Organizational Processes for TPP:
Session 6
Negotiations and Dispute
Resolution
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Session Design (3 hours)
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Welcome and Overview (5 min.)
Mango Systems Negotiation and Discussion (90
min.)
Break (10 min.)
Strategic Negotiations and Interest-Based Bargaining
(60 min.)
April 2nd Simulation Logistics (15 min.)
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A Five Step Negotiations Model
• What does the
word “negotiations”
mean to you?
• What are examples
of negotiations
situations relevant
to technology
policy?
I. Prepare
II. Open
III. Explore
IV. Focus
V. Agree
Note: This model is from the seminar on “Negotiating Labor Agreements” offered through the Program on Negotiation at the
Harvard Law School in co-sponsorship with MIT – program co-chairs: Joel Cutcher–Gershenfeld and Robert McKersie
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Mango Systems Simulation

Process Overview:
– Step 1 (before class):
 Prepare for negotiations
– Step 2 (10 – 15 min.):
 Meet in groups of people all with the same role –
clustered in small groups of 2-3 people for final
preparation focused on your opening statements
 Assignments to pairs for negotiations
– Step 3 (30 – 45 min.):
 Negotiate in pairs – reach agreements if you can
– Step 4 (30 – 45 min.):
 Discussion
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Mango Systems Discussion
• Negotiations Substance
– Agreements reached
– Open issues
– Nature of the issues
• Compare and Contrast Experience
in Sub-Groups A, B and C
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Mango Systems Discussion (cont.)
• Negotiations Process
– Five phases
• Preparation
– Technical preparation; Social preparation
• Opening
– Framing, including last-minute mandates
• Exploring
– Understanding interests and generating options
• Focusing
– Establishing linkages, ranges and architecture
• Agreeing
– Recording agreement; Anticipating implementation
– Communications dynamics throughout
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Thinking About Conflict
As conflict -- difference -- is here in the world, as we cannot avoid it,
we should, I think, use it. Instead of condemning it, we should
set it to work for us.
why not? What does the mechanical engineer do with friction? Of
course his chief job is to eliminate friction, but it is true that he
also capitalizes friction. The transmission of power by belts
depends on friction between the belt and the pulley. The friction
between the driving wheel of the locomotive on the track is
necessary to haul the train. All polishing is done by friction. The
music of the violin we get by friction. We left the savage state
mind on mind as a good thing.
So in business, too, we have to know when to try to eliminate
friction and when to try to capitalize it, when to see what work
we can make it do. That is what I wish to consider here,
whether we can set conflict to work and make it do something
for us.
– Mary Parker Follett (Bureau of Personnel Administration Conference, 1925)
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Conflict Resolution Systems
• What are examples of conflict resolution
processes in organization?
• How are they inter-related with one another?
• Key principle: Multiple Redundant Systems
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Conflict Styles
• Competitors
• Accommodators
• Avoiders
• Quick fixers
• Problem Solvers
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Traditional bargaining tactics
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Overstate your opening position
Always have a fall-back position
Commit to your position early and publicly
If you are a group, always use a single
spokesperson
Give as little as possible for what your get
Never bargain against yourself
Mobilize support from your constituents
Exploit weaknesses in the other side
An agreement reluctantly accepted is a sign of
success
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Core assumption
Common interests
Competing interests
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Positional and interest-based
bargaining
My Positions
Zone of
Possible
Agreement
Based on
Positions
Others’ Positions
Range of Options
Based on Interests
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Distinguishing interests and
positions
Sample statements: Which are interest-based and which are
positional?
Statement A: We are launching a new quality program
and we expect the union to be a full partner
Statement B: We are implementing a new quality
initiative, which is part of the ISO 9000:2000
international quality standard. We know that the input
of the workforce – your members – is essential to any
quality initiative. So, we really want your full
participation. Also, active union participation in the
ISO 9000:2000 efforts will send an important signal to
our customers. What can we do to work together on
this issue?
What do you notice when you compare these statements?
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Issue analysis worksheet
Issue:
My/Our Interests: What is important to the me/us on this issue?
Other’s Interests: What is important to other parties/stakeholders on this issue?
Power: What are some of the power realities in this scenario?
What are the best alternatives to an agreement (BATNA) for each party?
Options: What are some options to consider on this issue?
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Strategic negotiations
What are examples of forcing, fostering and escape that
You have been in organizations?
How are they related to each other?
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Sequencing Forcing and
Fostering Strategies
What happens when forcing comes first?
What happens when fostering comes first?
What happens when both are going on at the same time?
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Negotiation Strategy and
Organizational Change
• Change strategies and negotiation blind sides
– Top-down re-engineering
• Forcing process makes recovery afterwards
difficult
– Bottom-up process improvement
• Fostering process makes subsequent
conflict difficult
– Pilot-experiment and diffusion
• Diffusion depends on a combination of
forcing and fostering
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