CHAPTER THREE

Strategy And Tactics of

Integrative Negotiation

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 Learning Objectives

After reading this chapter you should have a deeper

understanding of the following issues:

 Recognize integrative bargaining situations,

 Describe the key steps in the integrative bargaining
process, and
 Explain the key strategies and tactics that facilitate value
creation.

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 Overview of the Integrative Negotiation
Process

 Create a free flow of information

 Attempt to understand the other negotiator’s real needs and
objectives
 Willingness to share information

 Emphasize the commonalties between the parties and

minimize the differences
 Search for solutions that meet the goals and objectives of
both sides

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 Recognize Integrative Situations

 the negotiation includes more than one issue

 it is possible to add more issues to the mix
 the negotiation is likely to recur over time
 the parties have varying preferences across the
issues

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 Key Steps in the Integrative
Negotiation Process
 Negotiator’s Dilemma
 Tension between engaging in competitive and cooperative
behaviour in a negotiation
 Pareto Efficiency
 Find the point where there is “no agreement that would
make any party better off without decreasing the outcomes
to any other party

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 Claiming and Creating Value and
The Pareto Efficient Frontier

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 Understand the Problem Fully –
Identify Interests and Needs
 Interests: the underlying concerns, needs,
desires, or fears that motivate a negotiator
 Substantive interests relate to key issues in the
negotiation
 Process interests are related to the way the dispute is
settled
 Relationship interests indicate that one or both parties
value their relationship
 Interests in principle: doing what is fair, right,
acceptable, ethical may be shared by the parties

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 More on Interests

 Usually more than one type of interest in a negotiation

 Parties can have different types of interests at stake
 Interests often stem from deeply rooted human needs or
values
 Interests can change
 Surfacing interests can create value
 Surfacing interests is not always easy or to one’s best
advantage.
 Focusing on interests can be harmful to a group of negotiators
whose consensus on a particular issue is built around a unified
position rather than a more generalized set of interests.

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 Key Steps in the Integrative
Negotiation Process

 Generate alternative solutions

 Expand the pie
 Logroll

 Use non-specific compensation

 Cut the cost for compliance

 Find a bridge solution

 Evaluate and select among alternatives

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 Evaluate and Select Alternatives

 Narrow the range of solution options

 Evaluate solutions on:
 Quality
 Objective standards
 Acceptability

 Agree to evaluation criteria in advance

 Be willing to justify personal preferences
 Be alert to the influence of intangibles in
selecting options
 Use subgroups to evaluate complex options

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 Evaluate and Select Alternatives

 Take time to “cool off”

 Explore different ways to logroll
 Exploit differences in expectations and risk/ time
preferences
 Keep decisions tentative and conditional until a
final proposal is complete
 Minimize formality, record keeping until final
agreements are closed

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 Factors That Facilitate Successful
Integrative Negotiation

 Some common objective or goal

 Share information
 Underlying interests

 Priorities and preferences

 Interpretation of key facts

 Build trust

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 Factors That Facilitate Successful
Integrative Negotiation
 Multiple simultaneous offers
 Give your counterpart options that are similar in value to you
but which demonstrate flexibility
 Try pre and post-settlements
 Clear and accurate communication
 An understanding of the dynamics of integrative
negotiation

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 Summary and Key Points

 Preparation is key (as it was in the last chapter).

 When the situation contains integrative potential, adopt a
cooperative orientation. Share and ask for information, attempt to
understand your counterpart’s needs and interests, and search for
solutions that reconcile the needs and interests of all parties.
 Become familiar with the different ways of inventing options, such as
expanding the pie and logrolling.
 Do not negotiate on an issue-by-issue basis, instead try to negotiate
packages. When making offers, try to create multiple offers and
present them simultaneously.
 Don’t forget about claiming. Negotiators who work hard to create
value shouldn’t lose sight of the fact that value must also be
claimed.

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