Principled Negotiation: Meaning, Characteristics, and Underlying Principles

Introduction:

This note will discuss the meaning of principled negotiation, its salient characteristics, and the five principles of principled negotiation.

Meaning and Characteristics of Principled Negotiation:

Principled negotiation, also known as interest-based negotiation or negotiation on the merits, is an approach to negotiation that is aimed at maximising the interests of the parties to a negotiation to the greatest extent possible.

At its core, it focuses on the interests of the parties and adopts methods and principles to assist the parties in maximising their interests in a mutually beneficial manner.

According to the Harvard Negotiation Project [1], principled negotiation:

involves drawing on principles and objective criteria to settle differences rather than making opinion-based arguments.

In the bestselling negotiation book ‘Getting to Yes,’ principled negotiation was developed by the Harvard Negotiation Project:

to decide issues on their merits rather than through a haggling process focused on what each side says it will and won’t do. It suggests that you look for mutual gains whenever possible, and that where your interests conflict, you should insist that the result be based on some fair standards independent of the will of either side. The method of principled negotiation is hard on the merits, soft on the people. It employs no tricks and no posturing. Principled negotiation shows you how to obtain what you are entitled to and still be decent. It enables you to be fair while protecting you against those who would take advantage of your fairness.

From the above characterisations, the following may be said as the key characteristics of principled negotiation:

1. It is neither a hard nor soft approach to negotiation. It is both hard and
2. It seeks to decide issues based on merits.
3. It focuses on mutual gain.
4. When there is a real conflict of interest, principled negotiation requires that the outcome of the negotiation be based on fair standards and principles, irrespective of the will of the parties.
5. It enjoins parties to be fair when negotiating.

Five Principles Underlying Principled Negotiation:

Principled negotiation, as expected, is negotiation underpinned by certain principles. These principles are:

1. Separation of the people from the problems: Here, the negotiators work to deal with emotions and personality issues separate from the dispute.
2. The focus is on interests and not positions: Here, the negotiators look beyond the positions they have each adopted and try to identify underlying interests. While the positions may often appear contradictory and incompatible, the interests that shape these positions may not be incompatible.
3. Inventing options for mutual gain: Here, the negotiators spend time brainstorming a wide range of options before settling on an option that maximises mutual gain.
4. Insisting on the use of objective criteria: Here, the negotiators, instead of going back and forth on whose facts are correct, use standards of fairness and efficiency to try and resolve the dispute.
5. Knowing the Best Alternative to a Negotiated Agreement (BATNA): Here, the negotiators must have a backup plan if the negotiation fails. The backup plan may be mediation or litigation.

These principles will be discussed extensively in subsequent notes.