A strategy is a plan that leads to a desired future, in our case, to a successful agreement. In this article, I will present two strategies. Understanding the difference between them is a critical step in developing your negotiation competence. You could say it is a fundamental shift in thinking.
Positional negotiation strategy
The positional strategy boils down to shooting, pushing, and defending. You shoot by making frequent offers, trying to land on terms the other side will accept. You push by deploying heavy argumentation, which simultaneously damages the relationship and drives the other party into a defensive posture, and by haggling, an emotional process unsupported by mutual deliberation.
You defend your position by holding it firmly, ensuring it is not changed under any circumstances. This is tied to the egocentric belief that the approach you have devised to achieve your interests is the only valid one in the world.
The consequence of a positional strategy is frequent deadlocks on the path to agreement and friction during conversations. The party with weaker psychological resilience will be susceptible to being "broken."
An agreement resulting from this strategy is prone to compromise, meaning losses incurred by both sides. This strategy requires little preparation, but it will most likely damage the relationship.
Read also: Negotiation Styles
Win-win, win-lose, lose-lose: understanding three core approaches
Interest-based strategy
The interest-based strategy is sometimes called the problem-solving strategy because the negotiator approaches finding an agreement like solving a problem. Both parties know what they need and are open to unconventional solutions to satisfy those needs.
A popular concept associated with this strategy is "expanding the pie." It means that in any situation, through creativity and thinking outside the box, you can find a solution where everyone leaves the table satisfied.
We distinguish interests from the methods of achieving them (essentially positions), holding firmly to interests while keeping an open mind about the paths to fulfilling them. The consequence of this strategy is open conversations aimed at finding solutions through a mutual process of communication and decision-making.
By practicing this strategy, you have a real chance of reaching an agreement that satisfies all parties while simultaneously building strong relationships. This strategy requires thorough preparation. Without it, you risk sliding into positional bargaining during the conversation.
Related: How to Prepare for a Negotiation
How to prepare so that the interest-based strategy works effectively
Reality check
As negotiation practices evolve, positional strategies are becoming less common because they increasingly fail in the face of a growing number of professional negotiators, and simply as business professionals become more aware of better alternatives.
In business, interest-based negotiations are becoming more frequent, and they consistently produce more profitable agreements.
Summary
The positional strategy is a tug-of-war that leads to compromises and strained relationships. The interest-based strategy is a collaborative search for solutions that offers the chance for a win-win agreement. The key is thorough preparation.
Before your next negotiation, write down your interests (not positions!) on a sheet of paper and consider what the other side's interests might be.
