Principled Negotation - So old, so relevant

 

The skill set of a Project Manager must include the ability to negotiate. Negotiations are the means by which parties can resolve conflicts and thereby arrive at a mutual satisfactory solution. The problem is that often project stakeholders engage in positional bargaining, a negotiation strategy that involves holding onto a fixed idea or position regardless of any underlying interests. In fact, arguing over positions turns out to be inefficient, relationship endangering and might lead to unwise agreements.

An alternative to this is called Principled negotiation. This name was given to the interest-based approach to negotiation set out in the best-known conflict resolution book, Getting to Yes, first published in 1981 by Roger Fisher and William Ury and advocates four fundamental principles of negotiation.

1. Separate the people from the problem

Every negotiator has interest in both the substance and the relationship. Often the relationship becomes entangled with the problem. Thus, it is imperative to separate the relationship from the substance in order to kick off an effective negotiation.

2. Focus on interests, not positions

Quite self-explaining. The identification and discussion of interests is a wise manner to route the negotiation towards a conciliation of interests and not positions.

3. Invent options for mutual gain

Instead of forming a premature judgement of the ideas thrown during a negotiation it is best to ensure an understanding between inventing and deciding. Also, instead of searching for a single answer try to broaden the options (a circle chart can be useful for this purpose). And instead of thinking that “solving their problem is their problem” create an environment that enables making decisions relaxed.  

4. Insist on using objective criteria

In negotiating to purchase a particular car, we would want to look at what that car sells for at other dealerships. The objective criteria are nothing less and nothing more than factual pieces of information, independent of the parties in the negotiation, that are relevant to what should or should not be agreed to in that negotiation. Principled negotiation produces wise agreements amicably and efficiently.

Principled Negotiation is further enhanced by applying the eight following pillars of negotiable wisdom:

1. Be conscious of the difference between positons and interest.
2. Be creative. Using brainstorming techniques, listening to outlandish proposals and opening up to unanticipated possibilities expands agreements opportunities.
3. Be fair. If people feel a process is fair, they are more likely to make real commitments and are less likely to walk away.
4. Be prepared to commit.
5. Be an active listener. Focus on what others say, both their words and their underlying meaning.
6. Be conscious of the importance of the relationship.
7. Be aware of BATNAs (Best Alternative To a Negotiated Agreement).
8. Be prepared. Study the interests and BATNAs of every possible party.