Negociation principles

Negociation principles

1. The problem

   • 2. Discussion of positions produces foolish agreements
     • People tend to lock themselves into their positions and their ego becomes identified so the more people try to convince the other side of the impossibility of changing your opening position, the more difficult it becomes to do so
   • 3. The discussion about positions is inefficient
     • In positional bargaining you try to improve the chance that any settlement reached is favorable to you by starting with an extreme position, by stubbornly holding to it, by deceiving the other party as to your true views, and by making small concessions only as necessary to keep the negotiation going, in that way it takes more time to get to an agreement
   • 1. Don't trade based on positions
     • The negotiation should produce a wise agreement if the agreement is possible, it should be efficient, and last it should improve or at least not damage the relationship between the parties
   • 4. Discussing positions endangers a relationship.
     • Each negotiator asserts what he will and won't do. The task of jointly devising an acceptable solution tends to become a battle.
   • 5. Being nice is not the solution
     • The soft negotiating game emphasizes the importance of building and maintaining a relationship. Within families and among friends much negotiation takes place in this way. The process tends to be efficient, but the results can be tragic any negotiation primarily concerned with the relationship runs the risk of producing a sloppy agreement.

2. The metohod

   • 1. Separate PEOPLE from the problem
     • You are dealing not with abstract representatives of the "other side," but with human beings. They have emotions, deeply held values, and different backgrounds and viewpoints; and they are unpredictable This human aspect of negotiation can be either helpful or disastrous because most people see the world from their own personal vantage, you need to analyze and discuss the other sides perception
   • 2. Focus on INTERESTS, not positions
     • This story is typical of many negotiations. Since the parties' problem appears to be a conflict of positions, and since their goal is to agree on a position, they naturally tend to think and talk about positions but the basic problem in a negotiation lies not in conflicting positions, but in the conflict between each side's needs, desires, concerns, and fears. You need to find out the interests of the other side so you can find the problems and perhaps the solutions
   • 3. Invent OPTIONS for mutual benefit
     • Inventing options does not come naturally. Not inventing is the normal state of affairs, even when you are outside a stressful negotiation and under the pressure of a forthcoming negotiation, your critical sense is likely to be sharper. Practical negotiation appears to call for practical thinking, not wild ideas
   • 4. Insist that the CRITERIA be objective
     • However well you understand the interests of the other side, however ingeniously you invent ways of reconciling interests, however highly you value an ongoing relationship, you will almost always face the harsh reality of interests that conflict. No talk of "win-win" strategies can conceal that fact. You want the rent to be lower. In short, the approach is to commit yourself to reaching a solution based on principle, not pressure. Concentrate on the merits of the problem, not the mettle of the parties. Be open to reason, but closed to threats.

3. Examples

   • If you are negotiating with a client the price of your product, you need to understand what they really need, perhaps the logistics cost is the problem and you could have the ability to help in that case.
   • If you are negotiating with a potential business partner and they demand a lower offer than you expected, you can analyze their position and perhaps project the benefits you can obtain with that offer in the future, it may be more profitable than what you expected.