The Book of Real-World Negotiations

5How a Bad BATNA, but a Strong Relationship, Sidestepped a Lawsuit and Created a Mutual Gain Solution

Anonymous contribution

The challenge of dealing with power is one of the most perplexing dilemmas that negotiators face. While power differentials frequently exist in negotiation, they are rarely if ever absolute, despite what many may think. That is largely because power in negotiation is relational in nature. For example, in order for Negotiator A to have power over Negotiator B, it follows that Negotiator B has to value what Negotiator A has or what they can do to them in the process. And even if Negotiator A were to exercise said power over Negotiator B, there is another problem. The parties still have to implement what was agreed to. When people are forced to do things, they rarely do them to the best of their ability. Hence implementation and future negotiations are impacted by the exercise of power in numerous ways.

All that stated, there are also certain dynamics that transcend power in negotiation, the most critical of which is the strength of the relationship. If the parties to a negotiation have a strong bond, they are much less likely to exert power over the other, even if they possess that ability.

The following case presents an instance where a significant power discrepancy existed, but due to the strength of the relationship the more powerful party eschewed exercising their power and instead they worked together to find a solution that benefitted them both.