Negotiation is two-way communication - which involves listening and being prepared to come out of the negotiations with something other than you thought when you entered. That "something other" can be more than you envisioned. A win/win because you have been tuned into creative problem-solving.
Does that mean you need to show all your cards? No. Good faith negotiation does not require full disclosure.
Does that mean you need to show all your cards? No. Good faith negotiation does not require full disclosure.
"A principled negotiator is open to reasoned persuasion on the merits; a positional bargainer is not. It is the combination of openness to reason with insistence on a solution based on objective criteria that makes principled negotiation so effective at getting the other side to play."
In most cases, "the other side" is not just one person. There are usually multiple parties on either side. Which means that thorough preparation is even more critical, because the various interests might be conflicting.
Fischer & Ury describe 4 major obstacles that prevent us from generating options - and if we don't explore all possible options before the negotiation, we are not likely to be able to do it during stress-provoking discussions.
- premature judgement
- searching for the single answer
- the assumption of a fixed pie
- thinking that 'solving their problem is their problem'.
To overcome these obstacles: (1) separate the art of inventing options from the act of judging them; (2) broaden the options on the table rather than look for a single answer; (3) search for mutual gains; and (4) invent ways of making their decisions easy.
Steps 1 and 2 are clear - not simple but clear. Mutual gains? Needs some explanation. But inventing ways to make their decisions easy - Huh?
Look for mutual gain by:
- identifying shared interests: make them explicit, concrete and future oriented (goals); and
- dovetailing differing interests: or the "Jack Sprat" principle! - differences in interests and belief make it possible for an item to be of high benefit to you, yet low cost to the other side.
Make their decision easy by:
- confronting them with a choice that is as painless as possible: put yourself in their shoes;
- framing it as the right thing to do: shape solutions as fair, legal, honorable;
- searching for precedent: recognize their desire to be consistent;
- considering the consequences of the decision from their point of view: make your offers credible.
Establishing objective criteria is a powerful way to do this. It shifts the discussion to how to decide, rather than the other side's rigid positions.
"The more you bring standards of fairness, efficiency or scientific merit to bear on your particular problem, the more likely you are to produce a final package that is wise and fair... A constant battle for dominance threatens a relationship; principled negotiation protects it. It is far easier to deal with people when both of you are discussing objective standards for settling a problem instead of trying to force each other to back down."
Examples of fair standards: market value, precedent, scientific judgment, professional standards, efficiency, costs, legal standards, moral standards, equal treatment, tradition, reciprocity.
Examples of fair procedures: dividing a piece of cake, one cuts the other chooses; taking turns, drawing lots, agreeing on 3rd party opinion, evidence, and so on.
What if they won't play?
Fischer & Ury address this question as well. After all, it would be incredibly naive to expect any negotiation to be easy. But we shouldn't make the not-so-tough ones tougher than they are by sticking to a bottom line. Instead of adopting an often arbitrary standpoint that is limiting, you should develop a BATNA = best alternative to a negotiated agreement. This requires preparation - if you enter negotiations without a BATNA you really do risk becoming a chump.
"The reason you negotiate is to produce something better than the results you can obtain without negotiating... your BATNA, that is the only standard that can protect you ... "
Fischer & Ury offer some very interesting insights on strength. You may think you don't have any. Think again! Use your strengths to their best advantage. Be a fair - and strong - negotiator by developing a BATNA, generating options (yours and theirs), insisting on objective criteria, learning the art of "negotiation jujitsu" or using the "one text procedure".
"People think of negotiating power as being determined by resources like wealth, political connections, physical strength, friends and military might. In fact, the relative negotiating power of two parties depends primarily upon how attractive to each is the option of not reaching agreement."
Read the book - please! Then apply the principles ...
