1

INTEREST-BASED APPROACHto Problem Solving &

Decision-makingCCSC

Thursday, April 19, 2007

2

Intro/Overview

• What is the Interest Based Approach (IBA)?– Based on interests (rather than positions)– Sometimes called “mutual gains” or “principled negotiation”

• Various contexts in which IBA is used– Labor/management; env. conflict res; interpersonal;

business contracts; international conflicts• How is it different from traditional negotiation?

– Parties seek to “expand the pie” rather than divvy up a “fixed pie.”

• When to use / when not to use IBA• Importance of relationships (relate to NVC)

– Respect; autonomy; truthfulness; clarity; equity; trust

3

Learning Outcomes

• Five Key Points about IBA• The difference between positions (what)

and interests (why)• Why it is useful to “unpack” them• Strategies for success of the IBA process• Interactive: Conference with a Professor

– Tell the truth in a way that strengthens the relationship; deal with other issues on their merits; develop solutions that meet interests.

4

How is IBA different from positional bargaining?

FIVE KEY POINTS• PEOPLE: Separate the people from the problem• INTERESTS: Focus on interests, not positions• OPTIONS: Generate a variety of options before

deciding what to do (including mix & match)• CRITERIA:

– objective standards – how well option meets separate & mutual interests

• CONSENSUS decision-making

5

Point OneSeparate People from Problem

• Focus on issues – not personalities or “who did what when”

• Describe – do not blame or characterize (NVC: observations)

• Focus on the actual problem: CPR

• Be mindful of physical positions– Side by side– Not face to face or across the table

6

Point TwoFocus on Interests not Positions

• Positions (what): solutions, strategies, demands• Interests (why): values, needs, motivations• Why do you think it might be important to

“unpack” them?– Positions represent limited “pie”– Interests offer possibility to expand the pie– Relationships improved– Agreements more easily implemented– Agreements last / not subject to challenge

7

More About Interests vs. Positions

Positions (what) Interests (why)Things you say you want:

I want to go to Avanti for dinner tonight!

Underlying motivations: organic, locally grown, good wine, open late, ambiance

Demands:

Clean up your room right now!

Needs, values, concerns: health, safety, on time to school, responsibility

Terms & Conditions

I will not submit this report until I think it is ready

Aspirations, future hopes, standards: professional quality, aesthetics, meaningful contribution

Things you say you will/ will not do: I won’t call you until you call me to apologize

Feelings, emotions: hurt, anger, sadness; Needs: respect, consideration (NVC bridge)

8

Story (choose one) Queen of Orange-Landia

• Small kingdom: Queen and three subjects• One orange > divided three ways > 3 “equal” parts• No one happy! Why ? • Rind – juice – pithy center > each got only 1/3 of what they needed• TEACHING POINTS:

– Question assumptions re: “pie is limited” – Seek to understand interests (ask “why”)– Explore options (ACBD)

The Bakers and the Egg• Two competitive bakers in same bakery: one egg remaining – “indivisible”• Broke – Oh no, my yellow cake / Oh no, my angel cake• Instead of two cakes > No cakes!• TEACHING POINTS:

– Lack of communication > did not buy more eggs– Lack of trust > not “tip off” the competition – Ineffective communication & lack of clarity on interests > inefficiency, loss of productivity, loss

of opportunity

9

Interactive Exercise: Guess the Interests!

Context Position Interests

Labor We want bonuses of $1K each quarter

Employees: incentives

Management: $ certainty

Environment Put more water in this stream!

Water District: water supply

Fish advocates: sustainable fishery

Business I refuse to pay > 10 % commission

Buyer: Financial well being

Seller: Financial well being

Family I want krispy kremes for dinner

Mom/Dad: health

Kids: fun!

International No more settlements in the West Bank!

Palestine: viable political state

Israel: land & water

10

Point Three: Generating Options

• Define/clarify the problem to be solved• Generate many possibilities • Record ALL ideas • No attribution / no evaluation• Remember: Options =/= commitment!• Be curious / be creative

– Mix & match; play “what if”; reverse; keep asking “why”

• Winnow the list• Build on promising “possibles”

11

Point Four: Develop Objective Criteria

• Objective criteria = independent of the will of all sides

• Examples:– Do-able: money, resources, time– Politically viable , fits organization culture– Data: agreement on data & interpretation of…

• Meets separate and mutual interests

12

Point Five Evaluation & Decision Making

• Be clear on what a good outcome looks like– Increases opportunities / creates value– Better than your BATNA / others’ BATNA’s– Specifies commitments for implementation & monitor.

• Assess how well options meet criteria• Yield to principle, not to pressure• Use TRUE consensus to decide

– Everyone in the group supports or can live with a particular decision =/= unanimous or everyone happy

• Question: experience of the group w/consensus?

13

Behaviors that Support Consensus

• Listen non-judgmentally

• Check for understanding

• Be open / authentic / honest

• Allow enough time

• Support / build on each other’s thoughts

• Build a “golden bridge” (make it easy

14

Strategies for Success:Key Review Points

• Separate the People from the Problem• Focus on Interests not Positions• Invent Creative Options for Mutual Gain• Use Objective Criteria• Use Consensus to decide• Engage Behaviors that Support Consensus• Two New Points:

– Get Buy in to use this Process – Get Agreement on Ground Rules

15

How is IBA different from positional bargaining or problem solving ?

(PROMPTS FOR DISCUSSION) It builds relationships It promotes creative solutions It identifies ways to satisfy the interests of several

parties with one solution It focuses on “making the pie bigger” rather than

dividing up the existing one It builds collaborative solutions with strong buy-in

among multiple stakeholders It generates agreements that last

16

Mini-Negotiation: “Conference w/a Professor” (40 min)

• Read scenario to whole class / Q & A (5)• Clarify Context (2 people) and Challenge: Tell the truth in a way that

strengthens the relationship and allows other issues to be dealt with on their merits (5)

• Identify Process themes (5)– Communication; separate people from problem; power imbalance; issue

control; interpersonal skills.• Set up in Groups of Four (5)

– 2 negotiators; 2 coaches • Prepare (5)

– read confidential instructions – Confer with coach

• Negotiate (10)• Debrief (5)

– Aha’s? Surprises? What worked well? Take-aways for other situations? AND what didn’t work well? Do different next time?

17

Readings & Resources

• Getting to Yes, Fisher & Ury• “Getting to Yes,” (A review of the book by

Glaser, Conflict Research Consortium)• “Inventing Options for Mutual Gain,”

http://www.va.gov/adr/invent.html• Getting Past No, Ury• “Interest-Based Aikido: Taming the Positional

Tiger,” Neil Bodine• “Find More Value at the Bargaining Table,”

(Lawrence Susskind, Program on Negotiation at Harvard Law School)