Have you ever felt like your counterparty has all the power? No matter what you do, move you make, proposal you deliver, you're just flailing around trying to keep up? Well, if you haven't, it sucks. In any negotiation, it's essential to understand and shift the power dynamics.
But the good news is that power is primarily perceived. If we can find ways to shift the perception of power from our counterparty's perspective, we can be in a much better position to achieve better results. How you exchange information, control your language, and prepare will all allow you to position yourselves more appropriately.
So let's look at some specific things we can do to change the balance of power.
1. Exchange Information, Strategically
One of the most important things you can do in any negotiation is controlling the information flow. The more you know about your counterparty and their objectives, the more powerful you are. So make sure you do your research before any negotiation begins.
There are three levels of information you should be researching before communicating:
- Industry / Market
- Company
- Person
What's going on in their market? Any changes in the industry that could shift power in your favor? Is the supply chain slowing down but you have stock? If that's the case, you have power.
What about the company? Have they undergone changes in staff? What about a shift in strategic focus or new products launching?
Lastly, you don't negotiate with companies, you negotiate with people. What do you think is going on in their world? Are they new? Been there forever? Senior? Junior? All these factors could play into their mindset and needs.
But more is needed to know your counterparty; you must communicate that information effectively. When sharing information, do so confidently and succinctly. Plan what questions you'll ask and anticipate theirs. Prepare your answers accordingly.
2. Use Powerful Body Language and Tone
Your body language and tone say a lot more than you think it does. Studies have shown that up to 93% of our communication has nothing to do with the words we use. So if you want to project power in a negotiation, pay close attention to your body language and tone.
Stand up straight, make eye contact, and speak deliberately. When responding, give them your undivided attention. These small changes can make a big difference in how powerful you appear. We get it though, it can be tough to keep a clear mind in a heated negotiation. But the more you can control your actions, the better served you will be in shifting power.
3. Be Prepared
The best way to project power in any negotiation is simple: be prepared. Having a clear understanding of what you want from the talks will allow you to stay calm and focused. Negotiators never make emotionally charged decisions.
Bonus - does size determine power?
The big question is does the size of your organization determine how much power you have? Well consider this - how many times have you seen an individual athlete have more power than a multi-billion dollar team? We can both agree that a singular person is smaller than the organization. But when it comes to contract negotiations, the circumstances are more important than organizational size. Power is often perceived, not actual.
So if we can shift the perception of power from our counterparty's perspective, we can be in a better position to achieve our desired outcome. How we exchange information, control our language, and implement preparation will allow us to position ourselves more appropriately. By following these tips, you'll be able to change the balance of power in any negotiation and come out on top!