NEGOTIATION INTERESTS AND POSITIONS

When two people take opposing sides on any particular issue in a dispute, they both often refuse
to budge from their divergent viewpoints. The end result is a stalemate. If a solution is found
then both will win.
The basic reason why many people fail to find agreement is that each has taken what is known as
a 'position.' One wants something that the other doesn't. Thats usually the basic reason.The
crucial question that neither party has asked the other, is to explain the reason and motivation
behind their position. The motivating forces or reasons which underlie their negotiation positions
are what we refer to as their 'negotiation interests'. Interests are the 'why' or the basis for the
negotiation position.
The main problem is that the people involved in a dispute always know the positions of the
parties, but they often neglect to understand why the other person has taken this position in the
first place.
There's a classic example which illustrates how our knowing the other person's interests might
overcome positions. Two men seated together in a building are at odds on whether to keep a
window open or closed. Hearing this ongoing feud, a third person enquires about the dispute.
One gentleman demands that the window be closed to avoid a draft. The second gentleman wants
the window open for the fresh air. The third person then goes into the next room and opens a
window. This simple solution resolves the problem by providing fresh air to one of the parties
while negating the issue of the draft for the other. A creative solution is applied by considering a
smart solution which happily satisfies both their interests.
Negotiation interests largely relate to basic human needs. They are powerful influences in our
decision making processes. Interests not only include those tangible desires which correspond to
the specific problem at hand such as increasing sales or productivity. They also link to our more
basic human emotions that are less obvious to the participants. These basic emotional needs are
couched in our psyche, but some examples might include our need for security, empowerment,
inclusion, control, or recognition. These intangible needs illustrate what may well be overlooked
when considering the interests of our counterpart. We might even neglect to realistically consider
our own basic human needs when trying to define or describe our interests to someone else. They
are all equally valid and just as important.
It's vital to ferret out all the underlying information to determine not only our interests, but the
interests of the other side. Let's take a look at how we might accomplish this process.
What We Need to Know
What's the issue? We must be absolutely clear we understand the issue or problem by
stating it clearly. Both parties should be in agreement on the fundamental issues at stake.
They need to do this before they even attempt to resolve the issues.They will otherwise
be at cross purposes and resolution will be extremely difficult if not impossible. This is
the first item where both parties have to find mutual agreement.

Having defined the problem, it is equally crucial we understand what obstacles are
preventing us from solving our dilemma. Each side will relate both similar and dissimilar
obstacles that are acting as barriers to finding common ground. We both need to fully
understand all the specific obstacles involved. If we neglect to perform this crucial step,
both parties will not fully appreciate all the obstacles which prevent them from achieving
closure.

Separation - Both parties need to take a step back. When confrontational disputes linger,
there is a tendency of personal animosity. We begin to take the matter too personally and
a highly charged atmosphere surrounds what could be literally described as verbal
combat. The participants need to separate themselves from the problem and to restore
some degree of objectivity.

What are your negotiating interests? Our interests include those tangible needs or what
we might consider as the underlying mechanical components of the problem. Payment
terms, transportations costs and scheduling are some of the issues which can be addressed
at one level. Other interests, such as trust or anxiety, which also relate to our business
interests, are equally relevant in terms of their importance. Caution should be observed as
either party could have a different opinion about the degree of importance they attach to
each other's interests.

Problem Solving. By understanding the problem and the obstacles which need to be
overcome,together with fully understanding each other's needs and interests. the
possibility of finding a solution is then greatly enhanced. The approach to problem
solving needs to be addressed through a mutual perspective of both parties' unique and
somewhat different circumstances. Most negotiation problems can be broken down into
different components, lessening the strength of any obstacles which lay in the path to a
mutually agreeable negotiated resolution.

Summary
All negotiation positions are supported by interests. Only by knowing and defining these
interests can we really be effective in clearly appreciatiating and understanding the full extent of
the dispute. This approach applies to every kind of dispute whether it is a business venture, a
dispute with a co worker, or even within the fabric of our everyday lives.
DIFFERENT TYPES OF INTERESTS PREVALENT IN NEGOTIATIONS
When parties enter into negotiation proceedings, it is fundamental to understand each partys
interests. Negotiation commentators have identified four types of interests parties have:
1. Substantive Interests. Substantive interests are related to focal issues that are under
negotiation and are issues of substance, i.e. the core reason the parties are in dispute. After
reading what substantive interests really are, it seems to me that it is very easy for a party to
transform this substantive interest into their position. Position is defined as your stance on an
issue, i.e. I will not settle for anything less than $150,000. When we move away from
positions and focus more on interests, we tease out the reason why the party has that particular

interest. Take for example the position above about the party not wanting to settle for less the
$150,000. There are several possible reasons why that party has that position. They may think
that is what they need to be happy, conversely they may feel that $150,000 truly reflects the
damage the other party caused and wants to make sure that the other party justly pays for their
harm. Substantive interests are the WHYs of negotiation interests. When the parties and the
negotiator understand all of the parties substantive interests they are equipped with the
knowledge necessary to get past their positions and deal directly with the needs of each party,
resulting in a resolution of the issue.
2. Process Interests. Process interests are related to how the negotiation unfolds. Parties may
pursue distributive bargaining because they enjoy the competitive game of wit that comes with
hard ball negotiations. Other parties may be interested in negotiation because it provides them
the opportunity to voice their concerns in a process where they feel they have been silenced.
Process interests are very important to take into consideration when negotiating. For instance,
knowing that the other party just wants to argue and make this a competition will force you to
change your tactic. You may, instead of being very forthcoming with information, want to be
very competitive as well, push back in an effort not to get trampled on. On the other hand, when
parties want to use negotiation as a place to voice their concerns, parties should respect and
embrace moments where the other party makes clear the reasons that brought them to
negotiation. Engaging in conversations where people answer the whys will almost always
reveal solutions to problems that people who consistently refuse to explain their position rather
than explaining why they have that particular position. Furthermore, if the parties get some kind
of satisfaction from the fulfillment of their process interests, the negotiation may very well lead
to a resolution of the issue by means of a settlement agreement or just a withdrawal of the issue
all together. In summation, knowing why the other party is at the negotiating table allows you
to better understand the situation and will give you the tools necessary to understand,
identify, and resolve the problem.
3. Relationship Interest. Relationship interests are related to the value the parties place on their
own relationships with one another. Parties have reason to be concerned about the way the
resolution of the dispute will affect their relationships. There are two types of relationship
interests: (1) intrinsic and (2) instrumental. Intrinsic interests are the value that the parties place
on the relationship itself, i.e. the personal meaning of the relationship to the parties. This is
especially important in divorce negotiations involving children. The parents, although no longer
wanting to remain married, have children that need to be taken care of by both parents. Parents
are often concerned about how the divorce will impact the children and each parent. Parents
with children will nevertheless have to maintain a relationship even after the divorce.
Instrumental relationships are the interests parties derive from the substantive benefits the parties
derive from their relationship. This can be when there is a dispute over the terms of a contract
for which the parties, even after the dispute is resolved, will continue doing business together.
When the parties understand the value of the relationship at stake, they are better equipped to

handle the problem and come to a resolution that will benefit them in all aspects rather than just
addressing the issue that brought them to the negotiation in the first place.
4. Interests in Principle. These are interests like fairness, what is right, and what is acceptable.
In essence this is the parties moral values in the outcome of the negotiation. These interests, just
like the ones commentated on above, can be very important in a negotiation proceeding. Parties
will not enter into a resolution to an issue that goes against their moral value. The parties to the
negotiation need to truly understand what the party needs and why they need it. When the
parties understand these two things it becomes very easy to identify what the parties think are
fair or just. These interests are very valuable and, if not addressed, could seriously jeopardize the
likelihood of the negotiations success.