The Neuroscience of Better Negotiations

The Neuroscience of Better Negotiations: An Overview

Jonathan Jordan

www.MindfullyChange.com

Former Executive with Fortune 500 Companies

Licensed Psychotherapist

Member of the Society for Neuroscience

Nationwide and International Speaker

Published Author

Certified Executive & Business Coach

Owner of an International Business & Personal

Development Firm

Jonathan Jordan

Just a Little Bit About Me…


My First Book

Available on Amazon.com(Audio version also available on iTunes)


Improvements in Brain-Imaging Technology Have Led

to…

Incredible Breakthroughs in Neuroscience

“As important for neuroscience as telescopes were for astronomy”


Synopsis

Humans evolved as social beings that need to interact and exchange resources with others in order to ensure mutual survival

Our brains evolved in this cooperative social context. Some of the human brain’s wiring related to negotiating began to evolve over 3 million years ago

As a result, our brains can be highly efficient when it comes to negotiations


Synopsis, Cont.

However, many modern-day circumstances create threat-driven neurological reactions that greatly inhibit our brains from functioning as well as they used to in prehistoric times

In order for our brains, and the brains of the other party, to function in a way that is highly advantageous for successful negotiations, we need to return our brains to the reward-driven state in which they historically negotiated well

This optimal neurological state requires (at least the perception) of cooperation rather than adversity

Recent neuroscience research is illuminating how we can best work with our brains (and those of our customers, trading partners, etc.) rather than work against our brains


Our Brains and Commerce Co-Evolved

“It’s clear that human beings have been finding ways to generate value for each other as the world shifts around us for,

oh, at least 150,000 generations”

~ Marsha Shenk, Business Anthropologist


Some Essential Neurological Background Information

1. Threat & Reward Brain Circuits2. The Social Needs of Our Brain


Threat Focus: to survive

Flight-or-Fight

Stress, Fear

Neuroendocrine changes include an increase in Cortisol – “the stress hormone”

Reward Focus: to thrive

Stay-and-Engage

Trust

Neuroendocrine changes include an increase in Oxytocin – “the trust hormone”

Two Primitive Brain Circuitsthat Greatly Impact

Negotiations, and Life in General

Disengage Engage


The Importance of Trust


How “Threat Response” Impacts Brain Functioning


Judgment diminishes, aggression

(and physical energy) may

increase

Difficulties

accessing

long-term

memory

Message receptors

shut down, terminates meaningful

rapport

Pessimism and

perceived

threats/insults

increase

Ability to

remember

decreases,

impacting

learning

Problem- solving abilities reduced

Executive functions:

Logic decreases, irrationality increases

THREAT


Why You Want Win-Win

In sports and other competitive activities you want a Win-Lose result. Causing your opponent to feel “threatened” may give you a competitive edge

When people feel very threatened they often act irrationally. This may not only negatively impact their own situation but may also negatively impact the other negotiating parties

In negotiations you want, at least the perception of, Win-Win outcomes


Our Brains Respond to Social Rewards as Powerfully as to Money, Sex, and Chocolate!


David Rock’s SCRAF Modelof Neurological Social Needs

David Rock is the Director of the NeuroLeadership Institute, a global initiative bringing neuroscientists and leadership experts together to build a new science for

leadership development


The SCARF ModelWhat Rewards, or Threatens,

Our Social Brains?We respond to the perception of…

STATUS – how we compare to others

CERTAINTY – clarity, opposite of confusion

AUTONOMY – ability to make decisions, control

RELATEDNESS – fitting in safely, group membership

FAIRNESS – how we are treated compared to others


The SCARF Model, Cont.

The more SCARF (social rewards) we perceive, the more our brain feels “rewarded” and the more we trust and engage cooperatively and display rational creativity

The less SCARF (social threats) we perceive, the more our brain feels “threatened” and we become defensive, disengage and are more likely to become irrational

For mutually successful negotiations, you want the other party to perceive as much SCARF as reasonably possible (at least in the initial stages of negotiation)

Disengage … Less SCRAF More … Engage


7%Word Content

38%Vocalizations

55%Body Language

Communication:Value Our Brains Assign to Incoming

Stimuli


When You First Meet…SOFTEN

You greatly reduce the neurological threat response by greeting people with this approach…

Smile

Open Posture

Forward Lean

Touch

Eye Contact

Nod

Note: Smiling is the most common and universally recognized gesture across all cultures


Project Assertive ConfidenceNot Passive, Not Aggressive, Not

Arrogant People who are perceived as not being confident,

having self doubts, etc., raise suspicions and can trigger a threat response

Arrogance can also be neurologically threatening

Being friendly, assertive, and confident allows you to quickly build rapport with almost anyone


Brain-Friendly Body LanguageTo Help Your Negotiations(55% of communication)

Uncross arms or legs - it might come across as defensive

Relax your shoulders - high, tight shoulders imply tension, fear

Nod occasionally when someone is talking – it gives the message that you are being attentive and interested (which is rewarding to the other party)


Brain-Friendly Body LanguageTo Help Your Negotiations,

Cont.

Smile often, even laugh – this greatly lowers the “threat” level

Keep your head, and eyes, up – it is a sign of confidence

Slow down your movements – it makes you appear more calm and confident, and less threatening

Make eye contact - but don’t stare, it could induce a “threat” response


How to Quickly Boost Your Brain With Assertive

Confidence In a recent study by the Harvard Business School,

researchers physically “posed” participants into one of two sets of poses, high-power and low-power

High-power poses involved stretching out to take up more space, and opening the arms and/or legs

Low-power poses involved contractive positions with closed limbs


(Images courtesy of Professor Amy Cuddy, Harvard Business School)

Top: High-Power Poses

Bottom: Low-Power Poses


How to Quickly Boost Your Brain, Cont.

High-power posers experienced feelings of “being in charge” while low-power poses reported a drop in confidence

Among high-power posers testosterone (a hormone linked with feelings of power) levels increased by 25 percent while cortisol (the “stress hormone”) decreased by 19 percent – in both men and women

Simply holding one’s body in expansive poses for as little as two minutes can cause neuroendocrine changes that give your brain a significant surge of confidence


“These poses actually make you feel more powerful”

~ Professor Amy Cuddy, Harvard Business School

A Power Pose To Quickly Boost Your Brain Before a

Negotiation


How to Change The Other Person’s Body Language, and

Neurological Response, to Improve Negotiations


Quick Recap

Avoid triggering the neurological “threat” circuits in the other party because this will result in “disengagement”

To enhance “engagement” activate the “reward” circuits in the other party where possible – at least create a perception of win-win

Remember our brains have a strong response to nonverbal communication

Boost your own confidence neurologically in preparation for negotiations – one way to do this is adopting a “power pose”

To use neuroscience to more effectively negotiate…

Presenter Contact InformationJonathan Jordan

President, Global Change Management, Inc.Email: [email protected]

Web: www.MindfullyChange.com

Thank You!