Page 234 - DMGT519_Conflict Management and Negotiation Skills

Conflict Management and Negotiation Skills

Notes Introduction

Leverage is situational advantage—the ability to HELP or HARM the other party. No matter
how hopeless it seems, every party has SOME leverage. (If not, there’s no negotiation, simply
demand and obedience.) Unlike formal authority and power, leverage can change often during
a negotiation.
 Positive leverage: the carrot— “Here’s what I can give you.”
 Negative leverage: the stick—”Here’s the trouble I can cause you.”
 Consistency leverage: “Here’s the principle you stand for—now live up to it.”

11.1 Leveraging Power from Your BATNA

If you have less acknowledged power in a negotiation situation (fewer resources, less knowledge,
lower status, less authority, etc.) you have to work harder to find ways to tilt the negotiation in
your favor. But there is always *some* aspect of the situation you can turn to your advantage.
Remember, if you didn’t have any ability to help or harm the other parties, they wouldn’t
bother negotiating with you.

1. Develop better alternatives so you have less need for a deal or agreement.
2. Reduce your ego needs, or at least your desire to meet them through the other party.
3. Find out what matters to the other party (personal as well as business) and gain control
over it.
4. Keep momentum going, give away small concessions and favors.
5. Make it clear what they could lose.

6. Get commitment to decision-making processes that favor your desired outcome.
7. Use threats as last resort and usually if you can and will back them up.
8. Find allies.
9. Reduce your urgency, increase theirs.
10. Negotiate over issues you can speak passionately about.

11. Check your assumptions about their power and yours.
12. Listen. Keep learning. Stay alert!!!!
We live in a world where global business often involves tough negotiating situations that can make
many small business people feel uncomfortable. When I am asked to coach someone in this
situation, I always encourage them to define their BATNA, their Best Alternative to a Negotiated
Agreement, and we use this to assess potential agreement. If you are negotiating for a salary
raise, your BATNA might be to find a better-paid job!

You can find your BATNA in three ways:
1. What can you do to pursue your interests without help? If you are negotiating for supplies,
can you find a second source?

2. What can you do to make the other person respect you more? If you want discounted
prices, can you affiliate your purchasing with many colleagues to gain weight?
3. How can you bring in a third-party to further your interests? If you can co-opt an expert,
an arbitrator or an academic report, would you gain strength?

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