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Input 11: The principled (or mutual gains) approach to negotiations -…
Input 11: The principled (or mutual gains) approach to negotiations
Intro
Goal
: Collaborative, interest-based problem solving for mutually beneficial outcomes.
Contrast:
Positional Bargaining
: Adversarial, zero-sum, inefficient, damages relationships --> win/lose
Principled Negotiation
: Focuses on interests, value creation, and relationship building --> win/win
Important Phrases
•
BATNA
– your best alternative to a negotiated agreement
•
Reservation value
– the lowest price you are willing to accept or the highest price that you are willing to pay
•
ZOPA
– the zone of possible agreement
•
Objective criteria
– independent standards that can be used to determine a fair outcome for both parties (switch to
procedural criteria
if have no progress)
•
Aspiration value
– your ideal outcome, an ambitious but justifiable goal (based on objective criteria that favor your party)
Four Principles of Principled Negotiation
PIOC - People, Interests, Options, Criteria
1. People: Separate People from the Problem
Address relationship/people issues (perceptions, emotions, communication) separately from the problem/
substantive issue
.
Strategies:
Understand their perspective.
Acknowledge emotions and express them constructively.
Listen actively and clarify misunderstandings.
2. Interests: Focus on Interests, Not Positions
Positions = stated demands;
Interests
= underlying motivations.
Example: 1 orange 2 purposes/Library window (fresh air vs. no draft).
Action: Explore “why” behind positions to find shared solutions.
3. Options: Invent Options for Mutual Gain
Brainstorm creatively (brainstorm first, evaluate later) to overcome obstacles (e.g., fixed-pie mindset).
Techniques:
Logrolling
: options that are of low cost to you and high value to the other party, and vice versa (used when having
integrative issues
)
Expand the pie
: Explore unconsidered solutions, instead of just dividing the pie, you work together to make the pie bigger
4. Criteria: Use Objective Standards
Resolve clashes with fair, external benchmarks (e.g., market values, precedents).
Approach:
Propose and justify standards.
Question the other party’s reasoning constructively.
switch to
procedural criteria
if have no progress
Preparation for Principled Negotiation
BATNA
: Know and improve your Best Alternative to a Negotiated Agreement.
Interests
: Clarify and anticipate shared, conflicting, and independent interests.
Options: Develop proposals and brainstorm collaboratively.
Criteria
: Identify objective measures for fair outcomes.
Relationships: Maintain or improve the relationship; communicate constructively.
Defining a Successful Negotiation
Agreement is:
Better than your BATNA.
Meets interests well (yours well, theirs acceptably, others’ tolerably).
The best of available options.
is legit, Supported by objective criteria.
Maintains or improves the relationship