Zone of Agreement (ZOPA)
The Zone of Agreement is a concept that was introduced in HBA1 LPO Course. It helps us understand the areas where different parties can find common ground during discussions or negotiations.
For example, between a tenant and landlord negotiating for rent, each party has their own “Target” which is the ideal outcome they want. Then, they also have a “resistance point” which is the minimum or maximum they are willing to accept. The Zone of Agreement is the range between these resistance points where both parties can agree.
Positions vs. Interests
- Position: The explicit demand someone puts on the table - What they claim they want
- Interest: The underlying motivation behind that demand - Why that position matters to them
Best Alternative to a Negotiated Agreement (BATNA)
- Your fallback option if no agreement is reached
- Determines your negotiation power and sets your walk-away point