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A Distribution Agreement Is One That Expands The Pie.

A Distribution Agreement Is One That Expands The Pie.

In large-scale negotiations, dealmakers tend to talk about power and influence on the other side, what the other party will or will not accept, and how they can influence their behaviour. While it is practical to view the counter-parties as if they were a monolithic unit, this attitude regularly leads to analytical and strategic errors. (In the field of international diplomacy, negotiators have traditionally been a little more prepared to think about how they can influence several electoral districts when doing business, whether with the Taliban or the former Soviet Union.) Integration negotiations are important because they generally have more satisfactory results for the parties concerned than position negotiations. Position negotiations are based on strong and divergent positions (positions) and tend to compromise or even fail to reach an agreement. An article by Katie Johnston for Harvard Business School, “The Art of Haggling,” describes the difference between distribution negotiations and integration negotiations. Getting to Yes, the groundbreaking work of Harvard Law School Professor and Program on Negotiation Founder Roger Fisher and Harvard Negotiation Project Senior Fellow and Program on Negotiation William Ury, co-founder of the Snegotiation. In integration negotiations, each side tries to create a mutually beneficial agreement. [1] The idea that integration or interest negotiations will always include distribution negotiations was originally put forward by David Lax and James Sebenius in The Manager as Negotiator: Bargaining for Cooperation and Competitive Gain, 1986. .

Of course, the inclusive approach has its limits, and Wheeler finds that the art of negotiation is to simultaneously create and claim value or “mount two different horses at the same time.” Too often, dealmaker mixes bargaining power with a strong BATNA and the accompanying ability to harm the other party. Basically, the message they are sending is this: we do not need an agreement with you, and you need an agreement with us so that we can dictate the terms.


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