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1. Gaining LeverageGaining Leverage
Through Power andThrough Power and
PersuasionPersuasion

2. Leverage in NegotiationsLeverage in Negotiations
 If leverage is perceived asIf leverage is perceived as balancedbalanced – the– the
partiesparties bargaining powerbargaining power is balancedis balanced
 IfIf unbalancedunbalanced – the negotiation process and– the negotiation process and
outcome may be affected and the party withoutcome may be affected and the party with
greater power may choose a win-losegreater power may choose a win-lose
approach, and not a mutual-gains approachapproach, and not a mutual-gains approach
 A party’sA party’s BATNA = greatest source of powerBATNA = greatest source of power
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3. Negotiation SkillsNegotiation Skills
 Skill 5.1: Use yourSkill 5.1: Use your BATNABATNA
 Skill 5.2: Recognize theSkill 5.2: Recognize the sources of powersources of power
(both sides)(both sides)
 Skill 5.3: MarshalSkill 5.3: Marshal persuasive argumentspersuasive arguments toto
support your interests/positionssupport your interests/positions
 Skill 5.4: UseSkill 5.4: Use verbal and nonverbalverbal and nonverbal
communication to persuadecommunication to persuade
 Skill 5.5: UseSkill 5.5: Use threatsthreats to gain concessionsto gain concessions
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4. Chapter Case: Death in aChapter Case: Death in a
Police Excessive ForcePolice Excessive Force
IncidentIncident
 Wilma filed a wrongful death lawsuit when herWilma filed a wrongful death lawsuit when her
husband James, an 18-year-old African Americanhusband James, an 18-year-old African American
male, was shot and killed by Officer Jonesmale, was shot and killed by Officer Jones
 Officer Jones believed James was pulling a gunOfficer Jones believed James was pulling a gun
(he was not) and shot him in the back(he was not) and shot him in the back
 African American communities were angeredAfrican American communities were angered
when the grand jury failed to indict Joneswhen the grand jury failed to indict Jones
 Wilma sued Officer Jones for negligent homicideWilma sued Officer Jones for negligent homicide
 Jones offered to settle for $350,000Jones offered to settle for $350,000
 Negotiation meeting: Wilma refused the $350,000Negotiation meeting: Wilma refused the $350,000
and countered with $3,000,000and countered with $3,000,000
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5. Leveraging Power from YourLeveraging Power from Your
BATNABATNA
 In negotiations:In negotiations:
 PowerPower = ability to induce the other party to= ability to induce the other party to
settle for lesssettle for less
 LeverageLeverage = the use of power to achieve goals= the use of power to achieve goals
 Power is relational – derives from thePower is relational – derives from the
relationship of the parties to the situationrelationship of the parties to the situation
 The ability to walk away (BATNA) = theThe ability to walk away (BATNA) = the
most essential bargaining powermost essential bargaining power
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6. Leveraging Power from YourLeveraging Power from Your
BATNA (cont.)BATNA (cont.)
 BATNA is “in the eye of the beholder”BATNA is “in the eye of the beholder”
 BATNA is aBATNA is a perceived valueperceived value
 Thus, if the other party perceives yourThus, if the other party perceives your
BATNA is greater then you have leverageBATNA is greater then you have leverage
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7. Power and PersuasionPower and Persuasion
 In any negotiation BOTH parties bringIn any negotiation BOTH parties bring
bargaining power to the tablebargaining power to the table
 The negotiation outcome, to some extent,The negotiation outcome, to some extent,
depends on the power balancedepends on the power balance
 Possible power situations:Possible power situations:
 BalancedBalanced A BA B
 A power advantage A BA power advantage A B
 B power advantage A BB power advantage A B
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8. If Your BATNA Is InferiorIf Your BATNA Is Inferior
 If the parties believe your BATNA isIf the parties believe your BATNA is
inferior to the other party’s BATNA:inferior to the other party’s BATNA:
 Keep your BATNA concealed, increase itsKeep your BATNA concealed, increase its
perceived strengthperceived strength
 Weaken the other party’s BATNA – thusWeaken the other party’s BATNA – thus
balance the seesawbalance the seesaw
 Team up with other parties to increase yourTeam up with other parties to increase your
BATNABATNA
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9. If Your BATNA Is InferiorIf Your BATNA Is Inferior
(cont.)(cont.)
 How can these alternatives be achievedHow can these alternatives be achieved
during negotiations?during negotiations?
 Introduce new informationIntroduce new information
 Seek a new outside option to a settlementSeek a new outside option to a settlement
 Seek a third party’s opinionSeek a third party’s opinion
 Alter the other party’sAlter the other party’s perceptionperception of yourof your
BATNABATNA
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10. Sources of PowerSources of Power
1.1. RewardReward: Raises, perks, promotions: Raises, perks, promotions
2.2. CoerciveCoercive: Punishment, firing, walk away: Punishment, firing, walk away
3.3. LegitimateLegitimate: Position, approval authority: Position, approval authority
4.4. ExpertExpert: Specialized knowledge: Specialized knowledge
5.5. ReferenceReference: Charisma, charm: Charisma, charm
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11. Leveraging Power ThroughLeveraging Power Through
PersuasionPersuasion
 Principles of persuasion that can be used to alterPrinciples of persuasion that can be used to alter
the other party’s viewpoint:the other party’s viewpoint:
1.1. Frame the questionFrame the question that is vital –that is vital –
present it in the most favorable lightpresent it in the most favorable light
2. Marshal2. Marshal persuasive argumentspersuasive arguments toto
answer that questionanswer that question
3. Choose the3. Choose the most persuasive argumentmost persuasive argument
to support your positionto support your position
4. Match4. Match nonverbalnonverbal communication to the verbalcommunication to the verbal
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12. Personality Types

13. Common Nonverbal Behaviors

14. Creating PersuasiveCreating Persuasive
ArgumentsArguments Three keys (according to Aristotle):Three keys (according to Aristotle):
 PassionPassion (Pathos): focus on emotions(Pathos): focus on emotions
 Example: appeals to fairness, reciprocityExample: appeals to fairness, reciprocity
 LogicLogic (Logos): focus on information(Logos): focus on information
 Example: mathematical estimates, pros and consExample: mathematical estimates, pros and cons
of an actionof an action
 CharacterCharacter (Ethos): focus on the person(Ethos): focus on the person
 Example: Cite their reputation forExample: Cite their reputation for
honesty, fairness, authorityhonesty, fairness, authority
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15. Using PersuasiveUsing Persuasive
LanguageLanguage
 Tactics that make an argument persuasive:Tactics that make an argument persuasive:
1.1. MetaphorMetaphor: A powerful way to convey meaning from one: A powerful way to convey meaning from one
thing to anotherthing to another
2.2. HumorHumor: Can create a positive atmosphere, or diffuse a: Can create a positive atmosphere, or diffuse a
tense momenttense moment
3.3. Using propsUsing props: Visual people respond better to images and: Visual people respond better to images and
words than verbal communications. Props can focus thewords than verbal communications. Props can focus the
discussion easilydiscussion easily
4.4. StorytellingStorytelling: Conveys the interests behind the position: Conveys the interests behind the position
5.5. Focus on other party’s perspectiveFocus on other party’s perspective: Use either a central: Use either a central
route – encourage content, or peripheral route – usingroute – encourage content, or peripheral route – using
throwaways, friendly/flattering behaviorthrowaways, friendly/flattering behavior
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16. Tools for PersuasiveTools for Persuasive
CommunicationCommunication
 Successful negotiators create leverage throughSuccessful negotiators create leverage through
persuasivepersuasive
 Verbal communicationVerbal communication: direct single dialogue to present a: direct single dialogue to present a
position, followed by silence (use tone, pitch, and volume ofposition, followed by silence (use tone, pitch, and volume of
your voice to convey meaning)your voice to convey meaning)
 Nonverbal communicationNonverbal communication: can add emphasis through body: can add emphasis through body
language, facial expressions, actionslanguage, facial expressions, actions
 KinesisKinesis: posture and physical movements (standing up, circling,: posture and physical movements (standing up, circling,
walking out)walking out)
 Eye movementEye movement: maintain eye contact to convey security, truthfulness: maintain eye contact to convey security, truthfulness
 Facial expressionFacial expression: can express anger, happiness, fear, concern, etc.,: can express anger, happiness, fear, concern, etc.,
but also can be misreadbut also can be misread
 GesturesGestures: can be misread: can be misread
 Time and spaceTime and space: arriving on time, pleasant meeting space send cues: arriving on time, pleasant meeting space send cues
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17. Persuasion ThroughPersuasion Through
ProcessProcess
 Process techniques to shape the other party’sProcess techniques to shape the other party’s
perceptionperception
1.1. Identify the decision makerIdentify the decision maker: take the discussion to: take the discussion to
themthem
2.2. Address needs of individual team membersAddress needs of individual team members if theif the
interests of the groups are diffusedinterests of the groups are diffused
3.3. Frame the issue in terms of achieving commonFrame the issue in terms of achieving common
good for both partiesgood for both parties, or meeting shared core, or meeting shared core
valuesvalues
4.4. Share the diagnosisShare the diagnosis of the problem to createof the problem to create
support from both partiessupport from both parties
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18. Leveraging PowerLeveraging Power
Through Pressure TacticsThrough Pressure Tactics
 Key concepts:Key concepts:
 Power is always relative – thePower is always relative – the power balancepower balance
between parties is criticalbetween parties is critical
 Power can bePower can be real or perceivedreal or perceived
 Self-confidenceSelf-confidence gives one powergives one power
 Belief thatBelief that power will be usedpower will be used can make itcan make it
unnecessary to existunnecessary to exist
 Power can bePower can be limitedlimited by outside influencesby outside influences
 Ends and meansEnds and means can’t be separatedcan’t be separated
 Exercising power involvesExercising power involves risks and costsrisks and costs
 Balance of power mayBalance of power may changechange
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