1 Influence and Negotiation Class 8 MGMT E-4000

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

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

4 Common Myths About Power MythReality Basic ConceptAuthorityInterdependency Source of PowerFormal authority“Everything but” Key PlayersSubordinatesIncludes those outside your formal authority Key CompetenciesTechnicalTechnical, human, conceptual Desired OutcomesControl, complianceCommitment, empowerment Linda Hill, “Exercising Influence”

5 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)

6 Pieces of the Influence Puzzle YOU Audience “World” and Receptivity Audience Decision Making Relationship with Audience - Current and Historical Your Decision Making Your “World” and Receptivity Stakeholders

7 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

8 More Ways to Influence Reason Research Resonance Repetition Resources and rewards Real-world events Resistance Lauren Keller Johnson, “Tactics for Changing Minds”

9 Ways to Influence Convert power to influence through: –Empowering others –Cultivating networks Linda Hill, “Exercising Influence”

10 Negotiation is… …to seek mutual agreement through dialogue. …to confer with another so as to arrive at the settlement of some matter.

11 Why negotiate? Substance Important? YES NO YES NegotiationAccommodation Relationship Important? NO CompetitionAvoidance

12 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

13 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 Harvard University, Project on Negotiation

14 Circle of Value-Based Negotiation Communication Relationship Interests Options Legitimacy BATNA Commitment Harvard University, Project on Negotiation

15 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”

16 100% “Fair” (Fixed-Pie) Solution Integrative Solution 50% 40% 60%

17 The Negotiator’s Dilemma What information to disclose? –Without disclosure: Missed opportunities to enlarge the pie –With disclosure: Risk of exploitation

18 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.

19 Case Study Introduction and Instructions Preparation Negotiation Debrief

20 Journal Questions When do I avoid/pursue influencing others? What’s 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?

21 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?