Small Talk
Most often, we dismiss "small talk" as aimless prattle and miss the point of it. In general, small talk is sued to delay a weightier conversation - a person who rushes to start a negotiation is generally at a disadvantage (they seem more eager, more desperate), and small talk is a way to give the other party the opportunity to be the first to move.
Small talk also gives each party the ability to gauge the other's demeanor to determine their level of interest, and to detect whether they seem to be at all open to conversation on weightier matters, or delay the actual conversation to a time when they seem more receptive.
Small talk also builds a sense of connection with another individual: if you ask questions of a non-business nature, you gain information about them, and seem to be interested in forging a relationship with them.
Small talk is also used when business acquaintances meet outside the business environment. They do not feel it appropriate (or necessary) to talk about business matters, but it would be rude to ignore each other completely. In this instance, it's entirely about connection building, establishing familiarity, to facilitate future interactions.
Small talk is also more important in some cultures than in others. Americans are particularly notorious for a "straight to business" approach, which is considered impersonal by other cultural standards. In Asia, there is typically no discussion of business in the first meeting in a series, and the entire purpose is to build a sense of community.
A common tactic is to ask open-ended questions (requiring more than a simple yes-or-no answer) of another person and get them to carry the conversation and enable you to learn about them. If you find the tables have been turned, and the other party is grilling you without disclosing anything about themselves in return, look for an opportunity to turn the tables: the one who speaks the least about themselves learns the most about the other.
The difficulty in small talk is generally finding a seed to start the conversation, and another to revive it when it's hit a lull. The author's suggestions are using the environment for cues (if you're in someone's office, a banquet hall, etc.).
On the other hand, it may be difficult to break away from a person who seems to be overly interested in small talk - for example, monopolizing your time at a networking event. In these instances, simply excuse yourself from the conversation, being careful not to promise to return (or you'll be perceived as rude for not doing so).
Politics and religion are, naturally, poor choices for small talk - it is too easy to be offensive by expressing an opinion or failing to agree with someone else's - but there are also overly personal topics that can put people off: asking about a person's health or finances may be considered overly intrusive.
It's also important to read body language: making eye contact is important to show interest, as is leaning forward. Maintaining an open posture, with your hands in plain view, is also key to winning trust.