Tuesday, August 31, 2010

Blog #1 Reflecting on Chapters 1-3

Negotiations have traditionally consisted of positional bargaining. Each side takes a position and defends that position against attack. Under that model participants had to chose between substance and the relationship. If the participant valued substance they would take a hard bargaining position could damage the relationship. If the participant valued the relationship they would take a soft approach. Soft bargaining is dominated by hard bargaining. In this model, typically one party loses and one party wins and this method is inefficient because of the time and potential for either no agreement or damage to the relationship.

In principled negotiations, the participants are hard on the problems and soft on the people. It allows agreements that can be mutually beneficial and do not damage the relationship. The basics boil down to four points: (1) separate the people from the problem, (2) Focus on interests and not positions, (3) generate a variety of possibilities before deciding on what to do, (4) Insist that the results are based on objective criterion.

Separating the people from the problem allows individuals to not become personally attached to defending a position. Seek alliances with the other party to identify ways in which the problem can be solved. Pressing a substantive issue, then the problem is a personal one will lead to frustration and will ultimately damage the relationship. By working on personal problem first, it allows the substance of an deal to be objectively worked on by both parties to seek a mutual resolution.

Interests are the underlying rationale for a position. You cannot know what to offer if you do not know what the other side really wants. By identifying interest, you might find that you have shared interest or your interests do not conflict. Shared interest increase the possibility of forming an agreement.

Finding out what is important and identifying options is tool that allows a party to identify what is really important to the other side. It also can spark creativity in drafting a solution that will benefit both sides.

By seeking objective criterion on the interest that compete, you can eliminate either party feeling like they were soft or gave in. Objective criterion might include: blue book values, appraised values, or expert opinions.

By following these steps: both parties can leave with the agreement that best serves their needs, the process is efficient, and the relationship is stronger or at least not damaged.

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