We negotiate in almost every aspect of our lives, but how do we do it well? Most people negotiate with positional bargaining, but this tends to be slow, and produce lose-lose outcomes. This video walks you through 5 aspects of principled negotiation.
#1 Win-win options
One big reason why negotiations get stuck is that most people form positions without considering all their interests, and all the ways to achieve these interests. To resolve this, we need to focus on interests, not positions. Even if interests are conflicting, differences across values and expectations might present win-win options. Focus on generating multiple win-win options, rather than pushing a single solution. You can come up with different ways to meet different interests, or vary the strength and scope of your options.
#2 Objective decision making
All parties next agree on an objective set of facts and criteria upon which a decision is made. Facts are a better basis for negotiation than emotions and perceptions. Objective criteria might be based on fair standards or procedures. This tends to produce decisions efficiently and amicably. Of course, in the real world there are people, power and information dynamics. These will be tackled in the next 3 points.
#3 Negotiation jujitsu
This means to sidestep the energy from other party’s attacks and deflect it toward solving the problem. They may put their foot down on a position, or attack your ideas, or attack you. In each case, separate the people from the problem. Remember that communication is the basis of negotiation, so listen actively and speak to be understood. This will allow you to preserve the relationship, whilst redirecting the other party’s energy toward solving the problem.
#4 Plan B
In the book, B stands for “Best alternative to a negotiated agreement,” though you can think of it as your plan B if negotiations fall through. This is especially important when you are negotiating with someone with much greater bargaining power than you. This prevents you from being under, or overcommitted to negotiation, to get the best expected outcome. Clarity of your plan B also helps you to improve your plan B, and thereby your bargaining power.
#5 Partial disclosure
Good faith negotiation does not require you to reveal your entire hand to the other party. This applies fairly to both sides of the table.
There are 3 dimensions of information you can withhold: facts, interests and authority. When negotiating, keep your authority over the decision ambiguous, and match the other party’s authority where possible.
If you have more authority to make concessions than the person sitting across the table, then you will make much more concessions. If the other party claims the need to check with 'higher authority' after an agreement has been reached, insist on reciprocity, or you will be likely required to yield more concessions when they return.