CHAPTER 3

Strategy and tactics

of integrative
negotiation
INSTRUCTOR
Nguyễn Công Hòa (MBA)
 Factor Distribution Negotiation Integrated Negotiation

Main Objective
Maximizing one party’s benefits, typically based Creating mutual benefits for both parties by
on a fixed-sum outcome (zero-sum). expanding the "pie" of interests.

Approach
Competitive, focusing on gaining the largest share Cooperative, seeking solutions that benefit both
of limited resources. sides (win-win).
Nature of Benefits are divided; one side’s gain is the other’s Benefits can be expanded, allowing both parties to
Benefits loss (win-lose). gain more (win-win).

Interaction Minimal long-term interaction, focused on short- Fosters long-term relationships, emphasizing long-
Between Parties term outcomes. term interests.

Strategy
Focus on gaining advantage through concessions Flexible negotiation, exploring multiple options for
and small wins. mutual gain.

Example
Negotiating a house price, where there’s a fixed Negotiating a partnership contract, where both
value to split. companies seek mutual benefits.

Attitude Towards The other party is seen as a partner to collaborate

The other party is seen as a competitor.
Other Party with.

Focus
Maximizing individual benefits from the Ensuring mutual benefits and finding new value
agreement. from the agreement.
Seven Factors to Facilitate
Integrative Negotiation
• Common Goals
• Motivation & Commitment
• Validity
• Problem Solving
• Trust
• Communication
• Understanding
Some Common
Objectives or Goals
• There are three types of goals to facilitate the
development of integrative agreements:
• Common
• Shared
• Joint
 Common Goals
• Both parties have the same goal, and achieving it benefits
both equally
• This goal is one that all parties share equally.
• Each party benefits in a way only possible by working
together.
• Example:
Two companies negotiate a merger to expand their market
share. They both aim to increase profitability, which is a
common goal benefiting both equally.
Shared Goals
• This goal is one that both parties work toward but
that benefits each party differently.

• Example:
A supplier and manufacturer negotiate a long-term
contract. The supplier gains stable business, and
the manufacturer ensures a consistent supply,
though the benefits may differ in scale.
Joint Goals
• Individuals with different personal goals agreeing
to combine them in a collective effort.
• Both parties collaborate to achieve a goal they
could not have accomplished individually.
• Example:
Two tech companies collaborate to develop a new
product. Neither could develop it alone, but together
they share the expertise and resources to make it a
reality.
The Motivation and Commitment
to
Work Together
• Motivation to collaborate together.
• Goal that meets both parties ideas.
A Belief in the Validity of One’s
Own Position and in the Other’s
Perspective

• Accept the validity of both your position

and the other party’s position.
Faith in One’s Own
Problem-Solving Ability

• Working with one another is up to your mind

set.
• If you believe you will work well together, then you
will be able to do so.
• If you believe there is no personal investment,
then you are less likely to become involved.
Trust
• Trust is complex.
• Depends on how the parties behave
with one another.
• Opens communication.
• Less defensive.
Clear and Accurate
Communication

• Share information about themselves.

• Opponents must understand the
communication process.
• Multiple communication channels.
An Understanding of the Dynamics
of
Integrative Negotiation

• Enhances the parties abilities to

pursue the process.
• Training.
Separate People from the Problem in
Integrative Negotiation
Focus on Interests, Not Personalities
• Recognize that the goal is to solve the problem, not attack
the individuals involved.
• Address the issue at hand, avoiding emotional or
personal biases.

Build and Maintain Relationships

• Preserve positive relationships for long-term cooperation.
• Foster trust and mutual respect during the negotiation
process.

INSTRUCTOR: Nguyễn Công Hòa (MBA) - Faculty of

International Economic Relations
Separate People from the Problem in
Integrative Negotiation Cont.
Use Objective Criteria
• Base discussions on facts and objective data, not personal
opinions or emotions.
• Encourage open communication, ensuring both parties feel
understood.

Effective Communication
• Listen actively to understand the other party’s concerns.
• Use clear and neutral language to avoid
misunderstandings.

INSTRUCTOR: Nguyễn Công Hòa (MBA) - Faculty of

International Economic Relations
What Makes Integrative
Negotiation Different?
• Focus on commonalties rather than differences
• Address needs and interests, not positions - vị trí
(lập trường)
• Commit to meeting the needs of all involved
parties
• Exchange information and ideas
• Invent options for mutual gain
• Use objective criteria to set standards
Overview of the Integrative
Negotiation Process
1. Create a free flow of information
2. Attempt to understand the other negotiator’s real
needs and objectives
3. Emphasize the commonalties between the parties
and minimize the differences
4. Search for solutions that meet the goals and
objectives of both sides
 PROCESSES THAT DISTINGUISH INTEGRATIVE FROM
DISTRIBUTIVE NEGOTIATION

INTEGRATIVE DISTRIBUTIVE

Flow of Free & open flow; share information Conceal information, or use it
information openly selectively or strategically

Make no effort to
Understanding Attempt to understand what the understand, or use the
the other other side really wants & needs information to gain strategic
advantage

Attention to
Emphasize common goals, Emphasize differences in
commonalities
objectives, interests goals, objectives, interests
and differences

Search for solutions that

Focus on Search for solutions that meet the meet own needs or block
solutions needs of both (all) sides other from meeting their
needs
Key Steps in The Integrative
Negotiation Process
1. Identify and define the problem
2. Understand the problem fully
• identify interests and needs on both sides
3. Generate alternative solutions
4. Evaluate and select among
alternatives
Claiming and Creating Value
1. Identify and Define the Problem
• Define the problem in a way that is mutually
acceptable to both sides
• State the problem with an eye toward practicality
and comprehensiveness
• State the problem as a goal and identify the
obstacles in attaining this goal
• Depersonalize the problem
• Separate the problem definition from the search for
solutions
2. 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
 2. Understand the Problem Fully—
identify Interests and Needs
Observations on Interests
• There is almost always more than one
• Parties can have different interests at stake
• Often stem from deeply rooted human needs or values
• Can change
• Numerous ways to surface interests
• Surfacing interests is not always easy or to one’s best
advantage
3. Generate Alternative Solutions
• Invent options by redefining the problem set:
• Expand or modify the pie
• Logroll - Đàm phán qua lại
• Use nonspecific compensation - Sử dụng bù đắp không cụ thể
• Cut the costs for compliance - Giảm chi phí tuân thủ
• Find a bridge solution - Tìm giải pháp cầu nối
• Generate options to the problem as a given:
• Brainstorming
• Surveys
• Electronic brainstorming
Brainstorming – generating as many solutions to the problem as possible.
The following rules should be observed when engaging in brainstorming:
-Avoid judging or evaluating solutions.
- Separate the people from the problem.
-Be exhaustive in the brainstorming process.
-Ask outsiders.
Surveys – asking a large number of people to list all possible solutions they
can imagine.
Electronic brainstorming – A facilitator uses a series of questions to guide
input from participants, who type their anonymous responses into a computer.

INSTRUCTOR: Nguyễn Công Hòa (MBA) - Faculty of

International Economic Relations
4. 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
Narrow the Range of Solution
Options
• After brainstorming, focus on the most
feasible solutions.

• Prioritize options based on constraints

like time and budget.

INSTRUCTOR: Nguyễn Công Hòa (MBA) - Faculty of

International Economic Relations
Evaluate Solutions Based on
Key Factors
Quality:
Assess long-term sustainability and effectiveness.

Objective Standards:
Use metrics and benchmarks for evaluation.

Acceptability:
Ensure all stakeholders accept the solution.

INSTRUCTOR: Nguyễn Công Hòa (MBA) - Faculty of

International Economic Relations
Agree to Evaluation Criteria in
Advance

• Establish criteria like profitability, scalability,

and market potential before negotiation starts.

• Use agreed-upon standards to evaluate all

options fairly.

INSTRUCTOR: Nguyễn Công Hòa (MBA) - Faculty of

International Economic Relations
Justify Personal Preferences

• Be ready to explain why a specific

solution aligns with your strategic goals.

• Show how it contributes to long-term

benefits for both sides.

INSTRUCTOR: Nguyễn Công Hòa (MBA) - Faculty of

International Economic Relations
Use Subgroups to Handle
Complex Options

• Divide into specialized teams (e.g.,

financial, legal) for complex issues.

• Have each subgroup evaluate and

present their recommendations.

INSTRUCTOR: Nguyễn Công Hòa (MBA) - Faculty of

International Economic Relations
4. 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
Take Time to “Cool Off”
• Allow time for emotions to settle before
making decisions.

• Taking a break can lead to clearer thinking

and better solutions.

INSTRUCTOR: Nguyễn Công Hòa (MBA) - Faculty of

International Economic Relations
Explore Different Ways to
Logroll
• Look for areas where parties can trade off
on less important issues.

• Offer concessions on lower-priority concerns

in exchange for higher-priority gains.

INSTRUCTOR: Nguyễn Công Hòa (MBA) - Faculty of

International Economic Relations
Exploit Differences in
Expectations and Risk/Time
Preferences
• Leverage varying expectations about future
outcomes.

• Use differences in risk tolerance and time

preferences to create value for both parties.

INSTRUCTOR: Nguyễn Công Hòa (MBA) - Faculty of

International Economic Relations
Keep Decisions Tentative and
Conditional

• Maintain flexibility by making decisions

provisional.
• Avoid locking in choices until a final
proposal is agreed upon.

INSTRUCTOR: Nguyễn Công Hòa (MBA) - Faculty of

International Economic Relations
Minimize Formality Until Final
Agreements
• Avoid excessive formality and record-
keeping in early stages.

• Only document and formalize decisions

once final agreements are reached.

INSTRUCTOR: Nguyễn Công Hòa (MBA) - Faculty of

International Economic Relations
Factors that Facilitate Successful
Integrative Negotiation
• Some common objective or goal
• Faith in one’s own problem-solving ability
• A belief in the validity of one’s own position
and the other’s perspective
• The motivation and commitment to work
together
Factors that Facilitate Successful
Integrative Negotiation

• Trust
• Clear and accurate communication
• An understanding of the dynamics
of integrative negotiation
Why Integrative Negotiation
is Difficult to Achieve

• The history of the relationship between the

parties
•  If contentious in past, it is difficult not to look at
negotiations as win-lose
• The belief that an issue can only be
resolved distributively
•  Negotiators are biased to avoid behaviors
necessary for integrative negotiation
Why Integrative Negotiation
is Difficult to Achieve
• The mixed-motive nature of most negotiating
situations

• Purely integrative or purely distributive situations

are rare

•  The conflict over the distributive issues tends to

drive out cooperation, trust needed for finding
integrative solutions
Summary
• Seven preconditions for successful integrative
negotiations:
1. Common goals
2. Faith in one’s ability to solve problems
3. Belief in the validity and importance of the other’s positions
4. Motivation and commitment to work together
5. Trust in the opposing negotiator
6. Ability to accurately exchange information in spite of
conflict conditions
7. Understanding of how the process works
 Summary Continued…
• If both parties are not able to successfully meet all of the
preconditions, they will need to resolve their problems in
these areas as the integrative negotiations itself evolves.
Thank you
Nguyễn Công Hòa (MBA)
Mobile: 0949.288.786
Email: [email protected]