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Strategy And Tactics of Integrative Negotiation

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INTERESTS What do people really want? ... Telltale Signs of Win-Win Potential. Does the negotiation contain more than one issue? ... – PowerPoint PPT presentation

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Title: Strategy And Tactics of Integrative Negotiation


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 YesThe 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 (contd)
  • 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
6
What Makes IntegrativeNegotiation 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 negotiators 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 ones own problem-solving ability
  • A belief in the validity of ones own position
    and the others 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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