Wednesday, April 29, 2015

Lessons on Using Hard Power



Posted By: Samir Pendse

As I face Negotiations in my personal and professional life, I need to remember to not only play to my Soft Power strengths but to be sure to incorporate Hard Power. When I am preparing for a difficult Negotiation, I can refer to this website to review three key illustrations of Hard Power in action. Hopefully these examples give me the inspiration I need to use Hard Power in my Negotiations.

Hard Power Principle 1: Resist compromise and have the courage to ask for more
Example: JFK During the Cuban Missile Crisis


I can be too quick to compromise and agree to a deal as soon as it exceeds my BATNA. The risk of failing to reach a deal scares me far too much, and I lack the resolve to continue negotiating for more value. When I feel the urge to settle, I can resist it by remembering the courage JFK showed during the Cuban Missile Crisis.

JFK understood the gravity of a nuclear war, and knew the BATNA for failing to reach an agreement with the Soviets was catastrophe. On October 27, after extensive negotiation, Kennedy received a proposal from the Soviets: The USSR would remove any nuclear weapons from Cuba provided that the US remove its own nuclear weapons from Turkey. This agreement would be far superior to Kennedy's BATNA of nuclear war, and he seriously considered accepting it.

In this situation, I would almost certainly accept this offer. But JFK had the courage to push for more. He would not give in and publicly withdraw missiles from Turkey, and refused to sign any agreement that explicitly required the weapons be removed. After several tense hours, the Soviets relented and accepted an agreement without this clause.

When I'm faced with a difficult negotiation and high stakes, I need to remember JFK's example and resist compromising immediately. 

Source: http://www.bbc.co.uk/history/worldwars/coldwar/kennedy_cuban_missile_01.shtml

Hard Power Principle 2: Don't avoid conflict, embrace it
Example: Ari Gold (Entourage)



As someone who relies primarily on Soft Power, I can be intimidated by negotiators who lead aggressively with Hard Power tactics like anger and threats. It's important for me to remember that Conflict is a critical part of a negotiation, and something I shouldn't shy away from. In fact, as I try to incorporate Hard Power strategies in my own negotiation style, initiating conflict can sometimes be the best way to achieve a successful negotiation.

However, embracing conflict is easier said than done, and I need to find ways to allow for conflict even if it is against my nature. One person who can inspire me to embrace conflict is the (fictional) super-agent Ari Gold. Although his brash and volatile style is often quite entertaining and is certainly made-for-TV, it can also be quite informative; there is a reason why Entourage clips like this one have been studied in Negotiations classes. In the footage above, Ari is only successful in negotiating with Terrance because he actively and boldly seeks out conflict. He creates a scene when he barges into Terrance's office, threatens him, angers him, and finally convinces him to agree to an extremely favorable deal for Ari. Although I certainly do not want to be as extreme as Ari, incorporating his willingness to embrace conflict into my negotiation style would be very beneficial.

Source: Entourage (HBO)

Hard Power Principle 3: Don't be afraid to walk away
Example: Steve Jobs



Steve Jobs is known as one of the toughest negotiators in history. The public got a rare look into his negotiation style when several private e-mails were made public as part of a US government lawsuit against Apple. In particular, these revealing e-mails with News Corp. Executives show how Jobs' Hard Power tactics won Apple favorable terms.

In this negotiation Jobs did two things particularly well, both of which required Hard Power skills. First, after receiving James Murdoch's counter-offer, Jobs gave absolutely no corner. He refused to entertain any of the compromises Murdoch had suggested, or negotiate along any of the dimensions outlined. Instead, he further emphasized the value Apple brought to HarperCollins and why his original terms made sense. Like JFK, he didn't bend just to achieve a deal that was greater than his BATNA, but he continued fighting for the deal he wanted.

He was able to do this largely because he never felt like he absolutely had to make a deal. Even in his first e-mail response to Murdoch, he said "We'd love to have HC among [our suppliers]," but never indicated Apple truly needed HarperCollins. In his subsequent response, he articulated three options for HarperCollins, including two options where they did not agree with Apple. He was not afraid to make the threat of walking away, and this gave him significant negotiating power. Incorporating this threat as part of my Hard Power arsenal could make me a more effective negotiator going forward.

Source: http://www.theatlantic.com/business/archive/2013/05/the-steve-jobs-emails-that-show-how-to-win-a-hard-nosed-negotiation/276136/