Leverage: How to Get It and How to Keep It in Any Negotiation

231 Pages·2006·0.89 MB·English

by  Roger J. Volkema

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Cover
title: Leverage : How to Get It and How to Keep It in Any
Negotiation
author: Volkema, Roger J.
publisher: AMACOM Books
isbn10 | asin: 0814473261
print isbn13: 9780814473269
ebook isbn13: 9780814426968
language: English
subject Negotiation in business.
publication date: 2006
lcc: HD58.6.V648 2006eb
ddc: 658.4/052
subject: Negotiation in business.
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Page i
LEVERAGE
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Page iii
LEVERAGE
How to Get It and How to Keep It
in Any Negotiation
ROGER VOLKEMA
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Page iv
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.: [phone]. Fax: [phone].
Web site: www.amacombooks.org
This publication is designed to provide accurate and authoritative information in regard to the subject
matter covered. It is sold with the understanding that the publisher is not engaged in rendering legal,
accounting, or other professional service. If legal advice or other expert assistance is required, the
services of a competent professional person should be sought.
Library of Congress Cataloging-in-Publication Data
Volkema, Roger J.
Leverage : how to get it and how 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 may not be reproduced,
stored in a retrieval system,
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 number
10 9 8 7 6 5 4 3 2 1
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Page v
CONTENTS
Acknowledgements vii
Introduction ix
1 Negotiation and Leverage 1
2 Four Characteristics of Leverage 7
3 The Four States of Leverage 11
4 The Sources of Leverage 15
5 Indicators of Leverage 21
6 Checking Your Progress: Identifying Leverage 33
7 Managing Leverage 39
8 Increasing Your Leverage 45
9 Decreasing the Other Party's Leverage 55
10 Checking Your Progress: Altering Leverage 67
11 The Dance of Leverage 81
12 Reality Test 87
13 Playing Defense 93
14 The Climate of Negotiation 109
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15 Selecting an Approach 115
16 The Art of Communication 121
17 Another Reality Challenge 131
18 Leverage, Uncertainty, and Risk 137
19 Leverage and Ethics 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
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Page vii
ACKNOWLEDGEMENTS
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, Tom Sinclair, Fred Niederman, Patti Sinclair, Alison Torrillo French, Rob Jolles, Peter Trzyna,
Cheryl Rivers, Joanne Miller, Ed Marod, and Brad Lyman for their careful reading of all or parts of earlier
manuscripts. Their comments and suggestions led to countless improvements. A special thanks to Rob
Jolles for once again serving as my mentor in negotiating the publication of this 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.
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Page ix
INTRODUCTION
I don't know what the future may hold but I know who holds the future.
—RALPH ABERNATHY
It is one of the hottest days of the year, and something is wrong with your refrigerator. The ice that
had formed in the freezer section is melting. The temperature seems too warm. You contact a
repairman, who promises to come that afternoon. You ask about the likely cost. He says it could be
around $80. In the meantime, you keep both the refrigerator and freezer doors closed. The repairman
arrives, late in the afternoon. He believes the problem is with your freezer. He takes out all the frozen
foods, unscrews panels, cuts wires. There is the problem: A coil had gone bad. It will cost you $230.
Sound familiar? You are now at the mercy of the repairman. You know little to nothing about freezer
coils, would have no idea where to get one, and all of your frozen foods are spread around the floor
taking on room temperature. You have no choice and agree to pay the price.
This story has been repeated dozens of times in your life. If it wasn't the refrigerator repairman, it was
the auto mechanic, the property tax assessor, or your employer. It was the owner of the home you
wanted to buy, in a "sellers' market," or the sole supplier who wanted to double her prices. In each
case, you felt at a disadvantage. You felt that you had little choice but to accede to the other party's
demands. They had leverage.
The purpose of this book is to help you understand what leverage is, how you can increase your own
leverage or decrease the leverage of
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