Definition: - Negotiation power is perceived or real power which influences the outcome of negotiations. It is extremely rare for the power in negotiations to be one sided, or for the balance of power to remain consistent throughout negotiations. As people negotiate, power can shift from one side to the other in response to changing circumstances. Understanding how negotiation power works and how it can be manipulated is a critical part of negotiating successfully; numerous books and workshops cover this subject in exhaustive detail for people who negotiate professionally.

In negotiations, both sides have something the other wants. For example, when people sit down to work out the details of a real estate deal, one side wants the real estate, and the other side wants the money. Thus, each side immediately has some negotiation power, through manipulating their control over the thing the other side wants. Likewise, when someone negotiates over salary, that person has skills a company wants, and the company has a position that person wants to fill.

A number of factors can influence negotiation power. One is behavior during the negotiations; people who are confident and assertive, for example, generally have more perceived power even if they lack actual power. Likewise, different approaches to negotiations can cause ebbs and flows in negotiation power, depending on how these approaches are perceived by the target of the negotiations. Someone who works very aggressively, for example, might wind up backed into a corner without any power when the other side starts calling bluffs.

External factors also play a role in negotiation power. Individuals outside the negotiations may have an interest in how the negotiations proceed, and they may be able to influence the outcome of the negotiations. In the real estate example above, for example, someone else could make a better offer in the hopes of getting one of the parties to back out of the deal. This better offer could in turn be used for leverage to increase negotiation power.

The Role of Power in NegotiationThe word power has had a bad connotation for many years.It has received this reputation because most people associate the word with one side dominating or overpowering the other. I define power as the ability to influence people or situations. With this definition, power is neither good nor bad. It is the abuse of power that is bad.

Types of Power

Various types of power can influence the outcome of a negotiation. I emphasize the word can because if you have power but don't use it, your power is of no value. Following are a few types of power that can be significant in the negotiating process:

1. Position. Some measure of power is conferred based on one’s formal position in an organization. For example, if you are the marketing manager, you can influence decisions that affect the marketing department.

2. Knowledge or expertise. Knowledge in itself is not powerful; it is the application of knowledge that confers power. It’s important to take the time prior to a negotiation to research facts and statistics, find out what the other party’s goals are, and discover what areas he or she might consider negotiable--and then use this knowledge!

3. Character. Individuals who are seen as trustworthy have a great deal of power in negotiations. You are perceived as trustworthy if you have a reputation for doing what you say you are going to do.

4. Reward and punishment. Those who are able to bestow rewards or perceived rewards, such as raises or job benefits, hold power. Conversely, those who have the ability to create a negative outcome for the other party also have power.

5. Behavior style. Most people exhibit one or a combination of the following behavior styles:

*analytical--process oriented, methodical

*driven--task oriented, goal directed

*supportive--relationship oriented, focused on feelings

Which behavioral style is the most appropriate depends on the situation. For example, if you were going through a divorce and wanted to maintain a good relationship with your spouse, you would want to use the supportive style. You gain real power from a knowledge of behavior styles only if you can read a situation and adapt your style to it.

Most people have more power than they think. I believe there is a link between a person’s self-esteem and the amount of power that person thinks he or she has. It has been demonstrated that people with high self-esteem feel they have more viable options--and thus more power to act--in negotiations. I believe the reverse is also true: People with low self-esteem feel powerless, and do not stand a fair chance.

Rules of Power

Knowing the following rules of power comes in handy when entering into a negotiation.

Rule #1: Seldom does one side have all the power. Even the individual who goes to a bank to ask for a loan has power--the power to decide which bank to apply to, the power to decide an acceptable interest rate, and the power to decide what to put up as collateral.

Rule #2: Power may be real or apparent. When I was a proctor in the sociology department at San Diego State University, I knew that cheating was a potential problem. As I was passing out tests, I announced that I would uphold the university’s "policy" on cheating. One bold student asked what the policy was. My response was simple: "If you need to ask, you don’t want to know." This was the first time I had ever seen all sixty students staring at their own paper! Does

the university have a policy on cheating? I don’t know. But in this situation, whether the power was real or apparent didn’t matter. The students perceived that I had the power.

Rule #3: Power exists only to the point at which it is accepted. At the airport on a return trip from Europe, I noted that all the ticketing agents for economy class had at least a twenty-minute line to check baggage. Yet the business and first-class agents had not one person in line. I boldly walked up to the business class agent and got my seat assignment. Of course, this strategy was successful only because the ticket agent was willing to work with me. But I never would have known if I hadn’t tried.

Rule #4: Power relationships can change over time. This is one of the hardest lessons I have ever learned. In my youth, I had the same girlfriend from the seventh to the eleventh grades. In the beginning, I had the power in the relationship. I chose which activities we would become involved in and who our friends would be. Then something happened that sent me into a tailspin. My girlfriend was asked out by the student body president! Overnight, I was sending roses and begging for a date.

Rule #5: In relationships, the side with the least commitment generally holds the most power. If you are negotiating to buy a car from a salesman whose boss has warned him that he had better start making sales, and you are not committed to buying this particular car from this particular dealer, you are in the driver’s seat in the negotiating process.

Testing Your Power

What is the lesson to be learned here? Power is of no value unless you take advantage of it. (Remember, power is not bad--the abuse of it is bad.) When negotiating, be willing to take a chance. Try out your ability to influence the other party and the outcome of the negotiation. You may find out you have more power than you think!

Peter Barron Stark is president of Peter Barron Stark & Associates. He travels internationally training procurement specialists, sales professionals and other leaders in the art of negotiation. www.negotiatingguide.com, (877) 727.6468

Power in negotiations comes from:

1. Constructive Power

This is your ability to satisfy the other party's interests (needs). What are they really after? You need to ask questions, watch body language and do your research.

2. Obstructive Power

You have power that comes from you ability to block the satisfaction of the other side's satisfying their interests (needs).

3. Jumping Power

This is your ability to leave a negotiation and is typically linked with how good your alternatives (BATNA) are.

4. Personal Power

This is your desire, confidence, skills, and knowledge (DECKS) to succeed. Some describe these components as the intangibles or art of negotiation.

Some other sources of power:

1. The power to satisfy another's interests (underlying needs)

2. The power of knowlege, expertise, and/or a particularly elegant, moral, or ethical solution

3. The power to give another credit or special recognition

4. The power to apologize

5. The power of your alternatives: your alternative(s) if you do NOT do the deal

6. The power of alliances

Uses Of power in negotiation

Political Power And remember, that's favored or favorable status with those who count. How and by whom are you considered valued or vital and how can you leverage that in this negotiation?

Positional Power. This is your legitimate status or title. It's also your informal status if it's considered important enough by those who matter. Does your status or title give you an edge in this negotiation? If so, what is that edge?

Resource Power. Do you control any items of value that are important to the other person, like products, services, budget, people, time, knowledge, etc.? What resources would give you an advantage in this negotiation? And how and why would they?

Knowledge Power. Are you up to date with highly-valued information? Is there information that, if you had it, would benefit you in this negotiation? What is that information? Consider how much inside information you might have that the other person doesn't and wants, and the expertise you have that the other person might value.

Personal Power. There are four aspects to personal power to consider in a negotiation.First, how's your attitude -- are you confident and assured? Second, how are you presenting yourself…as knowledgeable? Are you dressed for success? Third, how engaging and persuasive are you -- are you drawing them in to your way of thinking with a compelling presentation they can't say no to? Are you making sure they know that you understand their underlying needs? And fourth, how prepared are you to handle highly-charged disagreement -- can you keep yourself calm and in control?

Your personal power is the engaging force that attracts people to your words, your ideas, to you. Having at least 2 of the 4 just mentioned increases your leverage in a negotiation substantially.

Finally, Relationship Power -- the power of connection. You're always more likely to be influential in a negotiation if you've got a relationship with someone, especially if it's a mutually beneficial business relationship. A business relationship coupled with a personal connection advances your cause. How strong is your relationship power in this negotiation?