AGENDA Nov. 23

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AGENDANov. 2/3

• Discussion of grading questions re
  assignments
• Discussion of coffee case
• Negotiate and de-brief
• Intro to integrative negotiations
• Case 2 distribution
• Film(s)

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INTEGRATIVE OR,MUTUAL GAINS OR,INTEREST-BASED
OR,WIN-WIN BARGAINING
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YOU DO NOT HAVE TO LOSE FOR ME TO WIN

• THE PRINCIPLE IS TO NEGOTIATE WHAT IS RIGHT NOT
  WHO IS RIGHT

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Interest-Based Bargaining

• A negotiation or approach that focuses on
  satisfying as many interests or needs as possible
  for all negotiators

Source C. Moore
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Interest based bargaining starts with developing
and preserving the relationship. Parties educate
each other about their needs, and then jointly
problem solve on how to meet those needs
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• In distributive bargaining, the goals of the
  parties are initially at odds.
• More for me means less for you!
• In integrative bargaining, the goals of the
  parties are not mutually exclusive
• How can we both win here?

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WIN-WIN IS NOT

• Compromise
• Even split
• Feeling good
• Just about building a relationship

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SIGNS OF WIN-WIN POTENTIAL

• Does the negotiation contain more than one issue?
• Can other issues be brought in? i.e. what may be
  defined as a salary issue can be broadened to
  include benefits, vacation, training etc.
• Do the parties have different strength of
  preferences across the issues on the table?

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In integrative bargaining, the parties either
begin with compatible goals or, are willing to
search for ways to align their goals so that both
can gain
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FRAMING THE MANNER IN WHICH A CONFLICT
SITUATION, ISSUE OR, INTEREST IS DEFINED
A critical skill is how you 'frame' the problem
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• Integrative bargaining does not work in all
  situations. For example, it does not work where
  price is the single issue. It also requires that
  participants be willing to operate in a win/win
  fashion

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In integrative bargaining, the parties either
begin with compatible goals or, are willing to
search for ways to align their goals so that both
can gain
Alignment often involves the process of persuasion
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Interest-Based Bargaining

• A negotiation or approach that focuses on
  satisfying as many interests or needs as possible
  for all negotiators

Source C. Moore
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Interest-Based Bargaining (continued)

• It is a problem solving process used to reach an
  integrative solution rather than distributing
  rewards in a win/lose manner
• It is NOT a process of compromise

Source C. Moore
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CLIMBING THE MPA 821 PYRAMID
OTHER Mitigating factors Special tools

• INTEREST CONFLICTS
• Distributive bargaining
• Integrative bargaining
• Assisted bargaining

• GENERAL CONFLICT TYPOLOGIES
• CAUSES AND REMEDIES- MOORE
• PROCESSES OF RESOLUTION-power, rights, interests

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In Mutual Gains Negotiations

• Both parties
• Take ownership and responsibility for the outcome
  of the negotiations ?
• Work to keep the relationship intact ?
• Work on problems rather than make demands
  ? Note the difference from
  distributive bargaining

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In Mutual Gains Negotiations (continued)

• Both parties
• Use processes to deliberately stimulate creative
  solutions
• Work together to find solutions that benefit all
  parties

NOTE-in all 5 steps the emphasis is on SHARED
RESPONSIBILITIES
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When is Interest-Based Bargaining Used?

• When the interests of the negotiators are
  interdependent
• When future relationships are a high priority
• When negotiators WANT to establish cooperative
  problem solving rather than compete
• When a compromise of principles is unacceptable

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Mutual Gains Bargaining is Appropriatein the
Following Situations

• When two parties have common ground
• In situations where two parties have the same
  customers, clients, suppliers, or service
  personnel
• In personal relationships
• In all of the above, the parties want to
  establish and maintain a smooth, continuing,
  working relationship

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For Interest-Based Bargaining to Work,Both
Parties Need to be Committed to

• Understanding the other party's needs and
  objectives
• Providing a free flow of information - both ways
• Seeking the best solutions to meet the needs of
  both sides

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Some Costs of Interest-Based Bargaining

• Requires some trust
• Requires negotiators to disclose information and
  interests
• May uncover extremely divergent values or
  interests
• Clearly takes more time

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• The minimum standard for an interest based
  solution to a problem is that it has to be at
  least equal to or better than what the parties
  believe they would have negotiated with a rights
  or power approach

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The five skills for mutual gains bargaining

• Establish and build a working relationship
• Trust matters!
• Establish and maintain effective 2 way
  communication
• Identify and explore underlying interests
• Separate the problem from the person
• Invent options
• Identify and use external standards to decide
  among options
• This allows participants to save face by backing
  off their own position but not give in to the
  other partys.

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"In interest-based bargaining, both sides are
equally involved in the process of problem
definition and both need to agree fully on what
the problem is."
Lewicki and Hiam
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Some Suggestions for Framing/Reframing

• Frame issues in the form of problem statements,
• i.e. how can we
• Frame issues so that multiple solutions are
  possible
• Frame issues in a value free manner

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A critical skill is how you 'frame' the problem

• FRAMING THE MANNER IN WHICH A CONFLICT
  SITUATION, ISSUE, OR INTEREST IS DEFINEDEarly
  stage framing might present the negotiation
  itself in a way to get the desired responses from
  the other side.For example, you might propose
  a frame of cooperation by describing the
  negotiation as an opportunity for us to find the
  common ground we both know is there despite our
  difficulties on some issues.

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WHEN YOU SENSE THE POSSIBILITY OF A NEGATIVE
BARGAINING RANGE

• REFRAMING THE PROBLEM OR QUESTION WILL OFTEN
  BREAK WHAT APPEARS TO BE AN IMPASSE

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Identify and define the problem

• Define the problem neutrally so it is mutually
  acceptable to all sides
• State the problem with an eye to practicality and
  comprehensiveness.
• State the problem as a goal and identify
  obstacles to meeting that goal.
• Separate the problem from the person

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SUCCESSFUL FRAMING DEMANDS GOOD, ACTIVE LISTENING
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Some principles for effective reframing-Mayer

• Even in the most hostile, negative presentation
  of an issue there is information about a persons
  concerns and attitudes that can be used usefully.
• Constructive framing is about clarity and
  honesty, not about smoothing difficult issues
  over!

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Some principles for effective reframing-Mayer

• Reframing must reflect the most important needs
  of the parties-dont just sugar coat the tough
  ones.
• Successful reframing is interactive and
  iterative. The disputants must all be actively
  and personally involved in the reframing
  process.

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Framing exercise
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• Marion needs help from Joes department in the
  form of some of Teresas time. Joe is swamped
  with work and can only commit one day of Teresas
  time when Marion needs at least 3 days. Clearly
  there is a negative bargaining range. Reframe the
  problem so that room to negotiate is created.

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As in Any Bargaining, Interest-Based Bargaining
Has Three Main Aspects

• Solid planning and preparation before you start
• Careful listening so that you can find what the
  other side really wants
• Attending to the 'signals' the other side sends
  through his or her conduct once bargaining gets
  underway

Source Schell, page xiv
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The Mutual Gains ApproachHas Four Key Steps or
Phases

• Effective preparation
• Inventing options to create joint gains
• Using fair standards to distribute joint gains
  and maintain relationships
• Anticipating the problems of follow-through

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Positions

• In bargaining, a position represents the maximum
  gain expected. Often, it is put forward as a
  demand
• Arguing over positions tends to lock the parties
  into their positions
• A position is a very specific solution to a
  problem. It is likely to be concrete and explicit

stalemate
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Interests Definition - Fisher and Ury

• The basic problem in a negotiation lies not in
  conflicting positions, but in a conflict between
  each side's needs, desires, concerns, and
  fears... Interests motivate people they are the
  silent movers behind the hubbub of positions...
  Your interests are what caused you to decide

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• "Interests are the broader perspective(s) that
  usually lie behind a position.
• In contrast to positions, interests define what
  the parties care about more broadly, and there
  are often multiple ways to resolve the conflict
  between competing interests."

Lewicki and Hiam
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Remember!! There Are 3 Elements of Interests
ISSUES AND SUBSTANCE
ATTITUDES AND EGOS
DYNAMICS or PROCESS
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Interests

• Interests are what motivates people to a
  particular course of action. They are the silent
  movers behind positions. Behind opposing
  positions lie shared and compatible interests as
  well as conflicting ones

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Interests (continued)

• One of the areas that clearly differentiates
  good negotiators from poor ones, is the ability
  to identify interests - both yours other's
• Get at interests by asking open-ended questions
• Why do you want that?
• Why is that important to you?
• What will achieving X help you to do?
• What will happen if you do not achieve your
  objective??

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Interests (continued)

• Or, if that does not work, try to ask them to
  criticize "What is it about the proposal that
  doesn't work for you?"

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Interests (continued)

• If conversation is difficult or, heated, take a
  deep breath and
• PUT YOURSELF IN THE OTHER PERSONS SHOES

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For Mutual Gains Bargaining to Work,Both Sides
Need to be Committed to

• Understanding the other party's needs and
  objectives
• Providing a free flow of information both ways
• Seeking the best solutions to meet the needs
  of both parties.

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The Phases in Integrative Bargaining

• Planning
• Initial face-to-face meeting
• Mutual gains problem-solving
• Reaching agreement
• Living by the agreement

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The Ground Rules

• During planning, the combined bargaining group
  makes decisions regarding ground rules to be
  followed.

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Typical mutual gains ground rules-Weiss

• Participation by everyone
• Honesty and no deceptions
• Joint communications-eliminate negotiating
  through the media
• Anyone can facilitate the discussions
• Flip charts used as memory joggers
• The only record is the agreed upon notes
• Only the spokesperson can make any official offer

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If Needed - Joint Training

• "Nothing is more powerful than creating a
  learning environment between 'adversaries, that
  is 'non-binding' to allow people to build
  relationships and break down barriers"

Weiss
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Steps in Interest-Based Bargaininguse in your
case

• Planning
• a. Identify the interests that you expect to be
  satisfied in the negotiations - three types. Be
  clear on why the needs are important and how
  important they are to you
• b. Speculate on the interests and their types
  that might be important to the others - and in
  what priority. Prep some questions to get at
  their interests
• c. Identify your BATNA

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• d. Give some thought to how the problem might be
  framed.
• Especially, consider what you might do if
  unexpectedly a negative bargaining range should
  evolve
• How might the other side frame it and how could
  you re-frame?
• e. Give some thought to objective standards
  against which alternatives can be assessed.

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Steps in Interest-Based Bargaining

• 2. Begin negotiations by educating each other
  about your respective interests
• If other negotiators present positions, you take
  the initiative to reframe them into interests
• Be specific about why interests are important
• Make sure all interests are understood

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Steps in Interest-BasedBargaining (continued)

• 3. Frame the problem in a way that is solvable by
  a win/win solution
• Remove egocentricity by framing the problem in a
  way that all can accept
• Include the basic interests of all parties
• In this model, both parties are involved equally
  in the process of problem definition, and both
  need to agree fully what the problem(s) is

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Steps in Interest-Based Bargaining

• 4. Identify in advance general criteria that must
  be present in an acceptable settlement
• Look for agreements in principle
• Identify acceptable objective criteria that will
  be used to reach more specific agreements

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5. Generate optionsTHE BRAINSTORM What you are
looking for are options, possible agreements, or
pieces of an agreement
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Always remember to separate the process of
inventing options from the process of deciding
among those options
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Options

• Deciding
• Committing
• Judging
• Narrowing
• Arguing
• Evaluating

• Inventing
• Not Committing
• Improving
• Generating
• Brainstorming
• Suspending Judgment

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Use Integrative OptionGenerating Techniques

• Expand the pie - ways that more resources or
  options can be brought to bear on the problem
• Alternating satisfaction - each negotiator gets
  100 of what he/she wants but at different times
• Integrative solutions - look for solutions that
  involve maximum gains and few or no losses for
  both parties

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SOME WIN-WIN APPROACHES THAT OFTEN WORK

• CONTINUALLY ask questions about underlying
  interests and, questions about priorities
• Un-bundle the issues
• Make package deals not single-issue offers.
• Make multiple offers simultaneously
• Dont be afraid to use good contingency contracts