integrative nego

8/3/2019 Integrative Nego

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Integrative

Negotiations


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Positions

vs.

Interests


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What is WIN-WIN Negotiation

Most people think- Faulty perceptions Compromise, Even Split, Feeling Good, Building, Relationship.

Win-win really means that all creative opportunities areexploited and no resources are left on the table ( IN)

Telltale signs of Win-win potential:

Does 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?


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Expanding the pie-

Strategies that do not work alone...

Commitment to reaching a win-win deal

Compromise

Focusing on the long-term relationship Adopting Cooperative orientation

Taking extra time to negotiate


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Expanding the pie-

Strategies that do work.

Build trust and share information

Ask diagnostic questions

Provide info

Unbundle the issues Make package deals, not single issue offers

Make multiple offers simultaneously

Structure contingency contracts by capitalizing onthe differences:

Pre-settlements settlements (PreSS)

Post-settlements settlements


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Strategic Framework of Integrative

Negotiation

Resource

Assessment

Assessment

of Diff

ConstructOffers &

Trade-offs

ImplementAgreet

Impasse

Not acceptable

(optimistic)Not acceptable

(bleak)

Both AgreePost-settlement Settlement

Current

best

terms


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Pyramid model of Integrative Agreements

Pareto-Optimal

Settlement demonstrable

superior to other feasible

settlements

Mutual Settlements (+iveZOPA)

Less than 25 % of Exec

nego simulation reach

level 3 and of them

50% reach it by chance.


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Towards Pareto-optimal Front

A

B C

A

CB

Valueto

X

Value to Y

Towards Value

Maximization

(integrative)

i.e. Pareto optimal

Front- ABC/ ABC

No

agreementfor the Value

received

Loose

Loose

Win

Win


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Whats your BATNA? Whats the Reservation Price?

What are the issues?

What are my preferences and interests for theissues?

What can I learn about the other partys

preferences and interests for the issues? Perception Taking


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Used the Strategies?


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Advanced Value-creation

Strategies


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Keys to Integrate Negotiating or Are you Litigating?

Do not loose sight of underlying interests.

Keep communication lines open

Ask other parties to Mediate

Dealing with Difficult People

Build Golden Bridge Listen to Learn

You dont have to like them

Create Value out of Conflict

Capitalize on Shared Interests

Explore Differences in Preferences, priorities, and resources

Address your problems

Capitalize differences in risks or forecasts


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Contingency Contracts:

Using Differences to Leverage Joint Gain


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Cautionary Note! For Contingency contracts

Sensible incentive alignment

Continues interaction between parties

Enforceability

Clarity and measurability

integrative nego

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