What Is Win-Win Negotiation?

A win-win negotiation is a careful exploration of both your own position, and that of your opposite number, in order to find a mutually acceptable outcome that gives you both as much of what you want as possible. If you both walk away happy with what you've gained from the deal, then that's a win-win!

In an ideal win-win situation, you will find that the other person wants what you are prepared to trade, and that you are prepared to give what he or she wants. If this is not the case, and one of you must give way, then it is fair to negotiate some form of compensation for doing so. But both sides should still feel comfortable with the outcome.

Principled Negotiation Within the Win-Win Scenario

1. Separate People From the Problem

First, avoid identifying your opposite number as your "opponent." Be sure to focus on the issue at hand, and try to ignore personality differences. To do this, be aware of three factors: perception, emotion and communication.

2. Focus on Interests, Not Positions

People are seldom "difficult" just for the sake of it, and almost always there are real and valid differences sitting behind conflicting positions. The way that each person sees the issue may be influenced by many factors, such as their values, beliefs, status, responsibilities, and cultural backgrounds.

Try to keep the conversation courteous and avoid attributing blame. Once everyone knows that their interests have been considered, they are more likely to be receptive to different points of view.

3. Invent Options for Mutual Gain

By now, each side will likely have a better understanding of the other's interests, and a solution might be obvious. You may even be on the verge of agreement. If not, stay open to the idea that a completely new position may exist and use the negotiation process to explore your options.

4. Use Objective Criteria

This isn't just "setting out the facts," as different underlying needs, interests, opinions, and goals can cause people to interpret facts differently, or cause you to select only those facts that support your position.

Try to agree on a set of objective criteria that provide a framework for your discussion. These could include measurements such as legal standards, market value, a mission statement, or contractual terms. Agreeing on standards demonstrates shared values, and a commitment to reaching an agreement.

5. Know Your BATNA (Best Alternative To a Negotiated Agreement)

Your BATNA is your favored fallback option if you can't get everything that you want. This is not the same as a "bottom line," which is a fixed position that can limit your options and may prevent you from discovering a new course of action.

Instead, think through what might happen if the negotiation doesn't achieve your desired result, and select the most attractive alternatives. Evaluate these alternatives and at the end of that process, the most promising alternative solution is your BATNA.