Integrative Negotiation

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Integrative Negotiation

• Key factors
• Information Exchange
• Understand others needs, interests, positions
• Emphasize commonalities, minimize differences
• E.g., in goal
• Search for solutions that meet needs and
  objectives of both sides

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Creating and Claiming Value and the Parento
Efficient Frontier
Increasing Value to Buyer
Claiming Value
Parento Efficient Frontier
Increasing Value to Seller
Lewicki, R.J., Barry, B., Saunders, D.M.
(2010). Negotiation, Sixth Edition. Figure 3.1
Creating and Claiming Value and the Parento
Efficient Frontier, pg. 76
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• Steps in Integration Process
• Identify Define problem
• Identify needs/interests
• Generate alternatives/solutions to problem
• Evaluate alternatives and select best one
• How is this different from Other types of
  negotiation?

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• Planning for Integrative Exercise
• Before you meet with your partner, you should do
  some planning for your role
• Answer the handout provided
• Note definitions of needs, priorities, interests,
  mix etc.

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• Steps in Integration Process
• Identify Define problem- together
• Mutually acceptable definition
• Make it simple (identify linked vs. separate
  issues)
• Frame as goal Outline addressable obstacles
• Separate person from issues
• Develop standards (see also planning chp.) to
  assess quality of agreement

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• Steps in Integration Process
• II. Interests
• Interestswhy you want what you want (also, why
  you have the goal you
• Vs positionswhat you want

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• II. Types of Interests
• Parties Can have more than one interest at a time
• Parties can have differing interests
• Interests are often based on values
• E.g., recognition, safety etc.
• Can change over time
• Clarify own AND others interests
• Ask why,
• differentiate b/w intrinsic and instrumental
• Need not be to ones best advantage (objective
  vs. subjective)

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• II - contd - Types of interests

Interest Intrinsic Extrinsic (instrumental)
Substantive (economic or financial issues) Satisfaction of doing well Use gain or outcome for another purpose
Process (how to resolve) e.g., playing a competitive game Gain influence/voice in org
Relationship (do not want to damage reln) Value it for itself Get positive benefits from relationship
Principle (what is fair/right) Resonates w/core values Can learn for other situations
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Technique Features How to implement
Expand the pie Add or modify resources 1.How can both parties get what they want? 2.Is there a resource shortage? 3. How can resources be expanded to meet the demands of both sides?
Logroll combine/separate prioritized issues
Non-specific compensation Provide compensation that is unrelated to substance of negotiation
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Technique Features How to implement
Cut costs for compliance minimize others suffering --What risks and costs does my proposal create for the other negotiator --What can I do minimize the other risks and costs so that s/he would be more willing to agree
Bridge solution reformulate problem --What are the other negotiators real underlying interests and needs --What are my own real underlying interests and needs -- What are the higher and lower priorities for each of us in our underlying interests and needs --Can we invent a solution that meets the relative priorities underlying needs of both negotiators
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Agreement Circumplex
Interest achievement
Costcut
Complex
Logroll
Position Accommodation
Position Achievement
Compromise
Expand
Superordinate
Compensate
Simple
Interest substitution
Person Based
Issue Based
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Agreement Circumplex
Interest achievement
Costcut
Bridge
Complex
Logroll
Modify
Position Accommodation
Position Achievement
Compromise
Expand
Superordinate
Compensate
Simple
Interest substitution
Person Based
Issue Based
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Agreement Circumplex
Interest achievement
Costcut
Bridge
Complex
Logroll
Modify
Position Accommodation
Position Achievement
Compromise
Expand
Superordinate
Compensate
Simple
Interest substitution
Person Based
Issue Based
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III. Generate alternative solutions

• Person vs. issue based
• changing positions on issues, vs. changing the
  issues themselves
• Achieve vs. substitute underlying interests
• Achieve bridging, cost cutting
• substitute non specific compensation,
  super-ordination
• Position accommodation vs. achievement
• Simple vs. complex

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• IV. Evaluate Select Alternatives
• Evaluate on Quality and Acceptability
• Decide on objective criteria before negotiation,
  periodically verify priorities
• Articulate your reason for interests
• Be aware of, and discuss intangibles
• Subgroups for complex issues
• Cool off periods
• Logrolling techniques
• Risk preferences, expectation differences, time
  preferences
• Soft bundling
• Minimize formality via written agreements

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• Things that make integrative negotiation happen!
• Sharing a common goal/objective
• Problem solving ability
• Valuing own others position
• Motivation to work together
• Trust
• Clear Accurate communication
• Understanding dynamics

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• Things that prevent integrative negotiation
• Relationship history
• Belief in resolving issue distributively
• Mixed motive features

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