Leverage: How to Get It And How to Keep It in Any Negotiation 0814473261, 2005023210

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LE)

a ERAGE How to Get It and How to Keep It in Any Negotiation

ROGER VOLKEMA

AMACOM American Management Association N e w York

« A t l a n t a * Brussels ¢ C h i c a g o * M e x i c o C i t y »

San Francisco

* Shanghai + Tokyo

* Toronto

» Washington,

D.C.

Special discounts on bulk quantities of AMACOM books are available to corporations, professional associations, and other organizations. For details, contact Special Sales Department, AMACOM, a division of American Management Association, 1601 Broadway, New York, NY 10019. Tel.: 212-903-8310. Fax: 212-903-8083. Web site: www.amacombooks.org is designed

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and authoritative

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Library of Congress Cataloging-in-Publication Volkema,

Data

Roger J.

Leverage : bow to get it and bow to keep it in any negotiation Roger Volkema.

p. cm. Includes bibliographical

references and index.

ISBN 0-8144-7326-1

1. Negotiation

in business. I. Title.

HD58.6.V648 2006 658. 4°052—dc22

2005023210

© 2006 Roger Volkema. All rights reserved. Printed in the United States of America.

This publication stored

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or transmitted in whole or in part, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of AMACOM, a division of American Management Association, 1601 Broadway, New York, NY 10019. Printing

10

9

number

8

7 6

5

4 3

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CONTENTS

Acknowledgements introduction

NN

F o u r C h a r a c t e r i s t i c s o f Leverage

Ww

The Four States of Leverage

ha

T h e S o u r c e s o f Leverage

OO

I n d i c a t o r s o f Leverage

OH

C h e c k i n g Your Progress: I d e n t i f y i n g Leverage

=~

M a n a g i n g Leverage

OO

I n c r e a s i n g Your Leverage

@w

Negotiation and Leverage

D e c r e a s i n g t h e O t h e r P a r t y ' s Leverage

=

C h e c k i n g Your Progress: A l t e r i n g Leverage

Playing Defense

The Climate of Negotiation

a

I

WN

a

R e a l i t y Test

a

EE

T h e D a n c e o f Leverage

Vii

Contenty:

vi

15

Selecting an Approach

115

16

The Art of Communication

121

17

Another Reality Challenge

131

18

Leverage, U n c e r t a i n t y , a n d Risk

137

19

Leverage a n d E t h i c s

143

20

Managing Emotions

151

21

Negotiating in Cyberspace

157

22

Multiparty Negotiations

161

23

International Negotiations

177

24

Surrendering Leverage

191

25

Final Thoughts

195

Resources

197

Appendix A—Mafia (An Intriguing and Useful Parlor Game)

199

Appendix B—Three-Party Negotiation

203

Index

209

ACKNOWLEDGMENTS

This book is the result of contributions made by many individuals over the years—friends, colleagues, research assistants, and students. Many have contributed in ways in which they will never be aware, but to them I will always be grateful. Most specifically, I would like to thank Bob Wilson,

Harry

Webne-Behrman,

Patti Sinclair, Alison Torrillo Rivers, Joanne

Miller,

Tom

Sinclair,

Fred Niederman,

French, Rob Jolles, Peter Trzyna, Cheryl

E d Marod,

and Brad Lyman

ing of all or parts of earlier manuscripts.

for their careful

read-

Their comments and sugges-

tions led to countless improvements. A special once again serving as my mentor in negotiating

thanks to Rob Jolles for o f this the publication

book. Thanks also to Ellen Kadin, my editor at AMACOM, who saw value in the concept of social leverage. Over the past few years, Mangal Kumar, Kimberly Kuchman, and Joanne Miller served as my research assistants, gathering anecdotes, summarizing research, and collecting data. And finally, to all the students with whom I have shared these and other ideas, models, questionnaires, and exercises, for their good humor and observations.

— vii -