AGENDA Nov. 2/3

1. AGENDANov. 2/3 • Discussion of grading + questions re: assignments • Discussion of coffee case • Negotiate and de-brief • Intro to integrative negotiations • Case 2 distribution • Film(s)

2. INTEGRATIVE OR,MUTUAL GAINS OR,INTEREST-BASED OR,WIN-WIN BARGAINING

3. YOU DO NOT HAVE TO LOSE FOR ME TO WIN THE PRINCIPLE IS TO NEGOTIATE WHAT IS RIGHT NOT WHO IS RIGHT

4. Interest-Based Bargaining A negotiation or approach that focuses on satisfying as many interests or needs as possible for allnegotiators Source: C. Moore

5. Interest based bargaining starts with developing and preserving the relationship. Parties educate each other about their needs, and then jointly problem solve on how to meet those needs

6. In distributive bargaining, the goals of the parties are initially at odds. More for me means less for you! In integrative bargaining, the goals of the parties are not mutually exclusive How can we both win here?

7. WIN-WIN IS NOT… • Compromise • Even split • Feeling good • Just about building a relationship

8. SIGNS OF WIN-WIN POTENTIAL • Does the negotiation contain more than one issue? • Can other issues be brought in? i.e. what may be defined as a salary issue can be broadened to include benefits, vacation, training etc. • Do the parties have different strength of preferences across the issues on the table?

9. In integrative bargaining, the parties either begin with compatible goals or, are willing to search for ways to align their goals so that both can gain

10. FRAMING: THE MANNER IN WHICH A CONFLICT SITUATION, ISSUE OR, INTEREST IS DEFINED A critical skill is how you 'frame' the problem

11. Integrative bargaining does not work in all situations. For example, it does not work where price is the single issue. It also requires that participants be willing to operate in a win/win fashion

12. In integrative bargaining, the parties either begin with compatible goals or, are willing to search for ways to align their goals so that both can gain Alignment often involves the process of persuasion

13. Interest-Based Bargaining • A negotiation or approach that focuses on satisfying as many interests or needs as possible for allnegotiators Source: C. Moore

14. Interest-Based Bargaining (continued…) • It is a problem solving process used to reach an integrative solution rather than distributing rewards in a win/lose manner • It is NOT a process of compromise Source: C. Moore

15. CLIMBING THE MPA 821 PYRAMID OTHER Mitigating factors Special tools • INTEREST CONFLICTS • Distributive bargaining • Integrative bargaining • Assisted bargaining • GENERAL CONFLICT TYPOLOGIES • CAUSES AND REMEDIES- MOORE • PROCESSES OF RESOLUTION-power, rights, interests

16. In Mutual Gains Negotiations Bothparties: • Take ownership and responsibility for the outcome of the negotiations  • Work to keep the relationship intact • Work on problems rather than make demands ********** {Note the difference from distributive bargaining}

17. In Mutual Gains Negotiations (continued…) Both parties: • Use processes to deliberately stimulate creative solutions • Work together to find solutions that benefit all parties NOTE-in all 5 steps the emphasis is on SHARED RESPONSIBILITIES

18. When is Interest-Based Bargaining Used? • When the interests of the negotiators are interdependent • When future relationships are a high priority • When negotiators WANT to establish cooperative problem solving rather than compete • When a compromise of principles is unacceptable

19. Mutual Gains Bargaining is Appropriatein the Following Situations • When two parties have common ground • In situations where two parties have the same customers, clients, suppliers, or service personnel • In personal relationships In all of the above, the parties want to establish and maintain a smooth, continuing, working relationship

20. For Interest-Based Bargaining to Work,Both Parties Need to be Committed to: • Understanding the other party's needs and objectives • Providing a free flow of information - both ways • Seeking the best solutions to meet the needs of both sides

21. Some Costs of Interest-Based Bargaining • Requires some trust • Requires negotiators to disclose information and interests • May uncover extremely divergent values or interests • Clearly takes more time

23. The minimum standard for an interest based solution to a problem is that it has to be at least equal to or better than what the parties believe they would have negotiated with a rights or power approach

24. The five skills for mutual gains bargaining • Establish and build a working relationship • Trust matters! • Establish and maintain effective 2 way communication • Identify and explore underlying interests • Separate the problem from the person • Invent options • Identify and use external standards to decide among options • This allows participants to save face by backing off their own position but not ‘give in’ to the other party’s.

25. "In interest-based bargaining, both sides are equally involved in the process of problem definition and both need to agree fully on what the problem is." Lewicki and Hiam

26. Some Suggestions for Framing/Reframing • Frame issues in the form of problem statements, i.e. how can we… • Frame issues so that multiple solutions are possible • Frame issues in a value free manner

27. A critical skill is how you 'frame' the problem • FRAMING: THE MANNER IN WHICH A CONFLICT SITUATION, ISSUE, OR INTEREST IS DEFINEDEarly stage framing might present the negotiation itself in a way to get the desired responses from the other side.For example, “ you might propose a ‘frame’ of cooperation by describing the negotiation as an opportunity for us to find the common ground we both know is there despite our difficulties on some issues.”

28. WHEN YOU SENSE THE POSSIBILITY OF A NEGATIVE BARGAINING RANGE… REFRAMING THE PROBLEM OR QUESTION WILL OFTEN BREAK WHAT APPEARS TO BE AN IMPASSE

29. Identify and define the problem • Define the problem neutrally so it is mutually acceptable to all sides • State the problem with an eye to practicality and comprehensiveness. • State the problem as a goal and identify obstacles to meeting that goal. • Separate the problem from the person

30. SUCCESSFUL FRAMING DEMANDS GOOD, ACTIVE LISTENING

31. Some principles for effective reframing-Mayer • Even in the most hostile, negative presentation of an issue there is information about a person’s concerns and attitudes that can be used usefully. • Constructive framing is about clarity and honesty, not about smoothing difficult issues over!

32. Some principles for effective reframing-Mayer • Reframing must reflect the most important needs of the parties-don’t just sugar coat the tough ones. • Successful reframing is interactive and iterative. The disputants must all be actively and personally involved in the reframing process.

33. Framing exercise

34. Marion needs help from Joe’s department in the form of some of Teresa’s time. Joe is swamped with work and can only commit one day of Teresa’s time when Marion needs at least 3 days. Clearly there is a negative bargaining range. Reframe the problem so that room to negotiate is created.

35. As in Any Bargaining, Interest-Based Bargaining Has Three Main Aspects • Solid planning and preparation before you start • Careful listening so that you can find what the other side really wants • Attending to the 'signals' the other side sends through his or her conduct once bargaining gets underway Source: Schell, page xiv

36. The Mutual Gains ApproachHas Four Key Steps or Phases • Effective preparation • Inventing options to create joint gains • Using fair standards to distribute joint gains and maintain relationships • Anticipating the problems of follow-through

37. Positions • In bargaining, a position represents the maximum gain expected. Often, it is put forward as a demand • Arguing over positions tends to lock the parties into their positions • A position is a very specific solution to a problem. It is likely to be concrete and explicit stalemate

38. Interests Definition - Fisher and Ury • The basic problem in a negotiation lies not in conflicting positions, but in a conflict between each side's needs, desires, concerns, and fears... Interests motivate people; they are the silent movers behind the hubbub of positions... Your interests are what caused you to decide

39. "Interests are the broader perspective(s) that usually lie behind a position. In contrast to positions, interests define what the parties care about more broadly, and there are often multiple ways to resolve the conflict between competing interests." Lewicki and Hiam

40. Remember!! There Are 3 Elements of Interests ATTITUDES AND EGOS ISSUES AND SUBSTANCE DYNAMICS or PROCESS

41. Interests • Interests are what motivates people to a particular course of action. They are the silent movers behind positions. Behind opposing positions lie shared and compatible interests as well as conflicting ones

42. Interests (continued…) One of the areas that clearly differentiates good negotiators from poor ones, is the ability to identify interests - both yours other's • Get at interests by asking open-ended questions • Why do you want that? • Why is that important to you? • What will achieving X help you to do? • What will happen if you do not achieve your objective??

43. Interests (continued…) • Or, if that does not work, try to ask them to criticize… "What is it about the proposal that doesn't work for you?"

44. If conversation is difficult or, heated, take a deep breath and … PUT YOURSELF IN THE OTHER PERSON’S SHOES Interests (continued…)

45. For Mutual Gains Bargaining to Work,Both Sides Need to be Committed to: • Understanding the other party's needs and objectives • Providing a free flow of information both ways • ***Seeking the best solutions to meet the needs of both parties.***

46. The Phases in Integrative Bargaining • Planning • Initial face-to-face meeting • Mutual gains problem-solving • Reaching agreement • Living by the agreement

47. The Ground Rules • During planning, the combined bargaining group makes decisions regarding ground rules to be followed.

48. Typical mutual gains ground rules-Weiss • Participation by everyone • Honesty and no deceptions • Joint communications-eliminate negotiating through the media • Anyone can facilitate the discussions • Flip charts used as memory joggers • The only record is the agreed upon notes • Only the spokesperson can make any official offer

49. If Needed - Joint Training "Nothing is more powerful than creating a learning environment between 'adversaries’, that is 'non-binding' to allow people to build relationships and break down barriers" Weiss

50. Steps in Interest-Based Bargaining**use in your case • Planning a. Identify the interests that you expect to be satisfied in the negotiations - three types. Be clear on; why the needs are important andhow important they are to you b. Speculate on the interests and their types that might be important to the others- and in what priority. Prep some questions to get at their interests c. Identify your BATNA