1. Influencing: Power, Politics, Networking and Negotiation
Chapter 4
Influencing: Power, Politics, Networking and Negotiation
©Lussier, R. and Achau, C. (2007): Effective Leadership, 3rd Edition, South-Western, Cangage Learning

2. Summary Of Lecture 8 Position vs personal power
Differences among legitimate, reward, coercive, and referent power
Relationship of power and politics
Similar use of money and politics
Steps in networking process
©Lussier, R. and Achau, C. (2007): Effective Leadership, 3rd Edition, South-Western, Cangage Learning

3. Learning Outcomes What is negotiation? Steps in negotiation process
Relationship among: negotiation, conflict, influencing tactics, power, politics
Six habits of merely effective negotiator
Negotiating the Spirit of the deal
Deal Minded vs Implementation Minded Negotiator
©Lussier, R. and Achau, C. (2007): Effective Leadership, 3rd Edition, South-Western, Cangage Learning

4. NEGOTIATION
Two or more parties which are in conflict (disagreement) working to reach an agreement
Common in:
Job searches
Labor relations
Sales
Business deals
Mergers
Contracts
©Lussier, R. and Achau, C. (2007): Effective Leadership, 3rd Edition, South-Western, Cangage Learning

5. Negotiation Process Plan Agreement Close the deal Negotiations
No Agreement
Postponement
©Lussier, R. and Achau, C. (2007): Effective Leadership, 3rd Edition, South-Western, Cangage Learning

6. PLAN Research the other party(ies) Set objectives
Lower limit
Objective
Opening
Develop options & tradeoffs
Be prepared to deal with questions & objections (especially unstated)
©Lussier, R. and Achau, C. (2007): Effective Leadership, 3rd Edition, South-Western, Cangage Learning

7. NEGOTIATIONS Develop rapport Keep it professional, never personal
Try to get the other person to make the first offer
“He who mentions a dollar amount first, loses”, Job Hunting adage
Ask questions
Listen
Don’t give in too quickly
Never give something up for free
©Lussier, R. and Achau, C. (2007): Effective Leadership, 3rd Edition, South-Western, Cangage Learning

8. POSTPONEMENT May try to create a sense of urgency
May be advantageous or disadvantageous
Most interested party usually tries to avoid postponements
May try to create a sense of urgency
©Lussier, R. and Achau, C. (2007): Effective Leadership, 3rd Edition, South-Western, Cangage Learning

9. Agreement Both sides should feel good about the agreement
Get it in writing
Quit selling
Start work on a personal relationship
©Lussier, R. and Achau, C. (2007): Effective Leadership, 3rd Edition, South-Western, Cangage Learning

10. Disagreement Accept that agreement isn’t possible
Learn from the failure
Ask the other party what you did right & wrong
Analyze and plan for the next time
©Lussier, R. and Achau, C. (2007): Effective Leadership, 3rd Edition, South-Western, Cangage Learning

11. Negotiation Adage
“If you can’t afford to walk away, or at least convince the other side that you will walk away, you’ve already lost.”
Convincing others you will walk
away when you can’t is very tough.
©Lussier, R. and Achau, C. (2007): Effective Leadership, 3rd Edition, South-Western, Cangage Learning

12. Six habits of Merely Effective Negotiator
1 Neglecting the other side's Problem
2 Letting price bulldoze other interests
3 Letting position drive out interests
4 Searching too hard for common grounds
5 Neglecting BATNA
6 Failing to correct for skewed vision
- Role Bias
- Partisan Bias
by James K. Sebenius

13. Negotiating the Spirit of the Deal
1 THE SOCIAL CONTRACT
The underlying social contract answers,
What is our agreement’s nature and purpose?
Is this a short- or long-term deal?
A discrete transaction or partnership?
How much autonomy will each party have?
What decisions will each participate in?
Parties differing in basic ways—small versus
large, entrepreneurial versus bureaucratic,
By Ron S.Fortgang, David A. Lax, and James K. Sebenius

14. Negotiating the Spirit of the Deal
2 The ongoing social contract answers
How will we work together?
How will we communicate?
How will consult with each other?
How to Resolve disputes?
How to Handle surprises?
By Ron S.Fortgang, David A. Lax, and James K. Sebenius

15. Negotiating the Spirit of the Deal
3 RISK FACTORS
Cultures clash (Example of NCR Japan)
Third parties drive the deal
Too few parties are involved in the deal
4 DOVETAILING THE CONTRACTS
To make deal successful try to make economic and social aspects
of the deal mutually exclusive
By Ron S.Fortgang, David A. Lax, and James K. Sebenius

16. Implementation of Negotiated Deal
1 Start with the end in mind
Is the deal working? What metrics are you using to measure its success?
• What has gone wrong so far? What have
you done to put things back on course?
What signals suggest trouble ahead?
• What capabilities are needed to accomplish
the deal’s objectives? What skills do
your implementation teams need? Who has tried to block
implementation, and how have you responded?
by Danny Ertel

17. Implementation of Negotiated Deal
2 Help the other party prepare
3 Treat alignment as a shared responsibility
4 Send one Message
5 Manage negotiation like a business process
by Danny Ertel

18. Implementation of Negotiated Deal
Deal Minded vs Implementation Minded
Introduce new actors
Raise new issues
Surprise
Propose agenda in advance
Raise issues early
Information
sharing
Withhold information
Fail to correct misconceptions
Create fact finding committees
Third party research analysis
Artificial deadlines
This day offer
Closing
techniques
Identify interests need to consider
Joint communication strategy
Document commitments
Rely on penalty clauses
Realistic
commitments
Check capabilities to deliver
Implementation shared concern
Limit participation
Keep outsiders in dark
Decision making
stakeholders
Ask about stakeholders
Whose approval is needed?
Whose cooperation is needed?
Whose might interfere or influence?
by Danny Ertel

19. Discussion Questions
Discussion Question 1: What is negotiation? Why it is important for leaders to master negotiation skills?
Discussion Question 2: Why most of the deals fail?
Discussion Question 3: What is difference between deal minded and implementation minded negotiator? In your opinion who is is better?
Discussion Question 4: What is your understanding about social and economic aspects of the deal?

20. Summary What is negotiation? Steps in negotiation process
Relationship among: negotiation, conflict, influencing tactics, power, politics
Six habits of merely effective negotiator
Negotiating the Spirit of the deal
Deal Minded vs Implementation Minded Negotiator