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Interests

Interests. Substantive Interests. Relationship Interests. Every Negotiator Has Two Kinds of Interests:. Substantive: what each party wants; the purpose of the negotiation Relationship: maintain a good working relationship.

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Interests

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  1. Interests Substantive Interests Relationship Interests

  2. Every Negotiator Has Two Kinds of Interests: Substantive: what each party wants; the purpose of the negotiation Relationship: maintain a good working relationship Example: an antiques dealer wants to make a profit (substantive), but he also wants the customer to return (relationship)

  3. Definitions • Interests: the whole of each party’s needs, fears, desires and concerns. • Substantive interests: involves matters of major or practical importance to all concerned. • Relationship interests: involves the state of affairs connecting two or more things or parts as being or belonging or working together.

  4. Why Are Interests Important? There are two main reasons why a negotiator will want to learn the other party’s underlying interests: If the two negotiators’ interests are compatible and a deal can be worked out, then discovering the shared interests forms the basis of the negotiation. If the negotiators’ interests are incompatible, discovering the other negotiator’s interests is extremely valuable strategic information. Source: Matthew P. Guasco & Peter R. Robinson, Principles of Negotiation

  5. Why Are Interests Important? No matter which approach a negotiator uses, knowing the other side’s underlying interests means a negotiator can fashion an offer that attempts to meet the other side’s interests and needs. Most negotiations take place in the context of an ongoing relationship where it is important to carry on each negotiation in a way that will help rather than hinder future relations and future negotiations.

  6. Where Do Interests Fall Within the Overall Negotiation? ISSUE Tangible, Concrete Thing Being Negotiated NEGOTIATOR 1 NEGOTIATOR 2 INTERESTS INTERESTS SUBSTANTIVE & RELATIONSHIP Source: Matthew P. Guasco & Peter R. Robinson, Principles of Negotiation

  7. Michael Bluth and Wayne Jarvis Negotiate for Representation http://www.hulu.com/watch/1197/arrested-development-new-lawyer Substantive Interest: The Bluth family wants to get their father out of prison. Relationship Interest: Michael Bluth is trying to develop a “professional” relationship with Wayne Jarvis.

  8. George and Jerry Set a Bad Example http://www.tbs.com/video/0,,140949||,00.html?eref=sharethisUrl Substantive Interest: Jerry and George want a contract with NBC for their sitcom Relationship Interest: George possibly ruining the relationship with NBC by trying to negotiate incorrectly

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