefit (a Win) to the potential detriment of the other side. While not usually intentional, a loss by YOU is not much considered. (Except in toxic relationships, like politics).
If the ME unit does not win, then ME is not much interested in the deal. If YOU loses, that's tough, YOU should have played harder.
That is the typical arrangement in society. ME first & YOU ... whatever. Not an evil relationship, but far from ideal.
For simplicity, let's think of the potential of a ME-YOU agreement as forming a corporation.
If the YOU unit loses too many times, or too grievously in a single instance, YOU will either quit or retaliate.
If YOU quits, both sides lose because the corporation is weakened, perhaps terminally wounded, along with profits to shareholders, employee wages, & societal benefits from the corporation's products.
In the case of retaliation, a toxic war results with each side actively trying to inflict loses on the other, regardless of cost. In short order, the corporation will be damaged, likely beyond repair, with the above unpleasant results, plus likely lawsuits resulting in bankruptcy for both sides.
Enter Win-Win
My proposed solution is what is commonly known as a Win-Win philosophy. Its basic tenet is that in every deal, both sides should profit in some manner.
While the idea is well known, it is not so well practiced.
All the above unpleasantness is easily avoided via the Win-Win philosophy. To wit, the ME side should strive to insure that the YOU side also benefits, or worse case, suffers no harm & accrues a Karmic credit to expect a better deal in the future.
The underlying mechanism of using Win-Win in business (as well as personal relationships) is that it creates Trust. Trust is further bolstered by policies of Fairness & Transparency.
Fairness can be codified & published for all to read, agree to, & abide by.
But without Transparency, Fairness will always be suspect.
Hence, Transparency needs to likewise be codified & published.
The rising tide of Trust lifts the metaphorical boats of both ME & YOU.
But Wait, There's More
That's all well & good & perhaps deserves a rousing round of Kumbaya.
But why stop there? Let's create a simple, more inclusive model by:
Chunk (combine) the preceding ME & YOU into a new entity called ME.
Expand our view.
Identify an immediately affected group of others & designate them as YOU.
That's our new model. Let's apply it.
Combine the preceding 2 partners into a corporate ME
Expanding our view, we immediately see employees as directly affected.
Those employees are the new YOU.
Following the identical logic as above, if the new YOU (employees) are constantly being shorted, slighted, & otherwise disrespected, what will they do? Either quit or retaliate.
Consequences are not as immediate as before, but over time the results are similar. Management & Labor as enemies will inevitably rack up unnecessary loses.
Again a Win-Win philosophy can save the day:
Make sure that the YOU group feel properly rewarded.
Publish a Fairness Policy.
Publish a Transparency Policy.
Expanding Outward
Assuming everyone is now aboard the Win-Win choo-choo, let's pause to assess: are there any other affected parties to consider?
Yes, customers are a clear group.
How should we deal with them? As ignorant rubes to be fleeced? Or as long-term buyers and supporters? I'm sure my answer is clear. They are the new YOU group. And are to be treated exactly as above.
Toyota because 1 of the top automotive brands by incorporating the Win-Win philosophy into their principle of Kaizen, or continuous improvement of products.
Win-Win can be achieved and profitably. It just requires a longer time-frame from corporate decision makers. Too many corporations survive quarter to quarter only to perish during the next decade of 40 quarters. How many CEOs think that far ahead? How many think even 20% of that?
"If you don't plan your future, you are unlikely to enjoy it!" --Oran Kangas
Lightning Round
This mental exercise of expanding awareness of ME-YOU relationships will eventually reach a point of uselessness. That's right, I admit it: You can't please everyone. Nor can you make them, in effect, your business partners.
What do you do when you get to that huge group of outsiders? Nothing, literally. As in, do no harm!
If you cannot bring them into the winners' tent, at least do not make unwitting victims of them.
What do you think?
Tags: Win-Win, Kaizen, philosophy.