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1
Influence and Negotiation
March 22, 2011MGMT 4000, Class 8
Sarah Staley
“All influential managers have power, but not all powerful managers have influence.”
Linda Hill, “Exercising Influence”
Ways to Influence
Convert power to influence through: Clarifying your Purpose Diagnose their world Trading Currencies Cultivating networks
Clarify Your Purpose
Does your purposes make sense? Learning Their Story Expressing Your Views Problem-Solving Together
YOU
Audience “World” and Receptivity
Audience DecisionMaking
Relationship with Audience -
Current and HistoricalStakeholders
Diagnose Their World
Trading Currencies
INSPIRATION vision, excellence, morality/ethics
TASKresources, information, assistance, support
POSITIONadvancement, recognition, visibility, reputation,
networks/contacts, importance/insidernessRELATIONSHIP
acceptance, personal support, understanding, inclusionPERSONAL
self concept, challenging, ownership, gratitude, involvement
Advocates
Close relationships
Know you well
Believe in you
Would recommend you
to others
Allies
Know you pretty well
Know generally what you do
Are eager and willing to assist
you
Care about your success
Acquaintances
Know you casually
Share something in common with
you
Are typically happy to talk
with you
Adversaries
Tend to be created
Develops over time
Relationship was not handled well
Distant Contacts
No personal connection
May or may not help you
Cultivating Networks
The Arm Exercise Set-up
Find and face your partner Place your right elbow on the table Grab your partner’s right hand
Goal Get as many points for yourself as possible
Scoring You will score one point every time the back
of your partner’s right hand touches the table
Why negotiate?
Substance Important?
YES NO
YES Negotiation Accommodation
Relationship
Important?
NO Competition Avoidance
Traditional Negotiation
Commitment (extreme position)
Final offer
Last Offer
Final last offer
Commitment (extreme position)
Final offer
Last offer
Final last offer
Threat to walk
Threat to walk
Harvard University, Program on Negotiation
Circle of Value-Based Negotiation
Communication
Relationship
Interests
Options
Legitimacy
BATNA Commitment
Harvard University, Program on Negotiation
Assumptions• Pie is fixed• Only job of negotiator is to
claim value
Assumptions• Pie can be expanded• Negotiators should look to
create value before dividing it up
Interests
BANA
Communication
Commitment
Options
Legitimacy
Relationship
If “No” If “Yes”Harvard Leadership Development
Program2
Traditional BargainingCommitment (extreme position)
Final offer
Last Offer
Final last offer
Commitment (extreme position)
Final offer
Last offer
Final last offer
Threat to walk
Threat to walk
Harvard Leadership Development Program
16
J oint Problem Solving
Communication
Relationship
Interests
Options
Legitimacy
BATNA Commitment
Getting To Yes
A Good Agreement: Tactic: Advice:
Improves the parties relationship
Separate the People from the Problem
Meets the interests of all parties well
Focus on Interests, Not Positions
Is the best of many options
Invent Options for Mutual Gain
Is legitimate and durable Insist on Using Objective Criteria
Is the best alternative Understand and Develop Your BATNA
13
Getting To Yes
A Good Agreement: Tactic: Advice:
Improves the parties relationship
Separate the People from the Problem
Tone-match to audience; advocate AND inquire
Meets the interests of all parties well
Focus on Interests, Not Positions
Probe for interests; ask Why/Why Not?
Is the best of many options
Invent Options for Mutual Gain
Separate option generation from evaluation and commitment
Is legitimate and durable Insist on Using Objective Criteria
Use criteria as a “sword” – “Let me show you why this is fair.” Or as a “shield” – “Why is that a fair number?”
Is the best alternative Understand and Develop Your BATNA
Improve your alternative before negotiations begin
14
100% 100%
100%
100%100%
100%
“Fair” (Fixed-Pie) Solution
Integrative Solution
50%
50%
40%
60%
The Negotiator’s Dilemma
What information to disclose?
Without disclosure: Missed opportunities to enlarge the pie
With disclosure: Risk of exploitation
Managing the Dilemma
Prepare. Consider what you can reveal. Reveal the nature of your interests, but not
the intensity. Share information reciprocally, in bite-
sized pieces. Promote a frame of side-by-side joint
problem-solving.
Case Study
Introduction and Instructions
Preparation
Negotiation
Debrief
19
References
Fisher, Roger and Ury, William, Getting to Yes: Negotiating Agreement Without Giving In (Second Edition), Penguin Books, 1991.
Hill, Linda Exercising Influence, Harvard Business School Publishing, 1994.
Cohen, Allan R. and Bradford, David L., Influence Without Authority, 2nd Edition, 2005.