POWER
You Are Much More Equal Than You Think!
The Weekly Walkaway highlights negotiation in its ‘good’, ‘bad’ and sometimes ‘downright ugly’ forms. Issue No. 81 (14th June 2024).
Negotiation Power
Power gives ‘you’ the ability to control people and events
He or she who has power has options.
And, ‘you’ are much more powerful, much more equal, than you think!
The only reason you might feel 'they' are more powerful than 'you' is because of that little voice in your head.
Stop!
Do not give them power. Don’t confuse the perception of power with what is REAL power.
Your own objectives make you worry about what is going on in your own head rather than what is going on in their head and if you allow your emotions to control you.. you will give away what power you have. What are their objectives. What are their pressures?
Get out of your head... and get into theirs.
We use the lighthouse as a visual metaphor, representing the need to climb above the storm; the emotion, the conflict and the issues to look down from a different angle and see people and circumstances from a different perspective.
You Negotiate with People. People just like you. They have very similar pressures and triggers that you have.
Where others get caught in the storm, you need to gain that 360° view from the top of your lighthouse.
Get out of your head.. and get into theirs.
"Power comes from you. You can either give someone power and have your power taken away from you OR you can choose to be powerful".
There are Five Laws of POWER
Scarcity
Authority
Choice
Change
Time
Alone, linked or all together, each can be used against you, or you can use them in your favour. You decide. How can you use these in your life;
Time and Scarcity - When would you buy that sofa you wanted? At the beginning of the month or maybe at the end when the salesperson is reaching for their targets? How about at the end of the Quarter?
Choice - Would you interview one builder or many for your house growth plans? Never fall in love once.. always have alternatives, and always foster your BATNA's (Best Alternative to A Negotiated Outcome).
Choice and Change - If a counterpart gave you options (not so smelly, smelly or smellier) would you accept one or look to re-package them? Yes, of course, repackage them in your favour.
Authority - Why negotiate with a junior? You may like them, you may have a relationship with them but can they agree to your deal? Are they there to block you, to focus you on PRICE? Wouldn't you want to negotiate with their manager or the manager's manager who can agree more?
You need to understand how much real power you have and how much you need.
You need to understand how much power they have
Ask yourself these questions to analyse your real power vs theirs;
Supply and demand - Who's Brand / Product / Proposition / Value is strongest? Who is of more value to whom? Who has the most valuable proposition or offering?
RAD (Relationship. Awareness. Demand) - Who has the stronger relationships? Who has the strongest relationships with senior management?
Change - Which party is going through change? Who has a history of being able to change? Who does not like change?
History - What happened before? Who is known for being easy? Who is known for being tough or difficult? Who is known for doing what they say? Who has a history of following through? Who is known for not following through.
BATNA - How much do you need each other? How dependent are you on each other? Who has options, alternatives? How much of your business is done together? Who has the most competition?
Time - Who has a deadline? Who is under time pressure?
Information - Who knows more about each other's issues and circumstances? Who is better prepared? Who has a stronger planning process? Who has controlled their information the best?
So he or she who has power has options
Do not give your power away just because you FEEL you have little power. Remember, you are much more powerful than you think.
Analyse what is ‘real power’ vs your ‘perception of power’ is;
Make 'challenging' the perception of power a primary feature in your negotiation planning;
Never wing it. Always consider power as a shifting dimension. It is ever-changing.
No Power? What Are Your Choices?
What happens if you find you have little or no power? What are your Choices?
Does this mean; he or she who has no power has no options?
No. You have to ‘enable’ power and enabling your power starts early.
But even if you find yourself ‘in’ negotiation and need to enable power, do not hide from the big question; what happens if I can’t agree to this deal? What are my choices, my alternatives? What are my BATNAs? (Roger Fisher, William Ury, and Bruce Patton in their book Getting to Yes: Negotiating Agreement Without Giving In.). Your BATNA’s are what we (@Kahvay) define as “not falling in love once”.
Simply put, who would you be happy to dance with if your first choice says no? Your best alternative, not worst, your best alternative to ‘this’ deal? While you are about it, you should also be analysing who your competition is. What are your counterpart’s BATNAs? Who would be their dance partners?
Enabling power requires action. Yup, you remember those school dances. You’ll have to get up and talk with other possible dance partners. And yes, just being seen talking with others can be enough to make you seem more desirable to your first choice. The act of getting up means preparation, planning and hard work. Constantly analyse the market and be open to fostering new relationships.
When it comes to the dance hall, well, it could be any of the following and more; you can get quite creative;
Procurement uses multi-supplier tendering and the RFX process to show their relationships with the supplier’s competitors. They may also host innovation days and conferences where they bring multiple suppliers together to show them they are not alone in the relationship;
Suppliers ensure they have relationships with their clients' competitors or with other organisations with similar needs. They use golf days, product launches and partner events to show their clients they are not alone;
You browse through the market stalls showing the vendors you have a choice. You interview multiple builders and maybe have them crossing each other at the doorstep to show they are not alone. You analyse the mobile phone market and then inform your current provider what you’re looking for.
Even the use of the sacrificial lamb can be very powerful, where the most desirable partner, the biggest and best in the market, is invited and then rejected in front of preferred dance partners as a way of signalling who has the power.
Anything where your first love can be brought to feel that they have competition and where you can pre-condition them that you have options, that you don't need them, that you will still have a great night if they don’t dance with you.
Develop your BATNAs. Use the BATNA philosophy to strengthen your position. Whether you have power or not, we strongly recommend always focusing on your BATNAs. There will be a time when you will need them.
Conclusion
Recognise and harness your power in negotiations. Understand the difference between perceived and actual power, and use the Five Laws of Power—Scarcity, Authority, Choice, Change, and Time to effectively enhance your negotiation position. Ensure that you always have options, alternatives, BATNA, to prevent being in a powerless position. Power comes from deep preparation and having a proactive approach that strengthens your negotiation capabilities but also builds confidence in navigating complex situations.