AGENDA
Nov. 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)
INTEGRATIVE OR,
MUTUAL GAINS OR,
INTEREST-BASED OR,
WIN-WIN BARGAINING
YOU DO NOT HAVE TO LOSE
FOR ME TO WIN
THE PRINCIPLE IS TO NEGOTIATE
WHAT IS RIGHT NOT WHO IS RIGHT
Interest-Based Bargaining
A negotiation or approach that focuses on
satisfying as many interests or needs as
possible for all negotiators
Source: C. Moore
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
• 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?
WIN-WIN IS NOT…
•
•
•
•
Compromise
Even split
Feeling good
Just about building a relationship
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?
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
A critical skill is how you 'frame' the problem
FRAMING:
THE MANNER IN WHICH A
CONFLICT SITUATION, ISSUE
OR, INTEREST IS DEFINED
• 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
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
Interest-Based Bargaining
• A negotiation or approach that focuses on
satisfying as many interests or needs as
possible for all negotiators
Source: C. Moore
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
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
In Mutual Gains Negotiations
Both parties:
1. Take ownership and responsibility for the
outcome of the negotiations 
2. Work to keep the relationship intact 
3. Work on problems rather than make demands
********** {Note the difference from
distributive bargaining}
In Mutual Gains Negotiations
(continued…)
Both parties:
4. Use processes to deliberately stimulate
creative solutions
5. Work together to find solutions that benefit
all parties
NOTE-in all 5 steps the emphasis is on
SHARED RESPONSIBILITIES
When is Interest-Based Bargaining Used?
1. When the interests of the negotiators are
interdependent
2. When future relationships are a high priority
3. When negotiators WANT to establish cooperative
problem solving rather than compete
4. When a compromise of principles is unacceptable
Mutual Gains Bargaining is Appropriate
in 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
For Interest-Based Bargaining to Work,
Both Parties Need to be Committed to:
1. Understanding the other party's needs and
objectives
2. Providing a free flow of information - both ways
3. Seeking the best solutions to meet the needs of
both sides
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
Adversarial Barg’g Mutual gains
barg’g
Training
Separate for
employer and
union
Joint
employer/union
Focus
Exchange formal
Joint
demands/proposals identification of
issues/problems
Process for
negotiations
Formal, sit on
opposite sides.
Bound by what
said
Informal, no
bargaining table,
non binding
discussion
• 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
The five skills for mutual gains bargaining
1. Establish and build a working relationship
1. Trust matters!
2. Establish and maintain effective 2 way communication
3. Identify and explore underlying interests
1. Separate the problem from the person
4. Invent options
5. Identify and use external standards to decide among
options
1. This allows participants to save face by backing off
their own position but not ‘give in’ to the other
party’s.
"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
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
A critical skill is how you 'frame'
the problem
• FRAMING:
THE MANNER IN WHICH A CONFLICT
SITUATION, ISSUE, OR INTEREST IS DEFINED
Early 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.”
WHEN YOU SENSE THE
POSSIBILITY OF A NEGATIVE
BARGAINING RANGE…
REFRAMING THE PROBLEM OR
QUESTION WILL OFTEN BREAK
WHAT APPEARS TO BE AN IMPASSE
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
SUCCESSFUL FRAMING
DEMANDS GOOD, ACTIVE
LISTENING
Some principles for effective reframingMayer
• 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!
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.
Framing exercise
• 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.
As in Any Bargaining, Interest-Based
Bargaining Has Three Main Aspects
1. Solid planning and preparation before you start
2. Careful listening so that you can find what the
other side really wants
3. Attending to the 'signals' the other side sends
through his or her conduct once bargaining gets
underway
Source: Schell, page xiv
The Mutual Gains Approach
Has Four Key Steps or Phases
1. Effective preparation
2. Inventing options to create joint gains
3. Using fair standards to distribute joint gains
and maintain relationships
4. Anticipating the problems of follow-through
Positions
• In bargaining, a position represents the
maximum gain expected. Often, it is put
forward as a demand
stalemate
• 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
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
"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
Remember!!
There Are 3 Elements of Interests
ATTITUDES
AND EGOS
ISSUES AND
SUBSTANCE
DYNAMICS or PROCESS
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
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??
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?"
Interests (continued…)
• If conversation is
difficult or, heated,
take a deep breath
and …
PUT YOURSELF
IN THE OTHER
PERSON’S SHOES
For Mutual Gains Bargaining to Work,
Both Sides Need to be Committed to:
1. Understanding the other party's needs and
objectives
2. Providing a free flow of information both
ways
3. ***Seeking the best solutions to meet the
needs of both parties.***
The Phases in Integrative Bargaining
1. Planning
2. Initial face-to-face meeting
3. Mutual gains problem-solving
4. Reaching agreement
5. Living by the agreement
The Ground Rules
• During planning, the combined bargaining
group makes decisions regarding ground
rules to be followed.
Typical mutual gains ground rules-Weiss
1. Participation by everyone
2. Honesty and no deceptions
3. Joint communications-eliminate negotiating through
the media
4. Anyone can facilitate the discussions
5. Flip charts used as memory joggers
6. The only record is the agreed upon notes
7. Only the spokesperson can make any official offer
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
Steps in Interest-Based Bargaining**
use in your case
1. Planning
a. Identify the interests that you expect to be satisfied in
the negotiations - three types. Be clear on; why the
needs are important and how 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
d. Give some thought to how the problem might be
framed.
Especially, consider what you might do if
unexpectedly a negative bargaining range should
evolve
How might the other side frame it and how could you
re-frame?
e. Give some thought to objective standards against
which alternatives can be assessed.
Steps in Interest-Based Bargaining
2. Begin negotiations by educating each other
about your respective interests
–If other negotiators present positions, you
take the initiative to reframe them into
interests
–Be specific about why interests are
important
–Make sure all interests are understood
Steps in Interest-Based
Bargaining (continued…)
3. Frame the problem in a way that is solvable by a
win/win solution
•Remove egocentricity by framing the problem in
a way that all can accept
–Include the basic interests of all parties
In this model, both parties are involved equally in
the process of problem definition, and both need to
agree fully what the problem(s) is
Steps in Interest-Based Bargaining
4. Identify in advance general criteria that
must be present in an acceptable
settlement
–Look for agreements in principle
–Identify acceptable objective criteria that
will be used to reach more specific
agreements
5. Generate options
THE BRAINSTORM
What you are looking for are
options, possible agreements, or
pieces of an agreement
Always remember to separate the
process of inventing options from
the process of deciding among
those options
Options
Deciding
Inventing
Committing
Not Committing
Judging
Improving
Narrowing
Generating
Arguing
Brainstorming
Evaluating
Suspending Judgment
Use Integrative Option
Generating Techniques
• Expand the pie - ways that more resources or
options can be brought to bear on the problem
• Alternating satisfaction - each negotiator gets 100%
of what he/she wants but at different times
• Integrative solutions - look for solutions that involve
maximum gains and few or no losses for both parties
SOME WIN-WIN APPROACHES
THAT OFTEN WORK
1. CONTINUALLY ask questions about
underlying interests and, questions about
priorities
2. Un-bundle the issues
3. Make package deals not single-issue offers.
4. Make multiple offers simultaneously
5. Don’t be afraid to use good contingency
contracts