A handout to be used with the Step 0 Facilitation Skills Training Materials, which can be found here: http://www.slideshare.net/pmsd-map/step0training-guide The handout discusses developing effective interest-based negotiation skills, and should be used in the Facilitation Negotiation session. Print 1 sheet between every 2 participants.

1. NEGOTIATION
Developing effective interest-based negotiation skills
Use: To help stakeholders / partners arrive at an agreement to collaborate in ways that will meet their
individual / organisational underlying interests as well as their shared goals
Phase: Particularly in the early stage of the cycle but, in fact, setting the foundations for a way of working throughout the
life of the partnership
Negotiation in a partnership paradigm needs The ‘art’ of interest-based negotiation is to
to be understood quite differently from a more enable those negotiating to reveal their
‘hard-nosed’ negotiation usually (though not underlying interests. To do this those
necessarily correctly!) associated with the negotiating are likely to need:
negotiation approach to business deals. The • Time and opportunities for conversation
most helpful way to understand ‘interest- • An appropriate (and somewhat neutral)
based’ negotiation is to differentiate between environment – a sense of ‘safe space’
an approach based on ‘positions’ and one • A sensitive and ‘open’ questioning approach
based on ‘underlying interests’. • A sense that you are listening attentively and
that they are being ‘heard’
A position is the initial statement made based • A belief in your genuine interest in
on immediate demands – usually strongly understanding their perspective.
stated, implying a non-negotiable stand and
not considerate of other’s priorities or needs. In trying to build working partnerships – where
the starting point between the various players
Underlying interests are the (usually unspoken may be quite ‘positional’ – it may be useful to
and sometimes not clearly understood) drivers, actually explain to those involved the
priorities, needs, anxieties and hopes that difference in outcomes between an
inform or underpin the stated position. ‘adversarial’ and ‘consensual’ approaches (Box
2).
Box 1 – The difference between positions and
interests
This ‘iceberg’ diagram illustrates how dealing
with an issue at the level of ‘positions’ can
easily be experienced as two isolated
perspectives with no apparent common
ground. This changes, however, when you
push down to the underlying interests when
two things happen: first, the issue broadens out
and becomes wider and more interesting;
second, it offers opportunities for finding areas
of overlap or of potentially shared interests.

2. Box 2: Table to illustrate key differences
between two forms of negotiation
Interest-based negotiation can play its part
Adversarial forms Consensual forms throughout the cycle – indeed, partnerships
of negotiation of negotiation rarely progress smoothly from one agreement
to the next. Changes of whatever kind –
Argument Conversation personnel, external conditions, resource
availability, re-direction of project activities –
Winners and Win-win-win can give rise to uncertainty and a tendency to
losers scenario based on revert to positions.
willingness to
compromise
As a broker you need to understand (not to
Agreement based Agreement based mention… learn off by heart and regularly
on set positions on underlying check out that you are adhering to them) the 4
interests
key principles of interest-based negotiation.
Success is judged Success is judged in These are:
in terms of terms of meeting all
achievement of partners’ interests 1. Build trust through mutual understanding
self-interest
and meaningful communication
Likely to have a Likely to have a
negative effect on positive effect on a 2. Focus on revealing underlying interests
a long-term long-term rather than positions
relationship relationship
3. Widen the options for a solution through
When potential partners / partners have the creativity and lateral thinking that comes
experienced a successfully managed interest- from joint problem solving
based negotiation they will recognise that it
has been successful precisely because the 4. Reach agreement that satisfies interests and
need to meet goal(s) has been achieved adds value for all parties.
alongside the equally important need to
maintain and build the relationship(s). This is
summarised in Box 3.
Box 3: A schematic way of understanding the
implications of inadequate partnership
negotiation
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