The Book of Real-World Negotiations

14Power Begets Power Begets Power

Based on an interview with Steven Hauck

As has been previously mentioned, power is one of the most difficult issues to deal with in negotiation. Often it can be debilitating when a negotiator is up against a power asymmetry. Sometimes it feels as if the only action possible is to throw up one's hands and say, “Please just give me something from this negotiation.”

However, power in negotiation is far more complex than this straightforward perspective and is something to be wielded very carefully. As Lucius Annaeus Seneca reminds us, “He who has great power should use it lightly.”¹ Why would Seneca state that? Well, when a negotiator possesses power they often don't think about a time when they might not have it and what would happen if the tables were turned. Surprisingly this happens quite often in negotiation – one minute a negotiator is in a power position and the next minute they are not. As this case exhibits, if a negotiator does not wield their power carefully, and in a manner that does not damage the relationship, they may very well suffer the consequences at a later date.

Background and the Negotiation Challenge

In this case, the person involved, named Steve, had begun a business, but had some early struggles that necessitated funding to keep the company going. The business was related to the insurance industry and an innovative way to support insurance agents in their work. Eventually, the business did very well for many years and ...