Chapter 5 Gaining Leverage Through Power and Persuasion

Leverage in Negotiations

5-2    If leverage is perceived as parties

bargaining power

balanced is balanced – the If unbalanced – the negotiation process and outcome may be affected and the party with greater power may choose a win-lose approach, and not a mutual-gains approach A party’s BATNA = greatest source of power

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Negotiation Skills

     Skill 5.1: Use your BATNA Skill 5.2: Recognize the sources of power (both sides) Skill 5.3: Marshal persuasive arguments support your interests/positions to Skill 5.4: Use verbal and nonverbal communication to persuade Skill 5.5: Use threats to gain concessions

5-4

Chapter Case: Death in a Police Excessive Force Incident

      Wilma filed a wrongful death lawsuit when her husband James, an 18-year-old African American male, was shot and killed by Officer Jones Officer Jones believed James was pulling a gun (he was not) and shot him in the back African American communities were angered when the grand jury failed to indict Jones Wilma sued Officer Jones for negligent homicide Jones offered to settle for $350,000 Negotiation meeting: Wilma refused the $350,000 and countered with $3,000,000

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Leveraging Power from Your BATNA

   In negotiations:   Power = ability to induce the other party to settle for less Leverage = the use of power to achieve goals Power is relational – derives from the relationship of the parties to the situation The ability to walk away (BATNA) = the most essential bargaining power

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Leveraging Power from Your BATNA (cont.)

   BATNA is “in the eye of the beholder” BATNA is a

perceived value

Thus, if the other party perceives your BATNA is greater then you have leverage

Power and Persuasion

5-7    In any negotiation BOTH parties bring bargaining power to the table The negotiation outcome, to some extent, depends on the power balance Possible power situations:  Balanced A B  A power advantage A B  B power advantage A B

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If Your BATNA Is Inferior

 If the parties believe your BATNA is inferior to the other party’s BATNA:    Keep your BATNA concealed, increase its perceived strength Weaken the other party’s BATNA – thus balance the seesaw Team up with other parties to increase your BATNA

If Your BATNA Is Inferior (cont.)

5-9  How can these alternatives be achieved during negotiations?

    Introduce new information Seek a new outside option to a settlement Seek a third party’s opinion Alter the other party’s perception of your BATNA

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Sources of Power

1. Reward : Raises, perks, promotions 2. Coercive : Punishment, firing, walk away 3. Legitimate : Position, approval authority 4. Expert : Specialized knowledge 5. Reference : Charisma, charm

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Leveraging Power Through Persuasion

 Principles of persuasion that can be used to alter the other party’s viewpoint: 1. Frame the question that is vital – present it in the most favorable light 2. Marshal persuasive arguments to answer that question 3. Choose the most persuasive argument to support your position 4. Match nonverbal communication to the verbal

Personality Types

Common Nonverbal Behaviors

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Creating Persuasive Arguments

Three keys (according to Aristotle):    Passion  (Pathos): focus on emotions Example: appeals to fairness, reciprocity Logic  (Logos): focus on information Example: mathematical estimates, pros and cons of an action Character  (Ethos): focus on the person Example: Cite their reputation for honesty, fairness, authority

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Using Persuasive Language

Tactics that make an argument persuasive: 1. Metaphor : A powerful way to convey meaning from one thing to another 2. Humor : Can create a positive atmosphere, or diffuse a tense moment 3. Using props : Visual people respond better to images and words than verbal communications. Props can focus the discussion easily 4. Storytelling : Conveys the interests behind the position 5. Focus on other party’s perspective : Use either a central route – encourage content, or peripheral route – using throwaways, friendly/flattering behavior

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Tools for Persuasive Communication

5-16 Successful negotiators create leverage through persuasive  Verbal communication : direct single dialogue to present a position, followed by silence (use tone, pitch, and volume of your voice to convey meaning)  Nonverbal communication : can add emphasis through body language, facial expressions, actions      Kinesis : posture and physical movements (standing up, circling, walking out) Eye movement : maintain eye contact to convey security, truthfulness Facial expression : can express anger, happiness, fear, concern, etc., but also can be misread Gestures : can be misread Time and space : arriving on time, pleasant meeting space send cues

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Persuasion Through Process

 Process techniques to shape the other party’s perception 1. Identify the decision maker : take the discussion to them 2. Address needs of individual team members interests of the groups are diffused if the 3. Frame the issue in terms of achieving common good for both parties , or meeting shared core values 4. Share the diagnosis of the problem to create support from both parties

Leveraging Power Through Pressure Tactics

 Key concepts:         Power is always relative – the power balance between parties is critical Power can be real or perceived Self-confidence gives one power Belief that power will be used unnecessary to exist can make it Power can be limited Ends and means by outside influences can’t be separated Exercising power involves risks and costs Balance of power may change