The Power of Interest-Based Negotiation: Creating Win-Win Solutions

By Jenny Holly Hansen | WBN News | April 15, 2025

In the world of business, negotiation is often framed as a zero-sum game—one side wins, the other loses. But there's another approach that’s been gaining traction across industries, from corporate boardrooms to international diplomacy: interest-based negotiation. Also known as principled negotiation, this method shifts the focus from positions to the underlying interests that drive those positions, opening the door to more creative, collaborative, and sustainable solutions.

What Is Interest-Based Negotiation?

Interest-based negotiation is a technique that seeks to resolve conflicts by identifying and addressing the core interests of all parties involved, rather than rigidly sticking to their stated demands or positions. The concept was popularized by Roger Fisher and William Ury in their book Getting to Yes, which emphasized four key principles:

1. Separate the people from the problem
   Avoid making the negotiation personal. Address the issue at hand, not the individuals involved.
2. Focus on interests, not positions
   Ask why someone wants something, not just what they want. This opens up space for more flexible, mutually beneficial outcomes.
3. Generate options for mutual gain
   Collaborate to brainstorm solutions that satisfy the interests of both parties.
4. Use objective criteria
   Base decisions on fair, independent standards—such as market value, expert opinion, or legal precedent—rather than arbitrary power dynamics.

Why It Works

Interest-based negotiation is widely regarded as a positive and effective approach, especially in situations where long-term relationships matter—like in business partnerships, employee relations, or community agreements. Here’s why it works:

• Builds trust and understanding: When people feel heard and respected, they’re more likely to cooperate and less likely to walk away or sabotage the deal.
• Encourages creativity: By broadening the conversation beyond positions, negotiators can uncover new solutions neither side initially considered.
• Increases satisfaction and commitment: Parties are more likely to follow through on an agreement when it addresses their true needs and goals.

When It Falls Short

Despite its many strengths, interest-based negotiation isn’t always the right tool for the job. In high-stakes situations where time is limited or power is deeply imbalanced, it can be difficult to get both sides to participate in good faith. Some critics argue that it may overly idealize cooperation when a firmer, more competitive stance might be necessary to protect one’s interests—especially if the other party is exploiting the process.

Additionally, identifying real interests can be time-consuming and requires a high level of communication skill, emotional intelligence, and transparency—qualities not always present in every negotiation.

Is It a Good Technique?

In short: yes—with the right context and mindset. Interest-based negotiation is a powerful method for reaching durable, respectful, and mutually beneficial agreements. It’s especially effective when both parties value the relationship and are willing to explore the “why” behind their positions. However, like any strategy, it must be applied wisely. If one party is unwilling to engage honestly, or if the stakes require a more assertive approach, other techniques may be more appropriate.

Ultimately, interest-based negotiation is not about being soft—it’s about being smart. It aims to expand the pie rather than divide it, creating outcomes where everyone leaves the table with something they truly value. And in today’s business environment, where trust and collaboration are currency, that can be a powerful advantage.

Let’s Keep Talking:

Jenny is a business insurance broker with Waypoint Insurance.

She is also a business development consultant with Impresario Partners, helping Canadian Business expand overseas.

She can be reached at 604-317-6755 or jhansen@waypoint.ca. Connect with Jenny on LinkedIn at https://www.linkedin.com/in/jenny-holly-hansen-365b691b/.  Connect with Jenny at BlueSky: https://bsky.app/profile/jennyhollyhansen.bsky.social

Let’s Meet Up:

Jenny Holly Hansen is a cohost with Chris Sturges of the Langley Impact Networking Group. You are welcome to join us on Thursday’s from 4pm to 6pm at: Sidebar Bar and Grill: 100b - 20018 83A Avenue, Langley, BC V2Y 3R4

Tags:  #Jenny Holly Hansen #Interest-Based Negotiation #Principled Negotiation #International Diplomacy #Core Interests #Getting to Yes