Types of negotiations and main negotiating process approaches

here 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.

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’ that are inherently unstable.

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 business 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 business relationships.

The Spirit of the Deal

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:

- Focus initially on each side’s primary objective - ancillary negotiating points can become a distraction in the early stages.

- 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.

- Listen to what the other side wants and make efforts to meet their requests. Compromise on the main issues so that both sides can begin to attain their goals.

- Seek to trade-off concessions - so that each side gets something in return for everything they give up.

- Capable negotiators understand that the stability of the outcome is important and focus on more than simply maximizing the concessions that can be extracted from the other side.