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There comes a time in every negotiation where the tone of what is being said, opens up with the possibility of agreement. If the negotiation has been difficult up to this point, the tone tends to turn more positive and negotiators often become more relaxed. Options are discussed and the flow of the conversation becomes less transactional and more creative. It is a more connected and collaborative conversation. When this happens you have entered your ZOPA or Zone of Possible Agreement. Your ZOPA represents the range or space between your and your bosses positions. It's in this space where both parties can potentially reach a mutually acceptable agreement. It is the area where the interests, needs, and preferences of both parties overlap, allowing for potential agreement on specific items or issues. You can get into this ideal space and understand each other's positions, interests, and alternatives by doing the following: Information sharing Negotiators exchange relevant information regarding their starting positions, needs, and constraints. In collaborative negotiations it is important to spend time drawing out the ‘whys’ of each position. By understanding each person's motivations for the negotiation, the range of what might become possible is grown. This in turn allows both parties to identify potential areas of agreement and determine if there is a possibility for compromise. For example, in a salary negotiation, the employer and the candidate may discuss their salary expectations. When the employee shares a concern that led to the discussion eg. “I’m concerned my salary is falling behind the market”, or “I have picked up new responsibilities for which I am not yet being compensated”, it helps the employer to appreciate the seriousness of the matter for the employee. Exploring interests and priorities Negotiators delve deeper into their underlying interests and priorities to identify potential areas of agreement. By understanding what matters most to each party, negotiators can find creative solutions that satisfy their interests. For example, in a business partnership negotiation, one party may prioritize revenue sharing while the other may value marketing opportunities. By exploring these interests, they may discover a ZOPA that involves a combination of revenue sharing and marketing benefits. In a collaborative negotiations it is important to spend a little more time exploring interests and asking “Why” to various perceived constraints. If you move to the solutions too quickly value is often left unexposed and can subsequently be lost. Proposing and counter-proposing During the exploring interests stage, parties will start to put forward proposals that reflect their preferences. Through iterative rounds of proposing and counter-proposing, negotiators gradually fine tune solutions to outcomes that are agreeable to both. In salary negotiations it is important to be flexible, as there are likely to be many combinations of your proposed negotiation items (and perhaps a few new items that you and your boss figure out in the negotiation) that may be agreeable to you. Don’t be too quick to get to agreement, stay in that creative problem-solving mode for as long as you can. Assessing alternatives Considering alternatives involves understanding the potential consequences of not reaching an agreement, discussing the impacts of different options and identifying the best possible option for both parties. Understanding the longer term consequences of an emerging preferred option, can be helpful to think through before finally agreeing. To do that a great question to ask yourself is, “Will I still be happy with this outcome in 6 months time?” If the answer is “Yes” then proceed to finalise the items for agreement, if the answer is “No” then provide that feedback and go back to considering additional alternatives. Once you have started to agree options with your boss you can start to craft what your agreement will look like. Ultimately, negotiators recognise they are within their ZOPA when they have identified a range of potential solutions that offer acceptable trade-offs and meet the interests and needs of both parties. It signifies the point where further negotiation and compromise can lead to a finalised agreement. |