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Negotiation

Negotiation is a fact of life.  It is a method we use for getting what we want – in business, government, community and family.  We all want to be involved in decisions that affect us rather than just accepting an outcome dictated by someone else.  In fact, we all negotiate something daily.  For example:

• an employment contract
• an increase in income or employment benefits
• the price you agree to sell your house for
• how much to pay for a product or service
• compensation for an injury or damage to property
• how much pocket money your children will earn
• where you’ll go for dinner or a holiday

and the list goes on...

Negotiating is a to-and-fro interaction with the objective of reaching agreement where the parties have some shared and some opposing interests.  People use negotiation as one way to manage differences and also to work through conflict situations.

Whether we realise it or not we are all negotiators – but it’s not easy for all of us to do it well.  ‘Soft’ negotiators tend to avoid personal conflict because they are looking for an amicable resolution and are more inclined to be yielding and make concessions so agreement can be reached. The down side is soft negotiators often feel resentful and taken advantage of at the end of the process.  ‘Hard’ negotiators, on the other hand, want to win at all cost and view the other party as an opponent to be beaten regardless of the consequences. Often power is used inappropriately or an entrenched position is held preventing resolution for either party, resulting in damage to the relationships involved and an unsatisfactory outcome. 

The ‘rules of engagement’ and alternative negotiating models used vary widely – including those that involve ‘dirty tactics.’  However, none of these models bring about both mutually beneficial outcomes and improved or strengthened relationships.  Unfortunately negotiation strategies which involve using manipulative, coercive and deceptive techniques or do not meet the needs of all parties at least to some degree, will bring about either a ‘lose-lose’, ‘win-lose’ or ‘lose-win’ outcome.  Such strategies result in:

• little regard for the consequences;
• damaged relationships;
• short-term solutions with little or no satisfaction for at least one, if not all, of the parties involved; and
• a high likelihood of problems arising again in the future. 

So what alternative is there?

Principled Negotiation

Simply put, the objective of principled negotiation is a ‘win-win’ collaborative outcome where all parties’ needs are fully met or alternatively (particularly when there is less time to negotiate or the issue is not important) a compromised outcome which achieves a ‘win-win’ outcome to some degree but it may not be possible to meet all parties’ needs fully.  In other words, principled negotiation assumes the negotiated outcome will satisfy – to some extent – the wants and needs of all parties involved in the negotiation.

There are many benefits to applying this model to everyday negotiations.  Whether experienced or not, anyone can use this model.  Principled negotiation focuses on looking for mutual gains wherever possible.  Whilst the process can take longer in the short-term due to the time and effort needed to explore the different interests and agendas of all parties and reach a decision that meets fully or partially their needs, the ‘win-win’ outcome is worth it in the long-term.  Benefits include:
• better working relationships;
• better quality, longer lasting solutions; and
• avoids the need to return to the negotiating table in the future with unresolved issues. 

At times it may not be possible to fully meet all needs on both sides to achieve complete satisfaction but with the extra effort and open communication involved in this process, both parties should be able to walk away from the negotiation with at least some of their interests being met.

There are four basic rules governing Principled Negotiation:

1. Separate the people from the problem – Most negotiations occur in situations where having an ongoing relationship is important and may affect positively or negatively, future negotiations.  Because we are all human with deeply held values, emotions with differing views and backgrounds, our responses during the negotiation process can be either beneficial or disastrous!  Our personalities and behaviour play a huge role in the outcome. Where parties treat each other with trust, respect and understanding, and are sensitive to the interests of the other side, a resolution can be reached more quickly.  Thinking as partners working together in search of a mutually advantageous solution or agreement is far more effective.  In many cases - business partners, family members, government officials, neighbours, long-term customers or suppliers, and even countries – feel the ongoing relationship far outweighs the negotiated outcome.  However, if there is too much focus on the personalities involved rather than the issue being negotiated, negotiation is likely to stall or fail.  If attention is focused on egos, self-interest and emotions (such as anger, hostility, frustration and taking offense easily), the parties will not work together on solving the real problem.  
   
2. Focus on interests, not positions – Interest-based bargaining focuses on satisfying interests (why you want it) rather than arguing over positions (what you want).  According to Abraham Maslow, in his book ‘Motivation and Personality,’ the most powerful interests relate to basic human needs such as security, recognition, social approval, ego, reputation, control over one’s life, economic and physical well-being and a sense of belonging.  When negotiating there will be both shared compatible interests as well as conflicting ones.  Interests may be:
   • Mutual – each party has the same interest that they want satisfied.
   • Complementary – each party has a different interest that can be met by the same solution.
   • Neutral – one party is not affected by granting the interest of the other party.
   • Competing/conflicting – satisfying the interest of one party will diminish the benefit for the other party.
   By viewing the other party as joint problem-solvers rather than opponents to be defeated, you are better able to identify the other party’s real interests that lie behind the positions they may be taking. You can then work together towards an agreement or resolution satisfying all parties’ respective needs.  As Henry Ford once said: “Do not find fault, find a remedy.”
   
3. Generate options for mutual gain before making a final decision – The aim of generating creative options that can be ‘put on the table’ without fear of judgment is to expand the alternatives from which to choose in the final decision-making process.  Brainstorming possible solutions means the parties can openly assess a greater range of options and decide which best meet their interests and needs.  This process focuses on inventing creative options and searching for mutual gains which are beneficial to all parties, rather than looking for a single answer.  Option generation enhances the quality of the final agreement because all parties have had the opportunity to be heard and satisfy their needs.
   
4. Ensure the result is based on objective criteria – The best way to avoid an outcome based on a battle of the strongest wills or personalities in a negotiation is to have an approach based on principle not pressure.  Focus on the merits of the problem not the determination of the parties. This involves developing suitable alternative standards and procedures as a basis for agreement before the negotiation.  This could include for example making a decision based on fair market value, professional or moral standards, a relevant precedent, tradition, scientific judgment, costs, what a court might decide, reciprocity, or analysing the advantages and disadvantages of all options being considered.

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