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Principled negotiation

Principled Negotiation is about collaboration, not competition. Discover how it works and how it can benefit your organisation

What is principled negotiation?

Principled negotiation is an approach developed by authors of the best-selling book Getting to Yes, in 1981. Principled negotiation is interest-based and is also known as win-win negotiation. The aim of principled negotiation is to maintain a business relationship after the negotiation and deal is done. It’s all about collaboration, not competition and personal gain.

 

How to apply principled negotiation

Principled negotiation can be used in almost any circumstances and it’s simple to get your head around: both parties work together to agree on mutual interests.

There are four components to principled negotiation:

  • People:
    The first step of principled negotiation is to separate your emotions. When emotions are high communication fails and this will only lead to defensiveness and resist. Remain rational, dignified, and only deal with the facts. All parties must work together, mutually, to avoid attacking one another.
  • Interests:
    Focus on your common interests and think about what you both really want. When negotiation takes place, each party tends to focus on their own interests, but focusing on shared interests, will lead to a stronger relationship and an outcome where both parties win.
  • Options:
    If you have numerous options, you won’t feel under pressure when negotiating. Set some time aside to produce options and solutions that serve both sides. You might also want to brainstorm together to generate options as this will only form good relationships and rapport.
  • Criteria:
    Objective criteria helps to avoid parties imposing their views on what is fair. Objective criteria can be studies, industry statistics, legal standards, expert opinions, or data that can be brought into the negotiation process. If both parties accept the objective criteria, it can help both parties agree on the terms.
 

The stages of principled negotiation

Principled negotiation can be broken down into three stages. All three stages cover the four elements mentioned above.

  • Analysis:
    Before starting the negotiation process, assess the situation. Analyse personality, feelings, communication styles and problems that may arise. Make a note of all the options and standards available so you go in fully prepared.
  • Planning:
    Once your analysis is done, go through the four elements again. Produce solutions to solve problems and make a note of your top priorities. Planning is a fundamental part of the negotiation process; it helps to avoid miscommunication and ensure you stay on the right path.
  • Discussion:
    Principled negotiation is about reaching a mutual agreement, that benefits both parties. Take part in an ample discussion so you can look towards an agreement. Talk to each other about frustrations, worries and concerns. Come up with some mutually beneficial options and make sure you both agree on the objective criteria that is laid out.

7 rules of negotiation

For organisations to grow, negotiation skills need to be possessed by management and key employees. Take a look at our seven rules of negotiation. Explore the Seven Rules of Negotiation.

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