Integrative bargaining requires collaboration and trust so parties can create value through discussing multiple issues.
In integrative bargaining, creativity can lead to value-creation for both parties, as each side seeks to create an agreement beneficial to both parties. Through integrative bargaining, situations that initially look like win-lose negotiations can often be turned into opportunities for mutual gain and value creation
Of course, integrative bargaining has its limits, and the art of negotiation lies in simultaneously creating and claiming value, or “riding two different horses at the same time.”
One roadblock is that negotiators are often cautious about revealing too much information, yet integrative bargaining explicitly relies upon revealing preferences and interests. However, an emphasis on relationship building marks integrative bargaining’s approach as being oriented toward a long-term vision for future negotiations with your counterpart.
The following tactics will help you engage in successful integrative bargaining with competitors:
Try breaking the problem down into more easily managed component parts. This constructs a multi-issue negotiation out of what at first is a single-issue negotiation, allowing both parties to make tradeoffs based upon their differing preferences.
Identify like-minded “opponents.” Instead of viewing your opposition as a monolith, explore whether certain members on the other side may be interested in working with you on a deal.
Be open to compromise. Getting some of what you want is better than getting nothing at all, so probe for areas where your interests overlap and focus on small wins. You may be able to achieve broader gains at a later date.
Capitalize on momentum. Recognize when stakeholders are anxious to do a deal, and leverage their impatience.
“Never do business with friends,” the adage goes. But should you always stay away from an opportunity to negotiate with friends and family? A strict policy of keeping friends and family members out of our business lives would be impractical, and it could cause us to pass up potentially valuable negotiating opportunities.
… Read How to Negotiate with Friends and Family
Wise negotiators recognize the value of both collaborating and competing at the bargaining table. They look for ways to increase the pie of value for all parties, often by identifying differences across issues and making tradeoffs. And they also rely on distributive bargaining strategies to try to claim as much of that larger pie for … Read Distributive Bargaining Strategies
Imagine that you’re buying a used car from its original owner. Of course, you want to get the best deal you can for your money, while your counterpart wants to maximize the value of his asset. After haggling with one another, each side finally arrives at a price point acceptable to both parties. But how … Read More
How can you uncover additional value, make useful trades, and put together a package that exceeds your party’s expectations? Here are four integrative negotiation strategies for value creation that all negotiators should add to their toolkit.
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What is distributive negotiation? Distributive negotiation involves haggling over a fixed amount of value—that is, slicing up the pie. In a distributive negotiation, there is likely only one issue at stake, typically price. When you are negotiating with a merchant in a foreign bazaar, or over a used car closer to home, you are generally … Read What Is Distributive Negotiation?
Collective bargaining negotiations help level the playing field between individual employees and management by enabling employees to organize and find strength in numbers. But when collective bargaining negotiations fall apart, the result can be a devastating strike.
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How does the desire to negotiate stack up against other workplace decision-making procedures? Negotiation seems to be the preferred decision-making mechanism when employees are seeking individually tailored solutions.
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The following “Ask the Negotiation Coach” question was posed to Dwight Golann, Suffolk University Law School professor and negotiation expert: Question: I deal with legal disputes and would like to find reasonable solutions without wasting years in court.
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Here’s a great example on how to avoid litigation by pursuing negotiation with your counterparts. In the face of antitrust charges, Google’s guiding principle for dispute resolution is “Don’t litigate, negotiate,” according to the Wall Street Journal.
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If a competitive bargaining session shifts in a counterpart’s direction, your anger could send the wrong signals to your negotiation counterpart. In this instance, strong emotions portray desperation rather than strength. Here are some bargaining and negotiation tactics for dealing with difficult situations in relationships.
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At a Teaching Negotiation Resource Center (TNRC) faculty pedagogy seminar, members of the PON faculty and negotiation community gathered to hear Gordon Kaufman (MIT Morris A. Adelman Professor of Management, Emeritus) speak about how he uses quantifiable data to plot student-learning trajectories. The conversation focused on the ongoing debate within the negotiation pedagogy community regarding the way … Read More
Do your students really understand the difference between value distribution and integrative negotiation, and have you given them a chance to practice their distributive bargaining skills? Do they understand that every negotiation includes elements of both value creation and value distribution? To help teach these key negotiation skills the Teaching Negotiation Resource Center (TNRC) has developed a … Read More
When life becomes routine we are more likely to overlook details or, conversely, we cannot see the forest for the trees. In both instances, what we may lack is a creative outlook on the situation at hand. In negotiations, creativity can lead to value-creation for both parties.
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Negotiation training often focuses on bridging gaps between negotiators with different styles, backgrounds, or objectives, but what about overcoming generational barriers in negotiation? Generational differences need not stymie efforts at the bargaining table. In this segment from “Dear Negotiation Coach,” we explore how to overcome cultural differences in communication with members of the Millennial generation.
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In the business world, organizations take competition for granted, to the extent that they often overlook opportunities to meet their goals by working with one another. But the benefits of negotiation in business can extend to our dealings with competitors. Recent high-profile negotiations highlight three effective negotiation strategies competitors can use to cooperate and compete.
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Negotiation research sheds light on negotiator expectations of fairness and equality in negotiations. The negotiation skills advice contained here can help business negotiators more effectively craft agreements with their counterparts in business negotiations.
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It’s not uncommon in business negotiations to find yourself on the brink of impasse. You and your counterpart have exchanged a series of offers and counteroffers, and you’ve met somewhere close to the middle—but not close enough. With each side firmly rooted in its position, there may seem to be no way forward.
… Read How to Use MESOs in Business Negotiations
With Congress polarized by an impeachment hearing and its major legislative initiatives stalled in late 2019, it may be worthwhile to revisit a recent instance of integrative bargaining between Democrats and Republicans. In integrative bargaining, parties create value by discussing multiple issues and logrolling—that is, making tradeoffs across those issues. In 2018, the rival parties … Read More
When opposing parties cannot come to a satisfactory resolution, a strong mediator can make all the difference. By effectively examining the issues at hand and helping parties identify creative solutions, a well-trained mediator builds consensus where there once was none.
To help professionals learn the art of mediation, the Program on Negotiation’s Teaching Negotiation Resource Center … Read More
When one party brings up the possibility of a lawsuit in a business dispute, the threat can become a self-fulfilling prophecy. Yet business negotiators often benefit from settling their disputes before going to court, write Robert H. Mnookin, Scott R. Peppet, and Andrew S. Tulumello in their book Beyond Winning: Negotiating to Create Value in … Read When Conflict Becomes a Self-Fulfilling Prophecy
How does mediation work in a lawsuit? For those new to mediation, we advise you being by getting a list of mediators from a reputable provider agency. You can find these agencies by searching under dispute resolution or by inquiring with your organization’s legal department.
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What impact do rumors have on business negotiations and bargaining within the workplace? In this article, the effects of office gossip and other forms of unverified information are examined with regard to their impact on negotiation scenarios
… Read When Rumors Run Wild in Business Negotiation
They say it pays to keep your friends close and your enemies closer, but in business negotiation, keeping your enemies—or competitors—close could end you up in court, as Apple’s recent encounter with the U.S. Department of Justice suggests.
The story begins back in 2007 when, unhappy with Amazon’s low, flat price of $9.99 for e-books, five … Read More
Six negotiation skills tips for negotiators seeking to creative value during their next round at the bargaining table. Business negotiators are often faced with the complex task of coordinating multiple parties – here are some tips for the individual business negotiator on how to achieve success in her next deal negotiation.
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Whether you’re purchasing a new home or car, or negotiating a discount on an inventory purchase for your firm, the art of haggling enables negotiators to make a strong claim for their share of the pie. Here are six tips from the Negotiation Briefings newsletter to help you start becoming a better at haggling in … Read More
The Harvard Negotiation Project was recently mentioned in the Wall Street Journal by David Feith in his interview with Benny Tai, “China’s New Freedom Fighters.”
Benny Tai, a 49 year old lawyer who has been branded an “enemy of the state,” founded Occupy Central with Love and Peace, a group that promotes civil disobedience in order … Read More
The MIT-Harvard Public Disputes Program, one of the Program on Negotiation at Harvard Law School’s many research programs, acts as a center for research committed to thinking about and resolving disputes in the public sector. Led by its Director and Program on Negotiation executive committee member Lawrence Susskind, the MIT-Harvard Public Disputes Program conducts research … Read More
Founded in 1983, the Program on Negotiation at Harvard Law School is a pioneer in the fields of negotiation, mediation, and alternative dispute resolution.
In commemoration of the program’s 30th anniversary this year, the Program on Negotiation is proud to present a video describing many of PON’s various educational and research activities.
According to Chair Robert Mnookin, … Read More
In 1986, the investment bank Goldman Sachs was a $38 billion business owned by more than 100 active and retired partners.
While the partnership structure had insulated the company from the vicissitudes of the stock market and given the company a strong culture of teamwork, it had some significant disadvantages, particularly an unstable capital base and … Read The Story of Goldman Sachs: Negotiating a Vision
Adapted from “Learning to Learn,” first published in the Negotiation newsletter.
Learning about a concept or technique is one thing. Actually putting new knowledge to work is quite another. The gap between “knowing” and “doing” is a challenge for managers who want to hone their effectiveness, whether through formal training or private reflection on their experience.
Recent … Read Learn More From Your Deals
The PON Clearinghouse offers hundreds of role simulations, from two-party, single-issue negotiations to complex multi-party exercises. Ocean Splash is a two-party, two-issue scoreable negotiation between a charity and a corporate sponsor regarding the number and placement of advertising banners at a fundraising walk.
SCENARIO: The U.S. Cancer Association (USCA) chapter in Sixton City is organizing its … Read Advertising at a charity walk
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