Leverage or Power In Negotiation Preliminary Considerations

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Leverage or Power In NegotiationPreliminary
Considerations

• What are power and influence?
• Power Source of direct or indirect pressure
  exerted to advocate interests or win conflict
• Influence Tactics to apply this pressure
• Why is power important to negotiators?
• Provides advantage or leverage to gain greater
  share of outcomes or preferred solution
• Usually sought for one of two reasons
• Equalization To counterbalance opponent power
• Enhancement To secure desired outcomes, to win

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Power In NegotiationPreliminary Considerations,
contd

• Defining power
• Simple definition Ability to bring about
  desired outcomes (in face of resistance)
• Alternative definition Ability to satisfy
  purposes in a situation relative to that
  situation
• Relational aspect is important
• Not simply a characteristic of an actor or party
• Stresses how one derives power from a situation
  or context
• Definition leads to emphasis on sources of power

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Sources Of PowerInformation and Expert Power

• Information
• Facts, evidence, viewpoints, data
• Used to persuade the other to accept a particular
  view (perhaps a particular frame), solution
• Expert power
• Special case of info power -- person assumes
  importance apart from info
• Interprets facts for us, makes them persuasive
• Watch out for the snow job -- a variation of
  good guy/bad guy?

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Sources Of PowerResource Control Whoever has
the gold

• Money Cash, salary, bonuses, expenses, etc.
• Supplies Raw materials, parts, components
• Time If the opponent is under time pressure
• Equipment Tools, software, vehicles, etc.
• Critical services Installation, maintenance,
  technical support, transportation, training, etc.
• Human capital Labor, staff
• Interpersonal support Praise and encouragement,
  or criticism for bad performance

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Sources Of PowerLegitimate Power

• Authority is usually derived from the social
  structure (e.g., organizational position, ones
  place in the hierarchy or network). Can be
  obtained through inheritance (tradition),
  election, or appointment
• Derivative sources Reputation based on past
  performance enhances formal authority.
  Conversely, people stop listening to ineffective
  authorities

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Sources Of PowerInformal Authority

• Derives from ones place in the structure or
  network even without formal authority
• Key characteristics lending informal authority
• Centrality Amount of information passing
  through the node
• Criticality and relevance The key info and its
  processing
• Flexibility Discretion they can exercise
• Visibility Is the function known to others?

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Sources Of PowerPersonal Power

• Credibility Qualifications and expertise,
  trustworthiness and integrity, presence
• Personal attractiveness (friendliness)
  Establishes personal relationship, showing
  warmth, empathy
• Emotion Appealing to passions, values, sense of
  whats right
• Persistence and tenacity Dogged determination
  -- children are good at this!

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Managing Information Power The Persuasion
Process

• Traditional model emphasizes characteristics of
  the message, source (sender), and receiver
• More recent model emphasizes two paths
• Central route Conscious, cognitive (integrated
  with existing thought structures), e.g., Our
  cell-phone service is useful if your car breaks
  down
• Peripheral route More subtle, less conscious,
  less permanent as not integrated in thought
  structures, Jamie Lee Curtis wants to party with
  you/Women are mechanically competent

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Characteristics of Messages Three Main Issues

• Content Facts and topics to be covered, the
  what to be communicated
• Structure How the message is constructed, or
  form
• Persuasive Style How the message is delivered

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Message Content Making It Persuasive

• Make the offer attractive What do they gain?
  Defuse their objections in advance
• Frame it for a yes One yes leads to another
  (build cooperative and agreeable spirit)
• Make it normative People want to do the right
  thing. Make agreement the right thing that
  should be done. Even just saying it is helps!
• Suggest agreement in principle as an interim step

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Structuring The Message For Persuasion

• Order Not in the middle. Primacy and recency
  effects
• Attractive, familiar, controversial messages at
  beginning
• Uninteresting, unfamiliar, unimportant to
  receiver at end
• Two-sided message Recognize alternate view and
  preempt it in advance (I.e., anticipate
  objections)
• Big ideas may be more digestible in small doses,
  especially if parts are known to be tasty (or
  previously accepted)
• Repetition. Repetition.
• Conclusions Most effective if theyve drawn
  them. Can you count on that? If so, leave it
  open.

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Persuasive Style How To Pitch The Message

• Encourage active participation
• Use metaphors, with due caution
• Incite fears, possibly with threats
• Create distractions to absorb energy they
  normally devote to building counter-arguments
• Use more intense language, but theres an optimal
  level thats not always the most intense
• Violate receivers expectations

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Characteristics of Sources

• Credibility
• Qualifications and competence
• Trustworthiness
• Self-presentation or presence
• Composure
• Sociability (friendly and open)
• Extroversion

• Personal attractiveness
• Friendliness Establish personal relations
  (Ingratiation Excess flattery, taking
  friendliness a bit too far?)
• Strategies
• Compliments
• Attractiveness
• Helping the other
• Perceived similarity
• Emotion

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Receiver Characteristics

• Attending to the other
• Eye contact
• Body position
• Other nonverbal cues
• Exploring or ignoring the others position
• Selectively paraphrase
• Reinforce points you like in their position
• Resisting the others influence
• Develop your BATNA
• Public commitments
• Inoculation against their arguments

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Context FactorsCompliance Strategies

• Strategies used to gain compliance
• Reciprocity - normally expected in concessions
• Commitment - let them sample, try it on, borrow
  it
• Social proof - we look to others to guide us,
  e.g., celebrities, stars
• Use of reward and punishment, or threats
  involving these (pressure tactics)
• Scarcity - offer something unique and rare
• These can be used to manipulate or deceive
• We resent such use on us. Should we use them?
• Stay tuned for chapter on ethics

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Application of PowerStrategies of Influence

• Persuasion Using info and expertise
• Exchange Resources, quid pro quo
• Legitimacy Position in authority structure
• Friendliness and ingratiation
• Friendliness Developing a relationship, showing
  support, concern, liking, appreciation, respect
• Ingratiation Expedient friendliness is often
  resented, but some can use it effectively
• Praise or verbal reinforcement

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Application of PowerStrategies of Influence,
continued

• Assertiveness Strong, forceful style and manner
• Inspirational appeal Info with an emotional
  message and a vision of the future
• Consultation (ACBD) -- Redundant?
• Pressure Using strategic info plus sanctions
• Tends to be used by parties high in power, but
  also as a response by less powerful to power
  escalation?
• Short-term compliance, but alienates the other
• Coalitions Endorsement or coordinated use of
  other influence tactics

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Power In Negotiation -- Summary

• Its important to negotiators for different
  reasons, depending on their intent
• To neutralize a power disadvantage
• To gain a competitive advantage
• Power is perhaps best understood in terms of its
  sources
• Various influence strategies can be used,
  separately or in combination, to apply power or
  exert leverage