Influence and Negotiation

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Influence and Negotiation

• Class 8
• MGMT E-4000

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• All influential managers have power, but not all
  powerful managers have influence.
• Linda Hill, Exercising Influence

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Sources of Power

• Position/Role
• Organizational Affiliation (school, company,
  industry)
• Relationships/Networks
• Knowledge and Skills
• Personal Currency
• Martha E. Mangelsdorf, Boston Content Creation,
  LLC

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Common Myths About Power
Myth Reality
Basic Concept Authority Interdependency
Source of Power Formal authority Everything but
Key Players Subordinates Includes those outside your formal authority
Key Competencies Technical Technical, human, conceptual
Desired Outcomes Control, compliance Commitment, empowerment
Linda Hill, Exercising Influence
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What Is Influence?

• Reciprocity (give and take) between you and
  another person(s) that enables you to change or
  reinforce others' attitudes, opinions, or
  behaviors.
• (Influence Without Authority, 2nd Edition, by
  Allan R. Cohen and David L. Bradford, 2005)

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Pieces of the Influence Puzzle
Audience Decision Making
Audience World and Receptivity
YOU
Relationship with Audience - Current and
Historical
Stakeholders
Your Decision Making
Your World and Receptivity
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Types of Currencies

• INSPIRATION
• vision, excellence, morality/ethics
• TASK
• resources, information, assistance, support
• POSITION
• advancement, recognition, visibility, reputation,
• networks/contacts, importance/insiderness
• RELATIONSHIP
• acceptance, personal support, understanding,
  inclusion
• PERSONAL
• self concept, challenging, ownership, gratitude,
  involvement

Cohen-Bradford Model
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More Ways to Influence

• Reason
• Research
• Resonance
• Repetition
• Resources and rewards
• Real-world events
• Resistance
• Lauren Keller Johnson, Tactics for Changing
  Minds

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Ways to Influence

• Convert power to influence through
• Empowering others
• Cultivating networks
• Linda Hill, Exercising Influence

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Negotiation is
to seek mutual agreement through dialogue. to
confer with another so as to arrive at the
settlement of some matter.
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Why negotiate?
Substance Important? YES
NO YES Negotiation Accommodation Relationship
Important? NO Competition Avoidance
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A Good Agreement

• Improves the parties relationship
• Meets the interests of all parties well
• Is the best of many options
• Is legitimate and durable
• Is better than our BATNA
• Identifies specific, firm and implementable
  commitments

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Traditional Negotiation
Threat to walk
Threat to walk
Harvard University, Project on Negotiation
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Circle of Value-Based Negotiation
Harvard University, Project on Negotiation
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Communication
Relationship
Interests
Options
Commitment
BANA
Legitimacy
If No
If Yes

• Assumptions
• Pie can be expanded
• Negotiators should look to create value before
  dividing it up

• Assumptions
• Pie is fixed
• Only job of negotiator is to claim value

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Fair (Fixed-Pie) Solution
Integrative Solution
100
100
50
100
50
60
100
40
100
100
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The Negotiators Dilemma

• What information to disclose?
• Without disclosure Missed opportunities to
  enlarge the pie
• With disclosure Risk of exploitation

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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.

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Case Study

• Introduction and Instructions
• Preparation
• Negotiation
• Debrief

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Journal Questions

• When do I avoid/pursue influencing others?
• Whats my biggest barrier/leverage point to
  influencing others?
• What influencing skills might I seek to develop
  or experiment with?
• Where does my power exist/come from?
• What power do I need to build upon/develop?

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Journal Questions

• What is my comfort level in negotiating outcomes?
• What are my strengths/how do I apply my strengths
  in situations requiring negotiation?
• How might I develop negotiation skills?
• How would developing negotiation skills benefit
  me?