Negotiation: Understanding Your Sources of Power

One of the main differences between negotiators is the confidence they feel when

negotiating In general, the more confident we feel and the better prepared we are,

the more successful will be the result of our negotiations.

Personal power comes from many sources. To build and increase our confidence

as negotiators we need to step back and analyze the sources of our personal power

and compare them with those of the people with whom we are negotiating.

Power is not absolute. In most bargaining relationships, the balance of power shifts

over time as the negotiation progresses.

These are just a few examples of power sources:

information power:

The power of information comes from having knowledge that will influence the outcome of

Negotiation Planning and research can increase our information power, as can

asking the right questions before reaching the bargaining phase of the negotiation.

reward power:

Reward power comes from having the ability to reward the other party in the

talks. It could be the power a buyer has to order goods and

services or the power a vendor has to provide good service and solve problems

coercive force:

Coercive power is the power to punish. This is most commonly seen on buyer-

relationship with the seller, but it can be a characteristic of other types of negotiation.

Power state:

Situational power is the power that comes from being in the right place at the right time.

time. A customer is desperate to place an order and you are the only source of

supply in the short term. Have an effective network and keep in touch with

what is happening can increase your situational power.

Energy experience:

The power of expertise comes from having a particular skill that you can apply that

may influence the outcome of the negotiation. Improving negotiation skills helps you

win better deals. Other areas of specialization could also help the outcome of the

talks.

And finally – Referent power:

Referent power comes from being consistent over time. If people see that you have a clear and consistent strategy as a negotiator, your referral power will increase.

Having standards that you hold yourself to and being consistent will help you increase your

referent power. In the eighties, Margaret Thatcher was not universally popular, but

she was respected by many for being consistent in her views and behavior. In the end

failed because his approach was too rigid and he couldn’t adapt to

changing circumstances.

Copyright © 2007 Jonathan Farrington. All rights reserved