Chapter 3: Strategy and tactics of integrative negotiation

Chapter 3: Strategy and tactics of integrative negotiation

In many negotiations there need not be winners and losers; all parties can be winner. In integrative negotiation- variously known as cooperative, collaborative, win-win, or problem solving- the goals of the parties are not mutually exclusive. The fundamental structure of an integrative negotiation situation is such that it allows both sides to achieve their objectives.

Integrative negotiation requires a process fundamentally different from that of distributive negotiation. Those wishing to achieve integrative results find that they must manage both the context and the process of the negotiation in order to gain the willing cooperation and commitment of all parties. The following processes tend to be central to achieving almost all integrative agreements:

·        creating a free flow of information

·        attempting to understand the other negotiator’s real needs and objectives

·        emphasizing the commonalities between the parties and minimizing the difference

·        searching for solutions that meet the goals and objectives of both sides

There are four major steps in the integrative negotiation process:

1. Identifying and defining the problem,

·        define the problem in a way that is mutually acceptable to both sides

·        keep the problem statement clean and simple

·        state the problem as a goal and identify the obstacles to attaining this goal

·        depersonalize the problem

·        separate the problem definition from the search for solution

2. Understanding the problem and bringing interests and needs to the surface (focusing on interests

will allow the parties to move beyond opening positions and demands to determine what the

parties really want, what needs truly must be satisfied)

3. Generating alternative solutions to the problem (tactics such as expand the pie, logroll,

nonspecific compensation, cut the costs for compliance, find a bridge solution

4. Evaluating those alternatives and selecting among them

·        narrow the range of solution options

·        agree to the criteria in advance of evaluating options

·        evaluate solutions on the basis of quality and acceptability

·        be willing to justify personal preferences

·        be alert to the influence of intangibles in selecting options

·        use subgroups to evaluate complex issues

·        take time out to cool off

·        explore different ways to logroll

·        keep decisions tentative and conditional until all aspects of the final proposals are complete

·        minimize formality and record keeping until final agreements are closed

Authors identified seven fundamental preconditions for successful integrative negotiation: some form of shared or common goal, faith in one’s own ability to solve problems, a belief in the validity and importance of the other’s position, the motivation and commitment to work together, trust in the opposing negotiator, the ability to accurately exchange information in spite of conflict conditions, and an understanding of how the process works.

Question

1. What is Integrative Negotiation?

Integrative negotiation is a strategy where the goal is a result that is as good as possible for both parties. It can also be referred to as win-win negotiation. It is an alternate strategy to the more common negotiation technique of simply trying to come up with the best possible outcome for your own side, known as distributive negotiation.

The idea of integrative negotiation is to work together to find the outcome that best helps both sides. This requires both sides to put more effort than usual into understanding what the other side requires and desires from a deal. Analysts of the tactic say it works best when the two sides concentrate primarily on the main point of the deal, rather than coming up with many secondary points which they will then “trade off” as part of the negotiating process.

Also known as a "win-win solution," integrative negotiation can be difficult, as it tends to require a considerable amount of compromise on both sides. Groups of people who are not used to working together may have to consider the negotiation to be more of a team effort, rather than a competition. Although this can be difficult at first, many people who have experience with integrative negotiation find that it can work out to be beneficial for both sides.

2. Why is Integrative Bargaining Important?

Integrative bargaining is important because it usually produces more satisfactory outcomes for the parties involved than does positional bargaining. Positional bargaining is based on fixed, opposing viewpoints (positions) and tends to result in compromise or no agreement at all. Oftentimes, compromises do not efficiently satisfy the true interests of the disputants. Instead, compromises simply split the difference between the two positions, giving each side half of what they want. Creative, integrative solutions, on the other hand, can potentially give everyone all of what they want.
There are often many interests behind any one position. If parties focus on identifying those interests, they will increase their ability to develop win-win solutions. The classic example of interest-based bargaining and creating joint value is that of a dispute between two little girls over an orange. Both girls take the position that they want the whole orange. Their mother serves as the moderator of the dispute and based on their positions, cuts the orange in half and gives each girl one half. This outcome represents a compromise. However, if the mother had asked each of the girls why she wanted the orange -- what her interests were -- there could have been a different, win-win outcome. This is because one girl wanted to eat the meat of the orange, but the other just wanted the peel to use in baking some cookies. If their mother had known their interests, they could have both gotten all of what they wanted, rather than just half.
Integrative solutions are generally more gratifying for all involved in negotiation, as the true needs and concerns of both sides will be met to some degree. It is a collaborative process and therefore the parties actually end up helping each other. This prevents ongoing ill will after the negotiation concludes. Instead, interest-based bargaining facilitates constructive, positive relationships between previous adversaries.
Identifying Interests: The first step in integrative bargaining is identifying each side's interests. This will take some work by the negotiating parties, as interests are often less tangible than positions and are often not publicly revealed. A key approach to determining interests is asking "Why?" Why do you want that? Why do you need that? What are your concerns? Fears? Hopes? If you cannot ask these questions directly, get an intermediary to ask them.
The bottom line is you need to figure out why people feel the way they do, why they are demanding what they are demanding. Be sure to make it clear that you are asking these questions so you can understand their interests (needs, hopes, fears, or desires) better, not because you are challenging them or trying to figure out how to beat them.
Next you might ask yourself how the other side perceives your demands. What is standing in the way of them agreeing with you? Do they know your underlying interests? Do you know what your own underlying interests are? If you can figure out their interests as well as your own, you will be much more likely to find a solution that benefits both sides.


You must also analyze the potential consequences of an agreement you are advocating, as the other side would see them. This is essentially the process of weighing pros and cons, but you attempt to do it from the perspective of the other side. Carrying out an empathetic analysis will help you understand your adversary's interests. Then you will be better equipped to negotiate an agreement that will be acceptable to both of you.
There are a few other points to remember about identifying interests. First, you must realize that each side will probably have multiple interests it is trying to satisfy. Not only will a single person have multiple interests, but if you are negotiating with a group, you must remember that each individual in the group may have differing interests. Also important is the fact that the most powerful interests are basic human needs - security, economic well being, a sense of belonging, recognition, and control over one's life. If you can take care of the basic needs of both sides, then agreement will be easier. You should make a list of each side's interests as they become apparent. This way you will be able to remember them and also to evaluate their relative importance