1. 1 Influence and Negotiation March 20, 2012 MGMT 4000, Class 8

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

3. Ways to Influence  Convert power to influence through: Clarifying your Purpose Clarifying your Purpose Diagnose their world Diagnose their world Trading Currencies Trading Currencies Cultivating networks Cultivating networks

4. Clarify Your Purpose  Does your purposes make sense? Learning Their Story Learning Their Story Expressing Your Views Expressing Your Views Problem-Solving Together Problem-Solving Together

5. YOU Audience “World” and Receptivity Audience Decision Making Relationship with Audience - Current and Historical Stakeholders Diagnose Their World

6. Trading Currencies INSPIRATION vision, excellence, morality/ethics vision, excellence, morality/ethicsTASK 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 Source: Cohen, Allan R. and Bradford, David L., Influence Without Authority, 2nd Edition, 2005.

7. Advocates Close relationships Know you wellBelieve 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

8. The Arm Exercise  Set-up Find and face your partner Find and face your partner Place your right elbow on the table Place your right elbow on the table Grab your partner’s right hand Grab your partner’s right hand  Goal Get as many points for yourself as possible 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 You will score one point every time the back of your partner’s right hand touches the table

9. Why negotiate? Substance Important? YES NO YES NegotiationAccommodation Relationship Important? NO CompetitionAvoidance

10. 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

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

12. 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”

13. 100% “Fair” (Fixed-Pie) Solution Integrative Solution 50% 40% 60%

14. 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 14

15. 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 15

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

17. 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.

18. Case Study  Introduction and Instructions  Preparation  Negotiation  Debrief

19. 19 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.