Principled Negotiation vs. Positional Bargaining
In the realm of sales and business, mastering negotiation is paramount. Two fundamental approaches to negotiation are Positional Bargaining and Principled Negotiation. Understanding their differences is key to achieving mutually beneficial outcomes and building stronger relationships.
Positional Bargaining: The "My Way or the Highway" Approach
Positional bargaining, often called distributive bargaining, is a common, though often less effective, negotiation tactic. In this approach, each party takes a firm stance, or 'position,' on an issue and then argues for that position. The negotiation becomes a contest of wills, where concessions are often seen as weaknesses. The primary goal is to 'win' by getting the other party to concede to your initial position.
Positional bargaining is adversarial and focuses on winning concessions.
This method involves setting an extreme opening offer and making incremental concessions, aiming to secure the best possible outcome for oneself, often at the expense of the other party's interests. It can lead to strained relationships and suboptimal agreements.
Key characteristics of positional bargaining include:
- Extreme Opening Offers: Starting with an offer far from what is realistically achievable.
- Incremental Concessions: Making small, reluctant concessions to appear reasonable.
- Focus on Positions, Not Interests: Arguing about 'what' each party wants, rather than 'why' they want it.
- Adversarial Mindset: Viewing the negotiation as a zero-sum game where one party's gain is another's loss.
- Potential for Stalemate: If neither party is willing to budge significantly, negotiations can break down.
Principled Negotiation: The "Win-Win" Framework
Developed by Roger Fisher and William Ury in their seminal book "Getting to Yes," Principled Negotiation (also known as Interest-Based Negotiation) offers a more collaborative and effective approach. It focuses on separating the people from the problem, concentrating on interests rather than positions, generating a variety of possibilities before deciding, and insisting that the result will be based on some objective standard.
Principled negotiation focuses on underlying interests to create mutually beneficial solutions.
This method encourages open communication, understanding the 'why' behind each party's demands, and exploring creative solutions that satisfy the core needs of everyone involved. It aims for durable agreements and preserves relationships.
The four core principles of Principled Negotiation are:
- Separate the People from the Problem: Address the issues without attacking the individuals. Recognize that emotions and perceptions can complicate matters, and try to manage them constructively.
- Focus on Interests, Not Positions: Instead of arguing about stated demands (positions), explore the underlying needs, desires, fears, and concerns (interests) that drive those positions.
- Invent Options for Mutual Gain: Brainstorm a wide range of possible solutions that could satisfy the interests of both parties. This involves creative problem-solving and looking beyond the obvious.
- Insist on Using Objective Criteria: Base the agreement on fair standards and principles that are independent of the will of either party. This could include market value, expert opinion, precedent, or legal standards.
| Feature | Positional Bargaining | Principled Negotiation |
|---|---|---|
| Goal | Win concessions, maximize personal gain | Achieve mutually beneficial, durable agreement |
| Approach | Adversarial, contest of wills | Collaborative, problem-solving |
| Focus | Stated positions | Underlying interests |
| Relationship Impact | Can damage relationships | Strengthens relationships |
| Outcome | Often suboptimal, win-lose | Optimal, win-win |
| Decision Basis | Party's will, pressure | Objective criteria, fairness |
Think of positional bargaining like a tug-of-war, where each side pulls harder to win. Principled negotiation is more like building a bridge together, where both sides work to find a strong foundation that supports everyone.
Positional bargaining focuses on stated positions, while principled negotiation focuses on underlying interests.
Applying Principled Negotiation in Sales
In sales, adopting a principled negotiation approach can transform customer interactions. Instead of pushing a product based on its features (a position), a salesperson can explore the client's business challenges and needs (interests). By understanding these interests, the salesperson can then propose solutions that genuinely add value, leading to stronger client relationships, repeat business, and a reputation for integrity.
Separate the people from the problem, Focus on interests not positions, Invent options for mutual gain, or Insist on using objective criteria.
Learning Resources
The foundational book that introduced the principles of principled negotiation, offering practical strategies for achieving mutually beneficial agreements.
The official website of the Harvard Program on Negotiation, offering a wealth of articles, research, and resources on negotiation theory and practice.
A practical guide from MindTools explaining the core concepts of principled negotiation and how to apply them in various situations.
A concise video explaining the key differences between positional bargaining and principled negotiation, with visual aids.
An article from the Harvard Program on Negotiation that delves into the critical distinction between interests and positions in negotiation.
While not exclusively about principled negotiation, this book offers insights into psychological tactics and strategies that complement a principled approach.
An article that breaks down the common tactics used in positional bargaining and their potential drawbacks.
This resource from Harvard's PON focuses on the practical application of principled negotiation strategies.
Understanding your BATNA (Best Alternative To a Negotiated Agreement) is crucial for principled negotiation, and this article explains its importance.
A video tutorial that provides a practical overview and training on how to implement principled negotiation techniques.