Negotiation Pyramid

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Negotiation Pyramid
Pareto optimal
Settlement superior to other feasible
settlements
Mutual Settlement (positive contract zone)
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• Win-win
• Lose-lose

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Characteristics of Integrative Negotiation

• Free flow of information
• Focus on understanding others needs
• Emphasize commonalities
• Search for solutions that satisfy both sides

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Principled Negotiation(this should look familiar)

• Separate people from the problem
• Focus on interests not positions
• Invent options for mutual gain
• Use objective criteria

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Separate People from Problem

• Perception
• consider their perception
• fear
• blame
• discuss
• act opposite their expectation
• participation
• face-saving

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Separate People from Problem

• Emotion
• recognize
• acknowledge as legitimate
• allow them to vent
• DONT REACT
• symbolic gestures

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Separate People from Problem

• Communication
• active listening
• speak to be understood
• I statements
• purpose

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Focus on Interests

• Reconcile Interests
• interests define the problem
• compatible and conflicting interests
• Identifying Interests
• why
• why not
• multiple interests
• basic human needs

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Focus on Interests

• Talking about Interests
• describe your interests
• legitimacy
• importance
• be specific
• acknowledge their interests
• interests, rationale before solutions
• look forward (focus on purpose)
• concrete, yet flexible
• hard on problem, soft on people

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Invent Options for Mutual Gain

• Barriers to creating alternatives
• premature judgment
• single answer
• assumption of fixed pie
• solving their problem is their problem

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Invent Options for Mutual Gain

• Redefining the problem
• expand the pie
• logroll
• nonspecific compensation
• reduce costs for compliance
• bridge solution

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Invent Options for Mutual Gain

• Generate alternative for problem as given
• Separate inventing from deciding
• the basics of brainstorming group decision
  making
• different experts
• agreements of different strengths
• change scope of agreement

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Invent Options for Mutual Gain

• Look for mutual gain
• shared interests
• ask their preferences
• compatible different interests

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The Importance of Differences

• Valuation
• Expectations of uncertain events
• Risk attitudes
• Time preferences
• Capabilities

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Invent Options for Mutual Gain

• Make their decision easy
• whose shoes
• what decision
• satisfactory agreements

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Use Objective Criteria(rather than sheer will)

• Developing objective criteria
• Fair standards
• Fair procedures
• Negotiating with objective criteria
• joint search
• never yield to pressure

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Factors that facilitate Integrative Solutions

• Goals (common, shared, joint)
• Confidence in own problem solving ability
• Belief in validity of others position
• Motivation, commitment to work together
• Trust
• Clear, accurate communication

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Factors that inhibit Integrative Solutions

• History
• Belief in fixed pie
• Mixed-motive

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ABCs of Negotiation

• Acquire information
• Build a bigger pie
• Claim your share