~ Chapter 3 Integrative Negotiation, Strategy & Tactics

Integrative Negotiation Focuses on commonalities rather than differences.

- Attempts to address needs and interests, not positions
- Commitment to meeting the needs of all involved parties.
- Invent options for mutual gain.

~ Integrative Negotiation Process, negotiators should manage Context and Process in order to gain the cooperation
and commitment of all parties.
~ Contextual Factors
1. Free flow of information
2. Attempting to understand real needs/objectives of other party
3. Emphasizing commonalities between parties
4. Searching for solutions to meet goals/objectives of both parties
~ Process
1. Process of problem identification 2. Understanding the needs/interests of both parties
3. Generating alternative solutions 4. Selecting among alternative solutions
-----------------------------------------------------------------------------------------------------[Context]
~ 1. Creating Free Flow of Information
- Negotiators must be willing to freely reveal their TRUE obejctives and to listen to each other carefully.
- When negotiators are aware of each other's alternatives, (BATNAs), they were more likely to make their
resistance point LESS extreme, improve negotiating trade-offs, and increase the SIZE of the resource
pie.
~ 2. Attempting to Understand the Other Negotiator's Real Needs/Objectives
- Throughout the Process of Sharing Information about Priorities, negotiators must make a true effort to
understand what the other party really wants to achieve.
~ 3. Emphasizing commonalities between parties and Minimizing Differences
- To sustain free flow of info, and efforts to understand other needs, negotiators need to identify the
commonalities to stress the larger goal where the parties are able to maintain a focus on commonalities,
that eventually lead to a solution.
~ 4. Searching for Solutions that Meet Needs/Obj of Both Sides
- ** Firm but Flexible ** - About their primary interests/needs
- Competition = low concern for other's objectives.
- Integrative = both negotiators to define/pursue their own goals, while being mindful of others.
- Outcomes of success = measured by degree they meet both negotiators' goals.
[Process, Key steps in the Negotiation Process]
~ 1. Identify and Define the Problem
-

Define Problem in a way that is Mutually Acceptable to Both Sides Both parties need to state the problem
is neutral terms.
- No word is to be blame or in favor of preferences of one side over the other.
State the problem with an Eye toward practicality and comprehensiveness- anything that distracts should be
removed.
State the Problem as a Goal and identify the Obstacles to Attaining the goal Rather than a solution
process, the problem should be defined as a goal.
- They should concentrate on what they want to achieve, rather than how.
- Depersonalize the Problem Focus on the obstacles, and not the party behind it.

* Separate Problem Defining from SEARCH for Solutions * Problems must be well and fully defined,
before a preferred solution can be devised.

- Negotiators should try to develop standards by which potential solutions will be judged for how will they
fit.
"How will we know the problem has been solved? Our goals attained?"
---------------------------------------------------------------------------------~ 2. Understand the Problem Fully, Identify Interests/Needs
- Understand and satisfy each other's interests. (key to achieving an integrative agreement)
Interests: Underlying concerns, needs, desires, or fears that motivate a negotiator to take a particular
position.
-

Understand the Motivating Factors of Other If you pursue in understand the other's thinking and logic in
how they determined the factors towards their goals; you can better find compatibilities.

Types of Interests :can be intrinsic (the parties value it in and of itself) or instrumental (the parties value it
because it helps them derive other outcomes in the future)

1. Substantive Interests Issues such as economic/financial; price/rate, tangible resources.

2. Process Interests HOW the negotiation unfolds, can be both intrinsic and instrumental; if someone intrinsically
likes to be heard; if they see the process as a key role to organization of the negotiation; instrumental.
3. Relationship Interests Both parties value their relationship, and do not want take actions that will damage it.
- Interests can change
- Parties can have multiple interests underlying a negotiation
- Surfacing interests (sometimes people are not sure about their own interests)
----------------------------------------------------------------------------------~ 3. Generate Alternative Solutions
1. First Step = Redefine, reframe the problem to create win/win alternatives out of what appeared to be a win/lose
problem.
2. Takes the problem as given and creates long list of options which the parties can choose.

1. Generating Alternative Solutions by Redefining the Problem/Problem Set [Pg 73 Table]:

- Position Achievement vs. Position Accommodation Instead of accommodating, position achievement = both
parties get what they wanted in their initial demands; expanding the pie/modifying the resource pie.
-

Achieving Underlying Interests vs. Substitute Underlying Interests Underlying interests can be
substituted modified/changed
Simple vs. complex

- Person-based vs. Issue Based

- Person based = Making concessions and changing positions from original
- Issue Based = Modify the issues under discussion to fit them to the negotiators needs/desires.
1. Compromise (Position Accommodation) - Stay in the current status quo; unlikely for a comprehensive
agreement.
2. Logroll (Position Accommodation) SEPERATING a single issue into 2 or MORE issues
- Successful logrolling = parties find more than one issue in conflict and to have different priorities for those issues.
- Parties agree to trade off among these issues, so that 1 parties achieves a highly preferred on the 1st issue, and the
other achieves a highly preferred outcome on the 2nd issue.
3. Expanding the Pie (Position Achievement) Adding resources to help both parties achieve their objectives,
since often times there are a shortage of resources to fulfill both sides.
- * Warning * - Expanding the pie implies that you can solve the issue by simply adding resources to solve

shortages; however, if the issue was about "different visions about the future of the firm", adding resources is simply
not enough., as more stakeholders are involved.
4. Finding a Bridge Solution (Interest Achievement) When parties are able to invent NEW options, that meet all
their respective needs, they create a bridge solution; bridge solutions can create high satisfaction for both sides.
- Requires a reformulation of the problem, so the parties are not discussing positions, but information about
interests and inventing options that will satisfy those needs.
- I.E. Lease a larger space downtown with new office furnishing, instead of figuring out 2 different leases
separating the firm.
5. Cut the Costs for Compliance (Interest Achievement) - Helping the other party achieve their objectives, by
minimizing the costs to the other party if they agree to it.
- ** Requires a more intimate knowledge of the other party's REAL needs/preferences.
- I.E. Career negotiation; ask the company to pay for the $9,000 move in fee as part of
the contract.

the agreement to

6.Nonspecific Compensation (Interest Substitution) - Generating alternatives is to compensate the other for other
interests (non-monetary); where the party receives it for agreeing regardless.
- ** It is not directly related to the substantive issues being discussed.
- I.E. Emma gets her preferred location; while Samantha receives the new office furniture as a nonspecific
compensation for agreeing to the new office location.
** [Pg 77, Refocusing Questions to Reveal Win-Win Options]
- Brainstorming Working together to generation as many possible solutions as possible.
- Requirements: Participants are required to not discuss or evaluate any solution when it is proposed, so
they don't stop the free flow of new ideas.
- Avoid judging or evaluating solutions.
- Separate the People from the Problem concentrate on depersonalizing the problem,
possible solutions equally viable, regardless of who initiated them.

treating all

~ Section Summary ~:
- ** Firm Flexibility Recognizes that negotiators have focusing on exchanging information and working towards
understanding the other party; working together and being flexible with other party to help each other achieve
interests.
---------------------------------------------------------------~ 4. Evaluate and Select Alternatives
-

** Narrow the Range of Solution Options ** Examine the list of options and focus on one or MORE that
they strongly support; than focusing on unacceptable criteria.

Evaluate Solutions on the Basis of Quality, Standards, and Acceptability How good are the solutions will
they be to implement.

- Searching for STANDARDS = Industry Standards, arbitration decisions.

Agree to the criteria in Advance of Evaluating options.
Be willing to Justify Personal Preferences explain WHY they dislike an option, instead of "I don't
know."
- Negotiation should explain the intent of why they want them to justify it, as a way of facilitating a
collaborate settlement, than to challenge the other party's perspective (putting them on the defensive)

Take Time Out to COOL Off To reassess the situation, if other party cannot come to generating a list of
viable options, make it known and take a break.

~ ** Exploring Different Ways to Logroll [Pg 81] ** ~

1. Explore Differences in Risk Preference People have different tolerances for risk, and a package offered should
recognize differences in risks.
2. Explore Differences in Expectations Everyone has a different outlook of future events.
- I.E. Optimist may be willing to gamble more; pessimist may be willing to settle for a
assured payment.

smaller more

3. Explore Differences in Time Preferences Short-term needs vs. Long-term orientation towards relationship and
the benefits of both.
-

Minimize Formality/Record Keeping Until Final Agreements are Closed You want to make sure you do
not trap each other in specific writ-ten agreements, until you are sure both parties are completely satisfied.
- I.E. Don't rush voting on an agreement, encourage negotiations to continue until
a
consensus is reached.
-----------------------------------------------------------------------~ Factors that Facilitate Successful0 Integrative Negotiation (7) [Pg 82]
1. Common Objective or Goal A shared goal = both parties work towards but each party benefits differently.
- I.E. Partners can work together in a business but not divide the profits equally;
larger
contribution may receive more profit due to investment
-

Joint Goal Involving individuals with different personal goals, agreeing to combine them in a collective
effort.
- I.E. People working together in a political campaign, but all have different personal ambition for
positions in a cabinet.

2. Belief in Validity in One's Own Position and the Other's Perspective Make your perspective worth fighting
for and believe in it, should not compromise, while also accepting the validity of the other party's perspective.
3. Motivation and Commitment to Work Together Both parties need to be motivated to collaborate rather an
competing; adopt interpsonal styles more cogenial than compative.
- Flexible but Firm vs. Stubborn but Yielding
4. Trust - Mistrust inhibits collaboration; creates defensiveness; they will withdraw and withhold information.
- This hinders a collaborative effort and open sharing of information.
- Trust is difficult to establish, but in order to do so each negotiator must believe that both parties will choose to
behave in a cooperative manner; and believe the behavior is a signal of the other's honesty, openness, and mutual
commitment to a joint solution.
- Solutions: Offer to share information, but encourage reciprocity, negotiate multiple issues simultaneously,
make multiple offers at the same time.
5. ** Clear and Accurate Communication ** - Negotiators must be willing to reveal what they want and share
WHY they want it in specific concrete terms avoiding generalities/ambiguity.
- Identify ambiguities and try to get them clarified.
- Active Listening is good [Not in Text)