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A good agreement is wise and efficient and improves the relationship of both parties.
The agreement should satisfy the parties' interests and should be fair and lasting.
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Positional bargaining. Negotiations often take the form of positional bargaining, where each party opens with their position on the issue. Then parties bargain from their opening positions to agree on one of the positions.
It is inefficient and often neglects the parties’ interests. It tends to harm the parties' relationship.
Principled negotiation provides a better way to reach good agreements. The process of principled negotiation consists of four principles:
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People tend to become attached to the position they take on an issue. They will see any response to those issues as a personal attack. Separating people from the issue allows parties to address the issue without harming their relationship.
There are three basic types of people problems:
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You decide upon a position, but your interests caused you to decide.
Defining a problem based on your position will mean one party will "lose". But when a problem is defined on the parties underlying interests, it is often possible to find a solution that satisfies both parties.
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There are four obstacles to creating options:
Techniques to overcome these obstacles.
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When interests are directly opposed, the parties should use objective criteria to find a solution.
Develop objective criteria that are legitimate and practical. Objectivity can be tested by asking both sides if they would agree to be bound by those standards.
How to negotiate with objective criteria:
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The weaker party can be protected against a poor agreement by developing a BATNA - the Best Alternative to a Negotiated Agreement.
The reason you negotiate is to produce something better than what you can obtain without negotiating. Without a BATNA, you will negotiate blindly. The party with the best BATNA is the more powerful party in the negotiation.
Develop your BATNA:
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The other party may refuse to budge from their position, make personal attacks, and seek only to maximize their own gains.
How to deal with opponents stuck in positional bargaining:
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Sometimes parties will use tricks to gain an advantage.
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IDEAS CURATED BY
CURATOR'S NOTE
A seminal book on negotiating strategy and tactics. It has step-by-step instructions for reaching agreements that benefit both parties.
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