Mastering Negotiation & Influencing Skills: Strategies, Examples, and Objectives

 

Ashish Agarwal

TL;DR

• Foundational Difference: Negotiation targets concrete deals and common ground (ZOPA) using explicit power dynamics and defined timelines, while influence seeks gradual change in attitudes/behaviour through implicit, personal power dynamics and emotional connection.
• Strategic Application: Use negotiation for flexible terms and influence for fixed, non-negotiable elements, ensuring the final agreement meets all original constraints.
• Emotional Management: Effective influence counteracts cortisol-induced stress responses (Fight, Flight, Freeze, Appease) and leverages the five SCARF cognitive motivators, Status, Certainty, Autonomy, Relatedness, and Fairness to guide decisions.
• Persuasion Framework: The six principles of Cialdini Liking, Social Proof, Commitment and Consistency, Reciprocity, Authority, and Scarcity (FOMO) are the key psychological levers to apply strategically to enhance persuasiveness in any negotiation.

Let’s give you a situation to understand negotiation and influencing skills – you are the senior HR in a company hiring a new member for your tech team. The parameters given to you are – 3 years of experience, six days of on-site working, six months of probation, and a CTC range of 10 – 12 LPA. You have instructed that the probation period and CTC cannot be negotiated. You have found the perfect candidate, but they want a 3-month probation period with 15 LPA as CTC. What will you do?

In the above scenario, if you negotiate, you have to come to a middle ground, which is not possible because of the instructions given to you. So, will you let the candidate go? This is where influencing skills kick in – when you can’t negotiate, you influence.

In this article, we will understand what influencing skills mean, their relevance in the negotiation process and the principles of influence that can be incorporated into negotiation.

What Is The Relationship Between Negotiation And Influence?

Dr. Berger, a marketing professor at the Wharton School, says, “99.9% of all of our decisions are influenced by others…but we don’t think that’s true.” In our daily transactions, negotiation skills and influencing skills play an extremely significant role. These skills help us identify our needs and wants, discuss them with others and convince others to provide them to us.

On one hand, negotiation involves discussions between parties on a conflict and presenting proposals to resolve the conflict. It typically involves reaching a specific agreement or deal where parties have a clear understanding of what is being exchanged. On the other hand, influence is the action or process of producing effects on the actions, behaviour and opinions of another or others.

The stress is on the word “effect” because unless there is no visible effect, it cannot be said that the person is influenced. For example, when Karl Marx asked the labourers to unite to fight capitalism, the following effects of protests and strikes show his influencing skills.

How Does Negotiation Differ From Influencing?

From one perspective, negotiation and influencing have several similarities. Both require effective communication and showcasing empathy, and both aim at closing a deal. However, there are certain contrasting differences between the two, and they should not be used interchangeably. In this section, we will explore the difference between negotiation and influencing so that you don’t confuse one with the other.

1. Goal Orientation

The primary distinction lies in the objectives that you want to achieve through negotiation and influencing. Negotiation typically involves reaching a specific agreement or deal where parties involved have a clear understanding of what is being discussed or transacted. Its purpose is to find the Zone of Possible Agreement (ZOPA), i.e., a common ground where both parties are satisfied.

On the other hand, influence aims to bring change to attitudes, behaviours, or decisions without necessarily focusing on a concrete agreement. Influence occurs when an individual has an effect on the other party during the act of negotiation. The main purpose is not to find common ground but to convince the other party to change their stance.

2. Power Dynamics

Negotiation often involves a more explicit power dynamic, with parties attempting to maximise their gains within the confines of the agreement. This power in negotiation is often associated with factors such as financial resources, expertise, legal standing, or other tangible assets. For instance, when a big multinational company acquires a small, newly established company, the smaller company has little say in the negotiations because of explicit power dynamics.

However, in influence, the power dynamic is more implicit rather than explicit. An expert influencer may have more strength and better financial resources, but his influencing skills are not dependent on these strengths. These skills are more dependent on their personal qualities, relationships, and the ability to create emotional connections. For example, influencers like Mahatma Gandhi, Martin Luther King Jr. or Swami Vivekananda did not rely on their power dynamics but on their emotional intelligence to influence people.

3. Time Frame

Negotiation tends to have a more defined and structured time frame. There are often set deadlines or a sense of urgency associated with negotiations. This sense of urgency can arise from various factors, such as contractual obligations, financial considerations, or external market conditions. For example, in a business negotiation, there might be a deadline to finalise a deal before a product launch.

Influence, however, can be a more gradual and ongoing process, shaping opinions and decisions over an extended period. It relies on the cumulative effect of consistent messaging, building relationships, and demonstrating credibility over time. For instance, a leader within an organisation may employ influence strategies over an extended period to foster a culture of innovation.

4. Emotional Tone

In negotiation, parties may adopt a more formal and detached approach to maintain a professional demeanour. This approach is designed to keep the focus on the issues at hand and avoid personal sentiments that could potentially complicate or cloud the decision-making process. However, it does not mean that negotiation is always formal and that empathy or emotional intelligence does not play any role in negotiation. It is significant but not the prime focus.

Influence, by its nature, often relies more heavily on emotional intelligence and interpersonal skills. The influencer seeks to connect with others on a personal level, understanding their emotions, motivations, and concerns. This connection is often built on trust and empathy.

How has Kapable transformed leaders over time?
“I knew I had to overcome my fear of being judged on how I speak. Kapable’s sessions helped me organise my thoughts and articulate them clearly. I now confidently present ideas and communicate effectively with my team and external partners, creating a remarkable change in my workplace.”

– Anandi Kapoor (Private Label Head At KW)

Why Are Influencing Skills Important In Negotiation?

To begin with, negotiation is a process that requires influencing skills to ensure that the agreement you reach has all the terms that were non-negotiable to you in the first place. The simple rule of influencing says, “If an element is flexible, negotiate. If an element is fixed, influence.” In our above example, where you were the HR, elements such as past experience, working hours and benefits package are flexible and can be negotiated. On the contrary, elements like the CTC and probation period were fixed, and hence, you have to influence the candidate to accept those terms.

Two luminaries, Denis Duvauchelle and David Rock, propose two different ways in which influencing skills affect negotiations. Denis suggests how influencing brings hormonal controls over negotiations, while David focuses on certain cognitive methods. Let’s dig a little deeper.

1. Hormonal Controls

According to this theory, during a negotiation, we might feel a loss of control or face perceived threats. This feeling often triggers the release of cortisol, commonly known as the stress hormone. This elevation of cortisol levels induces a negative emotional state, impairing our ability to assess the situation accurately.

Specific to negotiation, this hormonal reaction often leads individuals to default to one of four responses:

• Fight – In negotiation, the “fight” response is a natural reaction triggered by stress or disagreement. Individuals exhibiting this response may feel the need to assert their position forcefully, often through assertive arguments and strong advocacy for their perspective.
• Flight – The “flight” response in negotiation involves a tendency to avoid conflict by aligning with the prevailing consensus. Individuals exhibiting this behaviour may prioritise harmony over expressing their unique viewpoints or concerns.
• Freeze – The “freeze” response manifests as disengagement, where individuals withdraw from the negotiation by choosing silence over active participation. This reaction often arises when someone is too overwhelmed by the conversation.
• Appease – The “appease” response involves a willingness to concede or agree with the other party’s demands in an attempt to preserve harmony and avoid conflict.

2. Cognitive Methods

A notable neuroscientist, David Rock, propounded a new method to understand the importance of influencing skills in negotiation. He introduced SCARF, a neuroscience and brain-based model designed to help individuals understand the negative consequences of the stress hormone.

SCARF represents five key elements:

• Status – It refers to the sense of importance that we assign to the other party based on their job position, title or influence they have over us.
• Certainty – It is the need to have control over information and actions. It involves the desire for security and the need to control responses.
• Autonomy – Autonomy centres around the ability to control your personal decisions and choices.
• Relatedness – It includes the identification of features or characteristics that are common in you and the other party.
• Fairness – Fairness means giving due consideration to elements of equality and ethics, ensuring a lack of favouritism or biases.

Importance of these theories

The essence of these theories is explaining how an individual responds to different situations when they face someone using influencing skills. By being mindful of these elements, negotiators can navigate discussions more effectively. You can rationally decide what responses you want to trigger and minimise the risk of triggering unwanted emotional responses. For example, you know that status and certainty increase the chances of influencing the other party. Thus, you can emphasise showcasing a powerful status and taking control over the negotiations.

Every workplace negotiation is an opportunity to influence decisions without damaging relationships. Kapable helps professionals develop the confidence and judgment to achieve that balance.

What Are The Six Core Principles Of Influencing In Negotiation?

The six principles of influencing, popularised by psychologist Robert Cialdini in his book “Influence: The Psychology of Persuasion,” provide insights into the psychological factors that influence human behaviour. By understanding and employing these principles in your negotiation process, you can become an effective negotiator. Let’s look at these six principles.

1. Liking

The principle of liking is based on the idea that people are more likely to be influenced by those they know, like, and find similar to themselves. Building rapport, finding common ground, and establishing a connection with others can enhance the likelihood of influence. This principle emphasises the importance of creating positive relationships to increase persuasiveness.

2. Social Proof

Social proof relies on the concept that people look to others for guidance on how to behave, especially in uncertain situations. When individuals observe others adopting a particular behaviour or making a specific choice, they are more likely to follow suit. Testimonials, endorsements, and showcasing the popularity of a product or idea are ways to leverage social proof in influencing behaviour.

3. Commitment And Consistency

This principle suggests that once individuals make a commitment or take a small initial step in a particular direction, they are more likely to remain consistent with that commitment. People prefer to align their actions with their stated beliefs or commitments. By obtaining small commitments initially, influencers can increase the likelihood of obtaining larger commitments later.

4. Reciprocity

Reciprocity is the idea that individuals feel obligated to return favours, gifts, or acts of kindness. When someone does something positive for another person, there is a natural inclination to reciprocate. This principle highlights the power of giving and creating a sense of indebtedness, which can be used strategically to influence others.

5. Authority

Authority involves the tendency of individuals to follow the lead of those who are perceived as knowledgeable, credible, or experts in a particular domain. People are more likely to be influenced by those who possess expertise or authoritative credentials. Establishing and demonstrating authority can enhance persuasiveness.

6. Scarcity

Scarcity is based on the principle that people tend to desire things that are perceived as rare, limited, or difficult to obtain. In the modern world, you can call this the fear of missing out (FOMO), which can be a powerful motivator. By emphasising the scarcity of a product, opportunity, or idea, influencers can create a sense of urgency and increase the perceived value of what is being offered at the negotiation table.

Understanding and strategically applying these six principles of influencing can enhance one’s ability to persuade and shape the behaviour of others in various personal and professional contexts.

Conclusion

Advertisers, marketers, salespeople and businessmen all employ their influencing skills in negotiation to produce efficient results. Every negotiator wants to derive the best possible outcome for themselves or for their client on whose behalf they are negotiating. To derive the best results, you will need to master negotiation skills, persuasion skills and influencing skills. A successful negotiation is a culmination of several distinct skills and the work of one independent skill.

Building stronger influence starts with developing the communication and negotiation skills behind it. Before choosing your next learning step, consider whether Kapable matches the way you want to grow.

https://tinyurl.com/38atrtzv

The choice between insightful and inciteful words

 

Civil society and civility

Non-profit organisations often characterise themselves as being part of ‘civil society’. Civil society has been defined and redefined over many years, but it broadly refers to “a wide array of organisations: community groups, non-governmental organisations (NGOs), labor unions, indigenous groups, charitable organisations, faith-based organisations, professional associations and foundations” (World Bank). As other ‘for-purpose’ and social enterprise models have emerged, alongside entities promoting transparency, sustainability, and accountability, the boundaries for ‘civil society’ have also expanded.

Historically, the purpose of civil society was to achieve eudaimonia – common wellbeing or flourishing. Aristotle used the term to refer to the highest human good, and defined this as the aim of practical philosophy (applied ethics). (Recommended reading: Practical wisdom: The right way to do the right thing, by Barry Schwarz and Kenneth Sharpe, Riverhead books, 2010)

In our interpersonal communications, being ‘civil’ simply means being courteous and polite with each other. In other words, treating others as we would like to be treated. Again, therefore, the term refers to common wellbeing.

Hijacked emotion

As advocates for various causes, non-profit organisations make extensive use of social media and various other methods to engage target audiences, and even to issue ‘calls to action’. Regrettably, sometimes when we appeal to emotions the intended outcome of advocacy action gets lost, with poorly managed emotions taking over.

We see this happening when advocates start attacking opponents (ad hominem arguments) rather than focusing on the issue or problem, and the associated evidence.

Separate the people from the problem

Calibrating our words (as suggested in the header image), whether in a meeting, in social settings, or in the heat of an advocacy campaign, requires some level of mindfulness, along with an unshakeable commitment to ‘the common good’. Even when provoked by personal attacks, we do no good for the cause we represent if we resort to insults and inciteful words.

The four key principles underpinning the negotiating method recommended in the seminal reference Getting to Yes: Negotiating agreement without giving in (by Roger Fisher and William Ury, Hutchison. 1982) are highlighted in the chart below.

The words we use and the ’emotional’ tone we employ (in written or oral forms) will reflect the extent to which we have internalised the principles recommended by Fisher and Ury. Negative emotions tend to impede effective engagement and the capacity to reach agreement. Conversely, positive emotions tend to enable agreement.

The notion that you can’t argue with an angry person applies to both parties of course. Just as you won’t persuade another person of the legitimacy of your views if they are angry, you won’t budge them if you are angry either.

The emotional dimension of negotiation (and advocacy too I suggest) is the subject of a later book by Roger Fisher, this time with Daniel Shapiro – Building Agreement: Using emotions as you negotiate. Core concepts that motivate people form the central themes in this very helpful sequel.

Beyond the arguments based on effective methods of helping people to better align with your perspectives, there are also of course risk management reasons for avoiding insulting or inciteful language.

Our words and actions need to be insightful rather than inciteful.*

*As noted in a previous post, homonyms are words that sound the same but have different meanings. ‘Insightful’ and ‘inciteful’ are homonyms, but they are also an example of homophones (a subset of homonyms), words that sound the same but have different spellings and meanings.

Trolling and cyberbullying

Public health and other advocates have become victims of trolling and cyber-bullying increasingly of late, particularly since COVID appeared. The UK Centre for Countering Digital Hate (CCDH) recommends the Troll Counterstrategy outlined in the chart below.

If you or your team have been victims of trolling or cyberbullying, seek support from local health and cyber-safety groups. In Victoria, the Better Health Channel offers resources and advice on these issues, including links to mental health helplines.

https://tinyurl.com/3b8w7946

Negotiations according to Tracy

 

Well, being a good marketer means being an even better negotiator. Good negotiation skills is not a must have for sales personnel, this is a must have for marketers as well. In 10 years I took part in over 100 big negotiations, very emotional and not, prepared and not, and I must say, that if this is something new for you, there is no better theory than book by Brian Tracy. His “Negotiation” is a must read for everyone in marketing and sales. If you’re planning on some business meeting very soon, you need to read it asap. This is a classic book in negotiations. And as usual I’ve prepared a short book review for you to to have a brief idea of it.

This book is all about the art of negotiating. Many people are afraid of negotiations, because they do not want to be rejected. The author suggests not take it personally. The partner says “no” not to you personally, but to the conditions offered by you. Brian Tracy gives many good advices and describes lot of cases he had during his practice.

In the beginning of the book Brian describes his classification of negotiations splitting them in two:

1. One-time – this type means that you want to have only one deal with the most favorable conditions and price, right here and right now.
2. Chinese agreement – this kind means that you want long-term relations, you sign the contract with business partners, but the conditions may vary depending on environment.

The author also describes 6 negotiation models:

1. “Win-Lose” model – A gets what he or she wants. B does not.
2. “Lose-Win” model – B gets what he or she wants. A does not.
3. “Lose-Lose” model – Neither party gets anything he or she wants from the negotiation.
4. “Compromise” model – Some wants of each party are fulfilled. Others are not.
5. “No Deal” model – Both parties agree to disagree.
6. “Win-Win” model – The parties work together to discover a third alternative that satisfies the needs of both.

Then Brian describes several methods to support your position in negotiations. This is preliminary work, authority, knowledge of the opponent, empathy, remuneration/punishment and investments. The author also investigates the effect of influence and perception during the negotiations. Here are some of the effects:

• Deficiency effect – it is necessary to create the feeling that you possess a very rare product, which other customers want to urgently buy.
• The effect of indifference – you need to create the feeling that you do not care about buying/selling goods.
• Confidence effect – you need to create the feeling that you are absolutely sure of what you are doing, in this case, partners often provide you with more favorable conditions or price.

One of the major things influencing the negotiations are emotions. The less you are emotional during the meeting, the better conditions you can get.

Brian Tracy lists some of the mandatory conditions for effective negotiations like timing (take a time-out, experienced negotiators often postpone decision-making), preparation for negotiations (it is necessary to learn as much as possible about business partners, the state of the market, etc., about all those factors that may affect the conclusion of a successful deal) etc.

The author tells about the “law of four”. He is sure that there will always be a primary question and three less important ones, which are also significant, but not so much. If in the process of negotiations, the partners have different primary questions, it will be much easier for them to agree.

The book considers the power of persuasion as another factor that influences the negotiation process, and gives several variants of persuasion methods:

• “Persuasion of reciprocity” implies that if you have done something for a person, then he subconsciously feels obligated to reciprocate you and, in turn, do something for you.
• Deviation by the method of “social proof” implies that a person always pays attention to how other people acted in the same situation.

Brian Tracy also talks about strategies for negotiating prices:

1. Disappointment (whatever price a partner calls you, you must always take it as something unpleasant for you)
2. Question (when the partner announces the price, it is necessary to ask the counter question: “Is this the best you can offer?” )
3. Simple approval (in this case it is necessary to say that you can find cheaper)
4. Reduction of the price (always necessary to reduce the price and offer something in return)
5. “Bite a little bit” (you can agree on all the main points of the contract, and then add additional conditions)

In conclusion, the author advises not to go to negotiations, if you are not ready to abandon this deal, and considers the negotiation process as uninterrupted. If circumstances arise that change your situation, then you must ask for a review of the terms of the contract, but, nevertheless, be prepared to offer something in return. He calls the “four whales”, on which the success of the negotiations stands.

1. Collect information and prepare in advance.
2. Ask for what you want to receive.
3. Look for mutually beneficial solutions.
4. Practice, practice and practice again.

People participate in negotiations constantly, this applies to both everyday life and business. The information and advice given by the author in this book are applicable in practice in any field of activity. The structure of the book is clear and logical. The author starts with the classification and models of deals and ends with methods and strategies for conducting successful negotiations. The book, in general, leaves positive impressions.

Alexey Cherkasov

https://tinyurl.com/324393ur

International Business: Multilateral Arrangements. Unit - Multilateral Negotiations

 

https://tinyurl.com/2ud44k67

International Business: Management Processes and Practices. Unit - Negotiations in International Business

 

https://egyankosh.ac.in/

Power Dynamics – Sitting Strategically at the Conference Table

Alpha or Beta? Which seat you choose in the meeting reveals a lot about your character and your role in the Company.

Have you ever heard of “strategic sitting”? This surprisingly important phenomenon can help you find the best place for yourself in meetings, and the most efficient place for those in the office. 

In the course of your life you will sit often and in many different places: on the couch, at the dinner table, at the movie theater, etc. Have you ever stopped to think about the impact of the seat you choose? Perhaps in these situations it doesn’t matter much, but in the conference room and even on a plane for a business trip, these seemingly small decisions speak volumes about your character, reputation and perceived level of power.

In the conference room

Imagine the following: you walk into the conference room for a meeting, and are greeted by a rectangular table. The managing director sits either at the head of the table or in the middle of the table facing the door. In both cases he can observe who is arriving late and who is leaving early – clearly this is a position of power. On the left and right of the boss are his most trusted colleagues.

One might initially think this arrangement is mere coincidence, or habit-motivated, however American psychologist Sharon Livingston would say this is no coincidence. Livingston has surveyed more than 40,000 bosses and employees in their “conference seat behavior”, and found that there was a clear, though unspoken, order to the seats chosen in meetings. “This is a meaningful picture of the respective power structure”, says Livingston, “that every employee should keep in mind.” Executive and professional coach, Dr. Richard Winters, breaks down the best place to sit for how you’d like to be perceived in a given meeting.

On a business trip

Seating arrangements are not only important in the office, but also during business travel. Where, for example, should you sit as a power-conscious executive on a plane? Naturally as far forward as possible, states Livingston, “near the pilot, the head of the plane”. And it doesn’t stop there, what is the optimal place of power in a taxi? According to Livingston the optimal position is on the right hand side in the rear of the car. At this position, you can fully enjoy more space while still commanding authority.

Seating arrangements in large offices

n recent years more and more offices are moving to an open floor plan, with management moving out of their “corner offices” and having constant interaction with subordinates. Some companies are even taking it a step further – determining who sits next to whom in an effort to get the most from their employees.

A study by Cornerstone OnDemand¹ claims that there are three groups sitting in any particular room: quality workers, who tend to work slower but have better quality, generalists, who are mid-range producers, and productive workers, who tend to produce more at a lower quality. According to the study, the best results are achieved when the generalists are grouped together, since they operate on a similar wavelength, and the quality and productive workers sit together. Though the quality and productive workers think and produce differently, their talents are complementary and they can influence and rely on one another

The result: In a study taking place over a two-year period, and in a company of 2,000 workers, this type of arrangement resulted in a 13% increase in productivity, and a 17% increase in effectiveness.

Sitting – Standing – Sitting – Standing

As important as where you sit is how you sit. Prolonged sitting is not healthy, however neither is prolonged standing. What’s the solution? A mixture of the two. Experts at the Federal Institute for the Occupational Safety and Health recommend a “standing-sitting dynamism”. In other words, a mixture of sitting and standing throughout the workday is the ideal. Convertible standing desks can certainly ensure that you are making the transition from sitting to standing often enough. Maintaining optimal health in the workplace will ensure that you keep your positon of power for many years to come.

¹https://www.cornerstoneondemand.com/rework/rearrange-desks-increase-revenue-study-finds-seating-charts-impact-performance