Friday, March 28, 2008

Negotiating on Principle vs Position

We are constantly negotiating with our friends, spouses, colleagues, suppliers, customers etc. The old school - hard nosed way of negotiating where people take their position on issues and then wear the other side down is increasingly counterproductive. Negotiating based on principle is far more effective than Position based negotiation. i.e. if you really want to negotiate. If you are not interested in a fair or equitable result then of course negotiating on principle is useless.

Negotiating on principles is difficult because it makes you reflect on your motivations, ethics, morals, and facts-on-hand. Based on this you decide on a position in a negotiation. Laying out the principles before taking a position is essential, otherwise our egos make it difficult to make comprises. Taking a position in the beginning does not put the framework of compromise in place. But talking about principles allows the different sides in an argument to understand the motivations behind a request/claim.

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