Negotiation 4 Steps

1. Separate the people from the problem.

In most cases the parties having the conflict are highly emotional. At this stage differences are magnified in their minds, objective facts of the situation are clouded by emotions and the parties would have opinions that they would not have if they see the bigger picture. Due to the above reasons they tend to attack one another rather than the problem. In order to minimize the likelihood of the problem becoming personnel it is better to separate the people and first define the problem then everyone would be able to work on it rather than each other.

2. Focus on interests, not positions.

It’s very important to distinguish between the interests and positions, positions are the representation of underlying interests. We first need to understand what each party’s interests are and clear everything out. By understanding the real interests the negotiator will be able to do a better job in bringing the solution to both parties and it would also be more peaceful as well. Best way to find the interests is to ask questions such as “What are you trying to satisfy”, “What’s your end goal from this negotiation”. Identifying shared and compatible interests as "common ground" or "points of agreement" is helpful and  allows a negotiator to suggest solutions that

satisfy the other party’s interests without agreeing with the other’s position

3. Before trying to reach agreement, invent options for mutual gain. 

After the problem is stated and the interests are cleared out, both parties need to think all the options available on resolving the issue. By thinking creatively and being flexible are very important characteristics. This will advance the mutual interests of the conflicting parties which in return will be helpful in finding options that produce mutual gains that conclude as a win-win solution.

4. Insist on using objective criteria.

Key is to pay more attention to finding standards (e.g., market value, expert opinion, law, company policy) that can be used to determine the quality of an outcome rather than bargaining on positions. By doing this it tends to make the negotiation less a contest of wills or exercise in stubbornness. Ex: If a functional manager wants to use an expensive process to test a part, it is acceptable for the PM to ask if such a process is required to ensure that the parts meet specified quality standards.