Estimated reading time: 4 minutes
We regularly negotiate. Maybe we don’t like to think of it as negotiation, but we do negotiate. The definition of negotiation is to “find a way over or through an obstacle”.
In our business lives, we negotiate salary and benefits. We might negotiate our schedule. There could be times when we negotiate training, like “I would like to attend this seminar, but I know it’s not in the budget right now, could I plan to attend next quarter?” We might negotiate vacation. For example, “I’d like to take a vacation in August, is there a time that works best for the team?”
We also negotiate in our personal lives. For example, what to watch like “I’ll watch Hacks with you if you watch Murderbot with me.” Maybe you negotiate dinner. “Let’s have tatchos at home tonight and we can go out for pizza on Friday.”
When we’re faced with a challenge, it could be helpful to think of it in terms of a negotiation. There are two types of negotiations: positional and principled.
A positional negotiation, sometimes referred to as an adversarial negotiation, is when a gain by one side usually means a loss for the other. Typically, there’s not any common ground or discussions of a win-win. A positional negotiation is focused on winning. An example of a positional negotiation is when you’re negotiating a price. As one person is trying to get a higher price for their product or service, the other person is paying more.
A principled or integrative negotiation is focused on the interests and goals of each side. The discussions are trying to create wins for each side, so the parties work together to find common ground. A typical example of a principled negotiation happens during labor contract discussions. Two items that are always discussed are the length of the contract and the pay increases that will occur during the contract. The union might want a shorter contract with higher increases, so they can negotiate more often for their members. The company might want a longer contract with smaller increases, so they negotiate less. With principled negotiation the sides work together to find a solution everyone can live with.
Organizations and individuals should be aware of when negotiating opportunities present themselves and think about how they want to enter the negotiation. There could be times when taking a position is the right approach and others when a principled approach would yield better results.
Entering a negotiation with the wrong strategy can create two outcomes that will not work for anyone. First, it’s possible that starting a negotiation off wrong could lead to no result at all. An example might be a consultant who takes a positional approach on an opportunity with a client that’s looking for a principled negotiation. The result? The consultant walks away from the deal. Second, if the parties don’t do their homework prior to starting discussions, they could both walk away feeling that they lost. An example could be when the company and union work out a deal, only to have union members vote it down in favor of a labor strike.
So, the next time you’re faced with a negotiation, consider whether a win-win is possible and what trade-offs might be made. If you’re in doubt about what the other side wants, do some research. Don’t assume that the other side has the same needs and wants as you. Come prepared with your list of trade-offs that you can discuss. It is possible to negotiate and win. But it takes planning and preparation.
Image captured by Sharlyn Lauby while exploring the Wynwood Art District in Miami, FL
