Power in negotiations generally comes from one of three sources, according to Northwestern University professor Adam D. Galinsky and New York University professor Joe C. Magee.
Negotiation Power – Three Main Sources
1. A strong BATNA. Your best alternative to a negotiated agreement, or BATNA, is often your best source of bargaining power. By cultivating a strong outside alternative, you gain the power you need to walk away from an unappealing deal. For example, a home buyer could improve her power in a negotiation with a seller by finding another house she likes just as much.
2. Role power. Power can come from a strong role, title, or position, such as a high rank in an organization. When negotiating with your boss, for instance, you sometimes may need to cede to his preferences because of his high status.
3. Psychological power. Negotiators can bring a sense of psychological power to the table—the feeling that they’re powerful, whether or not that’s objectively the case. Simply thinking about a time in your life when you had power can bolster your confidence and improve your outcomes, Galinsky and Magee have found.
Regardless of its source—a strong BATNA, a powerful role, or a feeling of power—power is critical to improving your negotiated outcomes. When preparing for a negotiation with a powerful counterpart, try to increase your own sense of power on as many of these levels as possible.
Where do you get your strength during a negotiation? Let us know in the comments.
Related Negotiation Skills Article: Types of Power in Negotiation – This article drawn from negotiation research describes three kinds of power and how each type of power affects negotiators at the bargaining table. One type of power, defined as the lack of dependence upon others, impacts a negotiator’s negotiating style in more ways than one while another type of power, defined as role power or the ability to affect outcomes through one’s position, can have greater impact on other negotiators outside of the person in a position of power based on her role in an organization. The third type of power, psychological power, is explored and its potential for setting a positive mindset at the negotiation table is delineated. How each of these strength dynamics impacts a negotiator’s style and presence at the negotiation table is also described.
BATNA and Other Sources of Power at the Negotiation Table
Power in Negotiation: The Impact on Negotiators and the Negotiation Process
Power in Negotiations: How Effective Negotiators Project Power at the Negotiation Table
Types of Power in Negotiation: Chaos Theory and Bargaining Scenarios
Originally published in 2011.
I would agree these three elements; BATNA, role power, and psychological power all influence the negotiated outcome, however there are several other more subtle factors that can increase or decrease one’s bargaining position.
In my experience, physical location of the negotiation process can greatly affect one’s position of power in a negotiation. It is best to try and hold a negotiation in a place where the other party is not comfortable, i.e. unfamiliar surroundings. For example, people tend to be more demanding in their own office rather than in a restaurant. Another factor is dress. Formal dress increases one’s power position. Yet another factor is time of day. Typically the later in the day it is, the more flexible people become due to fatigue.
I have been using negotiating skills in my career for almost 30 years and find the subject fascinating. I have set up a blog for individuals to share their tips on becoming better negotiators. It can be found at:http://theartofnegotiating.blogspot.com/
I find thorough preparation is the key to a strong negotiation. My negotiations have focused around the licensing or acquisition of electronic resources. I typically know more about the product or service than the lawyer for the vendor. That throws off the vendor’s business person. All of a sudden, the vendor’s business person is turning to me for guidance. I advise them to talk to their lawyer who then repeats the business person’s question. I prefer to negotiate at the counterparty’s location. Gives me greater insight into the other side. Most people don’t want to negotiate in a public place such as a restaurant. Restaurants are for initial meet-and-greet or afterglow celebration.
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