Interest-Based Bargaining

Interest Based Bargaining (IBB) has many names including win-win bargaining, integrated bargaining, mutual gain bargaining, etc.

 

IBB offers an alternative to the traditional positional bargaining, “demands / counter demands”, adversarial process typically employed in collective bargaining.

The Basic Premise

Interest based bargaining is dependent on the premise that both sides in a negotiation have something to gain from the negotiation. Usually, a settlement will be better than the alternative of not reaching an agreement.  If both sides come to the bargaining table with the belief that it is in their mutual interest to solve their disputes and to reach a negotiated settlement, the fundamental requirements for interest-based bargaining having a chance to succeed exist.  Ultimately it remains up to the parties to decide whether this approach to bargaining will be more effective than the traditional, positional approach.

Interest-Based Bargaining (IBB) helps negotiators listen and understand the needs of others and create solutions that work for everyone. Instead of focusing on demands, IBB focuses on real issues and open discussions.  IBB can help build better relationships between workers and managers.

An Alternative Method - Not A Panacea

Interest based bargaining is not a panacea. It does not mean that all solutions can be solved without the confrontations that often characterize disputes.  However, IBB provides the parties a better opportunity to solve complicated problems and build a relationship that allows both sides to maximize their interests.

Many experienced negotiators understand that it is a mistake to win too big.  A win that required too much from the other side is almost bound to lead to future problems. Bargaining is a human process.

Interest based bargaining works because it considers ways in which people can work better together when they work in a more collaborative fashion.