Interest Based Negotiations is a term that has been tossed around a lot over the last several years. It is also known as “principled negotiation” and is a collaborative approach used during mediations and dispute resolution. This form of negotiation focuses on the underlying interests of the parties rather than on their stated positions – or the legal position imposed by the law. It was originally discussed in the iconic book by Roger Fisher and William Ury titled Getting to Yes.

Some of the core principles of this type of negotiation is that it begins by separating the people from the actual problem. It allows you to focus on the issue, rather than personal emotions or making personal attacks against the other person or side.

Another principle of Interest Based Negotiations focuses on interests, not positions. Instead of arguing for fixed outcomes, you can explore the needs and desires that underlie those positions. It also allows you to generate options for mutual gain. You are able to brainstorm creative solutions that satisfy both parties’ interests. Interest Based Negotiation uses objective criteria that allows you to decide issues based on fair stands and not power or pressure.

Finally, to be fully engaged, you should know your Best Alternative to a Negotiated Agreement (aka BATNA). This strategy involves entering a negotiation knowing what your fallback option is so you know when you need to walk away or you should stay at the negotiation table.

The four main benefits of this type of Interest Based Negotiation are:

1) it builds trust and improves relationships, 

2) it produces more satisfying agreements because you vested in the needs and interests, 

3) it encourages collaboration instead of competition, and 

4) it is useful when there will be an ongoing partnership (such as continued business relations or raising children).

Interest Based Negotiation may come with some challenges. Some of those pitfalls include the following:

  • Power Imbalance – the individual who has significantly more power or knowledge may dominate the process;
  • Hidden or Misrepresented Interests – parties may not be honest about their true intentions or withhold critical information, undermining trust and fairness;
  • Complex or Deep-seated conflicts – if there are disputes involving deeply rooted values or emotions, Interest Based Negotiation might oversimplify the issues or even fail to address those core values and/or issues;
  • Over-Emphasis on Consensus – striving too hard for mutual gain can lead to sub-par compromises or split the difference outcomes that do not satisfy anyone; and
  • Requires Skilled Mediators – The third party neutral – the mediator – must be skilled in uncovering interests, maintaining balance, and managing dynamics.

Remember, Interest Based Negotiations work best when there is an ongoing and continued relationship between the conflicting parties, when there are possible solutions that can lead to mutual gain, and when parties are open to dialogue and compromise.

If you or somebody you know is headed toward Mediation to resolve their Legal disputes, our Mediation team at Modern Legal is here to help.

Please note: these educational materials are based on North Carolina law where my mediation and legal practice is based. While the insights may have wide applicability, readers should consult with an attorney or mediator regarding the specific laws in their state or country. 

Written by: Mediator Deborah L. Dilman