Two kinds of negotiation and three vital concepts
Step 1 / 3·Not every negotiation is dividing a fixed pie
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Learning objectives — after this module you will:
- Distinguish distributive from integrative negotiation
- Establish your BATNA and reservation point before the table
- Understand ZOPA and how to find the zone of agreement
Not every negotiation is dividing a fixed pie
Identify the type so you can choose a strategy.
Many people enter every negotiation assuming: whatever I gain, you lose. That holds for DISTRIBUTIVE negotiation (dividing a fixed pie — haggling over the price of a one-off purchase).
But most workplace negotiations are INTEGRATIVE: both sides have several issues at once with DIFFERENT priorities. There, the pie can be grown — each side concedes what it values less in exchange for what it values more.
The question that opens up integrative negotiation
'Of everything we're discussing, which matters MOST to you?' — that question exposes the priority order. Very often you'll find what they value most is something you barely care about, and vice versa. That's exactly where value gets created for both.
Key takeaway: Most workplace negotiations are integrative — ask about priorities to grow the pie rather than fight over it.