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Real
Leaders Negotiate |
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By Jeswald
W. Salacuse |
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Good
leaders are invariably effective negotiators. After all,
authority has its limits. Some of the people you lead
are smarter, more talented and, in some situations, more
powerful than you are. In addition, often you’re called
to lead people over whom you have no authority, such as
members of commissions, boards and other departments in
your organization.
To
persuade people to follow your lead, you need to appeal
to their interests, communicate with them effectively
and sell your vision—all of which are part of effective
negotiation. These three key aspects of negotiation will
improve your power and persuasiveness as a
leader.
1.
PRACTICE INTEREST-BASED LEADERSHIP.
Why should the people you’re supposed to lead follow
you? If you believe that your charisma, your position or
your vision is reason enough, you’re in trouble. While
these qualities may affect how others relate to you,
they won’t compel them to follow you. People follow
leaders when they judge that it’s in their best interest
to do so.
Just as
wise negotiators focus on the other side’s interests,
effective leaders seek to understand and satisfy the
interests of those they lead. By doing so, they can
better achieve organizational goals.
Some
individuals care more about shoring up their power in
the short term than they do about their units’ long-term
health. Others care more about long-term career
development than about compensation. When you understand
where the other person’s true interests lie, you can
then shape your messages and your actions to accommodate
those interests in ways that will achieve your
leadership goals.
2. FIND
THE RIGHT LEADERSHIP VOICE.
Persuasive communication is fundamental to effective
leadership—communicating in ways that meet individual
concerns, interests and styles. When deciding how to
communicate, recognize that the medium you choose
reveals something about you and your relationship with
the person you are trying to lead.
Suppose
that you’re a company CEO trying to persuade your board
of directors to support an acquisition. What if you sent
each board member a detailed memorandum stating the
terms and consequences of the deal? Intentionally or
unintentionally, a generic memo could signal that you
place little value on members’ opinions, and that you,
not they, are running the show.
Instead,
you might personally visit each director to explain the
acquisition’s importance. A face-to-face meeting shows
the individual director that her support is important
and that you respect her autonomy and judgment. What’s
more, holding such meetings will help you get to know
your directors’ individual concerns, structure
arrangements that satisfy them, and still allow you to
make the acquisition that is important for the company’s
future.
3.
NEGOTIATE A VISION FOR THE ORGANIZATION.
Popular commentary on corporate leadership presupposes
that a company’s vision comes from its CEO. But that’s
not necessarily the case. Members located throughout an
organization have plenty of thoughts about what the
organization is and should be. Thus, the challenge of
setting a group’s course lies in forging a single vision
out of the multiplicity of visions held by the group’s
members.
Leaders
at Goldman Sachs, the venerable investment-banking
partnership, faced exactly this challenge as they sought
to negotiate its transformation into a publicly traded
corporation. Over several meetings over several years,
starting in 1986, the firm’s management committee failed
to convince the partners to proceed. It wasn’t until
1998, when the firm’s two cochairmen engaged in
one-on-one conversations with nearly all the firm’s 190
partners, that the partners voted to accept the
committee’s recommendation.
As this
example shows, the process of articulating a vision is
one of negotiation—in particular, multilateral
negotiation, which usually requires intensive,
face-to-face coalition building.
Like a
skilled diplomat, a leader—whether a chief executive
officer or a department head—negotiates support from
followers by appealing to their interests, communicating
with each of them in the right voice and medium, and
forging a single compelling vision that all can get
behind.
Jeswald W. Salacuse is a professor of law at the
Fletcher School of Law & Diplomacy at Tufts University
and a member of the faculty of the Program on
Negotiation at Harvard Law School. His latest book,
Leading Leaders: How to Manage Smart, Talented, Rich and
Powerful People (Amacom, 2005), expands on the ideas
presented in this article. |
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| OTHER STORIES |
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Real
Leaders Negotiate |
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Good leaders
are invariably effective negotiators. After all, authority
has its limits. Some of the people you lead are smarter,
more talented and, in some situations, more powerful than
you are. In addition, often you’re called to lead people
over whom you have no authority, such as members of
commissions, boards and other departments in your
organization. |
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read more |
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Set Up
To Fail: Economist Paul Ormerod on strategy and extinction |
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In his
recent book Why Most Things Fail, theoretical
economist Paul Ormerod argues that failure is the defining
characteristic of biological, social and economic systems.
But Ormerod, a former economic forecaster and now principal
of Volterra, the London-based consulting firm he cofounded,
doesn’t think that’s a bad thing. |
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read more |
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Piggy
banking |
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KIDS saved
this bank. No kidding.
And if the
main man of The Real Bank (A Thrift Bank), Jose G. Araullo,
would have his way, all Filipino children below 12 years old
should start banking to save the whole thrift-bank industry. |
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read more |
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Winning:
Owning up to career rough spots |
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Q: In my
previous job, I was one of those cases where I supposedly
“resigned,” but was really sort of fired. What do I tell
prospective employers when they ask, “Why did you leave your
old job?” Name Withheld, Hartsburg, Missouri |
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read more |
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Tubbataha
dreaming |
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My
initiation to
Tubbataha
Reefs Natural Park
started with a back-roll, one day in May, into Jessie
Beazley Reef. The first sharks of the trip were close enough
to make out the white on their tips. Grey reef sharks were
on active patrol, too, and we spotted no less than three
pregnant sharks, bulging at their sides. |
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read more |
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The
ethics of revolution |
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THE death
of Elias achieves revolutionary significance the moment
society is recognized as a creator of victims in order to
execute them. Elias had been condemned even before he was
born, and it only remained for society to carry out the
death sentence. |
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read more |
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Down in
the Valley |
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SAN
JOSE—Silicon Valley, says San Jose/Silicon Valley Journal
editor Norman Bell, is more of a state of mind than a piece
of geography. |
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read more |
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3 habits
that hold leaders back–and how to overcome them |
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In my 10
years as a board member of the Peter Drucker Foundation, one
of the wisest things I heard him say was, “We spend a lot of
time teaching leaders what to do. |
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read more |
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Help
newly hired executives adapt quickly |
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The main
reason why newly hired outside executives have such an
abysmal failure rate (40 percent, according to one study) is
poor acculturation: They don’t adapt well to the new
company’s ways of doing things. In fact, some three-quarters
of 53 senior human-resources managers I surveyed cited poor
cultural fit as the driver for onboarding failures. |
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read more |
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Chip off
the old block |
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Developing a
good work ethic at a young age proved to be beneficial for
Intel Technology Philippines managing director Michael
Wentling. |
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read more |
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Winning:
Unraveling the Russia riddle |
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Q:
Russia is
increasingly in the news these days, both for its
high-flying economy and its controversial politics. What’s
your take on the situation there? Daniel Steinbock,
Helsinki,
Finland |
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read more |
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Help wanted:
HK banker
soaks Indian call centers in black humor |
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Shyam Mehra,
26, is a self-professed loser in New Delhi. When he dons a
telephone headset each night, though, he becomes Sam Marcy,
a polite troubleshooter for Americans angered by their home
appliances. |
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read more |
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Seeking a sea change |
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It
was—and still—is considered the country’s southern
backdoor, a way out for Filipinos caught in the grip of
poverty and conflict, and a way in for Filipinos wanting
to free themselves of that grip, through the power of
smuggled goods and smuggled ideologies. |
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read more |
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The rise
of confessional politics |
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THREE
centuries and a decade have changed America’s image of
itself, it seems. In 1797, under George Washington, John
Adams signed a treaty with Tripoli with the following
disclaimer: |
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read more |
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At Your
Service |
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ALTHOUGH
the Philippines’ tourism industry is now assessed by the
United Nations World Tourism Organization (UNWTO) as the
best-performing in Asia, the number of local manpower
shifting to work in the tourism industry abroad also
continues to rise. |
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read more |
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Pay it
forward |
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INSPIRED by
the good set of business practices and tips he gathered from
people known in their respective industries, Comm&Sense Inc.
president Joseph Augustine L. Tanco hopes to pay forward for
the lessons he learned in running his business by providing
advice as well to budding entrepreneurs. |
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read more |
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The Force
of the Weak |
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In times
when the exercise of power tends to exceed the limits laid
down by the law, and when the law itself is perceived to be
mangled by power, a people, cowed by power, finds its
liberty restored by the weakest branch of government: the
Judiciary, specifically the Supreme Court. |
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read more |
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In
high-stakes decisions, sometimes you’ve just got to go with
your gut |
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Managers
and entrepreneurs face high-stakes decisions throughout
their careers. Should they pursue a new market? Enter into a
joint venture? Make a high-profile hire? When so much is
unknown and unknowable, conventional wisdom says to go with
your gut. |
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read more |
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