Integrative Negotiation

1. 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

2. 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

3. 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?

4. 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.

5. 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

6. Steps in Integration Process II. Interests • Interests=why you want what you want (also, why you have the goal you • Vs positions=what you want

7. 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 one’s best advantage (objective vs. subjective)

8. II - cont’d - Types of interests

11. Agreement Circumplex Interest achievement Costcut Complex Logroll Position Accommodation Position Achievement Compromise Expand Superordinate Simple Compensate Interest substitution Person Based Issue Based

12. Agreement Circumplex Interest achievement Costcut Bridge Complex Logroll Modify Position Accommodation Position Achievement Compromise Expand Superordinate Simple Compensate Interest substitution Person Based Issue Based

13. Agreement Circumplex Interest achievement Costcut Bridge Complex Logroll Modify Position Accommodation Position Achievement Compromise Expand Superordinate Simple Compensate Interest substitution Person Based Issue Based

14. 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

15. 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

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

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