Q & A Table of Contents
Negotiators' Sources of Power
From: Alejandro, Mexico City
Question: I'm an MBA student and have a question about the SOURCES OF POWER
THAT A NEGOTIATOR CAN USE IN A NEGOTIATION.
I know a negotiator can have a certain power when he uses the right information, prepares for his negotiation, and can use his position (political or organizational)... but are there any more?...
Response: 1. The fundamental source of a negotiator's power is his/her knowledge of what resources s/he 'controls' that can be utilized to solve the problem under consideration. If you have all the resources you need to take care of the issue, to meet your objectives, you have a great deal of power and may not need to negotiate with anyone to achieve your objectives.
For example, many companies have the capacity to continue using their own facilities, staff, or vending machines to provide coffee or snacks to their employees. Thus, when they enter negotiations with a catering company in order to outsource the drink and snack function for their employees, the company has a very strong BATNA (Best Alternative To a Negotiated Agreement): unless the caterer can provide service of equal or better quality for a lower price, the company has no reason to change its approach.
2. In your list of sources of power, you include a negotiator's position in the organizational hierarchy. It is important to remember that you may be in a position that empowers you to give orders; unless the people who are subordinate to you take those orders seriously and take you seriously, their performance may not reach the goals you have set. So a hard-nosed boss may be 'in charge' but may not be a sufficiently credible leader to inspire her subordinates to follow directions.
3. As crucial as it is to understand your own resources, your own BATNA, it is at least as important to understand the resources and BATNA of parties with whom you are negotiating. Often people assume they have less power than other parties. You need to ask questions and listen very closely to the answers to find out whether that assumption is correct.
4. It follows from item 3 that one of the most significant sources of power in negotiation is based on your capacity to listen, to gain information. Information is the fundamental asset in negotiation. Information comes into the ears. You do not learn by listening to yourself. There's an old expression: "God gave us two ears and one mouth. We should use them in that ratio."
Good luck with your negotiations.
Steve
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