Chapter3: Strategy and Tactics of Integrative Negotiation Introduction

Chapter3: Strategy and Tactics of Integrative Negotiation Introduction


Negotiators can make the following three mistakes:
1. Failing to negotiate when they should
2. Negotiating when they should not
3. Negotiating when they should but choosing an inappropriate strategy

In many negotiations there does not need to be winners and losers all parties can gain. Rather then assume that negotiations are win-lose situations, negotiators can look for win-win solutions. Integrative negotiation-variously known as cooperative,
collaborative, win-win, mutual gains, or problem solving-is the focus of this chapter.

A successful interest-based negotiator models the following traits:

@ Honesty and integrity: Interest-based negotiating requires a certain level of trust between the parties. Actions that demonstrate interest in all players’ concerns will help setablish a trusting environment.

@ Abundance mentality: Those with an abundance mentality do not perceive a concession of monies,prestige, control, and so on, as something that makes their slice of the pie smaller, but merely as a way to enlarge the pie. A scarcity or zero-sum mentality says, “Anything I give to you takes away rom me.” A negotiator with an abundance mentality knows that making concessions helps build stronger long-term relationships.

@ Maturity. In his book Seven Habits of Highly Effective Leaders, Stephen Covey refers to maturity as having the courage to stand up for your issues and values while being able to recognize that others’ issues and values are just as valid.

@ Systems orientation. Systems thinkers will look at ways in which the entier system can be optimized, rather that focusing on suboptimizing components of the system.

@ Superior listening skill. Ninety percent of communication is not in one’s words but in the whole context of the communication, including mode of expression, body language, and many other cues. Effective listening also requires that one avoid listening only from his or her frame of reference.

An overview of the integrative negotiation process:

1. Creating a free flow of information
2. Attempting to understand the other negotiator’s real need and objectives
3. Emphasizing the commonalities between the parties and minimizing the differences
4. Searching for solutions that meet the needs and objectives of both sides

Negotiators need to consider five aspects (when identifying and defining the problem)
1. Define the problem in a way that is mutually acceptable to both sides
2. State the problem with an eye toward practicality and comprehensiveness
3. State the problem as a goal and identify the obstacles to attaining this goal
4. Separate the problem definition from the search for solutions

Key steps in the integrative negotiation process:
1. Identify and define the problem
2. Understanding the problem and bring interests and needs to the surface
3. Generate alternative solutions to the problem
4. Evaluate those alternatives and select among them

The first three steps of the integrative negotiation process are important for creating value. The fourth step of the integrative negotiation process, the evaluation and selection of alternatives, involves claiming value.

Negotiators need to consider five aspects (when identifying and defining the problem)
1. Define the problem in a way that is mutually acceptable to both sides
2. State the problem with an eye toward practicality and comprehensiveness
3. State the problem as a goal and identify the obstacles to attaining this goal
4. Depersonalize the problem
5. Separate the problem definition from the search for solutions

Understand the problem fully-identify interests and needs:
That a key to achieving an integrative agreement is the ability of the parties to understand and satisfy each other’s interests. Interests are the underlying concerns, needs, desires, or fears that motivate a negotiator to take a particular position.

Types of Interests:
Substantive interests
Process interests
Relationship interests

Some Observations on Interests:

1. There is almost always more than one type of interest underlying a negotiation.
2. Parties can have different types of interests at stake.
3. Interests often stem from deeply rooted human needs or values.
4. Interests can change.
5. Surfacing interests.
6. Surfacing interests is not always best to one’s best advantage.
7. Focusing on interests can be harmful.

Reveal Win-Win Options:
Expanding the Pie
Logrolling
Nonspecific Compensation
Cost Cutting
Bridging

@@THE PURPOSE OF INTEGRATIVE NEGOTIATION IS NOT TO QUESTION OR CHALLENGE THE OTHER’S VIEWPOINT@@

Clear and Accurate Communication:

High-quality integrative negotiation is clear and accurate communication.
First, negotiations must be willing to share information about themselves.
Second, the other negotiators must understand the communication. Mutual understanding is the responsibility of both sides.

-CHAPTER SUMMARY-

Successful integrative negotiation requires several processes:
1. The parties must understand each other’s true needs and objectives.
2. They must create a free flow of information and an open exchange of ideas.
3. Focus on their similarities, emphasizing their commonalities rather than their differences
4. They must engage in a search for solutions that meet the goals of both sides

To discussed various factors that facilitate successful integrative negotiation:
1. The process will be greatly facilitated by some form of common goal or objective
2. They must have faith in their problem-solving ability
3. The parties must be willing to believe that the other’s needs are valid
4. Share a motivation and commitment to work together, to make their relationship a productive one
5. Trust each other and to work hard to establish and maintain that trust
6. There must be clear and accurate communication about what each one wants and an effort to understand the other’s needs
7. Understanding of the dynamics of integrative negotiations

-END-

Hsiao Chen Hsieh/ Jaen

Ting Feng Hsu/ Ben