the neuroscience of better negotiations
TRANSCRIPT
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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…
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My First Book
Available on Amazon.com(Audio version also available on iTunes)
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Improvements in Brain-Imaging Technology Have Led
to…
Incredible Breakthroughs in Neuroscience
“As important for neuroscience as telescopes were for astronomy”
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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
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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
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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
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Some Essential Neurological Background Information
1. Threat & Reward Brain Circuits2. The Social Needs of Our Brain
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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
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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
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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
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Our Brains Respond to Social Rewards as Powerfully as to Money, Sex, and Chocolate!
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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
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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
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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
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7%Word Content
38%Vocalizations
55%Body Language
Communication:Value Our Brains Assign to Incoming
Stimuli
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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
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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
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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)
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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
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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
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(Images courtesy of Professor Amy Cuddy, Harvard Business School)
Top: High-Power Poses
Bottom: Low-Power Poses
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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
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“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
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How to Change The Other Person’s Body Language, and
Neurological Response, to Improve Negotiations
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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!