Business Negotiation Using Power and Influence: How Do You Exercise Your Power in Negotiations?


By Adrian Pepper


The other day, I came across someone who was resigned to be a victim, even though it was clear to me that they had been wronged. They had purchased goods with a guarantee but when they tried to claim, they were told the guarantee was void.

As a business coach, I work to improve my client's performance and to help them achieve their goals. So this is how we turned failure into success.

Influence arises from exercising power

So we reviewed their influence:

• Relativity - the perceptions of the source and the target often differ so we did a reality check to ensure we had the facts of the case.
• Balance - power is seldom one-sided and the balance of power is mostly a net sum. I can only be victim if I allow others to be powerful.
• Domain - most constituencies have limits and the challenges to power often originate at the boundaries. So we explored the power we might have over the defaulting guarantors through the people who set their boundaries.

Power comes from many sources

1. Physical power - money, effort, size, volume. We considered physically threatening the guarantors, but we did not really want to pick up a prison record.

2. Resource power - control on access, on usage, on monopoly, and on discretion. The guarantors were choosing not to be helpful at present and when we spoke to the local Trading Standards office, they were not hopeful.

3. Position power - linked to the role not the person, based on information access, the right to resource power, legitimacy of decisions. We felt we had a grievance and a story to tell.

4. Expert power - based on merit and demand, compared to and recognised by non-experts. We could pursue litigation and use an expert witness to testify on our behalf.

5. Personal power - confidence, popularity, personality, social credit. I knew people who had large windows on the approach roads to the guarantors’ offices and we have a good reputation for honest dealing in the business community.

6. Negative power - filters, blocks and distortions applied to information, instructions and requests. Few companies like bad publicity and my client is well connected in the local business community.

How we chose to assert power

Next we made large posters that stated the facts of the case and our opinion of the guarantors and their inaction. These posters we put in prominent positions so that all passing traffic would read about our opinion of the defaulting guarantors. We also talked extensively to our contacts in business and put the word out on the local grapevine.

And we got a result – in three days the guarantors were talking to us and in a week they had settled in our favour.

So what sources of power can you call on when you are negotiating, buying, selling or playing games?


More Resources

Unable to open RSS Feed $XMLfilename with error HTTP ERROR: 404, exiting

More Negotiation Information:

Related Articles

How To Make An Inflexible Bureaucrat See You As A Person
Inflexible Bureaucrats Are Characterized by:1. Cares little about your happiness in life2.
The Six Rs for Changing MInds and Overcoming Resistance
This article borrows from Howard Gardner's book, "Changing Minds" (2004). In order to get people in conflict to cooperate or collaborate sufficiently to settle or resolve their differences, and perhaps achieve reconciliation, it is necessary that they change their minds.
Making the Deal: Women as Negotiators
Negotiating is no game. It is not for the weak or the fragile.
A One Stop Financial Solution
Amy Wright, 34, was extatic when her realtor showed her the three bedroom townhome overlooking the lushious golf course. It was exactly the home she was looking for.
Dont Be Afraid Of Silence
In any conversation with two or more people, there is a tendency to want to talk all the time to fill any awkward silences or gaps that appear in a conversation.However, if you think of the conversations that you have with your closest friends or family, you will notice that there isn't the same need to fill these gaps, as silences between you are comfortable.
Negotiate to Your Advantage
The hardest and most important part of any negotiation is knowing when to walk away.Few things are sweeter than a successful negotiation session where both parties leave the table with a winning solution.
Communicating Across Time Horizons
There was a time in my life when I sold life insurance. Well, to be frank, I tried to sell life insurance.
Guidelines for Ambassador Appointments
Ambassadors to other countries are a vital part of international relations. It is not uncommon for an ambassador to be the face or image of one country to another.
Ask for More - You May Get More
If you are involved with sales, how do you feel when you hear phrases such as, "Can you do anything about your price?" or, "You'll have to do better than that." and variations on these? Does a cloud or two cross the sun? You start to think, "here we go again?.
Just Ask!
Ask and you shall receive & knock and it shall be opened &send an email and see what happens.As a student of personal finance you are probably familiar with the advice to negotiate with your credit card companies to get a lower interest rate.
30 Tips for Keeping Meeting Expenses to a Minimum
Money makes the world go 'round. And when it comes to meeting planning, money can probably get you whatever you want.
Avoiding and Accomodating in Negotiation
The avoiding approach to negotiating is characterized by losing, leaving, and withdrawing. No commitments are made, and behavior is impersonal.
Embarrassed To Discuss Your Prices? Seven Common Reasons We Cant Talk About Them
Last week, a wonderfully-skilled electrician installed a new light fixture for us. He was competent, courteous and efficient.
Win-Win Power Negotiating
Let's talk about win-win negotiating. Instead of trying to dominate the other person and trick him into doing things he wouldn't normally do, I believe that you should work with the other person to work out your problems and develop a solution with which both of you can win.
The Most Powerful Persuasion Skill Youll Ever Learn
Criteria ElicitationThis is without a doubt the most important persuasion skill that you can learn. If you'll learn to apply this to every situation in which you find yourself you'll be amazed at the positive results! Many of the hypnotic skills I'll be sharing with you have a parallel in old sales training techniques.
Barter and Its Benefits
What is Barter?Barter involves 2 parties. Each party wants to trade with each other and instead of exchanging cash for products or services, the exchange is carried out with products or services that each possesses.
Negotiations: The Art, Science, & Sport of Online Deals
Negotiations can seem as complex as physics, and in fact, people go to college to study the science of negotiating just as they would the laws of nature. At the same time, negotiation is like an ancient art form, some sort of Zen mental jujitsu.
Where to FIND the BEST Employees --
Obviously, you might logically say, "that is good!" You would most certainly be on track feeling good about everyone in your area having a job. Getting everyone working and being more self-sufficient is our logical goal.
Power Pricing - Getting the Right Price for Your Products and Services
There's an old joke about the New York City blackout. Power was out everywhere, and the electric company couldn't figure out what was wrong or how to fix it.
Are You Scaring Away Potential Customers?
When you are trying to make a sale and ask someone to fill out a credit application and new account form, do your potential customers turn around and run to the competition?Author Michelle Dunn, in her new book "Become the Squeaky Wheel," explains how you can avoid scaring customers away and keep them coming back. First, find out what your competition is doing, do they have a credit policy? If they do, what is included? What does their credit application look like? How many forms do new customers have to fill out? Do they have good paying customers? Look online, a lot of business website will have their credit applications available online.