And we've already covered the idea of distributive bargaining, distributive

being win-lose, integrative is another way to say win-win,

and this is what we always talked about in business, right? I want you to remember

however, I really do think this is a much more rare situation, and even though you

may want this situation, it doesn't mean it happens. Both sides need to be

involved and really need to be honestly working towards that win-win or

integrated integrative situation. So, let's look at an example of what we're

talking about just very quickly, an introduction to this chapter and we

often use a pie as an example of how to understand negotiation, right? We could

have said that distributive bargaining is like a pie or I think we said it was

like a pizza, and if I get one slice you lose one slice, you don't get that slice,

right? The pie is I get this piece, you don't get this piece so, if there's one

piece left

I get it but you don't get it, now of course we could cut the pie in half and

that's called a compromise, and I think it's important to remember that

integrative bargaining is not about compromise rather it's about a win-win

situation where both sides can get what they want without losing what they want,

so they both get what they want without losing anything that they want. That's

different then compromise, compromise means I get half of what I want, I lose

half of what I want, you get half of what you want and you lose half of what you

want. So very different approach, now on the win-win for the integrative

bargaining, we need to think about how does this work? Because the situation is

not very different from a normal negotiation, we both have differences,

both sides have things that they want, goals that they want but the question is

how can we make it win-win?

Well, you know win-win, the key factor to creating this situation is:

both sides, one win-win and both sides understand each other and what they can

give and what they can take that will satisfy both sides. And this is where

things become extremely iffy or difficult, because both sides need to be

very honest and feel comfortable with each other and trust each other, so if I

tell you that what I need to win is ten dollars, but I'm not being honest then

when you give me ten dollars you've lost, because you've given me more than you

could have given. So, we both need to be honest and that is where things fall

apart, because you can ask are you being honest? And of course, they'll say

I'm being honest and you asked me are you being honest? Yeah, I'm being honest of

course everyone says they're being honest, no one says no, I'm not being

honest, I'm not telling the truth at all.

This is a distributive negotiation and I would like to win more than you. Nobody

says tha,t they always say let's make this win-win so how do you know if it

really is win-win? Well, that's the hard part and the easy answer to that but

if the win-win is going to succeed, the integrative solution is going to really

work, then both sides really need to get everything they want, everything both

sides want they get. So, they need to know what their goal is clearly. If you don't

have a goal, there is really no way an integrative negotiation can happen or

succeed, because nobody knows what they want each side just wants to get more,

more, more, more.

That can't happen, so a key point is clarity on the goals and then another

key point is to share the goals. I know your goals, you know my goals so

this is this openness.

We need to be open to each other, both sides need to be open and honest, that is

not an easy thing to do because we have emphasized secret information, haven't-we?

So, what happens if one side is thinking win-win

but the other side is not thinking win-win? I said well, I'm being honest to

you tell me your secret information and you tell me honestly and I tell you my

secret information, but it's not true.

Well, you're gonna lose and I'm gonna win you see so just because we say win- win

doesn't make it happen, there really needs to be an openness, or an honesty

or trust between both of the sides. So, it sounds great that there's a win-win,

but it doesn't really work that way I want you to be careful because the one

thing I worry about is you're going to think

hey, I'm just going to do my RPG, I'm going to play the negotiation game with

our classmates and we're all going to be friends because I trust you and I'm

gonna tell you my secret information and it ends up, you lose.

Why? Because you're not paying attention that it was not open and honest, and it

was not integrated, it was distributed. So integrative is wonderful, it's powerful, it can

make everyone win, but it's rare and it's difficult, it's challenging.