About 55.9% of over 2500 international middle and senior managers in our benchmark group prefer to use problem solving to achieve what they want.

Problem solving engages both sides to work together to identify the problem, clarify their underlying interests and then to use that understanding to agree fair and reasonable outcome.  This technique often involves the use of third-party mediators, expert counsel and independent criteria.  The utility of this technique is limited unless both sides are willing to collaborate openly, which is often not the case in commercial negotiations.

Problem Solving seeks to remove the source of the conflict by identifying a diversity of interests that can then be addressed in a different way.  The classic example involves two children fighting over the last orange.  An irreconcilable conflict, but solvable when it is discovered that one wants to use the zest to bake an orange cake and the other wants to eat the fruit.  Unfortunately, in most people’s houses, all of the kids love to eat oranges and no-one wants to bake a cake.

 Problem solving can be useful when:

• Both sides are willing to engage openly and cooperatively

• There is sufficient time to explore each other’s underlying interests

• The parties are in an obligatory or close relationship where neither side can easily walk away

• You have the skills to use questioning and problem-solving techniques without being taken advantage of.

 Upsides of Problem Solving:

• Rational and cooperative approach well-suited to parties who are in a trusted long-term relationship

• Can create very powerful and mutually rewarding outcomes well beyond the basic win-win

• Involves a structured process and can be assisted as required by expert counsel or mediators to help facilitate the process.

 Problem Solving has a range of significant downsides too…

 Downsides:

• Only effective if both sides agree what the central problem is and are willing to engage in cooperative problem solving

• Less effective where interests are diametrically opposed or in high-conflict or high-emotion settings

• Requires significant skill to execute well

• Requires a willingness to make concessions and engage flexibly

• Counter to some organisation's sales / procurement practices and culture.

 Problem solving is a powerful technique and useful as part of a well-rounded skillset of negotiation techniques.  If problem solving is not part of your skillset, you need to learn.