Both inexperienced and seasoned negotiators often assume they must choose between two approaches:
- Negotiate aggressively and take a hard-line stance, or
- Be friendly and accommodating to preserve the relationship.
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In reality, there is a more effective third path—one that moves beyond toughness or accommodation and increases the likelihood of achieving meaningful, lasting results.
In Getting to Yes: Negotiating Agreement Without Giving In (2nd ed.), Roger Fisher, William Ury, and Bruce Patton of the Harvard Negotiation Project introduced principled negotiation, also known as negotiation on the merits. Their method is designed “to produce wise outcomes efficiently and amicably.”
Rather than focusing on who wins, principled negotiation focuses on solving the problem.
The 4 Elements of Principled Negotiation
In Getting to Yes, Fisher, Ury, and Patton outline four core elements. Mastering them can significantly improve your negotiation skills.
- Separate the People from the Problem
Strong emotions often become entangled with substantive issues. When that happens, negotiation becomes personal—and progress stalls.
Principled negotiation encourages parties to address emotional and relational concerns separately from the issues at stake.
For example, imagine two department heads locked in a heated dispute over limited budget resources. The disagreement may be fueled by deeper concerns:
- Fear of losing influence
- Pressure from senior leadership
- Anxiety about team performance
Rather than trying to “win” the budget battle, effective negotiators would:
- Practice active listening
- Acknowledge emotions
- Clarify misunderstandings
- Reframe the issue as a joint problem
The goal is not victory over the other party—but clarity and mutual understanding.
- Focus on Interests, Not Positions
Negotiators frequently argue over positions—fixed demands such as “We need a 10% raise” or “The party must be at my house.”
Positions are surface-level statements. Beneath them lie interests—the underlying needs, motivations, and concerns driving those demands.
A Simple Example
Two siblings disagree about where to host their parents’ anniversary party:
- One insists on a restaurant.
- The other insists on hosting at home.
Only when they explore their interests do they make progress:
- The restaurant advocate lacks time for preparation.
- The home advocate is concerned about cost.
With that understanding, they choose an affordable restaurant.
By focusing on interests instead of positions, negotiators often discover creative solutions that satisfy both sides.
This approach—sometimes called interest-based bargaining—is at the heart of principled negotiation.
- Invent Options for Mutual Gain
Negotiators often stop searching once they reach a minimally acceptable agreement. Principled negotiation encourages something different: deliberate creativity before commitment.
Instead of rushing toward compromise, parties should:
- Brainstorm multiple options
- Suspend judgment during idea generation
- Look for trades across issues
In negotiation, “options” can include:
- Contingencies
- Conditions
- Timing adjustments
- Performance incentives
- Issue trades
Example: A Job Negotiation
Suppose:
- The candidate prioritizes higher salary.
- The organization prioritizes staffing continuity and budget discipline.
Possible mutual-gain options might include:
- Reduced vacation days in exchange for higher base pay
- Performance-based bonuses
- A signing bonus instead of a salary increase
- A future salary review tied to measurable milestones
By expanding the conversation beyond a single issue, negotiators create more value before dividing it.
- Insist on Objective Criteria
Many negotiations devolve into debates over whose “facts” are correct. That path often leads to impasse or arbitrary compromise.
Principled negotiation recommends grounding decisions in objective criteria—fair, independent standards that both sides agree to use.
Examples of objective criteria include:
- Market value
- Industry benchmarks
- Expert opinion
- Legal standards
- Professional norms
The key is mutual agreement in advance about which standards will apply.
For example, in a salary negotiation, both parties might agree to rely on published compensation data from reputable industry sources. This reduces personal friction and reframes the discussion as a shared search for fairness.
Don’t Forget Your BATNA
A common misconception about principled negotiation is that the goal is simply to reach agreement.
It is not.
The goal is to reach an agreement that is better than your BATNA—your Best Alternative to a Negotiated Agreement.
According to Getting to Yes, understanding and strengthening your BATNA is critical.
Before and during negotiation, ask:
- What will I do if this deal fails?
- How strong is my alternative?
- How can I improve it?
For example, a homebuyer negotiating on multiple properties strengthens their BATNA by maintaining credible alternatives. A job candidate interviewing at multiple firms does the same.
The stronger your BATNA, the more confidently you can negotiate—and the more comfortable you can be walking away from an inferior deal.
If, after exploring interests and options, an agreement does not exceed your BATNA, walking away is not a failure. It is disciplined decision-making.
Why Principled Negotiation Works
Principled negotiation works because it:
- Reduces emotional escalation
- Encourages collaborative problem solving
- Expands the pool of potential value
- Grounds decisions in fairness and legitimacy
- Protects you from agreeing to a bad deal
It replaces the false choice between hard bargaining and accommodation with a structured, strategic approach.
What Has Been Your Experience?
Have you used principled negotiation in your own professional or personal negotiations?
What challenges have you faced when separating people from the problem—or insisting on objective criteria?
Share your experiences in the comments.
Claim your FREE copy: Negotiation Skills
Build powerful negotiation skills and become a better dealmaker and leader. Download our FREE special report, Negotiation Skills: Negotiation Strategies and Negotiation Techniques to Help You Become a Better Negotiator, from the Program on Negotiation at Harvard Law School.
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