When we think about power in a negotiation, what we’re actually thinking about is the potential to be influential: to affect the other side’s decisions.
There are many sources of influence:
- Formal authority
- A strong BATNA
- Understanding others’ interests
- Control over resources
A well-known source of influence is formal authority. This comes from being in a hierarchical position where you have more control over certain decisions and resources than your subordinates.
For example, a manager who is in charge of distributing work and having the final say on their team’s direction.
People often find it hard to negotiate with those who have formal authority, because they feel like the person with the authority holds all the cards.
Your BATNA
A BATNA (best alternative to a negotiated agreement) is the best option each person has available if no agreement is reached in a negotiation.
It exists even if it’s not good, as a bad alternative is still the ‘best’ you have if there’s no outcome.
Learn more about BATNA here.
A strong BATNA
Strong BATNAs can be a powerful way to barter a better deal, as they increase both your confidence and influence.
Because you know you’ve got a safety net if the negotiation falls through, it makes you feel more comfortable to push for more value.
In terms of influence, if the other side knows you have a good alternative that you’re prepared to go with, they may be swayed to negotiate a better deal for you.
Understanding others’ interests
When you understand the wants and needs of those you’re negotiating with, your potential to be influential and reach a better agreement greatly increases.
This is because you can then try to offer things you have that fulfil their interests, which encourages reciprocation: they’ll help find ways to meet your interests in return.
Anyone can understand others’ interests, making it a great strategy if you’re negotiating with those who have influence from the get go, like managers or important clients.
Control over resources
Going hand in hand with understanding others’ interests, knowing what resources you control that the other side would value is a powerful way to increase your influence in negotiations.
For example, your knowledge and skills, goods and services, or time.
Offering resources can also strengthen your relationship with the person, because you send the message that you see it as a team effort, not a conflict.