Traditionally, negotiation was viewed as Position Based activity. Position based activity is the standard method of negotiation where you are not ready to back down and any deviation from your original position is seen as a sign of weakness and not progress. It’s a zero sum game.
It has its place in negotiation as it tells the other side what you want. It also provides an anchor in uncertain and pressured moments and eventually, it may produce and acceptable agreement. However, it can also be harmful to long-term relationships and it can more easily fail.
Good news is, there is a better way to negotiate. Professors at Harvard University have developed a method called Principled Negotiation or Negotiation On Merits, as a middle way between hard and soft negotiation. Principled negotiation produces:
- A Wise Agreement that includes legitimate interests of both parties,
- Is Efficient and,
- Improves, or at least doesn’t damage the relationship.
Principled negotiation is a straightforward method that can be used almost under any circumstance. Instead of engaging in the standard positional negotiation, we to try explore the underlying interests of the potential deal. Interest based negotiation benefits both parties without harming the other. It’s problem-solving and value-creating. In reality most negotiations start with a position, each side claiming their stake in the deal. After the position has been established, the underlying interest can be explored by asking the questions “Why?”
Principled negotiation is based on four propositions:
People: Separate the people from the problem. You are attacking the problem not each other.
Interests: Focus on interests, not position. What do you really want?
Options: Invent multiple options looking for mutual gains before deciding what to do.
Criteria: Insist that the results be based on some objective standard such as market value, expert opinion, or law.
All four propositions are relevant from the time you start to think about negotiation to the point of reaching the agreement. This period is divided in three stages:
- Analysis: gather information, organise it, think about it. Consider your interest and interest of the other side. Consider perceptions and emotions of the other side.
- Planning: Generate ideas and think about your top interests. What is realistic?
- Discussion: Each side should come to understand the interest of other, generate ideas and seek agreement based on objective standards.
Image: Jimmy Teoh.
Fisher R, Ury W, Getting To Yes: Negotiating An Agreement Without Giving In, 2011. Penguin Publishing Group.