When parties enter into negotiation proceedings, it is fundamental to understand each party’s interests. Negotiation commentators have identified four types of interests parties have: (1) substantive interests, (2) process interests, (3) relationship interests, and (4) interests in principle. This blog will reflect on these types of interests to help parties better understand the fundamentals of conflict interests.
Substantive Interests. Substantive interests are related to focal issues that are under negotiation and are issues of substance, i.e. the core reason the parties are in dispute. After reading what substantive interests really are, it seems to me that it is very easy for a party to transform this substantive interest into their position. Position is defined as your stance on an issue, i.e. I will not settle for anything less than $150,000. When we move away from positions and focus more on interests, we tease out the reason why the party has that particular interest. Take for example the position above about the party not wanting to settle for less the $150,000. There are several possible reasons why that party has that position. They may think that is what they need to be happy, conversely they may feel that $150,000 truly reflects the damage the other party caused and wants to make sure that the other party justly pays for their harm. Substantive interests are the WHY’s of negotiation interests. When the parties and the negotiator understand all of the parties’ substantive interests they are equipped with the knowledge necessary to get past their positions and deal directly with the needs of each party, resulting in a resolution of the issue.
Process Interests. Process interests are related to how the negotiation unfolds. Parties may pursue distributive bargaining because they enjoy the competitive game of wit that comes with hard ball negotiations. Other parties may be interested in negotiation because it provides them the opportunity to voice their concerns in a process where they feel they have been silenced. Process interests are very important to take into consideration when negotiating. For instance, knowing that the other party just wants to argue and make this a competition will force you to change your tactic. You may, instead of being very forthcoming with information, want to be very competitive as well, push back in an effort not to get trampled on. On the other hand, when parties want to use negotiation as a place to voice their concerns, parties should respect and embrace moments where the other party makes clear the reasons that brought them to negotiation. Engaging in conversations where people answer the “why’s” will almost always reveal solutions to problems that people who consistently refuse to explain their position rather than explaining why they have that particular position. Furthermore, if the parties get some kind of satisfaction from the fulfillment of their process interests, the negotiation may very well lead to a resolution of the issue by means of a settlement agreement or just a withdrawal of the issue all together. In summation, knowing why the other party is at the negotiating table allows you to better understand the situation and will give you the tools necessary to understand, identify, and resolve the problem.
Relationship Interest. Relationship interests are related to the value the parties place on their own relationships with one another. Parties have reason to be concerned about the way the resolution of the dispute will affect their relationships. There are two types of relationship interests: (1) intrinsic and (2) instrumental. Intrinsic interests are the value that the parties place on the relationship itself, i.e. the personal meaning of the relationship to the parties. This is especially important in divorce negotiations involving children. The parents, although no longer wanting to remain married, have children that need to be taken care of by both parents. Parents are often concerned about how the divorce will impact the children and each parent. Parents with children will nevertheless have to maintain a relationship even after the divorce. Instrumental relationships are the interests parties derive from the substantive benefits the parties derive from their relationship. This can be when there is a dispute over the terms of a contract for which the parties, even after the dispute is resolved, will continue doing business together. When the parties understand the value of the relationship at stake, they are better equipped to handle the problem and come to a resolution that will benefit them in all aspects rather than just addressing the issue that brought them to the negotiation in the first place.
Interests in Principle. These are interests like fairness, what is right, and what is acceptable. In essence this is the parties’ moral values in the outcome of the negotiation. These interests, just like the ones commentated on above, can be very important in a negotiation proceeding. Parties will not enter into a resolution to an issue that goes against their moral value. The parties to the negotiation need to truly understand what the party needs and why they need it. When the parties understand these two things it becomes very easy to identify what the parties think are fair or just. These interests are very valuable and, if not addressed, could seriously jeopardize the likelihood of the negotiation’s success.
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