The Negotiation Book

CHAPTER 3 Why Power Matters

“You only have power over people so long as you don’t take every- thing away from them. When you’ve robbed a man of everything, he’s no longer in your power – he’s free again.”

Aleksandr Solzhenitsyn

WHAT DO WE MEAN BY POWER?

You are as powerful as others perceive you to be, which is limiting if you do not understand how they see the situation. Power can be real or perceived, or as subjective as it is objective in that it exists in people’s heads; even though the other party may be dependent on you or independent of you. Power can shift, can be created from time and circumstance, and can be used to nurture or exploit. So clearly it needs to be understood and respected.

Why the balance of power matters

So why is power so important in negotiations? Quite simply, it provides you with options and, if understood, will enable you to control where on the clock face your negotiation will take place.

• Holding the balance of power. If you hold the balance of power in your relationship(s), you have greater scope to control the agenda, the process, and ultimately influence the negotiation in your favor.
• Power to influence the climate, style, strategy, and possibilities. Power provides you with the opportunity to choose between being competitive or collaborative, depending on which suits your purpose and objectives.

Creating the perception of power before the negotiation begins can be achieved through demonstrating indifference, outlining your options, ...