Top 10 Negotiation Strategies - The 360° Adjuster360adjuster.com/wp-content/uploads/2017/01/... ·...

12

Transcript of Top 10 Negotiation Strategies - The 360° Adjuster360adjuster.com/wp-content/uploads/2017/01/... ·...

Page 1: Top 10 Negotiation Strategies - The 360° Adjuster360adjuster.com/wp-content/uploads/2017/01/... · Top 10 Negotiation Strategies According to Neuroscience RUSSELL P. GRANGER RAHILA

And how to make them work for you, your team, and your business.

Why These

Work

Top 10 Negotiation Strategies

According to Neuroscience

RUSSELL P. GRANGER RAHILA NAREJO

A BRAINS FOR BUSINESS WHITE PAPER

Page 2: Top 10 Negotiation Strategies - The 360° Adjuster360adjuster.com/wp-content/uploads/2017/01/... · Top 10 Negotiation Strategies According to Neuroscience RUSSELL P. GRANGER RAHILA

You don’t need to know the science of a combustion engine or the principles of aerodynamics to pilot a car. Some tools perform their function and you really don't care why or how. They just work.

ButBut if we’re talking leadership, sales, or negotiation, the tools are altogether different. We don’t just turn a key, press a button, or schedule an automated digital event. Real communication isn’t automated, and human interaction is subject to too many variables. Nothing is ever exactly the same way twice when it comes to people.

So why try to use tools or techniques at all?

BecauseBecause the things we have to accomplish with and through other people – the cooperation, agreements, and transactions we need to produce, constantly and consistently – are far too dependent on effective communication to leave it up to chance or trial-and-error.

Plus,Plus, many of the tools and techniques developed for business communication – a selling process, teamwork practices, negotiation strategies – do actually work to improve both efficiency and results. Only, they don’t work on their own by a switch or a click.

ResultsResults vary widely depending on the expertise of the user. Not only that, even skilled use of techniques can easily evaporate. Tools get picked up and dropped. Learning events are notorious for their inability to sustain best practices over time.

And how to make them work for you, your team, and your business.

A BRAINS FOR BUSINESS WHITE PAPER FROM RISING TIDE PARTNERS

2

Why These Top 10 Negotiation StrategiesWork According to Neuroscience

Page 3: Top 10 Negotiation Strategies - The 360° Adjuster360adjuster.com/wp-content/uploads/2017/01/... · Top 10 Negotiation Strategies According to Neuroscience RUSSELL P. GRANGER RAHILA

One of the best ways to revive, reinforce, and strengthen interpersonal skills is to gain a deeper understanding of why they work. After all, techniques like negotiation strategies are based on the inclinations and expectations of human behavior; the more we know about the nuts and bolts, the mechanics – even the biology – of what’s behind these inclinations, the better able we are to use them at the right time, for the right purpose, and to our greatest advantage.

SCIENCE FOR SMARTER SKILLSSCIENCE FOR SMARTER SKILLSDDevelopments in neuroscience in the 21st century have led to remarkable discoveries about human behavior, offering new and more reliable insight into what actually works and why, when it comes to influencing behavior. Through research done by neuroscientists such as Richard Restak and Antonio DeMasio, among many others, as well as application theory and methodology developed by leading business consultants including Robert Cialdini, Kevin Hogan, Goldstein & Martin,Martin, and Russell H. Granger, the principle of the emotional trigger has gained substantial traction in the business world, especially in industries like technology, pharmaceuticals, and financial services, which rely heavily on relationship selling and agreement building.

In our own work with organizations, from fast-growth startups to Fortune 500 corporations, we’ve seen time and again how deconstructing a familiar process like sales or account team management according to neuroscience elicits numerous ah-ha! moments. This leads to a focus on what really works, with an understanding of why a particular approach is effective.

OneOne of our own ah-ha! moments came when, for the purposes of an update to our negotiation skills program for insurance claims adjusters, we had an idea to analyze traditional negotiation strategies against the neuroscience measures offered by the formula outlined in Russ Granger’s acclaimed 2008 McGraw Hill book on influence and persuasion, The 7 Triggers to Yes. And while we certainly expected to find some parallels – negotiation strategies are, after all, persuasive – we werewere ultimately quite astonished by the sheer number of direct correlations between the two sets of principles, one based on decades of behavioral evidence and the other on recent brain scan technology and academic research.

At the risk of hyperbole, it seemed distinctly like a business behavior Rosetta stone – the scientific explanations for why these tried-and-true negotiation strategies actually work; why they are in fact so persuasive.

It semed disnctly like a business behavior Rosea stone – the scienfic explanaons for why these tried-and-true negoaon strategies actually work.

A BRAINS FOR BUSINESS WHITE PAPER FROM RISING TIDE PARTNERS

3

Page 4: Top 10 Negotiation Strategies - The 360° Adjuster360adjuster.com/wp-content/uploads/2017/01/... · Top 10 Negotiation Strategies According to Neuroscience RUSSELL P. GRANGER RAHILA

Before we break it down, a bit of context for the use and value of this emotion-based analysis.

THE EMOTIONAL BRAIN IN BUSINESSIt’sIt’s not that the importance of human emotion hasn’t been acknowledged in business. Advertising has for decades understood the value of successfully triggering an emotional response in the brain of the buyer. Not always easy to do, but incredibly effective when achieved. Business has acknowledged emotion, yes, but not nearly to the extent possible in order to truly leverage its real impact on human decision-making, according to recent neuroscience.

TheThe unfortunate fact is that business has depended largely on a precept established over 2000 years ago by Aristotle, and repeated countless times since: that agreements and transactions, and the influence and persuasion employed to achieve them, are primarily based in logic and reason. Sure, emotion plays a part, the argument goes, but decisions – especially so-called “business decisions” – are ultimately the result of logical analysis… right?

Not so much. If we are to acknowledge what empirical science has now Not so much. If we are to acknowledge what empirical science has now revealed, precisely the opposite is actually true. It’s logic and reason that only play a part – and in most cases a very small part – of our decision-making. It’s the emotional brain, the limbic system, and in particular a small area of the primal brain called the amygdala, that is really central command when it comes to decisions. All decisions. From the thousands of tiny choices we make to merely function throughout the dthe day, to the most considered life and business decisions.

The emoonal brain is really central command when it comes to making decisions.

A BRAINS FOR BUSINESS WHITE PAPER FROM RISING TIDE PARTNERS

4

Page 5: Top 10 Negotiation Strategies - The 360° Adjuster360adjuster.com/wp-content/uploads/2017/01/... · Top 10 Negotiation Strategies According to Neuroscience RUSSELL P. GRANGER RAHILA

Fact is, it all happens in the emotional brain. And mostly before we are even consciously aware of it.

So, herein lies the conundrum: The human brain is making decisions based primarily on emotional rather than logical considerations, yet business communication – in leadership, teamwork, selling, and service – favors data. Information. Facts. Analysis.

KnKnow what neuroscience tell us about our brain’s response to facts, data, and analysis? We hate it. By some measures, the brain uses 300% more calories to engage in analytical thinking than in so-called “mental cruising.” And it’s not that we’re lazy. It’s that our brains have evolved to strongly favor energy conservation.

WhWhy, then, are we as business people constantly asking of our colleagues and customers to engage in a mental activity – logical analysis – that they are biologically reluctant to do? Achieving results with others means being the path of least resistance. Meanwhile, what most of us are doing most of the time is being the taskmaster of a painful endeavor!

TheThere is a better way. A way to engage with others, to influence and persuade, to sell and negotiate, in alignment with our own biology rather than in opposition to it. Because negotiation (more so even than sales) has always been viewed as a thoroughly circular, give-and-take process of communication, the methods used to facilitate it have been more naturally aligned with the emotional-brain basis of influence, persuasion, and decision-making. Let’s explore exactly how.

THE EMTHE EMOTIONAL BASIS OF NEGOTIATION STRATEGYSSo much has been written about the strategies and tactics of negotiation that we won't take up space here for a retread of traditional definitions. Suffice it to say that strategies and tactics are simply the modes by which we discuss and exchange value in the pursuit of mutual satisfaction. Some are simple, some complex, some respectable and some not. What they all do is infuse communication with certain messages, intentions, expectations, and attitudes which seek to affect the negotiation pthe negotiation process and its results.

Following are ten of the most common, critical strategies used in a wide variety of negotiation situations. As we review these strategies, we’ll be looking not only at what they are, but why they work according to the science of emotional triggers. As far as we know, these correlations don’t yet exist in any other books or courses on negotiation.

Neuroscience is now able to tell us what’s actually happening in the brain, but convenonal negoaon programs have yet to incorporate these insights.

A BRAINS FOR BUSINESS WHITE PAPER FROM RISING TIDE PARTNERS

5

Page 6: Top 10 Negotiation Strategies - The 360° Adjuster360adjuster.com/wp-content/uploads/2017/01/... · Top 10 Negotiation Strategies According to Neuroscience RUSSELL P. GRANGER RAHILA

Neuroscience is now able to tell us what’s actually going on in the brain during sales, negotiation, and agreement building, but traditional negotiation programs have yet to incorporate these critical insights.

Negotiation strategies work precisely because they are persuasive; because they activate emotional triggers. We’ll see which triggers are in play as we go through each strategy.

STRATEGY 1: AIM HIGHSettingSetting a goal for, and expecting to achieve, your best possible result is an essential strategy in any negotiation. It’s a documented fact that people generally achieve what they expect to achieve in a negotiation. You never get more than you ask for, so ask for all that is reasonable. For claims negotiations, this usually means starting at the lowest possible figure that is still fair and realistic to your customer.

TheThe Aim High strategy achieves several important objectives. In addition to increasing the likelihood that you’ll realistically achieve something closer to your ideal goal, aiming high also helps you establish that all-important “room to move” – the potential for flexibility you’ll need to engage in any kind of bargaining and exchange, and so as not to be perceived as the purveyor of an ultimatum.

ButBut aiming high also helps to activate a key emotional trigger. When you set your sights on an ideal goal and communicate that goal as part of the negotiation, you are doing what in psychology is described as setting an adaptation level. In other words: acclimating the other party to a point from which negotiation progress may be measured.

InIn persuasion parlance, this is part of activating the Contrast Trigger. Neuroscience shows us that the emotional brain is apt to drive decisions much more readily when it has a point of comparison or contrast. So, when you eventually modify your original offer to something more appealing to the other party, it winds up looking like a much better deal than it otherwise would have. It is powerfully persuasive, and it’s the very definition of the Contrast Trigger.

STRSTRATEGY TWO: SLICE THE SALAMIWhen the other party has the salami you want, you’re unlikely to get it if you ask for the whole thing all at once. But a slice at a time? Much more workable. The trick to the salami strategy is figuring out what the slices are, and how big or small to make them.

Slice the Salami

Aim High

In the emoonal brain, objec-ve values simply don’t maer. Percepons rule. Construct the right comparisons in the right order to set an adaptaon level that is powerfully persuasive.

The Contrast Trigger🌓

A BRAINS FOR BUSINESS WHITE PAPER FROM RISING TIDE PARTNERS

6

Page 7: Top 10 Negotiation Strategies - The 360° Adjuster360adjuster.com/wp-content/uploads/2017/01/... · Top 10 Negotiation Strategies According to Neuroscience RUSSELL P. GRANGER RAHILA

Slicing, dicing, chopping and grinding also enable you to activate another persuasion trigger.

ByBy breaking down the elements of exchange, by dividing up the components of value, you effectively reduce the risks associated with concessions or compromise. It simply doesn’t feel as drastic or as consequential to the other party to give concessions incrementally. People’s risk tolerance is emotional, and you can align more closely with that risk tolerance by asking for a little at a time.

AligningAligning with another’s risk tolerance is a key element of the Consistency Trigger. It's persuasive because it matches how people are already inclined to think and act, helping your proposal become the path of least resistance.

STRATEGY 3: VALIDATE EMOTIONSIt’sIt’s critical in any negotiation to appreciate that even the most calculated business process has emotional components. But perhaps especially in claims. We know what neuroscience has proven: that humans are more strongly and definitively driven by the emotional brain than we ever believed based on behavioral observation alone. We are not thinking machines, we are feeling machines that think.

AdjustersAdjusters who fail to acknowledge or validate the emotions of their insureds, claimants, or attorneys (hey, attorneys get emotional, too) are risking more than just the flouting of etiquette or the undermining of rapport. They are diminishing significantly their ability to persuade.

InIn any business where brand is a consideration, persuasion is a function of shared interests and mutual benefit. It is not coercion or manipulation, which is unsustainable over time and not conducive to building brand or business equity. Productive persuasion is built on a foundation of trust, which is produced by activating the Friendship Trigger. There are many elements of the Friendship Trigger and many ways to activate it, but validating another’s feelings, perspectives, or opinionsopinions is one of the most effective, and one of the easiest for claims adjusters – if they understand its importance and real purpose.

Validate Emotions

Brain biology urges us to be consistent with a mental archive of prior decisions and acons. Learn the consistencies of others, and increase your ability to persuade.

The ConsistencyTrigger

Trust is the goal of a personal connecon, as it’s the essenal foundaon for persuasion that results in sustainable agree-ment. Friendship is essenally rooted in sameness. Reveal and explore areas of shared experi-ence to build a trust bond.

The FriendshipTrigger👥

We are not thinking machines. We are feeling machines that think.

A BRAINS FOR BUSINESS WHITE PAPER FROM RISING TIDE PARTNERS

7

Page 8: Top 10 Negotiation Strategies - The 360° Adjuster360adjuster.com/wp-content/uploads/2017/01/... · Top 10 Negotiation Strategies According to Neuroscience RUSSELL P. GRANGER RAHILA

STRATEGY 4: USE THIRD-PARTY AUTHORITYAlso known as “limited agent,” this is a way to place limits or controls on your own power, and thereby strengthen your position to remain within the confines of a particular offer. It’s essentially “passing the buck” to an unseen third-party, whereby you are acting as a representative for the final decision-maker on one or more issues.

WWe see the Third-Party Authority strategy most commonly, and indeed most transparently, at the car dealerships – the old “I have to talk to my manager” routine. This is a useful strategy to extend a timeline, delay, move off of a controversial issue, or to actually seek a second opinion.

Third-partyThird-party authority is persuasive. People readily accept the imposition of institutional limitations because for the emotional brain, they represent a Reason-Why Trigger. In sales and marketing Reason Why triggers may take the form of restrictions, deadlines, or special offers like scarcity, discounts, or free shipping. A logical-sounding rationale for action is readily accepted by the emotional brain.

STRATEGY 5: KEEP QUESTIONINGTTo seasoned negotiators, questioning skills can seem very basic. But the fact remains that most professionals nevertheless don't use questioning often enough, or for all the purposes that make them so potentially effective.

UsingUsing good questioning skills throughout the settlement process, including during structured negotiation – even if information gathering is concluded – helps to maintain a cooperative and harmonious climate. People simply feel more involved and valued when they’re asked for their input and opinion more often. Pose questions even if you know the answer; the question itself is what counts.

AA questioning strategy activates several persuasion triggers including Friendship and Consistency, and depending on how you phrase your questions virtually all the emotional triggers can come into play.

STRATEGY 6: MAKE CONCESSIONSYYour ability to yield, to compromise, to grant provisions on a variety of issues contains an enormous amount of value, and you should use that value to your advantage. Whatever you do – don’t squander it. Always have a reason why you’re giving in or giving over. Even – and perhaps especially – around issues or values that are easy for you to concede.

Keep Questioning

Make Concessions

Third-Party Authority

Compliance by means of giving the brain a valid reason for acng, a reason why is an emoonal imperave masking as a logical argument.

The Reason Why Trigger

A BRAINS FOR BUSINESS WHITE PAPER FROM RISING TIDE PARTNERS

8

Page 9: Top 10 Negotiation Strategies - The 360° Adjuster360adjuster.com/wp-content/uploads/2017/01/... · Top 10 Negotiation Strategies According to Neuroscience RUSSELL P. GRANGER RAHILA

Make concessions valuable; know what you’re getting in return, even if it’s just good rapport or good will. Ideally, your concessions should be made in return for something of higher value to you.

ConcessionsConcessions are persuasive because of course they activate the Reciprocity Trigger. And here’s something that persuasion science can tell us that even some of the best negotiators don’t know: Making small, non-essential concessions early, or even first, is a powerfully persuasive move in planting an emotional brain-based sense of obligation in the other party.

STRATEGY 7: AFFIRM LEGITIMACYInIn any business negotiation there are compliance issues – codes, rules, and regulations that govern commercial conduct. Insurance of course has plenty of them, even aside from the framework of the customer’s policy provisions. And they often need to be referenced as part of the settlement negotiation process.

LLegitimacy carries its own inherent persuasive power. Why? Because it activates the Authority Trigger. As with any use of the Authority Trigger, timing makes a difference. You typically want to avoid using this strategy straight-out-of-the-gate, as a “first salvo,” because it can set a tone that feels limiting or even confrontational rather than flexible and cooperative.

STRATEGY 8: MANAGE TIMINGStStrategic use of timing can put you at a significant advantage. Use timing across two dimensions:

1. The settlement itself – your deadlines and theirs; and

2. how you time the release or presentation of information.

YYou’ll always have certain messages, issues, concessions, etc., that you’ll want to get out early in the process, and some that will have more impact if you hold them off until later. Remember that time can be a bargaining chip, so don’t reveal too much, especially if there’s an incentive for you to close the file quickly. Use your claimant’s desire to expedite payment instead for more leverage.

What’sWhat’s persuasive timing? Timing is a Reason Why trigger. It sets legitimate – though not necessarily logical or real – parameters for agreement, conclusion, or decision.

Affirm Legitimacy

Manage Timing

A percepon of experse makes acceptance easier and less risky. A stand-alone trigger as well as a precursor to acvate others.

The AuthorityTrigger

The universal psychological requirement for exchange. Sciensts now believe society itself evolved on this principle..

The ReciprocityTrigger

A BRAINS FOR BUSINESS WHITE PAPER FROM RISING TIDE PARTNERS

9

Page 10: Top 10 Negotiation Strategies - The 360° Adjuster360adjuster.com/wp-content/uploads/2017/01/... · Top 10 Negotiation Strategies According to Neuroscience RUSSELL P. GRANGER RAHILA

STRATEGY 9: CONVEY FLEXIBILITYFlexibility in a negotiation is the consideration of alternatives, and may be conveyed in various ways throughout any successful settlement process. Even when the answer is “no,” for example, it’s important to communicate it in a way that feels flexible rather than contrary. Try always to maintain alternatives. Be creative by being prepared.

FlFlexibility is strategic because it works as a disincentive for the other party to adopt intransigent positions, and because it forces you to prepare for alternatives – the very basis for effective negotiating.

FlFlexibility is persuasive because it activates a number of emotional triggers including Friendship, Reciprocity, and Contrast. But flexibility is effective for activating one critical persuasion trigger in particular, because it helps to lower risk and reduce the threat response of conflict or a bad outcome. The risk tolerance trigger is Consistency.

STRATEGY 10: LEAD FROM STRENGTHLiLike flexibility, leading from strength is both a core negotiation principle and a key strategy. And just like the Authority Trigger is not about being authoritative, leading from strength is not necessarily about being tough or intransigent. It’s often quite the opposite, in fact.

LLeading from strength means having the confidence – through efforts like extensive preparation – to be friendly, cooperative, patient, and flexible in finding solutions on the road to agreement. You want to cultivate the kind of quiet strength that people feel and respect, not the obstinate kind of strength that people dislike and distrust.

LLeading from strength is persuasive because it activates The Authority Trigger. The emotional brain is more easily compelled to cooperate or agree if it recognizes credible expertise, which serves to reduce risk and support a decision in favor of the proposal.

ByBy understanding how the emotional brain reacts and responds to certain negotiation strategies, by knowing which emotional triggers are in play, we can be more precise and effective in how we use negotiation strategies to advance the settlement process.

Keep Questioning

Convey Flexibility

A BRAINS FOR BUSINESS WHITE PAPER FROM RISING TIDE PARTNERS

10

Page 11: Top 10 Negotiation Strategies - The 360° Adjuster360adjuster.com/wp-content/uploads/2017/01/... · Top 10 Negotiation Strategies According to Neuroscience RUSSELL P. GRANGER RAHILA

RUSSELL P. GRANGEREqualEqual parts brand builder, marketing strategist, and sales consultant, Russell has been the architect of profitable results for top companies in technology, healthcare, financial services, and consumer products for over 20 years. He co-founded one of the world’s first digital marketing agencies, which helped the major motion picture studios launch their Internet publicity operations, and was featured on CNN, the New York Times, and the cover of PC Magazine.

AsAs brand strategy lead for IBM Global Business Services, Russell developed customer engagement innovations for companies such as Samsonite, Key Bank, Dow Jones, Ricoh, and Newell-Rubbermaid. He went on to build brand and customer experience practices for several New York advertising agencies before taking the helm of his father’s consulting and training company, rebranded Rising Tide Partners.

RAHILA NAREJOWithWith over 15 years of experience in leadership development and employee performance improvement for top global corporations, Rahila helps companies maximize return from their Human Capital using current research-based applications from the fields of psychology and neuroscience. Rahila is a psychobiologist by education, with an undergraduate degree from UCLA, a Masters of Science from Middlesex University (UK), and is a certified Psychometrician with the British PsBritish Psychological Society.

A syndicated business columnist for leading European and Middle East publications, Rahila is known for integrating psychometric assessment with brain-based training and coaching approaches. Her driving philosophy is reflected in the words of Galileo: “You can not teach a man anything; you can only help him to find it within himself.”

@RussellPGranger

@NarejoHR

A BRAINS FOR BUSINESS WHITE PAPER FROM RISING TIDE PARTNERS

11

About the AuthorsRising Tide is a consortium of consultants and trainers, each with decades of experience in practice development and skill building for top global companies. We have performance development teams for life sciences & pharmaceuticals, insurance & financial services, technology, and consumer products.

Page 12: Top 10 Negotiation Strategies - The 360° Adjuster360adjuster.com/wp-content/uploads/2017/01/... · Top 10 Negotiation Strategies According to Neuroscience RUSSELL P. GRANGER RAHILA

CLAIMS COMMUNICATION & NEGOTIATIONThe 360° Adjuster combines core competencies in communication and negotiation with the neuroscience of influence and persuasion. On-demand skill-building for all claims people.

HighlyHighly engaging, fully interactive and even surprisingly entertaining, the course sets a new benchmark for immersive, online learning. An interactive Action Plan supports skills transfer, and a Manager’s Playbook provides guidelines for coaching and reinforcement.

visit 360Adjuster.comcall 855-242-6300write [email protected]

THE NEUROSCIENCE OF INFLUENCE & PERSUTHE NEUROSCIENCE OF INFLUENCE & PERSUASIONWe now know that the emotional center of the brain is the ultimate driver of human choices and decisions. And yet, most business people continue to rely on an age-old paradigm of data, logic, and reason when trying to influence and persuade for the purposes of cooperation, teamwork, customer engagement, and sales.

EmotionalEmotional triggers were discovered by scientists, validated by researchers, reported on by academics, and brought to the business world by a handful of innovators who are now working with the world’s top organizations to drive unprecedented results based on these exciting new insights. The 7 Triggers to Yes is one of those innovators.

LLearn how to use this practical and powerful formula and never miss an opportunity to be influential with colleagues or customers. Saturate your marketing, sales, and service with the most persuasive possible messages according to neuroscience.

visit 7Triggers.comcall 855-242-6300write [email protected]

A BRAINS FOR BUSINESS WHITE PAPER FROM RISING TIDE PARTNERS

The 360° Adjuster and The 7 Triggers to Yes are registered trademarks, and all content and graphics Copyright © 2017 Rising Tide Partners, Inc. All Rights Reserved.

For More Information & Resources