Negotiation Basics I: Distributive & Integrative Processes

Question 1

In any negotiation, 3 domains are in play:

Answer 1

Substance
Process
Relationship

Question 2

Distributive Approach is a

Answer 2

competition over who is going to get the most of a limited resource:

• Positional
• Primarily zero-sum or win-lose in nature
• At best produces a compromise

Question 3

When is the distributive approach useful?

Answer 3

To claim value

Question 4

When is the distributive approach best used?

Answer 4

Best for simple transactions, or low stakes, one-shot (?)

deals

Question 5

Is the distributive approach good for relationships?

Answer 5

No. It can be damaging to relationship.

Question 6

Dynamics of Distributive Approach:

Answer 6

• Commitment at beginning instead of at end
• Ignoring or hiding facts
• Search for evidence, instead of information
• Use of exaggeration
• Close-mindedness and rigidity
• Limited creativity
• Reliance on leverage and coercion
• Personal attacks
• Goal is to win!

Question 7

Tactics of Distributive Approach:

Answer 7

—- Manipulation:
*Changing deadlines
*Disruptive action
*Alliance with outsiders 
*Selective information
—- Hardball Tactics  *Lowball/Highball
*Chicken
*Intimidation 
*Nibble

Question 8

Costs of Distributive Approach:

Answer 8

—- Obscures interests/needs/desires by premature commitment to specific solutions
—- Promotes rigid adherence to positions
-— Cuts off option exploration; prevents tailor-made
solutions
-— Produces compromise when better solutions might be available
-— Inherently polarizing; can damage relationships

Question 9

Integrative Approach focus on:

Answer 9

interests, not positions

Question 10

When is integrative approach useful?

Answer 10

—Useful to create value:

- Through inventing new options for mutual gain can achieve tailor-made, win-win solutions

Question 11

Is the integrative approach good or bad for relationship?

Answer 11

Strengthens relationships and builds trust:

- Models cooperative behavior that may be valuable in future

Question 12

When is integrative approach best used?

Answer 12

Best for complex negotiations, including multiparty, multicultural, and entrepreneurial negotiations

Question 13

What Makes Integrative Processes Different?

Answer 13

• 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
  -— Emphasizes value creation, then value claiming

Question 14

Characteristics of Integrative Negotiators:

Answer 14

—- Abundance mentality
-— Systems orientation
-— Superior listening skills — 
- Maturity
—- Integrity

Question 15

Benefits of Integrative Approach:

Answer 15

• Promotes much deeper understanding of issues
  —- Allows for more creative and effective solutions that
  meet interests
  -— Builds relationships and promotes trust
  -— Models cooperative behavior that may be valuable in the future

Question 16

Elements of Integrative Negotiation:

Answer 16

1. Identify issue/Describe the problem
2. Identify stakeholders and their interests
3. Identify alternatives & BATNA
4. Generate options
5. Evaluate options against interests and criteria
6. Choose and commit to solution(s) and develop a plan of action

Question 17

BATNA is:

Answer 17

Best Alternative to a Negotiated Agreement

Question 18

The purpose of the BATNA is to:

Answer 18

• protect yourself from making an unfavorable agreement
• protect yourself from rejecting an agreement in your favor
• Develop a clear picture of where you stand without the agreement of the other party

Question 19

Integrative / mutual gains approach:

Answer 19

—- Takes a lot of preparation to do well

-— May require more skill than distributive approach

Question 20

Element 1: Identify the Issues/Problem

Answer 20

—- Process:
* Identify the issue to be addressed
* Share all the facts that everyone knows
* Frame the issues as open-ended questions
—- Examples of useful questions
* What has led to this issue?
* How can we collect more information?
* How can we test our assumptions about the issue and its causes?

Question 21

Element 2: Identify Stakeholders & Interests

Answer 21

-— Who is affected by the issue, and will be affected by the solution?
—- What are the interests of the stakeholders?
* Underlying motivation for what you want—your goals, needs,
desires, concerns
* Interests answer the question ‘why’

Question 22

Element 3: Identify your Alternatives & BATNA

Answer 22

-— Alternatives are what you can do on your own without agreement of the other party
* BATNA is the Best Alternative to a Negotiated Agreement
—- The purpose is to:
* protect yourself from making an unfavorable agreement
* protect yourself from rejecting an agreement in your favor
* Develop a clear picture of where you stand without the agreement of the other party
-— Brainstorm and evaluate alternatives during negotiation preparation

Question 23

Element 4: Generate a Variety of Options

Answer 23

• — Options are potential solutions—possibilities that require the agreement of both sides and often the cooperation of both sides to implement.
• — Options are future oriented; the answer the question, ‘How?”
• — Process:
• Separate inventing from judging
• Use free-flowing brainstorming
• Withhold criticism and evaluation

Question 24

Element 5: Evaluate Options against Interests

Answer 24

• Evaluate before committing
• Process:
• Clarify all options on the list before evaluating
• Eliminate duplicate ideas; cluster related ideas
• Compare against interests and BATNA

Question 25

Element 6: Commit to Best Solution

Answer 25

• Choose the best solution based on your evaluation
  -— If no solution adequately meets all the interests,
  prioritize interests, then choose
  -— Commitment occurs when all parties explicitly agree to a solution
  -— Put commitment in writing, with stipulation for breach
  -— Develop action plan (who, what, when, where)