Integrative bargaining

Integrative bargaining seeks to create joint value before deciding how that value will be distributed. Unlike pure distributive bargaining, it explores interests, differences and alternative currencies rather than assuming that every issue is one fixed pie.

When to use it

• Use integrative principles when the parties have multiple interests, different priorities, an ongoing relationship or room to design terms.
• See Harvard principled negotiation for a broader interest-based framework.

Origins

Richard E. Walton and Robert B. McKersie gave integrative bargaining its influential modern formulation in A Behavioral Theory of Labor Negotiations in the mid-nineteen-sixties. They distinguished joint problem-solving from distributive allocation. Later interest-based and “win–win” methods extended the logic beyond labour relations.

What it is

1. Identify shared, compatible and differing interests.
2. Treat the negotiation as joint deal design rather than only a dispute.
3. Surface assumptions, perceptions and attitudes.
4. Design for a workable future.

How to use it

Prepare positions, interests, constraints, authority and alternatives for both sides. A position states what a party asks for; an interest explains why it matters. Search for differences in timing, risk, status, flexibility, service or other currencies that can support trades.