[Negotiation] Chapter 6: Finding and Using Negotiation Leverage

Essentials of Negotiation

Chapter 6

This chapter focuses on leverage in negotiation. By leverage, we mean the tools negotiators can use to give themselves and advantage or increase the probability of achieving their objective. Leverage is often used synonymously with power. Most negotiators believe that power is important in negotiation, because it gives one negotiator an advantage over the other party. Negotiators who have this advantage usually want to use it to secure a negotiation usually arises from one of two perception:
1. The negotiator believes he or she currently has less leverage than the other parties, so he or she seek power to offset or counterbalance that advantage.
2. The negotiator believes he or she needs more leverage than the other party to increase the probability of securing a desired outcome.
In general, negotiators who don’t care about their power or who have matched power—equally high or low—will find that their deliberation proceed with greater ease and simplicity toward a mutually satisfying and acceptable outcome. Power is implicated in the use of many negotiation tactics, such as hinting to the other party that you have good alternatives (a strong BATNA) in order to increase your leverage.
In general, people have power when they have “the ability to bring about outcomes they desire” or “the ability to get things done the way them to be done.” Three sources of power: information and expertise control over resources, and the location within an organizational structure (which leads to either formal authority or informal power based on where one is located relative to flows of information or resources).
The concept of leverage in relation to the use of power and influence. It is important to be clear about the distinction between the two. We treat power as the potential to alter the attitudes and behaviors of others that an individual brings to a given situation. Influence, on the other hand, can be though of as power in action—the actual messages and tactics an individual undertakes in order to change the attitudes and/or behaviors of others. A very large number of influence (leverage) tools that one could use in negotiation. These tools were considered in two broad categories: influence that occurs through the central route to persuasion, and influence that occurs through the peripheral route to persuasion.
In the final section of the chapter, we focuses on how to receiver—the target of influence—either can shape and direct what the sender is communicating, or can intellectually resist the persuasive effects of the message. Effective negotiators are skilled not only at crafting persuasive messages, but also at playing the role of skilled “consumers” of the messages that others direct their way.