Strategy And Tactics of Integrative Negotiation

Strategy And Tactics of Integrative Negotiation

Integrative Negotiation

Integrative Negotiation

Overview of the Integrative Negotiation Process

•      Create a free flow of information:

share the alternatives-> the possibility of receiving additional benefit is higher->less extreme resistance point.

•      Attempt to understand the other negotiator’s real needs and objectives:

Parties should clarify their priorities about particular issues but not position.

Overview of the Integrative Negotiation Process

Integrative vs. Distributive

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

Example

Example

Example

Integrative vs. Distributive

Claiming and Creating Value

Claiming and Creating Value

Claiming and Creating Value

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

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: several issues-> link

•      State the problem as a goal rather than a solution process 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 .

•      During negotiation both parties expose their demands/ positions, in integrative negotiation the aim is to understand the motivating factors for the other .

Identify Interests and Needs

Understand the Problem Fully –
Identify Interests and Needs

Observation on Interest

Generate Alternative Solutions

•    There are two basic ways to generate alternative solutions:

•    Invent options by redefining the problem set

•    Generate options to the problem as a given

Generate Alternative Solutions

Generate Alternative Solutions

Generate Alternative Solutions

Evaluation and Selection
of Alternatives

•      Narrow the range of solution options

•      Evaluate solutions  based 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

Evaluation and Selection
of 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

Factors That Facilitate Successful Integrative Negotiation

•      Some common objective or goal

•      Faith in one’s own problem-solving ability

•      A belief in the validity of one’s own position and the other’s 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

Why Integrative Negotiation
Is Difficult to Achieve

•      The history of the relationship between the parties

–   If contentious in past, it is difficult not to look at negotiations as win-lose

•      The belief that an issue can only be resolved distributively

–   Negotiators are biased to avoid behaviors necessary for integrative negotiation

Why Integrative Negotiation
Is Difficult to Achieve

•      The mixed-motive nature of most negotiating situations

–   Purely integrative or purely distributive situations are rare

•   The conflict over the distributive issues tends to drive out cooperation, trust needed for finding integrative solutions