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Influence and Negotiation

March 20, 2012MGMT 4000, Class 8

“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

Source: Cohen, Allan R. and Bradford, David L., Influence Without Authority, 2nd Edition, 2005.

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, Project on Negotiation

Circle of Value-Based Negotiation

Communication

Relationship

Interests

Options

Legitimacy

BATNA Commitment

Harvard University, Project 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

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J oint Problem Solving

Communication

Relationship

Interests

Options

Legitimacy

BATNA Commitment

100% 100%

100%

100%100%

100%

“Fair” (Fixed-Pie) Solution

Integrative Solution

50%

50%

40%

60%

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

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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

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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

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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.