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
Creating and Claiming Value and the
Parento Efficient Frontier
Increasing
Value to
Buyer
Claiming
Value
Parento
Efficient
Frontier
Increasin
g Value
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
Steps in Integration Process
I.
II.
III.
IV.
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?
• 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.
Steps in Integration Process
I.
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
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
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)
II - cont’d - Types of interests
Interest
Intrinsic
Extrinsic (instrumental)
Substantive
Satisfaction of
doing well
Use gain or outcome
for another purpose
Process (how to e.g., playing a
resolve)
competitive
game
Relationship
Value it for
(do not want to
itself
Gain influence/voice
in org
(economic or
financial issues)
Get positive benefits
from relationship
damage reln)
Principle (what Resonates
is fair/right)
w/core values
Can learn for other
situations
Technique
Features
Expand the pie Add or modify
resources
Logroll
combine/separate
prioritized issues
Non-specific
compensation
Provide
compensation
that is unrelated
to substance of
negotiation
How to implement
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?
Technique Features
How to implement
Cut costs
minimize
for
others’
compliance 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
--What are the other negotiator’s 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
reformulate
problem
Agreement Circumplex
Complex
Interest achievement
Costcut
Logroll
Position
Accommodation
Position
Achievement
Simple
Compromise
Expand
Superordinate
Compensate
Interest substitution
Person Based
Issue Based
Agreement Circumplex
Complex
Interest achievement
Bridge
Costcut
Logroll
Modify
Position
Accommodation
Position
Achievement
Simple
Compromise
Expand
Superordinate
Compensate
Interest substitution
Person Based
Issue Based
Agreement Circumplex
Complex
Interest achievement
Bridge
Costcut
Logroll
Modify
Position
Accommodation
Position
Achievement
Simple
Compromise
Expand
Superordinate
Compensate
Interest substitution
Person Based
Issue Based
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
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
• 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
• Things that prevent integrative negotiation
– Relationship history
– Belief in resolving issue distributively
– Mixed motive features