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Influence and Negotiation

Influence and Negotiation. March 22, 2011 MGMT 4000, Class 8 Sarah Staley. “All influential managers have power, but not all powerful managers have influence.” Linda Hill, “Exercising Influence”. Ways to Influence. Convert power to influence through: Clarifying your Purpose

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Influence and Negotiation

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  1. Influence and Negotiation March 22, 2011 MGMT 4000, Class 8 Sarah Staley

  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 • Diagnose their world • Trading Currencies • Cultivating networks

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

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

  6. Trading 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

  7. Cultivating Networks

  8. The Arm Exercise • Set-up • Find and face your partner • Place your right elbow on the table • Grab your partner’s right hand • Goal • 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

  9. Why negotiate? Substance Important? YESNO YESNegotiationAccommodation Relationship Important? NOCompetition Avoidance

  10. Commitment (extreme position) Final offer Last Offer Final last offer Commitment (extreme position) Final offer Last offer Final last offer Traditional Negotiation Threat to walk Threat to walk Harvard University, Program on Negotiation

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

  12. Communication Relationship Interests Options Commitment BANA Legitimacy If “Yes” If “No” • 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

  13. Getting To Yes

  14. Getting To Yes

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

  16. The Negotiator’s Dilemma • What information to disclose? • Without disclosure: Missed opportunities to enlarge the pie • 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. 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.

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