Principled Negotiation

Negotiation is a crucial life skill that can be used in both professional and personal settings. It can be defined as a process where parties with different interests and goals work together to reach a mutually beneficial agreement.

While there are various approaches to negotiating, one strategy that has gained popularity is principled negotiation.

Scroll down to find out more about Principled Negotiation:

What is Principled Negotiation?

Principled negotiation, also known as interest-based negotiation, is a collaborative approach that focuses on conflict management. The goal of the principled negotiation approach is to preserve relationships and reach a mutual agreement that benefits both parties.

Developed by the Harvard Negotiation Project, this method emphasizes the importance of understanding the interests of all parties involved and seeks to achieve a "win-win" result.

By adopting a collaborative and problem-solving approach, negotiators can settle disputes, build trust, and boost the likelihood of reaching agreements that are fair and beneficial for all parties.

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Examples of Concessions in Negotiation

Concessions are a key element of the principled negotiation approach.

A concession involves making a compromise to accommodate the interests of the other party. They are a way to find common ground and work towards a mutually beneficial agreement.

Let’s look at two examples of concessions in negotiation scenarios:

Renting a property: A landlord may discover that a prospective tenant is in a stable, high-paid job, which means they can afford to pay their rent without issues. In this situation, the landlord may make a concession by accepting a lower monthly rental fee. In return, they gain peace of mind knowing they will receive rent on time.
Business partnerships: In a situation where two companies are negotiating a partnership agreement, one company may propose a revenue sharing ratio of 70:30, with them receiving the larger share. However, they may decide to make a concession and accept a lower percentage of the revenue if they later discover that the other company has something that could benefit the partnership. For instance, significant expertise in marketing or valuable industry connections.

Start today with Scotwork

Do you want to improve your negotiation skills and maximize the value of deals? Scotwork is here to help.

As a globally recognized negotiation training company, Scotwork has been empowering individuals and businesses with effective negotiation strategies for over 45 years. Our expert trainers and tailored programs will teach you a deep understanding of principled negotiation and equip you with practical skills to apply in real-world situations.

Reach out to our team if you want to start your journey to becoming a skilled negotiator or visit our website to explore our comprehensive training programs.