Unequivocal Increase sales by 25% Speak on behalf of and vote for my new pricing policy at the sales meeting By 3 pm this afternoon By the 15th of next month Equivocal Increase sales Give me support at the sales meeting ASAP Next month Brief Guide to Requests • Requests are speech acts that call another person into action: “I request that you __(intended result)__ by __(deadline__.” • Requests should be unequivocal.
Collecting No’s • Formulate and make requests intended to produce “No” as response • “No” is a success • Assertive , learn to ask for things directly, discover real limits to a reasonable or unreasonable request. • People generally say “yes” to requests • (6 to 1) • More and more unreasonable, short deadline • Decline requests: “maybe”, etc. Why? • What excuses are used? Accepted? • How persistent must you be to get a yes? • What would you have to do to get a “yes”?
Integrative vs. Distributive Negotiation(Creating vs. Claiming Value)
Distributive Bargaining • The goals of one party are in fundamental and direct conflict with goals of the other. • Resources are fixed and limited. • Each party wants to maximize his/her share of resources. • Guard own information, get other’s information • Use in a situation that is distributive in nature • Use it when want to maximize value obtained in a single deal and when the relationship with the other is not important • Many people use this style, so must know how to use/counter it.
Phases of Distributive Negotiation • The information phase • Each tries to learn as much about the other as possible, giving as little as possible • Opening offer, Opening stance • The competitive phase • Try to obtain beneficial terms • Articulate own demands, try to get the most possible • Concessions: role, initial, pattern. • Use “distributive tactics,” counter others’ tactics • The cooperative phase • If multiple-item transaction, parties can enhance joint interests • Final offer
Influence seller’s view of settlements possible by making extreme offers and small concessions. Push for settlement close to seller’s resistance point. Get seller to change (reduce) his/her resistance point by influencing sellers’ beliefs about value. If ZOA does not exist, get seller to reduce resistance point, or change own resistance point Get other to think this is the best settlement possible. Protect ego satisfaction. Fundamental Strategies
Negotiate tough Stick to guns, let other side know you mean business, be unafraid to ask for extra concessions. Scrutinize the details Details of final agreement point by point, try to gain an advantage. Assume nothing, ask for everything, consider no item insignificant; wear them down. Focus on the rewards Maintain myopic view of what you want, learn to counter opponents strategies. Avoid ultimatums Choices instead. Walk away Anything goes Stall, cloud issues, use facial, make a mess, low chair Find your opponents’ pressure points Take advantage of vulnerabilities, stall if deadline. Control the negotiation Get others to follow your game plan, agenda. Working document General Tactics
Silence and bracketing. Limited authority Bottom line No (so you can overcome it) Expectation and control (this is negotiable, that is not) Auction Concession Rationale Message-Sending (visual or verbal cues) Good guy/Bad guy Highball/Lowball Bogey Chicken Intimidation Aggressive behavior, anger Snow Job Nibble --- Delay Deadlines (vs test) Typical Distributive Tactics
Best-offer-first, Take-it-or-leave-it, Boulwareism Access to agreement/ process/ agenda Conditioning/speech making Divided front Anger and emotion/clear thinking Choice of negotiator Demeaning/haranguing Negotiate with one representative Negotiation location-competitive advantage Preconditions for negotiation Distributive Tactics Cont’d
Dealing with Hardball Tactics • Ignore them • Discuss them • Respond in kind • Co-opt the other party
Power in Negotiation “The ability to bring about outcomes they desire” “The ability to get things done the way they want them to be done” • Sources of power--Power Bases • Uses of power • How: Influence/persuasion strategies • Why: • Power equalization: level the playing field, move toward integrative • Power difference: take advantage, block others’ power moves, move toward distributive
Power in Negotiations • Power Bases: • Information and expertise (Expert) • Accumulate and present data to change person’s view or position • Control over resources (Reward and Coercive) • Money, supplies, manpower, time, equipment, critical services, interpersonal support • Location in the structure: (Legitimate) • Legitimate power: authority, reputation, performance • Key position: centrality, criticality and relevance, flexibility, visibility • Personal (Referent) power: • attractiveness and friendliness, integrity, patience and tenacity, emotion.
Persuasion Exchange Legitimacy Ingratiation Praise Assertiveness Inspirational appeal Consultation Pressure Coalitions Influence Strategies • Ingratiation: compliments, attractiveness, helping the other party, perceived similarity, emotion
Persuasive Style • Encourage active participation • Use metaphors • Incite fears • Create distractions • Use more intense language • Violate the receiver’s expectations
Persuasion: Sender • Message Content • Make the offer attractive to the other party: their interests • Frame the message so the other party will say yes, yes, YES • Make the message normative: their values • Suggest an agreement in principle • Message Structure • Message order: beginning or end • One- and two-sided messages: two sided • Message components: break it up • Repetition: a few times • Conclusions: stated or unstated, stated better
Receivers of Persuasion • Attend to the other • Make eye contact, adjust body position, nonverbally encourage or discourage • Exploring or ignoring the other’s position • Selectively paraphrase, reinforce points you like • Resisting the others influence • BATNA, public commitment, inoculate yourself against the other party’s arguments
Abandoning a Committed Position • Plan a private way out, reword to indicate conditions have changed • “Given what I’ve learned from you during this, I see I am going to have to rethink my earlier position” • Let the matter die silently • New proposal without mentioning other one • Restate the commitment in more general terms • “10% discount” to “significant discount” • If it is abandoned, minimize damage to self-esteem or constituent relationships • Public attribution to noble or higher cause