Collaborative Negotiation Done Right
October 10, 2014
Selena McLachlan
Collaborative negotiation – 6 important reminders about this win-win approach.
Getting to Yes: How To Negotiate Agreement Without Giving In, by Roger Fisher, was written in 1981, yet remains a best-seller. Why? Because it’s brilliant. Because it’s straightforward. Because it speaks to us leaders who value relationships. It’s a universally applicable method for negotiating personal and professional disputes without getting taken – and without getting angry. The book offers a concise, step-by-step, proven strategy for coming to mutually acceptable agreements in every sort of conflict. And as leaders, we know how invaluable this practice is.
If you’re like many, you’ve probably already read the book. But if you’re like most, you’d probably also benefit from a periodic refresher. If you don’t have several hours to spend, I’ve taken some liberties to summarize the most salient points below.
Collaborative negotiation in a nutshell
Collaborative negotiation – also called constructive, principled or interest-based negotiation – is an approach that treats the “relationship” as an important and valuable element of what’s at stake, while seeking an equitable and fair agreement. As opposed to always conceding in order to sustain the relationship.
A “competitive” approach to negotiation assumes a fixed pie, zero-sum, win-lose situation. In collaborative negotiation, it’s essentially assumed that the pie can be enlarged by finding things of value to both parties, creating a win-win situation, so that everyone leaves the table feeling like they’ve gained something of value.
Fair-process
Unlike most of the animal kingdom, we humans have a profound and deep need for fairness. And when this doesn’t happen – even if we’re the ones emerging as “winners” from a competitive negotiation – the end result is often not truly satisfying. A better feeling, and result, occurs when our needs are met; including the need for fairness.
Joint problem-solving
A collaborative approach to negotiation strives to convert individual wants into a single problem, bringing both parties together to work on solving the problem. The theory stems from the notion that by converting individual positions, wants and desires into separated problems, the negotiators are able to free themselves of any jealously or personal attachment to their requirements, in order to take a more objective and equitable position to collaborate from.
Transparency and trust
While it may not be possible or necessary to give away all of your information, there’s little tolerance for deceptive practices in collaborative negotiation. Moreover, gaining trust will be next to impossible. A simple way to eliminate suspicion is to be open and transparent, giving out most or all of your information (i.e. your wants, desires, end goal) before the other party requests it. The exact opposite of playing your best poker hand!
Dealing with competitive negotiators
So what happens when not everyone is playing by the same rules? Indeed, a huge challenge can occur if the other party takes a competitive approach, and tries to take advantage of your desire to collaborate. Sometimes we’re even perceived by competitive negotiators, to be weak. A proven way to deal with this type of situation is to be assertive and remain calm. Fend off your fight-or-flight reaction, recap your interests and summarize what you heard as their interests. Offer up a bit of an olive branch, while staying strong. And perhaps most importantly, know in advance what your BATNA is (back-up alternative to negotiated agreement), and demonstrate that you’re prepared to use it.
Remember, being a collaborative leader does not mean being weak or giving in. On the contrary, a collaborative approach seeks to gain the best possible solution for all. A true win-win situation. As educators, this means that our teachers, parents, students and school boards can all walk away feeling like they’ve come out winners. Kind of like a good haggle over a cup of tea at a middle-eastern carpet bazaar!
Think about the next time you need to engage your stakeholders in a collaborative negotiation. What’s your starting position? What are you prepared to give up? What are you not? And what’s your fall-back plan?
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| The process of exploring options, developing strategy, identifying barriers, and ultimately solving problems jointly is the most exciting, and often the most challenging aspect of the collaborative governance process. This is the stage that everyone has been preparing for, the reason for the proper framing, working principles, relationship building, and joint discovery that have come before it. Because the problems and challenges that agreement-seeking is trying to address are quite different from those in collective action, the joint problem-solving steps for each type of process will be discussed separately below.
As set forth in chapter 3, policy agreement-seeking processes are focused on reconciling diverse interests to reach agreement on the question of what is to be done. Agreement-seeking is used most often, though not exclusively, when there is a conflict. The major challenges it must overcome include positional bargaining, disparities in power, and trust issues.
When trying to resolve conflicts, parties often resort to positional bargaining, staking out their opposing positions before engaging in a struggle to see who can compromise the least. A developer wants to build 120 housing units, for example, while the neighborhood organization’s position is a maximum of 65. Each may have a less extreme position they would be willing to accept, but they begin the negotiation with their optimum number, giving themselves room to eventually compromise. The problem with this positional bargaining approach in a collaborative governance setting is that it frames the problem as win-lose, making mutual benefit—and agreement—more difficult. Consensus may eventually be reached, but opportunities for greater mutual gain go unrealized. Focusing instead on underlying interests, that is, why the positions were taken, expands the range of potential solutions and opportunities for agreement. In our example of the proposed residential development, residents’ interests in retaining the neighborhood’s more rural character may conflict with the developer’s interests. However, the neighborhood residents may have other interests as well, such as maintaining a neighborly atmosphere, preserving easy access to commercial services such as groceries and pharmacies, protecting pedestrian spaces, easing traffic circulation, and so forth. Packaging solutions that address multiple interests is one way of finding agreement when a group finds itself stuck on a particular issue. Another challenge for agreement-seeking processes is disparity in power among participants. These disparities are often created by asymmetries in the interdependence between the parties (Coleman et al. 288). Some parties are simply more dependent on the actions or resources of others. Put another way, if the negotiations do not work out, some parties may have better options than others. When this happens, two conditions often follow that create barriers to agreement. The first is that those who perceive themselves as having relatively good alternatives to a collaborative agreement are likely to be less committed to the process. They will be less willing to work hard to find mutually-beneficial outcomes; in other words, they will be less cooperative. Then, as we discussed in chapter 4, this less cooperative behavior will elicit distrust and, therefore, less cooperative behavior in return. Addressing this challenging cycle is important to success. Some would say the biggest challenge to agreement-seeking, particularly in situations requiring resolution of historic conflicts, is distrust. We previously discussed in chapter 4 the role that trust plays as social capital, enabling exchanges to happen between parties. When there is an atmosphere of distrust, however, the exchanges necessary for agreement-seeking become far more difficult. Therefore, the joint problem-solving approach needs to take into account the levels of trust between parties, and incorporate procedural elements that can either repair trust or create situational trust through contingencies, joint monitoring, and other measures. We discuss some of these procedural elements below, and delve into them further in chapter 9. To solve the problem of reconciling diverse interests, and addressing the challenges presented above, we focus on three problem-solving steps for agreementseeking projects: developing criteria together, exploring potential options, and jointly evaluating those options against the criteria.
The problem-solving process can often be aided by first developing objective criteria for evaluating solutions. These criteria should derive from the parties’ interests and incorporate legal and other constraints for potential solutions. They will be most helpful if they are as objective, straightforward, and measurable as possible. Subjective criteria, such as “best looking design,” may elicit entirely different responses, depending on the stakeholder making the judgment. More helpful and measurable criteria might be a ranking based upon cost or greenhouse gas emissions. The establishment of objective criteria, as Carpenter and Kennedy point out, contrasts with the often common approach of every party evaluating each option based upon how closely it resembles their own proposal (53). These objective criteria, however, should be used to help the group reach consensus, rather than to rigidly constrain it, or prohibit creative solutions. The criteria should be intended to clarify trade-offs and develop the best solution, or package of solutions, rather than dictate what the solutions should be. The joint development of criteria is also an opportunity to shift the focus to underlying interests by incorporating the various interests in the criteria. In the Columbia River project discussed earlier, for example, the agreed-upon criteria for the placement of dredged material included economic development impacts and ecological impacts, as well as other technical criteria. Particularly in high conflict situations, when each party sees their interests reflected in the criteria adopted by the group, the belief that “we’re in this together” is reinforced. Similarly, when there are disparities in power among the participants, having all interests reflected in the criteria can help foster a sense of belonging and can help ensure more equitable outcomes.
Before a group begins the process of moving toward a decision, it is often helpful to engage in creative thinking, opening up the range of possibilities by brainstorming ideas. Susskind and Cruikshank call this process “inventing.” It is important to refrain from jumping to evaluation during this brainstorming step to discourage group members from immediately responding with—that will never work! Get as many ideas out on the table as possible, expanding the range of possible solutions, before beginning the process of winnowing them down. As Susskind and Cruikshank say, “the more good ideas, the better” (90). In the Tillamook flooding project described in chapter 1, the group consisted of federal and state agencies, community groups, landowners, environmental groups, and local governments. All participants, it seemed, had different ideas about the best solution. They developed an early list of eighteen actions, from wetland restoration and channel widening to dredging the bay. That list of actions served a unifying function, representing everyone’s ideas. While they subsequently identified clear priorities for action, and some of the ideas have yet to be implemented, none of the original ideas were taken off the list. As the joint problem-solving process moves toward the evaluation of options and developing agreements, a second phase of brainstorming may be needed, this time to brainstorm possible packages of solutions.
As noted previously, the evaluation of options is intended to aid the decisionmaking process rather than constrain it, to focus the discussion so that decisions can be made. In the Eastern Oregon water policy process discussed in chapter 6, where the group was attempting to improve conditions for migrating fish as well as increase irrigation water for farmers, the brainstorming phase created a full range of options, based upon the group’s fact-finding and technical analysis. After the group went through the first round of evaluations, however, there was a clear separation between the top nine options and the others that followed, and the group chose to focus their deliberation on the nine that had the best chance of being approved by the whole group. Evaluating the potential options using the adopted criteria, as described above, is one of several techniques that can be used for winnowing options. Another method for moving toward agreement is to agree first on a general plan or principles, and then to dive into a deeper round of negotiation on the details. A third approach is to develop a single negotiating text, which becomes the starting point for parties to make revisions and additions until they find agreement. As we stated at the beginning of this chapter, there is no unified approach that fits all collaborative processes. As we have previously emphasized, the people at the collaborative governance table are representatives of organizations or constituencies. As such, they need to take the critical step of keeping their constituencies informed and up-to-date. When moving toward agreement, it is critical that the representatives have checked in with their constituencies along the way to ensure that those constituencies understand the new information gathered in the fact-finding stage, their interdependence with others at the table and in the community, and the alternatives to a collaborative outcome. The representatives at the table should also bring interests, information, and concerns back from their constituencies to the collaborative group so that those interests and concerns can be considered as the group moves toward agreement. A reminder of this responsibility by the group’s convener or facilitator can ensure that a broad range of interests is considered and that the agreement will not be unraveled because the essential constituencies were not fully consulted and represented.
The basic problem that a collective action process is trying to solve is fundamentally different than an agreement-seeking process. The goal of collective action is to create a public good. The problem is that no one party has the authority, expertise, or resources to do so on its own. Because the basic problem to be solved is quite different than that for agreement-seeking, it is not surprising that the principal challenges are different as well.
The classic and most well-documented challenge of collective action is the problem of free riders. Because a public good can, by definition, be enjoyed by everyone, every party has an incentive to take a free ride, that is, enjoy the benefits while leaving others to step up and contribute to those benefits. The paradox is that if everyone acts on that incentive, no one contributes, and no public good is produced. Think about a public transit system that depends upon the honor system for riders to pay their fare before riding. Each rider may ultimately think they will get to ride whether they pay or not, and, therefore, choose to ride for free. But if all riders do that, the transit system itself will not survive, and nobody will get to ride. This problem of free riders becomes more pronounced the larger the group and the smaller each party’s relative contribution. Another key challenge to collective action stems from the horizontal nature of collaborative relationships. Even when parties understand they need the help and cooperation of others, they are often wary of entering into an enterprise where their success is dependent upon the actions of those they can’t control. This can result in either a lack of commitment to the collaborative process and reduction in their own contribution or an attempt to control the process and others who are participating in it. Both become challenges to the success of the enterprise. One of the more difficult challenges that can face a group trying to initiate collective action is the lack of what we call a principal implementing party. Nearly all projects or programs require someone to step up to take on a kind of principal administrative or coordinating role, convening the other partners when needed to address an unanticipated problem, for example. Without someone playing this role, there is no foundation for others to add to. We discuss this particular challenge in more detail in the next chapter. Given this different set of challenges, the joint problem-solving phase for collective action, therefore, involves a slightly different series of steps and questions designed to solve the specific problem and challenges surrounding the creation of a public good.
The first step is usually development of a preliminary strategy for solving the problem. Once a group agrees on the initial strategic approach, it can then make an initial assessment of what potential resources are represented at the table. We normally help groups make this assessment by simply asking each party at the table in turn why they support the project and what they might be able to contribute. For example, in a project to improve the structural integrity of the Columbia River levee system in Portland, Oregon, participants first agreed upon a general strategy of conducting engineering studies and sharing the costs of levee improvements among a number of public jurisdictions. The initial strategy and commitments provide the group with a starting point, and a road map for the work ahead. Depending upon the resources available, the problem-solving strategy may need to be revised over time. Most often, the details of the strategy need to be filled into more specifically identify the resource needs (discussed further in the section below). More important, the group needs to identify remaining barriers, challenges, and what resources are missing or might be added to complete or improve the project. Adding details to the problem-solving strategy, identifying gaps and opportunities, and finding missing resources then become the collaborative problem-solving work for the group.
While there is often broad agreement about the general strategy, moving to implementation usually requires greater detail to better clarify the actions and resources actually needed to make implementation successful. Groups will often charge committees with tackling the detail of various parts of the initial strategy, bringing recommendations or options back to the larger group. The collaborative group working on the Portland levee project may have found agreement on the general strategy relatively easy, but the devil was in the details. A committee of key stakeholders subsequently spent months detailing, negotiating, and vetting the cost-sharing formula before finally bringing it back to the larger group for approval.
Depending upon the type of collective action (fixed goal, incremental improvement, or coordinated interdependent actions) required, the group must identify what resources or actions are needed. What are the political or resource challenges? Potential resources at the table may have been identified earlier, but they now need to be quantified and reaffirmed. As the group approaches success and gets more resources committed, the effort to fill the gap gets more and more targeted. In the Vernonia school project, the known price tag was $38 million to replace three schools in the community that had been destroyed by flooding. At every meeting, the group would report new commitments, and the gap would get smaller. In the rural transportation project discussed in chapter 4, every meeting would include reports of additional resource commitments, but the need for a principal implementing party was still reported as a gap, until ultimately that gap was filled. In addition to filling gaps, a collective-action group should also identify opportunities. There may be ways to magnify the impact of a project by adding additional resources or actions.
Finding and aligning the needed resources and other commitments to create a public good is the essential problem of collective action. A good starting point is to identify who might particularly benefit from the public good, as these are the stakeholders who have a vested interest in making sure the effort succeeds. Economists would argue that the degree to which a party benefits should be relatively proportional to the degree to which the party is willing to contribute to ensure that benefit. In one project that we facilitated, the City of Eugene, Oregon, approached our center to convene a collaborative process to transform unsightly riverside gravel pits into an urban natural area with pedestrian trails and viewing platforms surrounding scenic ponds that fill during the high-water months. When the project—which became known as the Delta Ponds project—began, one of the first steps was to identify and contact the owners of property abutting the ponds. If the project was successful, the city reasoned, those property owners would not only enjoy the improved amenities, but also have the value of their own properties substantially increased. Each of those property owners had an incentive to help make that project successful, and many of them ended up contributing to the project’s success. Successful groups also look for how they can combine their individual assets to create greater public value. If one party has already committed actions or invested resources to address a problem, for example, others at the table may be able to add additional resources to boost that effort. By piggy-backing on the existing commitments, group members can produce something bigger, better, faster, or cheaper. The challenge, as we described above, is the free-rider problem, and each party’s fear that others will be free riders. If one party steps forward, they risk having others take less responsibility for the solution. This risk is real, and often prevents parties from stepping forward to fill the necessary gaps. One way to deal with this problem is to arrange for joint or simultaneous commitments. The transparency of the collaborative governance process, with its face-to-face interactions that encourage accountability to the group, can foster these joint commitments. It is, in fact, one key advantage of transparency. When multiple parties make a commitment in the same meeting, it starts to become a group norm, and other commitments are likely to follow. The research is clear that creating a group norm of contributing is an effective way to solve the free-rider problem (Ostrom 9). It is one of the reasons we recommend against having a significant number of interested stakeholders with no incentive or ability to contribute participate in collective action projects. The more non-contributors are involved, the more difficult it becomes to create a group expectation that everyone contributes, paving the way for free riders. Another strategy for reducing the incidence of free riders is for participants to make contingent offers. For example, I will commit my organization’s staff time, other organizations can commit financial resources to pay for the materials. We have seen parties successfully leverage their resources by making them contingent on a commitment by others. In the Lakeview project discussed in chapter 4, one company offered to construct a new mill that would process small-diameter logs, creating needed jobs in the community. That offer, however, was contingent upon federal agencies guaranteeing a supply of small-diameter logs. Both commitments were ultimately kept. One of the most effective antidotes to the free-rider problem is creating a sense of momentum. One way to engender belief in potential success is to recognize and celebrate resource commitments as they are made rather than waiting until the end of the process. This approach not only provides greater belief in the enterprise, it reinforces the group norm that everyone contributes. We have observed that when a certain critical mass of resources and support starts to accumulate, increasing the chances of success, other parties become more willing to contribute. For example, in the project in which the neighborhood was working with the city to build a community bike park, the neighbors were raising money to build the park with mostly small donations obtained through a crowdfunding platform. As they got closer to their goal, they held a press conference, and the media reported their success. Then, seemingly out of the blue, a major corporation—with no previous connection to the project—made a $25,000 contribution. Everyone, it seems, wants to be associated with a winner. These unexpected synergies are why it is important to mark success along the way and to publicly recognize the contributions or efforts of various parties. We’ve seen project teams utilize news articles, widely-distributed newsletters, joint appearances, or almost any opportunity to celebrate and recognize their collaborative success. The project to repair the Portland Columbia River levee, described earlier, began with a relatively narrow geographic scope. After nearby jurisdictions learned of the successful initial stage of the project, however, they soon petitioned to join the group. They did not want to be left out of a good thing. What should be done if the needed actions and resources are not found around the table? If needed resources can be identified outside the group, the parties that control those resources should be invited to join the group. Indeed, one of the questions the group should ask itself in the early stages of the collective action process is: Who else can help? Celebrating the resources that have already been harnessed can help in that regard. The project to rebuild the Vernonia schools began with a number of substantial commitments, not least of which was the passage of a local bond measure that raised $13 million. Still, the group faced a major gap, and began to approach private foundations and businesses that had not previously been at the collaborative table. Eventually, this effort to enlarge the circle of contributors filled the gap. Whether for agreement-seeking or collective action joint problem-solving is truly the heart of the collaborative process, one which hopefully leads to a group decision. It is to that decision-making process that we next turn our attention. | |
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Distributive Negotiation Examples: 6 Strategies in Distributive Bargaining
- Negotiation Skills
- June 1, 2024
Have you ever found yourself in a situation where you had to negotiate for something important, whether it was a job offer, a business deal, or even deciding on a family vacation destination? Negotiation is an inevitable part of life, and mastering the art of negotiation can significantly impact the outcomes we achieve.
Let’s say you’re sitting across the table from a potential employer, discussing your salary package for a job you’ve been eyeing for months. As the conversation progresses, you realise your interests are not entirely aligned with theirs. You want to secure the best possible compensation package for yourself, while they aim to keep costs down for the company. How do you navigate this negotiation successfully?
In this blog, we’re delving into distributive negotiation examples . We’ll explore what it means, how it differs from other negotiation styles, and most importantly, how you can leverage it to your advantage in various real-life scenarios.
What Is Distributive Negotiation?
Distributive negotiation is a type of negotiation where parties aim to divide a fixed resource between them. This could be money, property, or any other limited asset. Unlike collaborative negotiations where both parties work together to create value, distributive negotiation is more competitive in nature.
In a distributive negotiation, each party tries to claim as much of the resource for themselves while conceding as little as possible to the other party. It is like a game of tug-of-war, where one side’s gain is directly linked to the other side’s loss. This style of negotiation is sometimes referred to as positional or competitive negotiation.
The primary goal of distributive bargaining is to secure the best possible outcome for oneself, even if it means the other party doesn’t fare as well. It’s all about maximising your share of the pie within the fixed resources’ confines.
What Is The Distributive Negotiation Style?
The distributive negotiation style is characterised by its competitive approach and focus on claiming value for oneself. In this negotiation style, parties typically adopt a “win-lose” mindset, where one party’s gain comes at the expense of the other party.
Key features of the distributive negotiation style include:
Assertiveness: Negotiators in distributive negotiations are assertive in advocating for their interests and objectives. They are not afraid to push for what they want, even if it means taking a firm stance against the other party.
Limited Concern for Relationship: Unlike collaborative negotiation styles, distributive negotiators prioritise their individual goals over maintaining a positive relationship with the other party. While cordiality may be maintained, the primary focus is on achieving the best outcome for oneself.
Competition: Distributive negotiation is inherently competitive, with each party vying to secure their most favourable terms. Negotiators may employ various tactics to gain leverage and outmanoeuvre the other party.
Fixed-Pie Perception: Parties in distributive negotiations often view the available resource as a fixed pie that must be divided between them. This perception can lead to a zero-sum mindset, where one party’s gain is perceived as the other party’s loss.
6 Strategies To Utilise In Distributive Negotiations
Navigating distributive negotiations requires a strategic approach to ensure favourable outcomes. Here are six effective strategies to guide you through the process:
1. Anchor High
Begin the negotiation with a bold opening offer or position. Setting a high anchor establishes a favourable reference point for the rest of the negotiation. This initial stance can influence the other party’s perceptions and expectations, potentially leading to more advantageous terms for you. Remember, anchoring high doesn’t mean being unrealistic; it means starting the negotiation with confidence and conviction.
2. Make Concessions Strategically
While distributive negotiations are inherently competitive, it’s crucial to carefully consider concessions. Rather than conceding too quickly or too much, strategically offer concessions tailored to extract reciprocal concessions from the other party. This selective approach to concessions helps maintain your bargaining power and prevents you from giving away too much too soon.
3. Leverage BATNA
BATNA, or Best Alternative to a Negotiated Agreement, is your fallback option if the negotiation fails to produce a satisfactory outcome. Understanding and leveraging your BATNA can significantly strengthen your position in distributive negotiations. By knowing your alternatives and the other party’s BATNA, you can negotiate with confidence, knowing that you have viable alternatives if the current negotiation doesn’t meet your needs.
4. Use Information Asymmetry
In distributive negotiations, information is power. If you’re in possession of information that the other party lacks, leverage it to your advantage. Whether it’s market data, industry insights, or proprietary knowledge, asymmetrical information can give you a competitive edge and influence the negotiation. However, avoid exploiting information unfairly or unethically, as it can damage trust and jeopardise the negotiation process.
5. Focus On The Bottom Line
Stay focused on your bottom line and prioritise your interests throughout the negotiation. While it’s essential to be flexible and explore potential compromises, avoid compromising on fundamental needs or objectives. Maintaining clarity about your priorities and boundaries allows you to steer the negotiation towards outcomes that align with your goals.
6. Be Prepared To Walk Away
Demonstrating that you’re willing to walk away if the other party offers unsatisfactory terms is a powerful negotiation tactic. Knowing your BATNA gives you the confidence to reject unfavourable offers and pursue alternative options if necessary. This willingness to walk away communicates to the other party that you are serious about your objectives and can compel them to make more favourable concessions to secure an agreement.
Advantages Of Distributive Negotiation
Despite its competitive nature, distributive negotiation offers several advantages that make it a valuable strategy in certain situations. Here are some of the key benefits:
Distributive negotiation can be swift and efficient, especially when quick decision-making is needed. Unlike integrative negotiation, which involves exploring multiple options and creating value, distributive negotiation focuses on reaching a deal with the available resources.
The competitive nature of distributive negotiation often leads to clear and straightforward outcomes. Since both parties are primarily concerned with claiming value for themselves, there is less ambiguity in the negotiation process.
Distributive negotiation allows parties to maintain a level of autonomy and control over their own interests. Unlike integrative negotiation, where parties may need to compromise and collaborate extensively, distributive negotiation allows each party to focus on maximising their own gains.
Risk Mitigation
By focusing on securing the best possible outcome for oneself, distributive negotiation can help parties mitigate risks and protect their interests. This is especially valuable in competitive environments where uncertainty is high.
Disadvantages Of Distributive Negotiation
Despite its advantages, distributive negotiation also has its share of disadvantages. Here are some of the key drawbacks to consider:
Strained Relationships
The adversarial nature of distributive negotiation can strain relationships between parties, making future collaboration challenging. Since each party is primarily focused on maximising their own gains, there may be a lack of trust and cooperation between them.
Zero-Sum Game
Distributive negotiation operates on a zero-sum premise, meaning one party’s gain comes at the expense of the other. This win-lose mentality can lead to suboptimal outcomes and may hinder the possibility of finding mutually beneficial solutions.
Missed Opportunities
Focusing solely on claiming value may result in overlooking opportunities for creating additional value through collaboration. In distributive negotiation, parties may prioritise short-term gains over long-term relationships and miss out on opportunities for innovation and growth.
Emotional Toll
Negotiating in a competitive environment can be emotionally draining and stressful for the parties involved. The pressure to secure the best possible outcome may lead to heightened tension and conflict, making it challenging to maintain a constructive dialogue.
Difference Between Integrative And Distributive Negotiation
Negotiation styles play a pivotal role in shaping the dynamics and outcomes of a negotiation process. Understanding the distinctions between integrative and distributive negotiation is essential for selecting the most suitable approach for achieving desired outcomes. Let’s delve deeper into these differences:
Distributive Negotiation approach is akin to a competitive game where each party strives to claim the largest portion of a fixed resource for themselves. Negotiators adopt a win-lose mindset, viewing the negotiation as a zero-sum game where one party’s gain directly corresponds to the other party’s loss. The focus is on maximising individual gains rather than seeking mutual benefits.
In contrast, integrative negotiation is characterised by a collaborative approach where parties work together to expand the pie and create value. Negotiators view the negotiation as a problem-solving endeavour rather than a competition. By exploring each other’s interests, needs, and priorities, parties seek to identify shared goals and craft solutions that maximise joint gains.
The primary goal of distributive negotiation is to secure the most favourable outcome for oneself, even if it comes at the expense of the other party. Negotiators focus on claiming as much value as possible within the constraints of the fixed resource, often prioritising their own interests over those of their counterparts.
In integrative negotiation, parties aim to achieve outcomes that satisfy the interests of both parties and create value beyond what was initially available. By collaboratively exploring options and trade-offs, negotiators seek win-win solutions that address the underlying needs and concerns of each party.
Relationship Focus
The competitive nature of distributive negotiation often leads to a limited concern for preserving the relationship between parties. While cordiality may be maintained during the negotiation process, the primary focus is on maximising individual gains rather than nurturing a long-term relationship.
Integrative negotiation places a strong emphasis on building and maintaining positive relationships between parties. By fostering trust, open communication, and mutual respect, negotiators create a conducive environment for collaboration and joint problem-solving. The focus extends beyond the current negotiation to establish a foundation for future cooperation and partnership.
Resource Perception
Parties in distributive negotiation perceive the available resource as fixed or limited, leading to a perception of scarcity. This fixed-pie mindset reinforces the zero-sum mentality, where one party’s gain is perceived as the other party’s loss.
Integrative negotiation challenges the fixed-pie perception by recognising the potential for expanding the available resource through creative problem-solving and value creation. Negotiators approach the negotiation with an abundance mindset, exploring opportunities to generate additional value and achieve mutually beneficial outcomes.
Distributive Negotiation Examples
Distributive negotiation is a common occurrence in various real-world scenarios, where parties engage in bargaining to claim their share of a fixed resource. Let’s explore comprehensive distributive negotiation examples and the dynamics involved:
Salary Negotiation
Sarah is a software engineer who just received a job offer from a tech company. Excited about the opportunity, Sarah sits down to discuss her salary. The company offers Sarah a salary that’s lower than what she was hoping for. Sarah knows her worth and believes she deserves more. So, she decides to negotiate.
During the negotiation, Sarah explains her skills and experience, showing why she’s a valuable asset to the company. She tells them about the average salaries for software engineers in the industry. The company understands Sarah’s points but mentions they have budget constraints. They offer her some additional benefits like stock options and flexible work hours to make up for the lower salary.
Sarah appreciates the offer but still wants a higher salary. So, she decides to counteroffer with a higher salary demand. She explains how her skills can benefit the company and why she deserves the higher pay. After a few back-and-forth discussions, Sarah and the company finally reach a compromise. They agree on a salary package that’s fair for both parties. Sarah is happy with the outcome and accepts the job offer, ready to start her new role with confidence.
Real Estate Purchase
John is looking to buy his first home and finds the perfect one in a nice neighbourhood. He puts in an offer to buy the house. The seller, Mary, receives John’s offer but thinks the price is too low. She decides to counteroffer with a higher price, explaining that the house has recently been renovated and is in a desirable location.
John really likes the house but is concerned about the higher price. He decides to negotiate with Mary. John asks for some time to inspect the house to make sure everything is in good condition. During the home inspection, John discovers a few minor issues with the plumbing and electrical systems. He talks to Mary about these issues and suggests either reducing the price or having the seller cover the cost of repairs.
Mary understands John’s concerns and agrees to lower the price slightly to account for the repairs. They also negotiate other terms like the closing date and who will pay for certain fees. After some negotiation, John and Mary reached an agreement that worked for both of them. John is thrilled to have found his dream home at a price he can afford, and Mary is happy to sell her house to someone who will take care of it. They shake hands and move forward with the sale.
Car Purchase Example
Emily is in the market for a new car. She visits a dealership and finds a car she likes, but she’s not sure about the price. Emily talks to the salesperson, who gives her the initial price for the car. However, Emily thinks the price is a bit too high for her budget.
She decides to negotiate with the salesperson to see if she can get a better deal. Emily mentions that she’s seen similar cars at other dealerships for lower prices. The salesperson understands Emily’s concerns and offers to lower the price slightly. However, Emily still feels that the price could be lower, so she continues negotiating.
During the negotiation, Emily also discusses other aspects of the deal, such as financing options, trade-in value for her old car, and additional features she would like to include. The salesperson considers Emily’s requests and offers her a better financing deal with a lower interest rate. He also agrees to increase the trade-in value of Emily’s old car and throws in some extra features at no additional cost.
After some negotiation, Emily and the salesperson finally reach an agreement that works for both parties. Emily is happy to have purchased her new car at a price she can afford, and the salesperson is pleased to have made a sale and satisfied customers. They shake hands, and Emily drives off in her new car, excited for the adventures ahead.
In conclusion, distributive negotiation is a fundamental aspect of everyday life, influencing various interactions ranging from salary negotiations to purchasing decisions. Through the examples explored in this blog, we’ve gained insights into how individuals and businesses navigate distributive negotiation scenarios to achieve their objectives while balancing competing interests.
Each negotiation presents unique challenges and opportunities, requiring individuals to leverage effective communication, compromise, and strategic decision-making to reach mutually acceptable agreements. By understanding the dynamics of distributive negotiation and employing proven negotiation techniques, parties can maximise their chances of success while maintaining positive relationships and fostering long-term partnerships. As we encounter negotiation opportunities in our lives, let us approach them with confidence, adaptability, and a commitment to achieving win-win solutions whenever possible.
Rishabh Bhandari
Rishabh Bhandari is the Content Strategist at Kapable. Rishabh likes to transform complex ideas into captivating narratives relatable to the target audience. He loves telling stories through his content. He believes that stories have the power to shift mindsets and move mountains. He has 3 years of experience in educational blog writing and copywriting.
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Industrial and Commercial Training
ISSN : 0019-7858
Article publication date: 1 February 1978
The joint problem solving process is not just a matter of using a good logical system, or just a matter of effective interaction and sound group processes. It is a complex interplay between ‘social’ and ‘rational’ processes. Kepner and Tregoe, examined a number of successful problem solvers — and found that there was a consistent logical pattern in which they moved from problem definition, to a comparison of the problem situation with the non‐problem situation then on to locating the cause and finally on to some form of positive decision and action plan. Another social scientist, Norman Maier has suggested that effective group processes are important, but that an effective group solution depends largely on the nature of the actual problem; he also gave an account of the rational and group processes in joint problem solving. Others, such as Rensis Likert, believe that problem solving effectiveness is due primarily to supportive group relationships. Another writer, William Gore, attributes successful problem solving to a type of ‘unconscious’ non‐rational process which has to be surfaced and accepted in order to get the best solutions. Alex Osborn pioneered the creative element in problem solving and laid emphasis on brainstorming where the group generates a wide range of alternatives in an unrestricted manner prior to deciding on the best solution to a problem. All these writers have made a valuable contribution to understanding the joint problem solving process and any effective approach to problem‐solving should take serious account of this wide range of approaches. But the approaches are nevertheless very different and may be difficult to reconcile in a unified approach.
MISSELHORN, H. (1978), "Joint problem solving: Building better relationships and better solutions", Industrial and Commercial Training , Vol. 10 No. 2, pp. 60-70. https://doi.org/10.1108/eb003654
Copyright © 1978, MCB UP Limited
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2 (page 10) p. 10 C2 Frameworks of negotiation: Winning for self or problem solving for all?
- Published: September 2022
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This chapter provides four different frameworks for analyzing negotiations: Adversarial- Distributive-Competitive; Integrative-Collaborative; Accommodative-Sharing; and Mixed-Allocative. First one must assess what is at stake—the res (thing) subject matter of negotiation, then assess whether materiel is scarce, sharable, or capable of being enhanced or increased. Choices of how to behave in a negotiation depend on what is at stake, how many parties, whether one-off or ongoing relationship, and the timing of negotiation and effects on others. The chapter provides analysis of different modes of conflict resolution behavior, including competition, compromise, collaboration, accommodation, and avoidance, and suggests criteria for selection of appropriate behavioral choices to reach agreements. Many important terms are defined and illustrated, e.g. ZOPA (Zone of Possible Agreement), alternatives to negotiated agreements, target points and aspirations, reservation prices. The chapter suggests how to use various conceptual frames to develop creative solutions to complex problems.
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7 Examples of Negotiation with Suppliers
Negotiation with suppliers is a pivotal aspect of business operations, impacting everything from cost management to product quality and delivery timelines. Effective negotiation strategies can lead to improved business outcomes, fostering long-term, mutually beneficial relationships with suppliers. In this exploration, we delve into seven distinct examples of supplier negotiations. Each scenario presents unique challenges and opportunities, showcasing how diverse negotiation tactics and skills can lead to successful outcomes. These examples span a range of issues, from cost and quality concerns to ethical and technological considerations, reflecting the complex and multifaceted nature of supplier relationships in the business world.
Looking to sharpen your negotiation skills with suppliers? Discover our specialized services designed to help you achieve the best deals and build strong partnerships.
Example 1: Negotiating Better Payment Terms with a Supplier
Situation : A business wants to extend its payment terms with a supplier from 30 days to 60 days to improve its cash flow.
Step-by-Step Solution :
- Preparation : The business analyzes its purchase history to demonstrate consistent and significant orders from the supplier.
- Initial Meeting : The business arranges a meeting with the supplier to discuss the proposal.
- Presenting the Proposal : The business presents its case, highlighting the volume of purchases and consistent payment history.
- Listening to the Supplier : The supplier expresses concerns about cash flow impact.
- Offering Incentives : The business proposes a gradual increase in order sizes in exchange for extended payment terms.
- Negotiating Terms : Both parties discuss various scenarios, like a phased approach to extending terms.
- Reaching Agreement : They agree on 45-day terms initially, moving to 60 days after six months if order volumes increase as projected.
- Finalizing the Agreement : The new terms are put into a formal contract and signed by both parties.
Skills Used :
- Preparation and Research : Understanding the business’s own purchasing patterns and history.
- Effective Communication : Clearly and effectively presenting the proposal.
- Active Listening : Understanding the supplier’s concerns and perspectives.
- Problem-Solving : Finding a mutually beneficial solution.
- Persuasion : Convincing the supplier to agree to the new terms.
- Adaptability : Willingness to adjust the proposal to address the supplier’s concerns.
Example 2: Negotiating Lower Prices for Bulk Orders
Situation : A company seeks to reduce costs by negotiating lower prices for bulk orders of raw materials.
- Market Research : The company conducts research on market prices and competitors’ deals with suppliers.
- Meeting with Supplier : A meeting is set up to discuss potential bulk orders.
- Presenting Market Data : The company presents its research, showing competitive pricing in the market.
- Proposing Bulk Orders : The company proposes a substantial increase in order size in exchange for a discount.
- Negotiation : The supplier is initially hesitant, citing production and logistical challenges.
- Collaborative Problem-Solving : Both parties work together to identify ways to overcome these challenges.
- Reaching a Compromise : They agree on a scaled pricing structure where discounts increase with order size.
- Contract Adjustment : The new terms and pricing structure are added to the contract.
- Analytical Skills : For conducting market research and understanding pricing dynamics.
- Strategic Planning : In proposing mutually beneficial bulk order arrangements.
- Negotiation Skills : To argue the case for lower prices while understanding the supplier’s limitations.
- Collaboration : Working with the supplier to address production and logistical challenges.
- Flexibility : Adjusting the proposal to find a middle ground that benefits both parties.
In both examples, the key to successful negotiation was a combination of preparation, effective communication, understanding the other party’s needs and constraints, and finding a mutually beneficial solution.
Example 3: Negotiating Quality Improvements with a Supplier
Situation : A company faces quality issues with products received from a supplier, impacting customer satisfaction.
- Gathering Evidence : The company compiles data on product defects and customer complaints.
- Meeting with the Supplier : A meeting is scheduled to discuss quality concerns.
- Presenting the Issue : The company shows the evidence of quality issues and their impact on business.
- Understanding Supplier’s Challenges : The supplier shares their production constraints and challenges.
- Joint Problem-Solving Session : Both parties brainstorm solutions, such as improved quality control processes.
- Agreeing on Action Plan : They agree on enhanced quality checks and regular quality audits.
- Implementing Changes : The supplier implements the agreed-upon quality improvements.
- Monitoring and Feedback : The company monitors product quality and provides ongoing feedback.
- Data Analysis : To compile and present evidence of quality issues.
- Diplomacy and Tact : Addressing quality issues without damaging the relationship.
- Problem-Solving : Jointly developing solutions to enhance product quality.
- Follow-up and Monitoring : To ensure the agreed-upon changes are effective.
Example 4: Negotiating Exclusive Supply Rights
Situation : A business wants to secure exclusive rights to a supplier’s product to gain a competitive edge.
- Market Analysis : The business analyzes the market to justify the need for exclusivity.
- Initial Proposal : A proposal for exclusive rights is presented to the supplier.
- Negotiating Benefits : The business outlines how exclusivity can benefit the supplier, like guaranteed volume and premium pricing.
- Addressing Concerns : The supplier’s concerns about limiting their market are discussed.
- Reaching a Mutually Beneficial Agreement : They agree on a time-limited exclusivity agreement with specific volume commitments.
- Contract Amendment : Legal teams draft and finalize the new exclusivity terms.
- Strategic Thinking : To conceptualize and propose the exclusivity arrangement.
- Negotiation Skills : Persuading the supplier to agree to exclusive terms.
- Risk Analysis : Understanding and addressing the potential risks for both parties.
- Contractual Knowledge : Ensuring the agreement is legally sound and beneficial.
Example 5: Renegotiating Existing Contracts Due to Economic Changes
Situation : Economic changes have led to increased costs, prompting a company to renegotiate existing contracts with suppliers.
- Economic Analysis : Assessing how economic changes impact the business and the supplier.
- Opening Dialogue : Initiating discussions with the supplier about the economic situation.
- Presenting the Case : Demonstrating how economic changes affect the business.
- Exploring Options : Discussing possible adjustments, like temporary price reductions or alternative materials.
- Reaching a New Agreement : Agreeing on revised terms that acknowledge the economic realities.
- Contract Update : Formalizing the new terms in the contract.
- Economic Insight : Understanding and explaining the impact of economic changes.
- Negotiation and Persuasion : Convincingly presenting the need for contract adjustments.
- Adaptability : Finding creative solutions to adapt to economic challenges.
- Legal Acumen : Ensuring that contract revisions are legally compliant and clear.
In each of these examples, successful negotiation hinges on a deep understanding of both parties’ needs, clear communication, creative problem-solving, and the ability to adapt to changing circumstances.
Example 6: Negotiating for Sustainable and Ethical Supply Practices
Situation : A company aims to align its supply chain with sustainable and ethical practices and needs its supplier to adhere to these standards.
- Identifying Sustainability Goals : The company outlines specific sustainable and ethical practices it wants to implement.
- Engaging the Supplier : A meeting is arranged to discuss these new standards.
- Presenting the Vision : The company explains how adopting these practices aligns with broader market trends and consumer expectations.
- Assessing Supplier’s Capabilities : Understanding the supplier’s current practices and capacity to change.
- Joint Planning for Transition : Collaborating on a plan to transition to more sustainable practices, including timelines and milestones.
- Incentivizing Change : The company offers incentives, such as longer contracts or higher prices, to offset the supplier’s transition costs.
- Regular Review and Support : Setting up a system for regular review of practices and offering support where necessary.
- Visionary and Strategic Thinking : For setting and communicating long-term sustainability goals.
- Influencing Skills : To persuade the supplier of the benefits of sustainable practices.
- Collaborative Planning : Working together to create a feasible transition plan.
- Empathy and Understanding : Recognizing the challenges faced by the supplier in making these changes.
Example 7: Negotiating Technology Integration for Efficiency
Situation : A manufacturing company wants its key supplier to integrate a new technology system to improve efficiency and reduce errors.
- Technology Assessment : The company assesses which technology would be beneficial for both parties.
- Supplier Engagement : Initiating discussions about technology integration.
- Demonstrating Benefits : Presenting data on how the technology will improve efficiency, accuracy, and potentially lower costs.
- Addressing Concerns and Challenges : Understanding the supplier’s technical limitations and concerns.
- Co-Financing the Solution : Offering to co-finance the technology implementation to mitigate the supplier’s costs.
- Joint Implementation Plan : Creating a roadmap for technology integration with clear milestones.
- Training and Support : Providing training and ongoing support to the supplier’s team.
- Technical Knowledge : Understanding the technology and its applications in the supply chain.
- Negotiation and Persuasion : Convincing the supplier of the long-term benefits of technology integration.
- Problem-Solving : Addressing the practical challenges of implementation.
- Financial Acumen : Structuring a co-financing arrangement that is viable for both parties.
The seven examples of negotiation with suppliers demonstrate the breadth and complexity of interactions that businesses must navigate to achieve optimal outcomes. These scenarios highlight the importance of thorough preparation, clear communication, and a deep understanding of both parties’ needs and constraints. Whether negotiating for better prices, improved quality, sustainability, or technological advancements, successful negotiations require a blend of strategic thinking, problem-solving, and adaptability. These case studies underscore the crucial role of negotiation in building strong, resilient supply chains that not only support business objectives but also evolve to meet changing market demands and ethical considerations. Ultimately, mastering the art of negotiation with suppliers is a key driver for business success, innovation, and sustainability.
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New models of negotiation, dispute resolution, and joint problem solving
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- A Special Section The Changing Workplace And Alternative Dispute Resolution
- Published: 01 April 1996
- Volume 12 , pages 119–138, ( 1996 )
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- John Calhoun Wells &
- Wilma B. Liebman
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The revolutionary changes sweeping the workplace, union-management relationships, and the world economy have contributed to a sharply redefined role for the Federal Mediation and Conciliation Service (FMCS), the primary provider of mediation services to labor and management in the United States. In this article's three main sections, the authors trace the history and provide background information about FMCS; consider the changing role of mediation, driven by societal forces of change from the late 1970s to the present; and speculate on the agency's future and the expected expansion in the use of mediation.
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John Calhoun Wells has served as Director of the Federal Mediation and Conciliation Service since November, 1993, when he was appointed to that position by President Bill Clinton. Wilma B. Liebman is Deputy Director of the Federal Mediation and Conciliation Service.
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Wells, J.C., Liebman, W.B. New models of negotiation, dispute resolution, and joint problem solving. Negot J 12 , 119–138 (1996). https://doi.org/10.1007/BF02187172
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Conflict-Management Styles: Pitfalls and Best Practices
Conflict-management styles can affect how disputes play out in organizations and beyond. research on conflict-management styles offers advice on managing such difficult situations..
By Katie Shonk — on July 2nd, 2024 / Conflict Resolution
People approach conflict differently, depending on their innate tendencies, their life experiences, and the demands of the moment. Negotiation and conflict-management research reveals how our differing conflict-management styles mesh with best practices in conflict resolution.
A Model of Conflict-Management Styles
In 1974, Kenneth W. Thomas and Ralph H. Kilmann introduced a questionnaire, the Thomas-Kilmann Conflict Mode Instrument , designed to measure people’s conflict styles. Based on people’s responses to pairs of statements, the instrument categorizes respondents into five different conflict styles:
- Competing. When adopting a competing style, people view interpersonal conflict resolution as win-lose games. Rather than recognizing the value of ensuring that each party walks away satisfied, disputants focus narrowly on claiming as much as they can for themselves. While value claiming is an important component of negotiation, a single-minded competitive orientation sacrifices value in the long run and perpetuates conflict.
- Avoiding. Because dealing with conflict directly can be highly uncomfortable, many of us prefer to avoid it. An avoidant conflict style might at first appear to be the opposite of a competitive style, but in fact, it can be similarly obstructive. When we avoid conflict, we often allow problems to grow worse.
- Accommodating. Because they defer so often to others, negotiators who adopt an accommodating style can seem agreeable and easygoing. But when people consistently put others’ needs first, they are liable to experience resentment that builds up over time. Accommodating negotiators typically will benefit from learning to express their needs and concerns.
- Compromising. Sometimes we try to resolve conflict by proposing seemingly equal compromises, such as meeting in the middle between two extreme positions, or by making a significant compromise just to move forward. Although a compromising conflict style can move a conversation forward, the solution is often unsatisfying and temporary because it doesn’t address the root issues at stake.
- Collaborating. Those who adopt a collaborative conflict-resolution style work to understand the deeper needs behind other parties’ demands and to express their own needs. They see value in working through strong emotions that come up, and they propose tradeoffs across issues that will give each side more of what they want.
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A collaborative negotiation style is usually the most effective style for managing conflict and fostering productive long-term relationships; however, different conflict-management styles can be effectively applied to different phases and types of conflict in management. Moreover, though we may have a predisposition toward a particular conflict style, we adopt different styles depending on the situation.
Competing is often useful when you’ve jointly created value through collaboration and now need to divide up resources. Accommodating may be the best immediate choice when your boss is unhappy about a project that went awry. Avoiding can be wise when someone seems volatile or when we don’t expect to deal with them again. And compromising can be a fine way of resolving a minor issue quickly.
Conflict-Management Styles : Lessons from Marriage Research
Can people with different conflict-management styles get along? In his book Why Marriages Succeed or Fail . . . and How You Can Make Yours Last (Simon & Schuster, 1995), psychologist John Gottman writes that healthy marriages tend to settle into three different styles of problem solving: validating (compromising often and working out problems to mutual satisfaction), conflict-avoidant (agreeing to disagree and rarely confronting differences directly), and volatile (frequently engaging in passionate disputes).
Perhaps surprisingly, Gottman’s research suggests that “all three styles are equally stable and bode equally well for the marriage’s future,” as he writes. Which style a couple leans toward isn’t important; what’s more important for lasting satisfaction is that both spouses adopt the same style.
Though Gottman’s research was conducted on married couples, the results suggest that disputants in the business world who have similar conflict-management styles may find they feel comfortable managing (or avoiding) conflict with each other.
When Conflict-Management Styles Are Complementary
By contrast, in the realm of negotiation, the results of a 2015 study published in the journal Negotiation and Conflict Management Research by Scott Wiltermuth, Larissa Z. Tiedens, and Margaret Neale found benefits when pairs of participants used one of two different negotiating styles.
They assigned study participants to engage in a negotiation simulation using either a dominant or submissive negotiating style. Those assigned to be dominant were told to express their preferences with confidence, use expansive body postures, and otherwise try to influence their counterpart. Those assigned to the submissive style were told to be cooperative, agreeable, and conflict avoidant.
Interestingly, pairs in which one party behaved dominantly and the other submissively achieved better results in the negotiation than pairs who were in the same condition (whether dominance, submission, or a control group). It seems the pairs of dominant/submissive negotiators benefited from their complementary communication style. A pattern in which one person stated her preferences directly and the other asked questions enabled the negotiators to claim the most value. By asking questions, the submissive negotiators assessed how to meet their own goals—and helped their dominant counterparts feel respected and competent in the process.
The research we’ve covered on negotiation and conflict-management styles suggests that opportunities to work through differences abound, regardless of our natural tendencies. Rather than spending a lot of time diagnosing each other’s conflict-management styles, strive for open collaboration that confronts difficult emotions and encourages joint problem solving.
What lessons about conflict-management styles have you learned in your own negotiation and conflict-resolution efforts?
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Home » Case Studies » Creative Problem-Solving in Negotiations
Creative Problem-Solving in Negotiations
A study that shows how effective creative problem-solving can benefit any negotiation.
Creative Problem-Solving
All too often, negotiators can become bound as they commit to taking a competitive approach to their negotiation. As a result, they don’t allow themselves to be flexible or to consider a creative approach. Taking a versatile approach with outside-the-box thinking can generate more value from the negotiations.
On the other hand, a common error committed by those who believe they are taking the win-win approach to their talks is to overcompensate their need to find agreement by making unwise compromises. A compromise invariably means that both resources and money will likely be left on the table, unclaimed by either party.
Here’s how two west coast energy producers created a joint partnership through creative problem-solving whereby each side met its objectives. Southern California Edison Co. and Bonneville Power Administration were the negotiating sides.
Find Effective Solutions
In 1991, the two sides conceived of a way to help the Columbia River salmon in the Pacific Northwest. At the same time, their idea would improve the polluted air of southern California. They managed this feat without spending any money in the process!
Here’s a précis of this unique and imaginative problem-solving that illustrates the powerful benefits of the creative process at work, as taught on the best negotiating training courses . During the summer months, Bonneville Power would increase the flow of water into the Columbia River. This would automatically increase the amount of hydroelectric power generated by California Edison.
The increased flow of water allowed the young salmon to swim through the channels more easily. It also increased their survival rate. This is because a weaker current made them more vulnerable to becoming lost or being devoured by predators.
Later, in the fall and winter months, California Edison returned the power that it had borrowed during the preceding summer months back to Bonneville Power Administration. As a result, Bonneville had very little need to run its coal-fired and oil plants during the summer months.
The Power of a True Win-Win
This was truly a win-win negotiated agreement. The exchange of power, roughly equivalent to about 100,000 households, improved the migration of the salmon. It thereby increasing their survival rates and expanding the fish population.
Additionally, there was a significant reduction in air pollution. This was because Bonneville didn’t have to resort to smog-producing plants during the stifling and oft smoggy summer months. What was the impact? It’s been estimated the saving was about equivalent to taking about 5,000 cars off the highways. The best part of all was that absolutely no money exchanged hands in the entire process. Pretty smart example of creative problem-solving, eh?
Creativity is so important in negotiations. This example is beautiful.
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OUTCOMES OF THE JOINT PROBLEM SOLVING PROCESS The joint problem-solving process does not always resu lt in the resolution of th e problem or conflict. This does not necessarily indicate that the joint effo rt at negotiation or problem solving is a failure, because there are other beneficial outcomes that could result. These include: 1.
Collaborative negotiation - also called constructive, principled or interest-based negotiation - is an approach that treats the "relationship" as an important and valuable element of what's at stake, while seeking an equitable and fair agreement. As opposed to always conceding in order to sustain the relationship.
Joint Problem-solving. The process of exploring options, developing strategy, identifying barriers, and ultimately solving problems jointly is the most exciting, and often the most challenging aspect of the collaborative governance process. This is the stage that everyone has been preparing for, the reason for the proper framing, working ...
The joint problem solving approach. Scholars and practitioners describe negotiation as a "joint problem solving approach." This characterization is widely used in academic literature and is specified in Army doctrine on negotiation. 12. The term "problem solving" emphasizes the upside of negotiation.
26:30 Strategic guidelines for joint problem-solving negotiation 26:38 Critiques of the joint problem-solving approach 26:43 Cross-cultural and international negotiations 26:49 A note on agents, principals, team negotiations, and the role of lawyers ... For example, a salesperson seeking to negotiate a deal with a customer might care ® 2019 ...
the next contract negotiation. If the decision is made to use the process, the parties enter the preparation phase and then begin the bargaining process. How Does It Work? (cont.) The Interest-Based process includes the following steps in a joint problem-solving process: 1. Identifying the Issue - What is the problem? What has been occurring? ...
Explore distributive negotiation examples and learn about the 6 essential negotiation skills for successful distributive bargaining. Enhance your negotiation prowess with skilled distributive negotiation techniques. ... open communication, and mutual respect, negotiators create a conducive environment for collaboration and joint problem-solving ...
Joint decision-making perspective. • Emphasizes the opportunities for cooperation between parties. • Negotiators use communication to facilitate the drafting of joint agreements that benefit of both sides. • Helps you avoid falling into the trap of negotiating solely on the basis of what is individually rational.
Four Ways to Manage Conflict in the Workplace. To effectively resolve conflict in the workplace, we need to get past the tendency to blame and accuse. Instead, listen actively and focus on joint problem-solving. By Katie Shonk — on November 6th, 2023 / Business Negotiations. Samantha was livid.
Here are some more articles using integrative negotiation examples for crafting win-win bargaining strategies: Related Negotiation Skills Article: ... These 3 steps are the core of collaborative interest based problem solving. To increase the probability of success, create a foundation by framing the problem not as an either-or but as a ...
Abstract. The joint problem solving process is not just a matter of using a good logical system, or just a matter of effective interaction and sound group processes. It is a complex interplay between 'social' and 'rational' processes. Kepner and Tregoe, examined a number of successful problem solvers — and found that there was a ...
This idea that that design for that arc of that conversation of start with acknowledging emotions, open there, explore through compassion and then joint problem solving as a way to close, it's a durable pattern that you can apply for a group negotiation or a one-on-one negotiation or an internal conflict that you, yourself are having.
The problem-solving approach to negotiation includes three tenets to help parties build relationships and negotiate constructively. The problem-solving approach to negotiation is an approach first articulated in the book Getting to YES, written by Roger Fisher and William Ury. The problem-solving approach argues that (1) negotiators should work ...
C2.P4 These frameworks can be succinctly described and illustrated (see Table 1) as (1) distributive-adversarial-competitive when the resources being negotiated are limited and must be divided (e.g. money, land); (2) integrative-problem-solving where the sharing or expanding of resources or creation of new arrangements or solutions may allow for joint gain for all parties, usually with shared ...
In integrative negotiation, both parties can use negotiations as an opportunity for collaborative problem-solving. Related: Integrative Negotiation: Definition, Tips and Examples 4 types of negotiation Below is a list of negotiation types: 1. Principled negotiation Principled negotiation is a type of bargaining that uses the parties' principles ...
Problem-Solving: Addressing the practical challenges of implementation. Financial Acumen: Structuring a co-financing arrangement that is viable for both parties. Conclusion. The seven examples of negotiation with suppliers demonstrate the breadth and complexity of interactions that businesses must navigate to achieve optimal outcomes. These ...
The following three negotiation strategies for conflict resolution from the realm of business negotiation can help parties mend their partnership, avoid the expense of a lawsuit, and even create value. 1. Avoid being provoked into an emotional response. Negotiators make several "moves" to question each other's legitimacy and assert their ...
A case study in the use of collaborative negotiation concepts such as win-win and joint problem solving. Menu. Digital Classroom + Overview. Negotiation 365. Negotiation Profiler. The Foundation Negotiator. Planning Tools. ... How Joint Problem Solving Can Optimize Negotiation Outcomes. Thursday, 14 February 2019 ⟵ Back to all ...
The revolutionary changes sweeping the workplace, union-management relationships, and the world economy have contributed to a sharply redefined role for the Federal Mediation and Conciliation Service (FMCS), the primary provider of mediation services to labor and management in the United States. In this article's three main sections, the authors trace the history and provide background ...
Make Negotiating Easier by Approaching It as "Joint Problem Solving". Kristin Wong. April 13, 2015. For some people, negotiating comes naturally. For the rest of us, it can feel intimidating ...
Rather than spending a lot of time diagnosing each other's conflict-management styles, strive for open collaboration that confronts difficult emotions and encourages joint problem solving. What lessons about conflict-management styles have you learned in your own negotiation and conflict-resolution efforts? Related Posts
Here's a précis of this unique and imaginative problem-solving that illustrates the powerful benefits of the creative process at work, as taught on the best negotiating training courses. During the summer months, Bonneville Power would increase the flow of water into the Columbia River. This would automatically increase the amount of ...