Negotiation: Positional bargaining versus principled negotiation
Methods of negotiation should: (1) produce wise agreement, (2) be efficient, (3) improve, or not damage relationship
 Positional bargaining: sides take position, make concessions, compromise; good b/c tells other side demands, provide anchor in
uncertainty, may produce acceptable terms; but positional bargaining fails to reach wise agreement, efficiently, amicably
 Positional bargaining: person lock into positions; ego becomes identified w/ positions; issue of saving face, have to move from
positions; more attention paid to positions rather than legitimate underlying interests
o PB inefficient: creates incentive to stall settlement, make small concessions, deceive other side as to underlying
interests; large number of individual decisions; dragging one’s feet; threatening, stonewalling
o PB contest of wills: tries thru power of will to force other side to change position; anger, resentment; leads to coalitions
in large group negotiations (no answer to be nice, give in) – stick to principled negotiation, negotiation on merits
PRINCIPLED NEGOTIATION IS NEGOTIATION ON MERITS: (1) separate people from problem; (2) focus on interests, not
positions; (3) generate variety of possibilities before deciding action; (4) insist that results based on objective criteria
 Separate people from problem: realize human factor/ people problem in negotiations; people shaped by cultural
programming, different values, beliefs, emotions, egos, different backgrounds, unpredictable, difficulty w/ communication shape
conflicts; become entangled w/ objective merit of problem; recognize this, deal w/ it: separate people from problem
o Note: (1) misunderstandings reinforce prejudices; (2) relationship w/ other side one underlying interest (i.e. customer,
business; can aid resolution)
o Relationship entangled w/ problem; personal attacks, ego (PB puts relationship, substance in conflict; fight over will;
trades one for other, either relationship for substance, substance for relationship)
o Principled negotiation base relationship on accurate perceptions; clear communication; appropriate emotions; purposive
outlook; confront people problem directly: talk about perceptions, educate, seek to learn, ask questions, let off steam
o Perception is key: realize that their thinking is the problem; conflict is b/w your thinking, theirs; solution
ultimately lies not in objective reality, but in people’s head; their fears, even if unfounded are real
 Must put yourself in their shoes: essential to understand situation; w/hold your judgment, try to empathize;
feel power of opposing point of view, emotional force behind it; understand why they think the way they do
(reduces conflict, creates respect, mutual understanding, looking for joint solution, less blame, suspicion)
 Discuss perceptions: act inconsistently w/ their perceptions; involve them meaningfully in process
 Make your proposals consistent w/ their values, allow them to save face (not feel embarrassed)
o Emotion: feelings more acute than talk, feelings of threat, hurt, fear, anger
 Recognize, understand emotions (theirs, yours); listen, allow other side to let of steam, vent; acknowledge
emotions, make them legitimate; don’t react to emotional outbursts; use symbolic gestures (apologize)
o Communication: essential, w/o communication no negotiation; negotiation process of communication back, forth for
purpose of reaching joint agreement
 Basic problems: (1) negotiators may not be talking to each other (to media, constituents); (2) negotiators speak,
but do not listen; hear selectively; think about response rather than listen; (3) misunderstanding
 Solution: listen actively, acknowledge what is said; ask other side to repeat what they mean, clear ambiguity,
uncertainty; summarize positively; limit size of group; speak about yourself not about them, speak for purpose;
before making significant statement, know what you want to communicate, know purpose, be prepared
 Preventative measures: build relationship; develop attitude as partners working for solution, not adversaries
(speak before meetings, sit side by side, compliment)
 Focus on interests, not positions: realize object of negotiation is to settle underlying interest; PB obscure real focus, rarely
satisfies underlying interests; compromise unlikely to solve needs; REALIZE INTERESTS DEFINE PROBLEM
o Interests define problem: conflict not b/w positions; b/w needs, desires, concerns, fears
o Interests motive people: position is what party decides on, interest is what caused them to decide
o Behind opposing positions lie shared, compatible interests, conflicting interests (to identify interest ask why)
o Each side has multiple interest (note: one side itself may have conflicting interests); must basic interests are human needs
(security, economic well-being, sense of belonging, recognition, control over life); (make list of interests)
o Purpose of negotiation is to serve interests; talk about them; be specific; explain why it is important; acknowledge other
side’s interest (gain sympathy) – problem is shared (give reasons first them conclusions); be concrete but flexible
o Illustrative specificity: be specific, but treat options as illustrative of something you would agree to; this ensures
flexibility; that you are open; be hard on problem, soft on people: just as hard, aggressive on interests, as positions
o Reshape problem into jointly satisfying both sides interests; be firm, but open
 Invent options for mutual gain: brainstorm, invent creative ideas to solve problems; set designated time to think up range of
possible solutions that advance shared interests, creatively reconcile different interests
o Essential skill: invent options; people miss this, tend to (1) make premature judgments; (2) search for single answer; (3)
assume fixed pie (limited amount so win/ loose); (4) think that solving their problem is their problem
o People see job as narrowing gap b/w positions, not broadening options; seek to satisfy own interest; disloyal to concede
o PN realize that solution must satisfy both sides
o Solution: separate inventing from deciding: judgment hinders imagination, brainstorm, suspend criticism
 Arrange brainstorm, inventing session: designed to produce as many ideas as possible; postpone criticism,
evaluation; invent ideas w/o pausing to consider judgment or decision

Before brainstorm: (1) define purpose; (2) choose few participants; (3) change environment; (4) design
informal atmosphere; (5) choose facilitator
 During brainstorm: sit side by side, establish no criticism rule; introduce participants, clarify rules; come up
w/ as much ideas as possible; free, creative; record ideas in full view (on blackboard, newsprints; gives
tangible sense of achievement, reduces tendency to repeat; stimulate other ideas; reinforce none criticism rule)
 After brainstorm: star promising ideas; relax no criticism rule; invent improvements on better ideas; decide
 Brainstorm w/ other side: may devolve confidential information; make lead other side to misinterpret it for
offer; to counter explicitly distinguish brainstorming session, make multiple suggestions
o Circle chart: task of inventing involves four kinds of thinking: (1) thinking about particular problem – factual situation;
(2) descriptive analysis – diagnose in general terms; (3) thinking about what ought to be done; (4) come up w/ specific,
feasible suggestion for action
o Look for mutual gain; identify shared interests; dovetail from differing interest (differing interest may lead to solution)
o Make their decision easy: shape problem in terms of legitimacy, people’s general notions of fairness; follow precedent;
draft proposal they can respond to w/ simple yes
 Objective standard: ensure agreement reflects fair standard, independent of will of either side (market value, expert opinion,
custom, law); by using objective standard neither party gives in to other side; confers legitimacy on process, more likely to agree
o Concentrate on merits of problem: when using objective standards, fair, legitimate; PN tend to use time efficiently
o Use fair procedures (taking turns, drawing lots, letting someone else decide, submit question to expert)
o Frame issue as joint search for objective criteria; reason, be open to reason; never yield to pressure, only to principle
o Agree in principles, ask what is theory informing decision; come to table w/ open mind
o Note: one standard of legitimacy does not preclude other; splitting deference perfectly legitimate
o PN open to reasoned persuasion on merits; invite other side to state reason, theory, to justify; insist on objective standard
 What is other side is more power: principled negotiation (1) protects from making unwise agreement; (2) helps maximize assets
o Bottom line: position not to be changed; inhibits imagination
o Know your BATNA (best alternative to negotiated agreement): standard against which proposed agreement
measured; what you will do if you fail to reach agreement; better your BATNA greater your power: bargaining force
o Formulate trip wire: point in negotiation before reaching BATNA that indicates coming close
o Develop your BATNA: vigorously explore alternatives; invent list of alternatives to agreement; improve promising
ideas; select tentatively best alternative
 Better your BATNA, better your chance of reaching favorable agreement (consider other side’s BATNA)
 What if other side won’t play: Negotiation Jujitsu
o Three approached to getting them to focus on merits: (1) you can focus on merits; contagious; (2) use negotiation
jujitsu; (3) use trained mediator (one text mediation)
o Negotiation jujitsu: refuse to react (do not defend yourself, do not push back); side-set attacks, deflect against problem;
avoid pitting your strength against their; channel their force into exploring interests
 Their attack will consist of (1) asserting positions forcefully; (2) attacking your ideas; (3) attacking you
 If their assert position, neither accept nor reject, treat as one possible action; ask them to justify; look for
interest behind it; think about ways to improve it; seek out their principle, discuss it
 If they attack your ideas, don’t defend; invite criticism, advice
 Recast attack on you as attack on problem
 Two key tools in negotiation jujitsu: (1) questions (less threatening than statements; (2) pause, use silence
o One-text procedure: (usually thru mediator); listen to both sides; prepare draft to which no one is committed; ask for
criticisms; improve on draft until agreement reached
 Essence of principled negotiator lies in remaining open to persuasion by objective facts, principles
 If they use dirty tricks: illegal, unethical, unpleasant negotiating tactics; tricky bargaining (people either put up w/ it or appease;
or respond in kind; or you can engage in principled negotiation about negotiating process
o Strategy: recognize tactic; raise issue explicitly; question tactics legitimacy, desirability (most times simply raising issue
neutralizes it); but by raising issue you are able to negotiate rules of game (use same method for principle negotiation)
o Insist on reciprocity (if I sit here today you sit here tomorrow; if you go back to principals, I reserve right to adjust)
o Key tricks: deliberate deception (phony facts, ambiguous authority, dubious intentions); psychological warfare (stressful
situations, personal attacks, good guy/ bad guy treats); positional pressure tactics (refusal to negotiate, extreme demands,
escalating demands, lock in tactics, hardheaded partner, calculated delay, take it or leave it)
Principled negotiation applicable through all stages of negotiation: analysis, planning, and discussion stages
 PN see participants as problem solvers; goal wise outcome reached efficiently, amicably; PN soft on people, hard on problem;
proceed independent of trust; explore interests; avoid having bottom line; develop multiple options to choose from, decide later;
reach standards based on objective criteria independent of will, are led by reason, open-minded, and yield to principle
 PN produce substantive outcomes, that are legitimate, supportable (promotes approach to deal w/ people, conflicts), less costly to
human relationships
 Negotiation power is ability to persuade someone to do something; there are many sources of negotiation power: (1) develop good
working relationship b/w negotiating people; (2) understand interest; (3) invent elegant options; (4) using external standard of
legitimacy; (5) developing good BATNA; (6) making carefully crafted commitment (make most of potential power)
 Principles help to win important game: to achieve better process for dealing w/ differences