Tag Archives: Roger Fisher

“Everything is Negotiable”: Prepare, Ask, Revise, Ask Again

Anna Beninger

Anna Beninger

Alixandra Pollack

Alixandra Pollack

Persistent compensation gaps continue to occur for women MBA graduates from 26 leading business schools in the United States, Canada, Europe, and Asia, reported Catalyst’s Anna Beninger and Alixandra Pollack.

Women still make about 80 percent of their male peers in a study of salaries in academic medicine by Harvard’s Catherine DesRoches, Sowmya Rao, Lisa Iezzoni, and Eric Campbell with Darren Zinner of Brandeis.

Catherine DesRoches

Women worked more hours, spent more time in administrative tasks, were awarded fewer grants, held fewer top titles, had fewer publications, and were paid less than their male counterparts.

These findings reinforce estimates by Carnegie Mellon’s Linda Babcock, that women MBAs earn USD $500,000 – USD $2 million less than their male classmates over the course of a career because women tend not to negotiate the starting salary or those offered on transfer or promotion.

Linda Babcock

Linda Babcock

In contrast, Babcock found that men are four to eight times more likely to negotiate both salary and promotions.
They also obtain better results in most negotiations.

women dont askBabcock, with Sara Laschever, outlined precursors of these negotiation differences based on differences in typical gender socialization.

They posited that many parents encourage boys to take risks, earn money in part-time jobs, and participate in competitive team sports.
In contrast, parents are more likely to encourage girls to play collaboratively and value interpersonal affiliation.

Sara Laschever

Sara Laschever

These differences enable boys to practice negotiating and competing, and to tolerate disrupted interpersonal relationships, according to Babcock and Laschever.

John List

John List

This suggestion was supported by findings that the gender-based wage gap is associated with women’s tendency not to negotiate salaries and to avoid competitive work roles, in research by University of Chicago’s John List, Andreas Leibbrandt, and Jeffrey Flory.

They posted two identical job ads on internet job boards with different wage structures:  One offered hourly pay whereas the other had pay dependent on performance compared to their coworkers.
More women than men applied to the hourly wage role.

Andreas Leibbrandt

Andreas Leibbrandt

Men were 94 percent more likely than women to seek and perform well in competitive work roles in a study of nearly 7,000 job seekers across 16 large American cities.
This gender gap “more than doubled” when the reward for performance rose.
Women significantly more likely to walk away from a competitive workplace if they saw few alternative employment options.

Jeffrey Flory

Jeffrey Flory

In contrast, women were more likely to apply if the performance relied on teamwork, not on the individual, or if the salary was a flat fee independent of their performance.

When there was no explicit statement that wages are negotiable, men were more likely to negotiate than women.
However, when wages were “negotiable,” this difference reversed when women had explicit “permission” to ask for higher salaries and job titles.

Babcock also found that women and men evaluate negotiation and interpersonal behavior differently:  Negotiation practices that are generally judged “acceptable” for men are frequently assessed as “overly aggressive” when women use them.
As a result of this differential evaluation of negotiation practices, Babcock and Laschever advised women to:

  • Define goals, acknowledging that “everything is negotiable,”
  • Research personal “market worth” in comparative job using online resources like Salary.com and Glassdoor.com,
  • Reconsider low sense of entitlement to higher salaries and job roles,
  • Challenge potential anxiety about negotiation,
  • Plan negotiation rationale, citing specific accomplishments, results, value to the organization,
  • Practice a positively-stated, confident negotiation “pitch,” offer timing, set an advantageous anchor point, and provide counterarguments to mitigate objections,
  • Plan counter-offers and self-supporting thoughts to manage anxiety while maintaining negotiation position and interpersonal rapport.

Collaborative negotiation by cooperative bargaining enables both people to derive value from the negotiation conversation.
They suggest building negotiation courage, comfort, skill, stamina, and strength while focusing on the negotiation goal and delivering value for all parties through a “Negotiation Gym” program.

Foundational negotiation principles were summarized in Getting to Yes: Negotiating without Giving In by Harvard’s Roger Fisher and William Ury.
More recently, Ohio State’s Roy Lewicki, David Saunders of Queen’s University, and Vanderbilt’s Bruce Barry of Vanderbilt detailed their research-based guide to Negotiation.

Leigh Thompson

Leigh Thompson

More than 90% of all negotiators fail to ask “diagnostic questions” that uncover the negotiation partner’s most important needs, priorities, preferences, and even fears, found Leigh Thompson of Northwestern.
Eliciting this information is associated with significantly improved negotiation outcomes, she found

Knowing Your ValueTelevision journalist Mika Brzezinski echoed Babcock and Laschever’s recommendations based on interviews with prominent women and men about the persistent gender wage gap.
She distilled disconcerting labor statistics and suggested a model for negotiation:

  • Research,
  • Leverage,
  • Negotiate,
  • Re-negotiate.Hardball for Women
Pat Heim

Pat Heim

Women’s reluctance to negotiate may be related to gender differences in attributions of success and failure, suggested Pat Heim:
Women attribute failures to themselves (“internalizing,” “taking it personally) whereas men identify external factors (“blaming”, “rationalizations”) associated with their shortcomings.
In contract, women attribute success to external factors (“deflection of merit”). Men, in contrast, typically attribute their effective performance to to themselves (“self-bolstering”).

Men are typically promoted because they are seen to have “potential,” whereas women are typically promoted based on their results and accomplishments, noted Heim.
Even factors like attire can influence perception of authority:   Men judged women but not other men as less authoritative when wearing “business casual” attire.

Women can systematically develop skills and behaviors required to close the well-documented wage gap between professional women and men.

-How do you prepare for negotiations and overcome objections during negotiations?

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Nothing to Lose: Effective Negotiating Even When “Powerless”

Michael Schaerer

Most negotiators prefer to have alternatives as a “fall back position.”
However, having no alternatives and less power than co-negotiators can improve outcomes, found INSEAD’s Michael Schaerer and Roderick Swaab with Adam Galinsky of Columbia.

Alternatives enable negotiators to gain concessions from co-negotiators because they have a BATNA – Best Alternative To a Negotiated Agreement, defined by Harvard’s Roger Fisher and William Ury.

Roger Fisher

Roger Fisher

When an alternative is weak, it can undermine negotiating outcomes more than having no alternative because it establishes an “anchor point” based on competing options.

Anchoring is a frequent cognitive bias characterized by overvaluing one piece of information, according to Hebrew University’s Amos Tversky and Daniel Kahneman of Princeton.

William Ury

William Ury

Typically, negotiators anchor on the value of their alternatives when making their first offer, so people with weak alternatives generally make lower first offers than those with no alternative.
“Lowball” first offers based on few or poor alternatives usually undermine a negotiator’s final outcome.

Professional athletes and their agents provide many anecdotal examples of negotiating better deals when they have no “back up” offers and “nothing to lose” because they can set ambitious anchor points.

Amos Tversky

Amos Tversky

In a separate study of job negotiation, Schaerer and team asked a hundred people whether they would prefer to negotiate a job offer with a weak alternative or without any alternative.
More than 90 percent indicated that they would prefer to enter the negotiation with an unattractive alternative offer, confirming the popular assumption that any alternative is seen as better than no alternative.

Another of Schaerer’s lab studies asked volunteers to imagine they were selling a used music CD by The Rolling Stones.
They randomly assigned participants to three groups and gave each group different information about their alternatives, ranging from:

  • No offers (no alternative),
  • One offer at USD $2 (weak alternative),
  • A bid at USD $8 (strong alternative).
Roderick Swaab

Roderick Swaab

Volunteers in each group proposed a first offer, and rated the degree of power they felt.
Not surprisingly, people with the strong alternative felt the most powerful and those with no alternative felt the least powerful.

However, people with a weak alternative felt more powerful than those with no alternative, but they made lower first offers, signaling less confidence than participants with no alternative.
Having alternatives, whether poor or attractive, may make people feel powerful but can undermine negotiation performance.

Schaerer’s team further explored this paradox by pairing participants as a  “seller” who was offering a Starbucks mug during a face-to-face meeting, and a potential “buyer.”

Adam Galinsky

Adam Galinsky

Before the meeting, the seller received a phone call from “another buyer,” who was actually a confederate.
For half of the “sellers,” the potential buyer either made a low offer or declined to bid.

“Sellers” without an alternative offer said they felt less powerful, but made higher first offers and received considerably higher sales prices than negotiators with a an unattractive alternative.

In another situation, half of the “sellers” concentrated on available alternatives (none, weak, or strong) and the remaining negotiators focused on the target price.

Volunteers with unappealing alternatives negotiated worse deals than those without other options when they focused on alternatives, but “sellers” avoided this pitfall by concentrating on the target price.
This is another validation of focusing on the goal when alternatives are weak, and of the power of first-offer anchors.

Negotiators with non-existent or unappealing alternatives benefit from caution in setting modest first offers driven by feeling powerless.
Instead, the situation can be reconstrued as an opportunity to set audacious goals, reflected in an ambitious opening offer.

  • How do you overcome lowball anchoring when you have few negotiation alternatives?

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Mastering the Power Sandwich with Skillful Upward Influence

David Bradford

David Bradford

Employees’ advancement in organizations is based on preventing problems before they develop, and pre-emptively uncovering opportunities to add value, according to Stanford’s David Bradford and Allan R. Cohen of Babson College in Influencing Up.

Allan Cohen

Allan Cohen

Complementing their Influence without Authority, they distilled common-sense win-win approaches to influence those over whom one has no formal authority or control: one’s manager and others higher in the hierarchy.

Influencing UpOrganizational power discrepancies can be accentuated when the employee is female or a member of a minority group.
Cohen and Bradford’s suggest six elements to reduce power differences, and improve influence and negotiation outcomes:

  • Clarify needs and priorities
  • Consider others as potential partners rather than adversaries
  • Establish trustworthiness by sharing information and develop understanding of the other’s perspective, concerns, and “care-abouts” — empathy in a business setting
  • Determine reciprocal value exchange in “currencies” that matter to others: information, budget, removing obstacles, brokering agreements, support
  • Gain access to others by showcasing your potential value exchange
  • Negotiate a win-win outcome
Robert Cialdini

Robert Cialdini

Bradford and Cohen’s work complements influential research by Stanford colleagues Margaret Neale and Deborah Gruenberg, as well as Robert Cialdini’s classic investigation of influence.

Roger Fisher

Roger Fisher

William Ury

William Ury

Their emphasis on crafting a win-win negotiated outcome echoes earlier work by Roger Fisher and William Ury in Getting to Yes and Linda Babcock’s consideration of negotiation challenges faced by women and minority group members in the workplace.

-*How do you manage the Power Sandwich, requiring skillful 360 degree influence in your organization?

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