Negotiation - Understanding the sources of power

One of the main differences between negotiators is how confident they feel when
negotiation. In general, the safer we feel, the better we are prepared,
more successful will be the outcome of our negotiations.

Personal power comes from many sources. To build and increase our trust
As negotiators we need to step back and analyze the sources of our personal power
and compares them with those of people with whom we are negotiating.

The power is not absolute. In most negotiating relationships the power balance shifts
with time with the progress of negotiations.

Here are just some examples of sources of energy:

Information Power:

Power information comes from a knowledge that can influence the outcome of
negotiation. Planning and research can increase our power of information, as well as
ask the right questions before you reach the bargaining phase of the negotiation.

Reward Power:

Reward power comes from having the ability to reward the other party
negotiation. It could be the power a buyer has to place an order for goods and
services or the power of a seller must give good service and solve problems

Coercive power:

Coercive power is the power to punish. This is seen most commonly in the buyer-
seller relationship, but may be a feature of other types of trading.

Power Situation:

Situation power is the power that comes from being in the right place
time. A customer is desperate to place an order and you're the only source of
supply in the short term. Having an effective network and keep in touch with
what is happening may increase your power situation.

Experience Power:

Experience the power comes from having a particular skill that can be applied and which
can influence the outcome of the negotiation. Improving negotiation skills helps
win better deals. Other areas of expertise could contribute to the outcome of
negotiation.

And finally - Referent Power:

Referent power is to be constant in time. If people see you as having a clear and coherent strategy as a negotiator, you will increase your referent power.
Have standards that you stick to be consistent and help to increase your
referent power. In the Eighties, Margaret Thatcher was not universally popular, but
was respected by many for being consistent in his views and behavior. Finally
she failed because her approach was too rigid and was not able to adapt to
changing circumstances.

Jonathan Farrington .......