The Negotiation Process


Part 1
The Win/Win Approach:


There are two types of negotiation process that differ fundamentally in their approach and in the relative prospects for the stability of the agreement that is reached. The first is called the integrative or win/win approach. In these negotiations the prospects for both sides gains are encouraging. Both sides attempt to reconcile their positions so that the end result is an agreement under which both will benefit - therefore the resultant agreement tends to be stable.

Win/win negotiations are characterized by open and empathetic communications and are commonly referred to as partnership agreements.

Part 2
The Win/Lose or Distributive Approach:


The second is called the distributive or win/lose approach. In these negotiations each of the parties seeks maximum gains and therefore usually seeks to impose maximum losses on the other side. This approach often produces agreements which are inherently unstable, as represented by the triangle balance on its apex.

Part 3
The Mixed Approach:


In real life negotiations both of these processes tend to be at work together. Therefore, rather than two negotiators adopting one or other of the approaches, negotiations tend to involve a tension between the two. It should be apparent that where a long term contractual relationship is involved that it is important to adopt a more integrative (win/win) approach to negotiations. The failure to work together with the other side in order to reach a mutually acceptable outcome is a common reason for the breakdown in many otherwise successful contractual relationships.

Part 4
Stability of the Outcome:


Remember, the spirit of the deal can be as important as the terms of the contract and when seeking to expedite negotiations that will deliver a deal that suits the needs of both sides, you should:
  1. Focus initially on each sides primary objective; ancillary negotiating points can become a distraction in the early stages.
  2. Be prepared to settle for what is fair; if an agreement is not seen to be equitable it is unlikely to be stable. Maintain flexibility in your own demands and interests, this makes it easier for the other side to be flexible as well.
  3. Listen to what the other side wants and make efforts to meet their requests. You may need to compromise on the main issues, so that both sides can begin to attain their goals.
  4. Seek to trade-off concessions; so that each side gets something in return for everything they give up.


File translated from TEX by TTHgold, version 3.70.
On 5 Dec 2007, 06:15.