2-D: Deal Design

The next or "second" level of 3-D negotiation is deal design. Successful designs emphasize shared values and aligned interests for all parties, very similar to the optimal PPP configurations introduced earlier. Just as importantly, however, dealmakers must look beyond pure economic value to diagnose potential sources of noneconomic value, which are especially crucial in negotiations about social PPPs and healthcare. By creating situations that seek to align the values of the public and private sectors, government professionals can create a beneficial framework for both parties without sacrificing capital at the negotiating table.

Well-designed deals create mutually acceptable balances of risks and benefits while identifying and executing on opportunities to further the interests of various parties, a process that creates sizable "wins" for one party at low or no cost to others. Because PPPs are usually long-term partnerships, and social PPPs are especially volatile due to their focus on pressing current issues, negotiators should be sure to design flexibility and room for growth into agreements, recognizing that it is impossible to negotiate out every single eventuality.