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Integrative
Negotiations
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Positions
vs.
Interests
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What is WIN-WIN Negotiation
Most people think- Faulty perceptions Compromise, Even Split, Feeling Good, Building, Relationship.
Win-win really means that all creative opportunities areexploited and no resources are left on the table ( IN)
Telltale signs of Win-win potential:
Does 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?
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Expanding the pie-
Strategies that do not work alone...
Commitment to reaching a win-win deal
Compromise
Focusing on the long-term relationship Adopting Cooperative orientation
Taking extra time to negotiate
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Expanding the pie-
Strategies that do work.
Build trust and share information
Ask diagnostic questions
Provide info
Unbundle the issues Make package deals, not single issue offers
Make multiple offers simultaneously
Structure contingency contracts by capitalizing onthe differences:
Pre-settlements settlements (PreSS)
Post-settlements settlements
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Strategic Framework of Integrative
Negotiation
Resource
Assessment
Assessment
of Diff
ConstructOffers &
Trade-offs
ImplementAgreet
Impasse
Not acceptable
(optimistic)Not acceptable
(bleak)
Both AgreePost-settlement Settlement
Current
best
terms
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Pyramid model of Integrative Agreements
Pareto-Optimal
Settlement demonstrable
superior to other feasible
settlements
Mutual Settlements (+iveZOPA)
Less than 25 % of Exec
nego simulation reach
level 3 and of them
50% reach it by chance.
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Towards Pareto-optimal Front
A
B C
A
CB
Valueto
X
Value to Y
Towards Value
Maximization
(integrative)
i.e. Pareto optimal
Front- ABC/ ABC
No
agreementfor the Value
received
Loose
Loose
Win
Win
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Whats your BATNA? Whats the Reservation Price?
What are the issues?
What are my preferences and interests for theissues?
What can I learn about the other partys
preferences and interests for the issues? Perception Taking
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Used the Strategies?
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Advanced Value-creation
Strategies
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Keys to Integrate Negotiating or Are you Litigating?
Do not loose sight of underlying interests.
Keep communication lines open
Ask other parties to Mediate
Dealing with Difficult People
Build Golden Bridge Listen to Learn
You dont have to like them
Create Value out of Conflict
Capitalize on Shared Interests
Explore Differences in Preferences, priorities, and resources
Address your problems
Capitalize differences in risks or forecasts
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Contingency Contracts:
Using Differences to Leverage Joint Gain
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Cautionary Note! For Contingency contracts
Sensible incentive alignment
Continues interaction between parties
Enforceability
Clarity and measurability