How to negotiate on the basis of objective criteria? - Chapter 5

Why should you negotiate on the basis of objective criteria?

Many negotiations are based on positional bargaining with a lot of talking about what one is willing and unwilling to accept. By putting ones will against another, the negotiation is unlikely to be efficient or amicable. It is often ended with one side backing down, with all kinds of negative consequences. The solution to the high costs of negotiating on the basis of will can be solved by negotiating on the basis of objective criteria. An agreement should be based on principle, not on pressure from the other side. The more standards of fairness, efficiency, and scientific merit are brought to the problem, the more likely that a wise agreement will be reached.

How to develop objective criteria?

Objective criteria can be based on market value, scientific judgement, precedent, professional standards, efficiency, costs, what a court would decide, equal treatment, moral standards, etc. The objective criteria need to be independent of each side's will, be legitimate, practical, and apply to both sides. There are also procedures that are inherently fair, like taking turns, drawing lots, and flipping a coin. The results may not be equal, but each side has an equal opportunity.

What is meant with 'one cuts, the other chooses'?

The procedure of 'one cuts, the other chooses' comes from the old way to divide a cake between two children. One child cuts the cake, the other child chooses who gets which part. The child who is cutting the cake does not know which part he will get and has an incentive to make both parts equal. Neither will be able to complain about an unfair division. A variation of this procedure is for the parties to negotiate what they think is a fair arrangement before they go on to decide their respective roles in it.

How to use objective criteria?

The focus on objective criteria should be firm, but flexible. These three points should be kept in mind when using objective criteria:

• Frame each issue as a joint search for objective criteria. Before going into the details, you may want to agree on the standards to apply. The interests may be conflicting, but the goal may be shared (both agree to using objective criteria).
• Reason and be open to reason. In many negotiations objective standards are used as arguments to support a position. The difference between seeking agreement based on objective criteria and using objective criteria as arguments to support a position can be very subtle. However, a principled negotiator should be open to reasoned persuasion on the merits. One standard of legitimacy does not exclude the existence of others. If both sides are using different standards, look for an objective basis for deciding between them.
• Never yield to pressure. Pressure can take many forms, such as a bribe, a threat, or a manipulative appeal to trust. In these cases, invite the other to state their reasoning and suggest objective criteria. Do not budge to pressure, but only to principle.