Creating the circle of value in negotiations

Circle of Value in Negotiations

R.M. Boylan BSc. M.A.

"Circle of value" as a framework of mutual value

The "Circle of Value" (Ury, William) in negotiations refers to a framework that emphasizes the creation of mutual value between negotiating parties. It suggests that rather than focusing solely on dividing existing resources (a zero-sum approach), parties should work collaboratively to expand the pie and find solutions that benefit all involved. This concept encourages negotiators to explore interests, needs, and potential trade-offs to foster a more constructive and mutually expansive dialogue.

The phrase "Circle of Value" is attributed to William Ury, a prominent scholar in negotiation and conflict resolution. Ury is known for his work in the field, particularly through his book "Getting to Yes" co-authored with Roger Fisher and Bruce Patton, which emphasizes principled negotiation strategies.

Transitioning from Conflict and Bullying to a Circle of Value

To shift a bargaining situation characterized by conflict and bullying into a circle of value for negotiation, several strategies can be employed:

• Establish a Safe Environment: Create a setting where all parties feel secure to express their needs and interests without fear of retaliation.

• Create unexpected welcomed surprises.

• Focus on Interests, Not Positions: Encourage parties to articulate their underlying interests rather than rigid positions, which can lead to more creative solutions.

• Build Rapport: Engage in active listening and empathy to foster trust and understanding among parties.

• Identify Common Goals: Highlight shared objectives that can unite parties in the negotiation process.

  
  

Trade-offs, Options, and Concessions

Understanding the concepts of trade-offs, options, and concessions is crucial in negotiations:

Trade-offs

Trade-offs involve giving up something of lesser value to gain something of greater value. They are essential in negotiations as they allow parties to reach mutually beneficial agreements.

Options

Options refer to the various possibilities available to negotiators to satisfy their interests. Generating multiple options increases the likelihood of finding a solution that works for everyone.

Concessions

Concessions are compromises made by one or both parties during negotiation. They can be strategically used to demonstrate goodwill or to facilitate progress when negotiations stall.

Strategic Use and Timing of Trade-offs, Options, and Concessions

To effectively use and time trade-offs, options, and concessions in negotiation, consider the following strategies:

• Prepare Ahead: Identify your own priorities and potential concessions before entering negotiations to ensure you can make informed decisions.

• Timing is Key: Introduce concessions at strategic moments, such as when you need to break a deadlock or when the other party shows interest in reaching an agreement.

• Make Incremental Concessions: Instead of making large concessions upfront, consider smaller, incremental concessions that can lead to reciprocal concessions from the other party.

• Encourage Joint Problem Solving: Frame trade-offs and options as collaborative solutions rather than unilateral concessions to foster a more positive negotiation atmosphere.

  
  

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