Interest-Based Bargaining (IBB)
Commissioner Dennis Dougherty
Federal Mediation & Conciliation Service

What is one thing you remember as significant from yesterday’s training/discussion?
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Bargaining Exercise
“Win as Much as You Can”

Traditional Bargaining

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Traditional Negotiations
Preparation:
• A Look Back – “Let’s get even”
• Data Sources – “Yours can’t be right”
• Mobilization – “Prepare for battle”
• Expectations – “Do what we can to get away with what we want”
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Traditional Negotiations
At the Table:
• Opening Exchange – Demands
• Focus on Separate or Competing Interests
• Exaggerated Positions
• Strategic Retreat
• Denial of Legitimate Claims
• Withholding of Information
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Traditional Negotiations
At the Table (continued):
• Arguments around Data Relevancy
• Emphasis on Control
• Negative Behaviors – “coerce” – “name calling”
• Time Allocation
• Use of Power
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Traditional Negotiations
At the Table (continued):
• Settlements, not Solutions
• Distributing, not Creating
• An agreement reluctantly accepted is a sign of success.
• Limited scope (Confined to NLRB “Box”)
• “The enemy is within” perspective
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Clip: Michael Scott Paper Co.
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Traditional Negotiations
Aftermath:
• Less than Optimal Agreement
• Resentment – Revenge
• Game Playing
• Unwillingness to Implement
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Clip: “Haggle”
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Old Habits…
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…and Change
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Interest-Based Negotiations
Methodology

Aim of Negotiations
IBB negotiation has 3 distinct goals:
• to reach a desired and durable result
• to reach agreement efficiently and fairly
• to keep the relationship intact
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Tenets of IBB
• Refrain from using power tactics and strategies
• Information sharing (information not used as bargaining chip)
• Openness to options and alternatives
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Overview of the Interest-
Based Negotiations Model

IBB Terminology
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•
•
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Issue:
•
Position:
Interest:
Options:
Criteria:
A problem or subject area to be addressed.
One’s proposed solution to an issue. A solution to a problem or concern which is crafted to meet one party's interests.
An underlying motivation, concern or need that must be considered in reaching a mutually satisfactory solution.
Interests are what cause one to take a given position and often express why the issue is an issue in the first place.
Potential, often partial, solutions to satisfy one or more interests.
Broad or general agreed-upon qualities of an acceptable solution.
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Step 1: Defining the Issue
• The statement of the issue should be:

Open-ended

Free of accusations and emotionally laden terms
 Phrased as “What can we do to…”What might we do to…”

Focused on causes rather than symptoms
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Step 2: Identify Interests
• Identify all interests behind the issue
• Interests = concerns, needs, fears, goals that must be addressed in reaching a solution
• Discuss and clarify each interest
• Identify mutual interests
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Step 3: Develop Options
• Options are potential solutions, or partial solutions, to the issue
• Options are not commitments
• Strive for quantity in developing options

Brainstorming is one technique; no judging
• Group reviews, clarifies and sorts options
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Step 4: Craft a Solution
• Integrate promising options into a solution
• Test the solution against the interests
• Test for consensus
• Draft the written solution (off-line)
• Review the written solution and test again for consensus
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Defining the Issue

Defining the Issue
• The issue must be defined clearly
• Everyone must agree that it is the issue to be worked on
• Posting the issue on a flipchart helps to keep the group focused and working on a common goal
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Defining the Issue
• The Checklist

Open-ended

Free of accusations and emotionally laden terms
 Phrased as “What can we do to…” or “What might we do to…”

Depersonalized
 Lends itself to multiple options
 Free of judgmental wording

Focused on causes rather than symptoms
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Defining the Issue
• Framing the issue is an art
• Scope should not be too narrow: only part of the problem will be solved
• Scope should not be too broad: the problem becomes unsolvable
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Defining the Issue
• The statement of the issue may change during the IBB process
• IBB is a process of constant clarification
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Distinguishing Interests from
Positions

Distinguishing Interests From Positions
• Interests

The needs or concerns underlying the issue
• Position
 One party’s solution to the issue
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Interests and Positions
• Interest Statement

Focuses on why the issue is an issue
 Identifies one’s true needs and concerns regarding the issue

Opens the way to a dialogue so the things one cares about can be discussed, understood and addressed
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Sample Listing of Interests
• Consistency
• Productivity
• Teamwork
• Seniority
• Respect
• Fairness
• Reliability
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Interests and Positions
• Position Statement

Focuses on how the issue should be resolved
 May not reveal one’s true needs and concerns regarding the issue

Can set up a confrontation: my way vs. your way
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Interests and Positions
• Testing Interests vs. Positions

Is there more than one solution that would meet the interest?
 If not, it’s probably a position
• There are usually several possible solutions that would satisfy an interest
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Identifying Interests

Process
• Caucus
• Write interests on flipcharts
• Beginning with an action “verb” ending in
“ing” may be helpful – i.e.
Improving
• Discuss among constituents and prioritize
• Share and discuss with other party
• Identify mutual interests
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Identifying Interests
• Identifying and understanding interests is key to the success of IBB
• A dialogue is required; listing interests is not enough
• Listen actively and with empathy
• Ask clarifying questions
• Confirm what you’ve heard in positive terms
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Identifying Interests
• Dialogue may disclose interests that were not listed
• Interests must be accepted as legitimate; they are not to be debated
• Acceptance and understanding do not mean agreement
• Don’t get bogged down in debating whether an interest is mutual
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Identifying Interests
• Demonstrating that you understand and appreciate the interests of the other party is a low risk investment with the potential for high returns
• The discussion of interests should leave participants with a sense of the “gotta-have’s” versus the “like-to-have’s”
• The “gotta-have’s” are the “key” interests that the process should focus on
• “Less is more” – a shorter list is more likely to be remembered and acted upon
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Develop Options

Process
• Revisit issue statement and interests
• List potential options on flipchart

Managed brainstorming/list generation

Many other possible techniques
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Development of Options
• Options are potential solutions or solution elements
• It is helpful to create a broad range of potential solution elements
• Brainstorming can be used to stimulate creative thinking
• Options are not commitments
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Development of Options
• If the issue is complex:
 Don’t rely on brainstorming alone

Review all relevant data

Survey best practices

Obtain the views of experts
• Offering options that meet the interests of the other party builds trust – if the gesture is reciprocated
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Craft a Solution

Select Solution Elements
• Which options best meet the interests and solve the problem?
• Those options = potential pieces of the solution
• May have to create criteria to help decide; the best criteria are the “must-have” interests
• Results are more important than process
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Three Stage Factor Analysis
• Feasible
• Benefit
• Acceptable
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Craft a Solution
• It may be useful to categorize options
• There are many ways to identify the most promising options – e.g., “multi-voting”
• Developing alternative “straw man” solutions can be helpful
• Additional options are often identified as the solution is being worked on
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Craft a Solution
• Return to the key interests if people get positional – caucuses can be helpful
• Consensus is required for agreement
• Consensus means all commit to support the solution
• Detailed solution agreements should be drafted off-line and brought back to the group for approval
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Reaching Agreement by Conseneus
• More on this later
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Benefits of IBB
• Ownership in the solution
• Ease of implementation
• Consistent with organizational values and norms
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Compromise
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IBB Exercise

Next Steps
• Joint Training (check)
• Explain process to constituents
• Identify issues
• Jointly develop ground rules
• Establish language and communication committees
• Prepare opening statement
• Exchange issues
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