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Interest-Based Bargaining (IBB) Commissioner Dennis Dougherty

Interest-Based Bargaining (IBB) Commissioner Dennis Dougherty Federal Mediation & Conciliation Service. What is one thing you remember as significant from yesterday’s training/discussion?. 2. Bargaining Exercise. “Win as Much as You Can”. Traditional Bargaining. Traditional Negotiations.

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Interest-Based Bargaining (IBB) Commissioner Dennis Dougherty

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  1. Interest-Based Bargaining (IBB) Commissioner Dennis Dougherty Federal Mediation & Conciliation Service

  2. What is one thing you remember as significant from yesterday’s training/discussion? 2

  3. Bargaining Exercise “Win as Much as You Can”

  4. Traditional Bargaining

  5. Traditional Negotiations Preparation: • A Look Back – “Let’s get even” • Data Sources – “Yours can’t be right” • Mobilization – “Prepare for battle” • Expectations – “Do what we can to get away with what we want”

  6. Traditional Negotiations At the Table: • Opening Exchange – Demands • Focus on Separate or Competing Interests • Exaggerated Positions • Strategic Retreat • Denial of Legitimate Claims • Withholding of Information

  7. Traditional Negotiations At the Table (continued): • Arguments around Data Relevancy • Emphasis on Control • Negative Behaviors – “coerce” – “name calling” • Time Allocation • Use of Power

  8. Traditional Negotiations At the Table (continued): • Settlements, not Solutions • Distributing, not Creating • An agreement reluctantly accepted is a sign of success. • Limited scope (Confined to NLRB “Box”) • “The enemy is within” perspective

  9. Clip: Michael Scott Paper Co.

  10. Traditional Negotiations Aftermath: • Less than Optimal Agreement • Resentment – Revenge • Game Playing • Unwillingness to Implement

  11. Clip: “Haggle”

  12. Old Habits…

  13. …and Change

  14. Interest-Based Negotiations Methodology

  15. Aim of Negotiations IBB negotiation has 3 distinct goals: • to reach a desired and durable result • to reach agreement efficiently and fairly • to keep the relationship intact

  16. Tenets of IBB • Refrain from using power tactics and strategies • Information sharing (information not used as bargaining chip) • Openness to options and alternatives

  17. Overview of the Interest-Based Negotiations Model

  18. IBB Terminology • Issue: A problem or subject area to be addressed. • Position: One’s proposed solution to an issue. A solution to a problem or concern which is crafted to meet one party's interests. • Interest: An underlying motivation, concern or need that must be considered in reaching a mutually satisfactory solution. Interests are what cause one to take a given position and often express why the issue is an issue in the first place. • Options: Potential, often partial, solutions to satisfy one or more interests. • Criteria: Broad or general agreed-upon qualities of an acceptable solution.

  19. Step 1: Defining the Issue • The statement of the issue should be: • Open-ended • Free of accusations and emotionally laden terms • Phrased as “What can we do to…”What might we do to…” • Focused on causes rather than symptoms

  20. Step 2: Identify Interests • Identify all interests behind the issue • Interests = concerns, needs, fears, goals that must be addressed in reaching a solution • Discuss and clarify each interest • Identify mutual interests

  21. Step 3: Develop Options • Options are potential solutions, or partial solutions, to the issue • Options are not commitments • Strive for quantity in developing options • Brainstorming is one technique; no judging • Group reviews, clarifies and sorts options

  22. Step 4: Craft a Solution • Integrate promising options into a solution • Test the solution against the interests • Test for consensus • Draft the written solution (off-line) • Review the written solution and test again for consensus

  23. Defining the Issue

  24. Defining the Issue • The issue must be defined clearly • Everyone must agree that it is the issue to be worked on • Posting the issue on a flipchart helps to keep the group focused and working on a common goal

  25. Defining the Issue • The Checklist • Open-ended • Free of accusations and emotionally laden terms • Phrased as “What can wedo to…” or “What might wedo to…” • Depersonalized • Lends itself to multiple options • Free of judgmental wording • Focused on causes rather than symptoms

  26. Defining the Issue • Framing the issue is an art • Scope should not be too narrow: only part of the problem will be solved • Scope should not be too broad: the problem becomes unsolvable

  27. Defining the Issue • The statement of the issue may change during the IBB process • IBB is a process of constant clarification

  28. Distinguishing Interests from Positions

  29. Distinguishing Interests From Positions • Interests • The needs or concerns underlying the issue • Position • One party’s solution to the issue

  30. Interests and Positions • Interest Statement • Focuses on why the issue is an issue • Identifies one’s true needs and concerns regarding the issue • Opens the way to a dialogue so the things one cares about can be discussed, understood and addressed

  31. Sample Listing of Interests • Consistency • Productivity • Teamwork • Seniority • Respect • Fairness • Reliability

  32. Interests and Positions • Position Statement • Focuses on how the issue should be resolved • May not reveal one’s true needs and concerns regarding the issue • Can set up a confrontation: my way vs. your way

  33. Interests and Positions • Testing Interests vs. Positions • Is there more than one solution that would meet the interest? • If not, it’s probably a position • There are usually several possible solutions that would satisfy an interest

  34. Identifying Interests

  35. Process • Caucus • Write interests on flipcharts • Beginning with an action “verb” ending in “ing” may be helpful – i.e. Improving • Discuss among constituents and prioritize • Share and discuss with other party • Identify mutual interests

  36. Identifying Interests • Identifying and understanding interests is key to the success of IBB • A dialogue is required; listing interests is not enough • Listen actively and with empathy • Ask clarifying questions • Confirm what you’ve heard in positive terms

  37. Identifying Interests • Dialogue may disclose interests that were not listed • Interests must be accepted as legitimate; they are not to be debated • Acceptance and understanding do not mean agreement • Don’t get bogged down in debating whether an interest is mutual

  38. Identifying Interests • Demonstrating that you understand and appreciate the interests of the other party is a low risk investment with the potential for high returns • The discussion of interests should leave participants with a sense of the “gotta-have’s” versus the “like-to-have’s” • The “gotta-have’s” are the “key” interests that the process should focus on • “Less is more” – a shorter list is more likely to be remembered and acted upon

  39. Develop Options

  40. Process • Revisit issue statement and interests • List potential options on flipchart • Managed brainstorming/list generation • Many other possible techniques

  41. Development of Options • Options are potential solutions or solution elements • It is helpful to create a broad range of potential solution elements • Brainstorming can be used to stimulate creative thinking • Options are not commitments

  42. Development of Options • If the issue is complex: • Don’t rely on brainstorming alone • Review all relevant data • Survey best practices • Obtain the views of experts • Offering options that meet the interests of the other party builds trust – if the gesture is reciprocated

  43. Craft a Solution

  44. Select Solution Elements • Which options best meet the interests and solve the problem? • Those options = potential pieces of the solution • May have to create criteria to help decide; the best criteria are the “must-have” interests • Results are more important than process

  45. Three Stage Factor Analysis • Feasible • Benefit • Acceptable

  46. Craft a Solution • It may be useful to categorize options • There are many ways to identify the most promising options – e.g., “multi-voting” • Developing alternative “straw man” solutions can be helpful • Additional options are often identified as the solution is being worked on

  47. Craft a Solution • Return to the key interests if people get positional – caucuses can be helpful • Consensus is required for agreement • Consensus means all commit to support the solution • Detailed solution agreements should be drafted off-line and brought back to the group for approval

  48. Reaching Agreement by Conseneus • More on this later

  49. Benefits of IBB • Ownership in the solution • Ease of implementation • Consistent with organizational values and norms

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