Transcript Chapter 5

Chapter 5
Gaining Leverage
Through Power and
Persuasion
Leverage in Negotiations
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5-2
If leverage is perceived as balanced – the
parties bargaining power is balanced
If unbalanced – the negotiation process and
outcome may be affected and the party with
greater power may choose a win-lose
approach, and not a mutual-gains approach
A party’s BATNA = greatest source of power
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Negotiation Skills
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Skill 5.1: Use your BATNA
Skill 5.2: Recognize the sources of power
(both sides)
Skill 5.3: Marshal persuasive arguments to
support your interests/positions
Skill 5.4: Use verbal and nonverbal
communication to persuade
Skill 5.5: Use threats to gain concessions
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Chapter Case: Death in a
Police Excessive Force Incident
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Wilma filed a wrongful death lawsuit when her
husband James, an 18-year-old African American
male, was shot and killed by Officer Jones
Officer Jones believed James was pulling a gun
(he was not) and shot him in the back
African American communities were angered when
the grand jury failed to indict Jones
Wilma sued Officer Jones for negligent homicide
Jones offered to settle for $350,000
Negotiation meeting: Wilma refused the $350,000
and countered with $3,000,000
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Leveraging Power from Your
BATNA
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In negotiations:
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Power = ability to induce the other party to
settle for less
Leverage = the use of power to achieve goals
Power is relational – derives from the
relationship of the parties to the situation
The ability to walk away (BATNA) = the
most essential bargaining power
5-6
Leveraging Power from Your
BATNA (cont.)
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BATNA is “in the eye of the beholder”
BATNA is a perceived value
Thus, if the other party perceives your
BATNA is greater then you have leverage
Power and Persuasion
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5-7
In any negotiation BOTH parties bring
bargaining power to the table
The negotiation outcome, to some extent,
depends on the power balance
Possible power situations:
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Balanced
A
B
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A power advantage
A
B
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B power advantage
A
B
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If Your BATNA Is Inferior
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If the parties believe your BATNA is
inferior to the other party’s BATNA:
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Keep your BATNA concealed, increase its
perceived strength
Weaken the other party’s BATNA – thus
balance the seesaw
Team up with other parties to increase your
BATNA
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If Your BATNA Is Inferior
(cont.)
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How can these alternatives be achieved
during negotiations?
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Introduce new information
Seek a new outside option to a settlement
Seek a third party’s opinion
Alter the other party’s perception of your
BATNA
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Sources of Power
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Reward: Raises, perks, promotions
Coercive: Punishment, firing, walk away
Legitimate: Position, approval authority
Expert: Specialized knowledge
Reference: Charisma, charm
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Leveraging Power Through
Persuasion
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Principles of persuasion that can be used to alter
the other party’s viewpoint:
1. Frame the question that is vital –
present it in the most favorable light
2. Marshal persuasive arguments to
answer that question
3. Choose the most persuasive argument
to support your position
4. Match nonverbal communication to the verbal
Personality Types
Common Nonverbal Behaviors
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Creating Persuasive Arguments
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Three keys (according to Aristotle):
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Passion (Pathos): focus on emotions
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Logic (Logos): focus on information
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Example: appeals to fairness, reciprocity
Example: mathematical estimates, pros and cons
of an action
Character (Ethos): focus on the person
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Example: Cite their reputation for
honesty, fairness, authority
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Using Persuasive Language
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Tactics that make an argument persuasive:
1. Metaphor: A powerful way to convey meaning from one
thing to another
2. Humor: Can create a positive atmosphere, or diffuse a
tense moment
3. Using props: Visual people respond better to images and
words than verbal communications. Props can focus the
discussion easily
4. Storytelling: Conveys the interests behind the position
5. Focus on other party’s perspective: Use either a central
route – encourage content, or peripheral route – using
throwaways, friendly/flattering behavior
Tools for Persuasive
Communication
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Successful negotiators create leverage through
persuasive
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Verbal communication: direct single dialogue to present a
position, followed by silence (use tone, pitch, and volume of
your voice to convey meaning)
Nonverbal communication: can add emphasis through body
language, facial expressions, actions
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Kinesis: posture and physical movements (standing up, circling,
walking out)
Eye movement: maintain eye contact to convey security, truthfulness
Facial expression: can express anger, happiness, fear, concern, etc.,
but also can be misread
Gestures: can be misread
Time and space: arriving on time, pleasant meeting space send cues
5-17
Persuasion Through Process
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Process techniques to shape the other party’s
perception
1. Identify the decision maker: take the discussion to
them
2. Address needs of individual team members if the
interests of the groups are diffused
3. Frame the issue in terms of achieving common
good for both parties, or meeting shared core
values
4. Share the diagnosis of the problem to create
support from both parties
Leveraging Power 5-18
Through Pressure Tactics
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Key concepts:
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Power is always relative – the power balance
between parties is critical
Power can be real or perceived
Self-confidence gives one power
Belief that power will be used can make it
unnecessary to exist
Power can be limited by outside influences
Ends and means can’t be separated
Exercising power involves risks and costs
Balance of power may change