Compromise-Based Negotiation
What is Compromise-Based Negotiation?
Compromise-Based Negotiation is a strategy where both parties give up something to reach a middle ground. This approach is often used when time is limited or relationship preservation is important, but the parties cannot find a way to fully satisfy all interests simultaneously.
Key Principles
- Both parties make concessions to reach agreement
- Focus on finding a middle ground that is acceptable to all
- Emphasis on fairness and equal sacrifice
- Pragmatic approach that values agreement over optimization
- Balance between competing interests
When to Use Compromise-Based Negotiation
This strategy is particularly effective in situations where:
- Time constraints prevent more thorough exploration of options
- Relationship maintenance is important but interests truly conflict
- Resources are limited and must be divided
- Parties have relatively equal power
- The issue is not critical enough to warrant a more intensive approach
Implementation Steps
- Identify the range of acceptable outcomes: Determine your target and reservation points
- Signal willingness to compromise: Indicate flexibility while maintaining core needs
- Make reasonable initial offers: Start with positions that leave room for movement
- Exchange concessions: Make and request balanced concessions
- Focus on fairness: Use objective standards to evaluate proposed compromises
- Finalize middle ground: Confirm that the compromise meets minimum needs of all parties
Advantages and Limitations
Advantages:
- Relatively quick and straightforward
- Preserves relationships by demonstrating reasonableness
- Avoids the risks of impasse
- Feels fair when sacrifices are balanced
- Practical in many everyday situations
Limitations:
- Often leaves value on the table
- May result in suboptimal solutions for both parties
- Can create precedents of "splitting the difference"
- May not address underlying interests
- Sometimes produces agreements that neither party is truly satisfied with