Strategy And Tactics of Integrative Negotiation

CHAPTER THREE

NEGOTIATION METHODS

Distributive Zero-Sum Positional Competitive Claiming value

Integrated Win/Win Interest Based Cooperative Creating value

Getting to Yes
The Seven Elements of Negotiation

INTERESTS What do people really want? OPTIONS What are possible agreements or bits of an agreement? ALTERNATIVES What will I do if we do not agree? LEGITIMACY What criteria will I use to persuade each of us that we are not being ripped off?

The Seven Elements of Negotiation (contd)

COMMUNICATION Am I ready to listen and talk effectively? RELATIONSHIP Am I ready to deal with the relationship? COMMITMENT What commitments should I seek or make?

PROCESSES THAT DISTINGUISH INTEGRATIVE FROM DISTRIBUTIVE NEGOTIATION

INTEGRATIVE
Flow of information Free & open flow; share information openly Attempt to understand what the other side really wants & needs Emphasize common goals, objectives, interests Search for solutions that meet the needs of both (all) sides

DISTRIBUTIVE
Conceal information, or use it selectively or strategically Make no effort to understand, or use the information to gain strategic advantage Emphasize differences in goals, objectives, interests Search for solutions that meet own needs or block other from meeting their needs

Understanding the other

Attention to commonalities and differences Focus on solutions

What Makes Integrative Negotiation Different?

Focus on commonalties rather than differences Address needs and interests, not positions Commit to meeting the needs of all involved parties Exchange information and ideas Invent options for mutual gain Use objective criteria to set standards

Faulty Perceptions of Win-Win Negotiation

Compromise Even split Feeling good Building a relationship

Telltale Signs of Win-Win Potential

Does the negotiation contain more than one issue? Can other issues be brought in? Can side deals be made? Do parties have different preferences across negotiation issues?

Overview of the Integrative Negotiation Process

Create a free flow of information Attempt to understand the other negotiators real needs and objectives Emphasize the commonalties between the parties and minimize the differences Search for solutions that meet the goals and objectives of both sides

Key Steps in the Integrative Negotiation Process

Identify and define the problem Understand the problem fully

identify interests and needs on both sides

Generate alternative solutions Evaluate and select among alternatives

Claiming and Creating Value

Identify and Define the Problem

Define the problem in a way that is mutually acceptable to both sides State the problem with an eye toward practicality and comprehensiveness State the problem as a goal and identify the obstacles in attaining this goal Depersonalize the problem Separate the problem definition from the search for solutions

Understand the Problem Fully Identify Interests and Needs

Interests: the underlying concerns, needs, desires, or fears that motivate a negotiator

Substantive interests relate to key issues in the negotiation Process interests are related to the way the dispute is settled Relationship interests indicate that one or both parties value their relationship Interests in principle: doing what is fair, right, acceptable, ethical may be shared by the parties

Generate Alternative Solutions

Invent options by redefining the problem set:

Expand the pie Logroll Use nonspecific compensation Cut the costs for compliance Find a bridge solution Brainstorming Electronic brainstorming Surveys

Generate options to the problem as a given:

Evaluate and Select Alternatives

Narrow the range of solution options Evaluate solutions on:

Quality Objective standards Acceptability

Agree to evaluation criteria in advance Be willing to justify personal preferences Be alert to the influence of intangibles in selecting options Use subgroups to evaluate complex options

Evaluate and Select Alternatives

Take time to cool off Explore different ways to logroll Exploit differences in expectations and risk/ time preferences Keep decisions tentative and conditional until a final proposal is complete Minimize formality, record keeping until final agreements are closed

Expanding the Pie: More Strategies

Build trust and share information Ask diagnostic questions Provide information Unbundle the issues Make package deals, not single-issue offers Make multiple offers simultaneously

Expanding the Pie: More Strategies

Structure contingency contracts by capitalizing on differences Valuation Expectations Risk attitudes Time preferences Capabilities

Factors That Facilitate Successful Integrative Negotiation

Some common objective or goal Faith in ones own problem-solving ability A belief in the validity of ones own position and the others perspective The motivation and commitment to work together

Factors That Facilitate Successful Integrative Negotiation

Trust Clear and accurate communication An understanding of the dynamics of integrative negotiation