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 most 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 proceeds.
These are just a few examples of energy sources:
power of information:
The power of information comes from having knowledge that will influence the outcome of
negotiation. Planning and research can increase our power of information, as can
asking the right questions before you get to the haggling 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 place an order for goods and
services or the power a seller has to give good service and solve problems
coercive force:
Coercive power is the power to punish. This is most commonly seen in the buyer-
relationship with the seller, but can be a feature of other types of negotiation.
Power Status:
Situational power is the power that comes from being in the right place at the right time.
weather. A customer is desperate to place an order and you are the only source of
supply in the short term. Network effectively 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 and that
can influence the outcome of the negotiation. Improving negotiation skills helps you
win better deals. Other areas of specialization could also help the result of the
talks.
And finally – Reference power:
Referral power comes from being consistent over time. If people see that you have a clear and consistent strategy as a negotiator, it will increase your referral power.
Having standards that you stick to and being consistent will help you increase your
referent power. In the 1980s, 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
