When you start a negotiation you obviously have an objective, most likely a result that produces something you want or need. Your objective might be to purchase a product or get someone to perform a service. That objective is comprised of your interests. Being very clear about your interests before you begin a negotiation is essential. Your interests are like a target. Achieving your interests in a negotiation is like hitting a bull’s eye. Having clear interests gives you a bull’s eye to shoot for and increases the chances for a successful negotiation. There is a subtle but important difference between interests and positions in a negotiation.
For example, let’s say you want to purchase a 3 bedroom home in one of three towns because those towns are in one of the best school districts in the county. You visit a real estate agent and explain that you want to buy a 3 bedroom house, you specify the three towns, and you explain why. You state that one of the most important criteria for you is that the house be in one of the best school districts. Your real estate agent finds a great house in one of the towns at an amazing price, but it only has 2 bedrooms. That would not meet your interests since your stated need was for 3 bedrooms. Next, the agent finds a 3 bedroom house in the very best school district in the county, but it is not in one of the three towns you specified. You immediately say you will not consider the house since it is not in one of the towns you specified. But when the agent tells you that the house is in the very best school district in the county you realize that you should consider it. You suddenly recognize that your interests were not to find a 3 bedroom house in one of those three towns in that county. Your interests were to find a 3 bedroom house in one of the best school districts in the county. When you specified those three towns you were stating a position. When you stated the need for the house to be in one of the best school districts you were stating an interest. The difference between position and interests can often get in the way if not identified. Having clear interests also helps pinpoint your bull’s eye and increases your chances of a successful negotiation.
Position versus interests
Once upon a time there were two chefs working at a gourmet bakery, John and Paul. Each chef had a last minute request from a customer to make a special dessert. Both of their recipes called for the contents of an orange. Unfortunately, there was only one orange available. The two chefs argued and argued over who should get to use the orange to make their special dessert. They each took the position that they needed that orange. After a long argument, neither one would give in. They finally decided to cut the orange in half as a compromise. They both took their half of the orange and baked their desserts, but because they had cut the orange in half, neither one had enough of that critical ingredient. As a result, both recipes turned out poorly and all of their customers were disappointed.
Each blamed the other for the poor results. John said “With only half of the pulp of the orange, my recipe had too little moisture”. Paul said “With only half of the zest from the rind of the orange, my recipe had too little flavor”. At that point they suddenly realized that neither one of them needed the entire orange. Both of their recipes could have turned out well if they had focused on what they actually needed from the orange instead of demanding to have the entire orange. John only needed the pulp of the orange while Paul only needed the rind.
When they both took the rigid position that they needed the entire orange they prevented what would have been an easy and mutually desirable agreement. If they had instead identified their interests during the negotiation, both the chefs and their customers would have benefitted from better results. The outcome could have been Win-Win instead of a Lose-Lose. The moral of the story is that you should always focus on interests and avoid taking rigid positions. In fact, a Win-Win solution is difficult to achieve without prioritizing interests over position.
When preparing for a negotiation it is important to frame your objectives and your interests within those objectives. If the chefs in the above example had done this they would have listed their objective as ‘prepare special recipe’ and their interests as ‘with the specific ingredients needed’. Instead of assuming they needed an entire orange they could have specified the parts of the orange they needed. Framing both objective and interest could have resulted in a better outcome.
Summary
Interests tend to be the most important critical factor because they can form the basis for an accord. When both parties clearly identify their interests and negotiate toward them without taking an adversarial stance it increases the likelihood for a positive outcome. Whenever positions supersede interests, a successful negotiation is jeopardized. During a negotiation, if you sense that positions are becoming an obstacle, try to steer the conversation back to interests. Keeping the focus there is the best course to an agreement that is mutually beneficial.
Continue Reading: Negotiation Critical Factor 2: Knowledge