The Power of Small Talk. Joelle Miller Keoghan

Transcription

1 The Power of Small Talk By Joelle Miller Keoghan Introduction For years, anecdotal experience has highlighted to importance of climate setting, an informal period of small talk that occurs prior to initiating the negotiation process. Practitioners have long argued that climate setting is a step that establishes initial trust and sets tone for the entire negotiation. However, how important can this brief exchange of lighthearted pleasantries be? Given our hectic lives and schedules, wouldn t this time be more efficiently utilized getting right down to business? And what about negotiations that are largely conducted via electronic media where negotiators are possibly thousands of miles away from each other, have never met and barely know each other? Where does climate setting or small talk fit into these types of negotiations and how can it possibly be accomplished? (For the purpose of this article we will use the terms climate setting and small talk interchangeability.) We can answer these questions by examining three recent studies that illustrate the crucial role small talk can play in the context of negotiations. The research together collectively highlights the impact of small talk, explains why it is so effective, and provides simple mechanisms by which to achieve it. Description of the Studies: Study One: Long and Short Routes to Success in Electronically Mediated Negotiations: Group Affiliations and Good Vibrations. 1 The first study explored mechanisms negotiators could use to enhance the trust and rapport that naturally grows between participants in face-to-face negotiations but can be absent from negotiations. 2 In the experiment, participants negotiated exclusively via . Half were assigned a counterpart from the same business school (in-group), while the other half was paired with a counterpart from a different business school (out-group). Half of each of these two groups exchanged 1 Moore, D.A., Kurtzberg, T.R., Thompson, L., & Morris, M.W. (1999). Long and Short Routes to Success in Electronically Mediated Negotiations: Group Affiliations and Good Vibrations. Organizational Behavior and Human Decision Processes, 77, For a comprehensive discussion regarding the impact of information technology upon communication in general and negotiation processes specifically see Janice Nadler and Donna Shestowsky, Chapter 8: Negotiation, Information Technology, and the Problem of the Faceless Other. They argue that information technology provides an impoverished form of communication, lacking essential nonverbal cues and social interactions present in face-toface negotiation. However, its impact is mitigated by certain contextual variables including the parties sense of shared identity, perceptions of one another, identifiabilty, pre-existing relationships and the subject of the negotiation.

2 photographs as well as biographies and conducted a brief getting to know you conversation via before negotiating, 3 while the other half of each group did not Results showed small talk significantly impacted out-group negotiations. Nearly all of the Out-group Climate Setters were able to reach a negotiated agreement (94%) while only a little over two-thirds of the Out-group Non- Small talkers (71%) were successful. Overall, the majority (71%) of impasses occurred amongst the Out-group Non- Small Talkers. Interestingly, small talk had very little impact for the participants who shared the same in-group. The impasse rate was generally low, and nearly identical: 7% for In-Group Small talkers and 8% for In-Group Non- Small talkers. 4 In short, the study concluded that a brief personal exchange over could replicate the same effect of a pre-existing, long-standing relationship. Study Two: Schmooze or Lose: Social Friction and Lubrication in Negotiations 5 A second study also hypothesized that the liabilities of negotiation could be minimized through a brief pre-negotiation interaction structured to establish personal exchange, i.e. climate setting. The negotiation exercise was designed to have a particularly tight bargaining zone so participants would have to engage in a relatively high degree of information sharing in order to achieve a negotiated agreement. Half of the pairs were instructed to speak on the telephone prior to the negotiation for no longer than five minutes and were to discuss only issues unrelated to the negotiation. The results of this study also highlight the role of small talk in overcoming the difficulties that are inherent in negotiations conducted primarily over . Given the tight bargaining zone, half of the negotiator dyads failed to come to an agreement. However, those who did not engage in climate setting had a 60% impasse rate while those who engaged in climate setting had a 40% impasse rate. 6 Importantly, the experiment also found that those who engaged in climate setting had a more positive experience during the negotiations: they developed a greater degree of rapport with their counterpart, had a higher degree of positive feelings towards the working relationship, and felt more inclined to work with that person again in the future. Study Three: Rapport in Legal Negotiation: How Small Talk Can Facilitate E- mail Dealmaking 7 3 Authors of the research studies used various terms such as schmoozing, social lubrication, small talk, etc. However, the author of this article has decided to use the term climate setting to eliminate any confusion that might arise from the various terms existing to describe brief pre-negotiation interactions structured to establish personal exchange. 4 Authors have suggested that this latter outcome may have arisen out of the wide bargaining zone that existed within the negotiating exercise. 5 Morris, Michael, et al. (2002). Schmooze or Lose: Social Friction and Lubrication in Negotiations. Group Dynamics: Theory, Research and Practice, 6.1, These results are marginally significant due to the relatively small number of dyads. However, the authors of this study believe had the bargaining zone been slightly wider and/or involved a greater number of participants, the experiment would have produced results with a greater statistical significance. 7 Nadler, Janice. (2004). Rapport in Legal Negotiation: How Small Talk Can Facilitate Dealmaking. Harvard Negotiation Law Review, 9,

3 The third study also hypothesized that a brief telephone discussion in which participants engaged in small-talk (i.e. climate setting) would encourage negotiators to establish an initial level of rapport, encourage information sharing throughout the negotiations and result in a higher likelihood of agreement. Half of the pairs (the climate setters) engaged in a strictly social telephone conversation lasting between five to ten minutes prior to the negotiation. This negotiation also required a high degree of information sharing in order create an agreement that was mutually beneficial, however, the bargaining zone was not as tight as that in study two. Results of this study were the most robust out of the three. Negotiators who engaged in climate setting were over four times more likely to reach agreement than those who did not. Significantly, when the researchers examined the transcripts, they found that all of the non-climate setters who had failed to reach agreement did so despite the fact that the last available offer would have made them better off than non-agreement. In contrast, the last offer on the table for the climate setters who reached impasse was not more profitable than their alternative. This suggests that climate setting also plays a role in helping negotiators recognize and be receptive to agreements that are financially beneficial. Additionally, negotiators who engaged in climate setting in this study were better able to create integrative agreements meaning that came away from the negotiation in a position that was substantially more favorable economically than those who did not engage in climate setting. How does Climate Setting Achieve This? Banter Fosters Rapport, Trust, and Better Working Relationships Three studies have shown the significant impact that a brief personal exchange, achieved through either a short telephone conversation or an , has upon negotiated outcomes. How does the sharing of a few words, relating to topics as benign as sports preferences, current weather conditions, or ones recent vacation have such a profound effect on what can be long, drawn-out and complicated business negotiations, as well as upon dealings that could potentially occur in the future? Researchers of all three studies unanimously attributed climate setting to initiating: 1. A level of rapport that resulted in a enhanced cooperative feelings and higher levels of trust, 2. Higher levels of information sharing that helped the negotiators achieve more integrative agreements, 3. Better Working Relationships. Impact of Climate Setting: Rapport Rapport can be a crucial ingredient to the success or failure of a negotiation. With a bit of common sense and personal experience, it is easy to conclude that when people like each other, they work better with each other. Positive feelings between people have been shown to lead to more cooperative agreements in negotiation, as it

4 increases people s willingness to cooperate and decreases their competitive intentions. 8 In all of the studies, participants who engaged in climate setting experienced significantly higher feelings of rapport for their counterparts than did participants who engaged in no climate setting. Why did climate setters experience such greater measures of rapport? Could a brief phone or conversation with a stranger be sufficient to initiate feelings of camaraderie, understanding and friendship? Apparently, the answer to this question is yes. Research has shown rapport grows out of self-disclosure. Not only does disclosure by others lead to greater liking for them, but self-disclosure leads to great liking for those to whom one has disclosed. 9 The brief phone and conversations served to set a sufficient initial level of rapport and also created opportunities to further enhance rapport throughout the negotiation. Transcripts of negotiators who engaged in climate setting show negotiators continued to offer personal details throughout the course of the negotiation and referred back to such details. As a result of this increasing rapport, climate setters reported that they found their counterparts to be cooperative, positive, open and more competent and approached the negotiation with a more collaborative mental model. This may explain why small talkers in the third study were better able to recognize advantageous agreements. Impact of Climate Setting: Higher Levels of Information Sharing Achieving information flow in negotiation is a key step in finding the right combination of issues, and options within those issues, to achieve an outcome that is profitable for both sides. 10 To reach integrative agreements, a certain level of information sharing regarding preferences, concerns, and priorities is required. The latter two studies reveal that climate setting has a positive impact upon negotiators willingness to engage in information sharing. Consequently, negotiators were more effective at creating shared value in their agreements. Why did information sharing happen more in the negotiations preceded by climate setting? There s a variety of contributing factors. First, there s that idea of rapport. We naturally share more information with people who we like than with those who we don t. When we like people, we trust them more. The establishment of rapport and the feelings of cooperation it elicited appear to have fostered higher levels of trust between the negotiating parties. Such trust is a necessary ingredient for establishing the correct level of information sharing. Another factor accounting for the greater sharing of information lies in the sharing of in-group status. Studies have shown that people within the same in-group engage in a higher degree of information sharing. 11 This principle gains particular resonance in situations where group members are separated physically, such as in 8 For discussion of various studies examining the role of rapport in collaborative tasks see Moore et al, Moore et al, Nadler, supra note 36, p Ibid.

5 interactions, and have few other cues to rely on other than their group membership. 12 Climate setting, in each case, established common ground, a determination between the adversarial parties that they were similar, however superficial that shared commonality may be. This may help account for the greater information exchange present amongst climate setters. Impact of Climate Setting: Potential for Future Dealings Negotiators who engaged in climate setting came away from the negotiation having a more positive experience. In contrast, those who did not engage in climate setting reported feeling annoyed and angry with their opponent, and rated their working relationship poorly. Attitudes towards the counterpart at the conclusion of a negotiation are extremely important, because how one feels at the end of an interaction is the critical factor in determining the degree to which that person will work to meet their obligations, as well as how and if they will engage in future dealings. Creating a good working relationship initially has the potential to create future value in additional business opportunities and referrals. Conclusions: These series of studies offer important and conclusive evidence regarding the significance of small talk. In the context of negotiations where negotiating parties have no pre-existing relationship, climate setting positively impacts negotiators abilities to not only reach agreements but also to design them so that they are far more integrative and mutually beneficial. Researchers have attributed this to the higher levels of rapport, trust, and respect climate setting establishes in an absence of all other social and nonverbal cues. The studies show that even in the absence of face-to-face interactions, climate setting can be easily achieved. As telecommunications advance, there are more opportunities to utilize new technologies to reach out, make contact, and establish positive relationships. Brief exchanges and phone conversations prior to beginning any negotiation can effectively establish rapport. However, there are more methods available, including Skype and Face Time as well as traditional video conferencing options. There is clearly more than one path to rapport. 13 In the context of today s increasing reliance upon digital communication, climate setting or small talk is even more important and in many ways easier to achieve. Joelle Miller Keoghan has worked internationally contributing to multiple projects rooted in the philosophy of Conflict Transformation. She is currently Research Associate for Asherman Associates Inc. and a free-lance consultant and researcher. She received her Master s Degree in Conflict Resolution from Georgetown University. Joelle Miller Keoghan may be reached by at miller.joelle@gmail.com. 12 Ibid. 13 Moore et al, p. 39.

6 Asherman Associates conducts negotiation workshops provides keynote presentations on negotiation skills and consults on negotiation issues. Sandy and Ira Asherman are the co-authors of The Negotiation Sourcebook, Twenty Five Role Plays to Teach Negotiation and Fifty Activities to Teach Negotiation, all published by HRD Press, They have also developed the Negotiation Effectiveness Profile published by They can be reached at or at Their web site is