Win-Win Negotiation

The Harvard method of negotiation, also known as the Harvard principle, is a negotiation technique developed over 20 years ago at Harvard University by Professors Roger Fisher and William Ury. The technique focuses on achieving a “win-win situation” in which both negotiating parties see each other as partners instead of opponents. The method consists of seven elements, including understanding the problem, focusing on interests, exploring options, and reaching a commitment that both parties can uphold. These seven elements are: strategy, structure, systems, shared values, style, staff, and skills.

1. Strategy

Strategy refers to a plan or roadmap that a company creates to maintain its competitive advantage in the market. It includes decisions about what products or services the company will offer, how they will be marketed, and how the company will differentiate itself from its competitors.

 An effective strategy should be aligned with the overall goals and objectives of the company. 

2. Structure

This element refers to the organization’s structure and how it is designed to achieve its objectives. The structure includes the hierarchy and reporting relationships within the organization, as well as the roles and responsibilities of employees.

An effective structure should be designed to support the company’s strategy and help achieve its goals. For example, if the company’s strategy is to expand globally, an effective structure might include regional and functional divisions that can support the expansion effort. On the other hand, if the company’s strategy is to focus on innovation, an effective structure might be one that is flatter and allows for more cross-functional collaboration.

It is important to note that structure should be flexible and adaptable to changes in the company’s strategy and environment. A rigid structure can hinder innovation and growth, while a flexible structure can enable the company to respond quickly to changes in the market

3. Systems 

This element refers to the processes and procedures that the organization uses to achieve its objectives. Systems can include financial systems, management information systems, and other systems that support the organization’s operations.

An effective system should be designed to support the company’s strategy and help achieve its goals. For example, if the company’s strategy is to provide excellent customer service, an effective system might include a customer relationship management (CRM) system that helps track customer interactions and feedback. Likewise, if the company’s strategy is to reduce costs, an effective system might include a supply chain management system that helps optimize the company’s supply chain and reduce costs.

It is important to note that systems should be regularly reviewed and updated to ensure that they are meeting the needs of the organization. An outdated or inefficient system can hinder the company’s ability to achieve its goals. 

4. Shared values

Shared values are the core values and beliefs that shape the culture of the organization. This element refers to the capabilities and competencies of the organization’s employees. Skills can include technical skills, such as programming or engineering, as well as soft skills, such as communication and leadership.

An effective organization should have employees with the necessary skills to support the company’s strategy and help achieve its goals. For example, if the company’s strategy is to expand globally, employees with language skills and experience working in different cultures may be necessary. Likewise, if the company’s strategy is to focus on innovation, employees with creative thinking and problem-solving skills may be necessary.

It is important to note that skills can be developed and improved through training and development programs. An organization that invests in its employees’ skills can benefit from increased innovation, productivity, and employee engagement.

5. Style

Style refers to the leadership style of the organization. This element refers to the leadership style of the organization and how key leaders behave in achieving the organization’s objectives.

An effective organization should have a leadership style that supports the company’s strategy and helps achieve its goals. For example, if the company’s strategy is to be innovative, a leadership style that encourages risk-taking and experimentation may be necessary. Likewise, if the company’s strategy is to provide excellent customer service, a leadership style that emphasizes empathy and customer focus may be necessary.

It is important to note that leadership style can have a significant impact on employee engagement and organizational culture. A leader who is transparent and communicates effectively can help build trust and engagement among employees. On the other hand, a leader who is authoritarian or micromanages can hinder employee engagement and creativity. 

6. Staff

This element refers to the organization’s workforce and how it is composed, including its size, diversity, and skill level.

An effective organization should have the right people in the right roles to support the company’s strategy and help achieve its goals. For example, if the company’s strategy is to increase its international presence, it may need to hire employees with experience working in different cultures and languages. Likewise, if the company’s strategy is to focus on innovation, it may need to hire employees with strong creative and problem-solving skills.

It is important to note that staff should be aligned with the organization’s culture and values. Hiring employees who share the organization’s values and culture can help improve employee engagement and reduce turnover. Additionally, it is important to have a diverse workforce that reflects the diversity of the organization’s customers and stakeholders.

7. Skills 

This element refers to the actual skills and competencies of the organization’s workforce, including technical skills, problem-solving abilities, and other capabilities.

An effective organization should have the necessary skills and competencies to support its strategy and goals. For example, if the company’s strategy is to expand its e-commerce capabilities, it may need to invest in training its employees in digital marketing, data analysis, and other relevant skills. Likewise, if the company’s strategy is to improve its supply chain efficiency, it may need to invest in training its employees in logistics and inventory management.

It is important to note that skills should be aligned with the organization’s strategy and goals. Having the right skills can help improve employee productivity and effectiveness, leading to improved business outcomes. Additionally, it is important for the organization to continuously assess its skills needs and invest in training and development programs to ensure its workforce remains competitive and up-to-date with industry trends.

In Summary

The major takeaway from the McKinsey 7S model is that all seven elements are interconnected and must be aligned in order for an organization to be effective. If one element is out of sync with the rest, it can lead to inefficiencies, low employee morale, and decreased business outcomes. The model emphasizes the importance of looking at an organization holistically, rather than focusing on individual components in isolation. By examining the interrelationships between the seven elements, organizations can identify areas of strength and weakness and develop a comprehensive plan to improve overall effectiveness.

Another key takeaway is that the model is not static and should be revisited periodically to ensure ongoing alignment. As organizations evolve and change over time, they may need to adjust their strategy, structure, systems, and other elements to remain competitive and achieve their goals.