Whenever we are negotiating, the outcome depends on the amount of power we have at our disposal. When it comes to negotiations, having power is beneficial in two fundamental ways:
1) The other side's tactics will have less impact
Having power to some extent acts as a shield against tactics used by your counterpart to influence you. Your power is also good in terms of personal resilience as you will be less likely to follow the opinions of other people. On the other hand, negotiators who have less power are more likely to conform to those opinions.
When you have power, even an angry counterpart will not be able to obtain large concessions from you. And you are also less prone to being fooled by efforts aimed at gaining some sympathy from you, according to an article on the website of the INSEAD business school.
2) Having power will make you bolder
People with more power are more likely to end up with better deals – and it is often they who make the first offer. When you have power, you are more confident, optimistic and also proactive. Therefore, you are also much more willing to negotiate. Your aspirations will be higher and your initial offers will be ambitious. And it is precisely the first offer which is often important in determining what the actual outcome will look like.
Proper preparation is still key. So regardless of how powerful you are, before your next negotiations use this checklist:
- How good are your alternatives and can you use them as reference points?
- How much do you know about your opponent's alternatives?
- How does your counterpart perceive you and your reputation?
- Can you use your social network to obtain more information or influence the situation?
-jk-