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Strategy And Tactics of Integrative Negotiation

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Presentation on theme: "Strategy And Tactics of Integrative Negotiation"— Presentation transcript:

1 Strategy And Tactics of Integrative Negotiation
CHAPTER THREE

2 NEGOTIATION METHODS Distributive Zero-Sum Positional Competitive
Claiming value Integrated Win/Win “Interest Based” Cooperative Creating value

3 Getting to Yes The Seven Elements of Negotiation
INTERESTS What do people really want? OPTIONS What are possible agreements or bits of an agreement? ALTERNATIVES What will I do if we do not agree? LEGITIMACY What criteria will I use to persuade each of us that we are not being ripped off?

4 The Seven Elements of Negotiation (cont’d)
COMMUNICATION Am I ready to listen and talk effectively? RELATIONSHIP Am I ready to deal with the relationship? COMMITMENT What commitments should I seek or make?

5 PROCESSES THAT DISTINGUISH INTEGRATIVE FROM DISTRIBUTIVE NEGOTIATION
Flow of information Free & open flow; share information openly Conceal information, or use it selectively or strategically Understanding the other Attempt to understand what the other side really wants & needs Make no effort to understand, or use the information to gain strategic advantage Attention to commonalities and differences Emphasize common goals, objectives, interests Emphasize differences in goals, objectives, interests Focus on solutions Search for solutions that meet the needs of both (all) sides Search for solutions that meet own needs or block other from meeting their needs

6 What Makes Integrative Negotiation Different?
Focus on commonalties rather than differences Address needs and interests, not positions Commit to meeting the needs of all involved parties Exchange information and ideas Invent options for mutual gain Use objective criteria to set standards

7 Faulty Perceptions of Win-Win Negotiation
Compromise Even split Feeling good Building a relationship

8 Telltale Signs of Win-Win Potential
Does the negotiation contain more than one issue? Can other issues be brought in? Can side deals be made? Do parties have different preferences across negotiation issues?

9 Overview of the Integrative Negotiation Process
Create a free flow of information Attempt to understand the other negotiator’s real needs and objectives Emphasize the commonalties between the parties and minimize the differences Search for solutions that meet the goals and objectives of both sides

10 Key Steps in the Integrative Negotiation Process
Identify and define the problem Understand the problem fully identify interests and needs on both sides Generate alternative solutions Evaluate and select among alternatives

11 Claiming and Creating Value

12 Identify and Define the Problem
Define the problem in a way that is mutually acceptable to both sides State the problem with an eye toward practicality and comprehensiveness State the problem as a goal and identify the obstacles in attaining this goal Depersonalize the problem Separate the problem definition from the search for solutions

13 Understand the Problem Fully – Identify Interests and Needs
Interests: the underlying concerns, needs, desires, or fears that motivate a negotiator Substantive interests relate to key issues in the negotiation Process interests are related to the way the dispute is settled Relationship interests indicate that one or both parties value their relationship Interests in principle: doing what is fair, right, acceptable, ethical may be shared by the parties

14 Generate Alternative Solutions
Invent options by redefining the problem set: Expand the pie Logroll Use nonspecific compensation Cut the costs for compliance Find a bridge solution Generate options to the problem as a given: Brainstorming Electronic brainstorming Surveys

15 Evaluate and Select Alternatives
Narrow the range of solution options Evaluate solutions on: Quality Objective standards Acceptability Agree to evaluation criteria in advance Be willing to justify personal preferences Be alert to the influence of intangibles in selecting options Use subgroups to evaluate complex options

16 Evaluate and Select Alternatives
Take time to “cool off” Explore different ways to logroll Exploit differences in expectations and risk/ time preferences Keep decisions tentative and conditional until a final proposal is complete Minimize formality, record keeping until final agreements are closed

17 Expanding the Pie: More Strategies
Build trust and share information Ask diagnostic questions Provide information Unbundle the issues Make package deals, not single-issue offers Make multiple offers simultaneously

18 Expanding the Pie: More Strategies
Structure contingency contracts by capitalizing on differences Valuation Expectations Risk attitudes Time preferences Capabilities

19 Factors That Facilitate Successful Integrative Negotiation
Some common objective or goal Faith in one’s own problem-solving ability A belief in the validity of one’s own position and the other’s perspective The motivation and commitment to work together

20 Factors That Facilitate Successful Integrative Negotiation
Trust Clear and accurate communication An understanding of the dynamics of integrative negotiation


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