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Entrepreneurship

MNO2009 - Session 5
Persuasion & Negotiation
Prof. Dr. Sarah Cheah
Recap of Lecture 4

Self motivation and Personal


Causation VS effectuation
Factors

Start with means


Founders’
Dilemma
Affordable loss
Common Errors
Form partnership

Leverage Surprise
Readings
Person Factors & Self-motivation

Read
• Sarasvathy, 2001, Causation and effectuation : toward
a theoretical shift from economic inevitability to
entrepreneurial contingency, Academy of Management
Review. <IVLE e-reserves> Also available:
http://entrepreneurscommunicate.pbworks.com/f/2001_Sa
rasvathy_Causation+adn+effectuation.pdf
• Onyemah, Pesquera and Ali, 2013, What Entrepreneurs
Get Wrong by HBR http://hbr.org/2013/05/what-
entrepreneurs-get-wrong/ar/1
L1 to L6 Topics – Where are we?

L1: entrepreneur L2: entrepreneur makes plans L3: entrepreneur


identifies & evaluates and sets goals while finds co-founder(s)
opportunity developing target customers & builds team
1 2 3

L4: entrepreneur finds L5: entrepreneur persuades, L6: entrepreneur can


investors & mentors negotiates and networks to choose to build social
from ecosystem (e.g. engage prospective enterprise to help
incubator/ accelerator/ investors, employees, community or join a
clients & partners 5 6
coworking space) 4 corporation
L1 to L6 Frameworks – Where are we?
1. Ardichvili’s model of 3. Babson’s framework of 5. Building a founding
opportunity startup ecosystem (6 team –Wasserman’s 3R
identification (4 domains) model (relationships,
factors) 4. Action planning process: roles & rewards)
2. Spinelli & Adam’s Lean startup approach
model of opportunity (customer development)
evaluation (5 criteria)
1 2 3

6. Self-motivation and 8. Watkin’s 4 principles of 11. ACSEP’s models of


personal factors: persuasion social entrepreneurship
Wasserman’s 9. Kolb’s negotiation 12. Wolcott and Lippitz’s
founders’ dilemma- approach models of corporate
rich vs king 10. Cross and Thomas’ model entrepreneurship
7. Saravasthy’s of building networks
causation vs
effectuation model 4 5 6
Session 5
Persuasion & Negotiation
Agenda

Persuasion Negotiation Networks


Case Study
Persuading Org Change: BPR

BPR
Norbert, 6
costs
4 lead Smart Transfer 5 Yes, $100k
BPR! CEO
CEO
Nobert Consultant
IP HOD Marketing HOD Declare
R&D HOD
inventions

10 Marketing 400 researchers


10 IP staff
staff review performed R&D
review novelty Recommend
commercial and disclose
& strength of patent or publish
potential of inventions to IP &
inventions
inventions Marketing staff
Too
Marketing 2 IP 1 You
team’s guys are
3 team’s
fault! too slow!
fault
Source: Dr Sarah Cheah
Case Study
Persuading Org Change: BPR
HODs, pls
9 check
10 Status Smart Transfer Nobert,
quo, pls CEO 11 status?
nominate nominate
2 IP rep IP HOD Marketing HOD 2 Market
rep Consultant
Not available Not
6 for interview IP team Marketing team 6 available
too
4 Not free for 4 Not free
IP should
meeting do more 8
too.
in new
8 Marketing’s
job! 8 IP’s job! process
IP rep
1 HODs, Marketing Rep
nominate reps
CEO, the teams
7
3 Reps, come do not coop
for meeting BPR
CEO, current processes
Reps, arrange 12 are fine. We need
project
$500k
5 interviews for Nobert for new compteam
systems
Source: Dr Sarah Cheah
your teams
Case Study
Persuading Org Change: BPR

? ?
Do you think Smart Transfer’s BPR How would you assess
was a success or a flop? Nobert’s persuasion skills?

Source: Dr Sarah Cheah


What is Persuasion
Persuasion is a form of social
influence. It is the process of
guiding people toward adoption of
an idea, attitude or action
Map influence Shape perception
landscape of interests/
alternatives
Principle of
persuasion

Persuade at Gain acceptance


distance for tough
decisions

Source: Watkins, 2001


Map influence Shape perception
landscape of interests/
alternatives
Principle of
persuasion

Persuade at Gain acceptance


distance for tough
decisions

Source: Watkins, 2001


Map influence landscape
Understand your targets

The Thinker The Control Freak

The Follower The Skeptic


Archipelago
online collaborative learning tool
• Step 1: Open email sent to you from arch-
noreply@archipelago.1.comp.nus.edu.sg
• Step 2: Click on link “To Archipelago” in email
– Note this link is unique to you. Do NOT share your link.
• Step 3: In Archipelago environment, on left panel, click
on Activity 1 – you will see questions in main window
• Step 4: Key in your responses in Activity 1 main
window
• Step 5: when done, click “Submit Answer” on bottom
right of main window.
Map influence Shape perception
landscape of interests/
alternatives
Principle of
persuasion

Persuade at Gain acceptance


distance for tough
decisions

Source: Watkins, 2001


Shape Perception of Interests/Alternatives

See the The Thinker The Control Freak


data It gives
about it! you better
control!

The Follower The Sketpic Does it


The really
others work?
sign up for
it!
How would you shape their perceptions?
Smart Transfer Example
The Control Freak

?
?

Nobert CEO
The Sketpic The Thinker
Come on guys!
CEO says we have
?
to do BPR. Your
new KPIs now! Marketing HOD
IP HOD
The Follower The Follower
? ?
?
IP rep Marketing Rep
IP rep Marketing Rep
Map influence Shape perception
landscape of interests/
alternatives
Principle of
persuasion

Persuade at Gain acceptance


distance for tough
decisions

Source: Watkins, 2001


Gain Acceptance
Smart Transfer Example

Nobert Nobert

If you don’t come for BPR


meetings, I’ll tell CEO and ???
you will bear the
consequences

The Follower The Follower


? ?

IP rep Marketing Rep


IP rep Marketing Rep
Map influence Shape perception
landscape of interests/
alternatives
Principle of
persuasion

Persuade at Gain acceptance


distance for tough
decisions

Source: Watkins, 2001


What can Nobert do to persuade at distance?
Smart Transfer Example

Nobert Nobert

I want to publish names of


BPR team members who ??
didn’t come for meetings

The Follower The Follower


? ?

IP rep Marketing Rep


IP rep Marketing Rep
Persuasion
Take a Strategy Approach

Define your idea

Identify decision maker

Change barriers to bridge

Make the pitch

Secure commitment

Source: Bielaszka-DuVernay, 2008


Agenda

Persuasion Negotiation Networks


Negotiation
How to become a successful negotiator

Prepare

Remember

Develop

Leave

Keep

Don’t fall

Remain

Sources: Kolb
Negotiation
How to become a successful negotiator

Prepare The discussion

Remember

Develop

Leave

Keep

Don’t fall

Remain

Sources: Kolb
PREPARATION

Good Negotiation

10%
Bargaining
Learn as much as Define the outcome
possible about the you desire from the
other party negotiation
Negotiation
How to become a successful negotiator

Prepare The discussion

Remember The difference btw “Position” & “Interest”

Develop

Leave

Keep

Don’t fall

Remain

Sources: Kolb
Parable of the Orange
Negotiation
How to become a successful negotiator

Prepare The discussion

Remember The difference btw “Position” & “Interest”

Develop The right mindset

Leave

Keep

Don’t fall

Remain

Sources: Kolb
Source: Norman Scarborough

The right mindset


Negotiation
How to become a successful negotiator

Prepare The discussion

Remember The difference btw “Position” & “Interest”

Develop The right mindset

Leave An escape hatch

Keep

Don’t fall

Remain

Sources: Kolb
Be prepared to walk away from deal
Define your BATNA
Negotiation
How to become a successful negotiator

Prepare The discussion

Remember The difference btw “Position” & “Interest”

Develop The right mindset

Leave An exit hatch

Keep Your emotion in check

Don’t fall

Remain

Sources: Kolb
Treat others the way you want to be treated in negotiation
Be FIRM but FAIR
Negotiation
How to become a successful negotiator

Prepare The discussion

Remember The difference btw “Position” & “Interest”

Develop The right mindset

Leave An exit hatch

Keep Your emotion in check

Don’t fall Into “Rules” trap

Remain

Sources: Kolb
There are no unchangeable “rules”
Negotiations involve give-and-take by both parties
Negotiation
How to become a successful negotiator

Prepare The discussion

Remember The difference btw “Position” & “Interest”

Develop The right mindset

Leave An exit hatch

Keep Your emotion in check

Don’t fall Into “Rules” trap

Remain Silent (Sometimes)

Sources: Kolb
Common mistake in negotiation
TALK TOO MUCH
Negotiation
Settlement Range
Online game with Negotiation
Antique Print Shop
Archipelago
online collaborative learning tool
• Step 1: Open email sent to you from arch-
noreply@archipelago.1.comp.nus.edu.sg
• Step 2: Click on link “To Archipelago” in email
– Note this link is unique to you. Do NOT share your link.
• Step 3: In Archipelago environment, on left panel, click
on Activity 2
• Step 4: Refer to questions and instructions provided in
lecture and then key in your responses in Activity 2
main window
• Step 5: when done, click “Submit Answer” on bottom
right of main window.
Agenda

Persuasion Negotiation Networks


Network

Strong ties Weak ties


Others without indepth
Relatives & Buddies
connections

Reinforce Beliefs Larger variety of


Provide Support specific needs
Network
Maintaining social relationships

Diversified & supportive


social connections

Resources opportunities
Are you networking Impaired?
Wrong Structure

The formalist The overloaded


manager
Wrong Relationship

The Disconnected The Biased


Expert Leader
Wrong Behavior

The Superficial The chameleon


Network
Network
Four steps to better network

Analyze De-layer Diversify Capitalize


Step 1 Analyze
Identify your contacts in 6 categories
critical to your success
Information Political support Personal development

Personal support Sense of purpose work/life balance

Source: Cross & Thomas


Step 1 Analyze
Identify your contacts in 6 categories
Reflect upon your contacts
Information Political support Personal development

Medium Medium Medium


Low Low Low
Personal support Sense of purpose work/life balance

Medium Medium Medium


Low Low Low
Source: Cross & Thomas
Step 2 Delayer
Identify energizers vs de-energizers

Information Political support Personal development

Personal support Sense of purpose work/life balance

Source: Cross & Thomas


Step 2 Delayer
Remove de-energizers
Keep positive, authentic and energetic ones

Information Political support Personal development

Personal support Sense of purpose work/life balance

Source: Cross & Thomas


Step 2 Delayer
Is your network imbalanced

Information Political support Personal development

Low Low Low


Personal support Sense of purpose work/life balance

Medium Medium Medium

Source: Cross & Thomas


Step 3 Diversify
Identify 3 goals for yourself for 2018
Learn new skill/get good internship?

Information Political support Personal development

Low Low Low


Personal support Sense of purpose work/life balance

Medium Medium Medium

Source: Cross & Thomas


Step 3 Diversify
Identify 3 goals for yourself for 2018
1. Gain expertise in business analytics
2. Get internship in BA consultancy firm
3. Be involved in BA project
Information Political support Personal development
Expert in BA firm Mentor
BA director in BA

Low Low Low


Personal support Sense of purpose work/life balance

Medium Medium Medium

Source: Cross & Thomas


Step 3 Diversify
Identify 3 goals for yourself for 2018
1. Gain expertise in business analytics (BA)
2. Get internship in BA consultancy firm
3. Be involved in BA project
Information Political support Personal development
Expert in BA firm Mentor
BA director in BA

Low Low Low


Personal support Sense of purpose work/life balance

Medium Medium Medium

Source: Cross & Thomas


Step 4 Capitalize
Can the BA firm director be mentor?

Information Political support Personal development


Expert in BA firm Mentor
BA director in BA

Source: Cross & Thomas


Network
Four steps to better network

Analyze De-layer Diversify Capitalize


Summary

Persuasion Negotiation Networks


Readings
Persuasion & Negotiation
Reading:
• Watkins, M., 2001. Principles of persuasion. Negotiation Journal,
17(2), pp.115-137. <NUS Digital Library/Google Scholar>
• Cross and Thomas, “A Smarter Way to Network”, HBR 2011
https://hbr.org/2011/07/managing-yourself-a-smarter-way-to-network/ar/1
• Bielaszka-Duvernay, “Take a Strategic Approach to Persuasion”,
Harvard Management Update 2008
http://www.bridge2know.net/static/courses_scorm/hbsp/harvard_managem
entor/en_hmm11_single/persuading_others/persuading_others/base/resour
ces/TakeStrategicApproachPersuasion.pdf
• Kolb, “Be Your Own Best Advocate”, HBR 2015
https://hbr.org/2015/11/be-your-own-best-advocate
Preparation for Tutorial 4
Person Factors & Self-Motivation
21 Sep 2017
Pre-tutorial activities:
1. Read Vault Dragon Case (ICT/EHRtech) from Facing Down Failure
(Pearson online coursepack).
2. Review Lecture 4 notes
3. Read Sarasvathy, 2001, Causation and effectuation : toward a
theoretical shift from economic inevitability to entrepreneurial
contingency, Academy of Management Review. (IVLE/eReserves)
Also available:
http://entrepreneurscommunicate.pbworks.com/f/2001_Sarasvathy
_Causation+adn+effectuation.pdf
4. Read Onyemah, Pesquera and Ali, 2013, What Entrepreneurs Get
Wrong HBR http://hbr.org/2013/05/what-entrepreneurs-get-
wrong/ar/1
Preparation for Tutorial 4
Person Factors & Self-Motivation
21 Sep 2017

Please go through the readings and answer the


following questions:
1. What were the key reasons for Vault Dragon’s failure in Hong
Kong? How would you have done differently if you were the
founder? Would joining incubators/accelerators mitigate the risk
of failures of Vault Dragon? If yes, how? If not, why not?
2. While causation approach may work well in some ventures,
Sarasvathy’s effectuation logic is gaining popularity in more
ventures. In the case of Vault Dragon, critically evaluate the
approach it has taken, and comment on how it can do better.
• In-class quiz
– comprises L4 topics – Person Factors & Self-Motivation
Guest Speaker: Dr Steven Fang
• Co-founder and Executive Director of Invitrocue,
provider of bio-analytic solutions including in vitro
cell-based testing technologies and image analytics
software for use in digital pathology
• Co-founder of CapBridge, JV with Sg Exchange to
assist hi-growth firms to globally raise capital
• Founder and Group CEO of Cordlife, a cord blood
banking group based in Sg and listed on Australian
Stock Exchange.
• General Partner, Clearbridge Accelerator
• Advisory member, A*STAR
• Board member, SPRING-backed Action Community
for Entrepreneurs (ACE)
• Adjunct Professor, University of Adelaide
• GM, SE Asia, Becton Dickinson Healthcare, 1996-
2000
• Biz Unit Manager, Baxter Healthcare, 1991-1995
• Biz Dev Manager, GSK, 1984-1990