1. Wiggins Lowry Chapter 11 POWER IN NEGOTIATION
ACTUAL AND PERCIEVED
Ewha Womans University GSIS
International Negotiation and Strategy
Professor: Jasper Kim
Presenter: Vilaysone LEUANG 142SIS79
Arlette N. Iyakaremye 142SIS76
Catherine Guivalu 142SIS75

2. Presentation Outline
1. Negotiation Power: Getting and Using Influence (Noot)
2. Breakthrough Business Negotiation: A toolbox for managers(Arlette)
3. When David Meets Goliath: Dealing with Power Differentials in negotiations. (Cathy)
4. Conclusion

3. What Is Power? 1. Potential or capability to influence the opponent
2. As a process in which tactical actions (effective or not) seek to influence an opponent
3. A result or outcome of an influence process that is, as actual or realized power
Source: (1992) Lawler J, Power Process in Bargaining

4. 1. Getting and Using Influence 6 kinds of power
The power of Skill and Knowledge
The power of a good relationship
The power of a good alternative to negotiation
The power of an elegant solution
The power of legitimacy
The power of commitment

5. Skills and Knowledge: People, Interests, facts etc.

6. A Good Relationship Trust & Communication

7. A good alternative to negotiation
Increase power by increasing your BATNA
Sets the floor for the negotiation
The worse their BATNA is the power for yourself.

8. The power of elegant solution
The power of a mediator
By brainstorming

9. The power of Legitimacy
“ You can use standards of legitimacy as a sword to persuade others” Roger Fisher Getting to YES
“Being open to persuasion itself is persuasive”.

10. The power of commitment
Affirmative Commitment
Negative Commitment
An offer of what you are willing to agree to
A commitment of what you will not do.

11. 2. BREAKTHROUGH BUSINESS NEGOTIATION
How to overcome power imbalances?

12. a. DANCING WITH ELEPHANTS: The 10 principles
1. Never do All-or Nothing Deals
2. Make them smaller
3. Make yourself bigger
4. Built momentum through a sequence of deals
5. Harness the Power of competition
6. Constraint yourself
7. Hold the Informational High Ground
8. Take control of the process
9. Negotiate with Implementation in Mind
10. Build Superior Organizational Capabilities

13. The 10 Principles 4. Built momentum through a sequence of deals
1. Never do All-or Nothing Deals
2. Make them smaller
3. Make yourself bigger
4. Built momentum through a sequence of deals

14. The 10 Principles 5. Harness the Power of competition
6. Constraint yourself
7. Hold the Informational High Ground
8. Take control of the process

15. The 10 Principles 10. Build Superior Organizational Capabilities
9. Negotiate with Implementation in Mind
10. Build Superior Organizational Capabilities

16. b. How to negotiate as an “ELEPHANT”
Be the elephant in negotiation
E.g: Maintain a company wide perspective when negotiating with many small companies
Two(2) options:
Employ your power to extract very favorable agreements
Work to overcome the tactics of the 10 principles.
Position yourself as the partner of choice for smaller players. Build reputation and capabilities to sustain deals with smaller partners.

17. Where does Power Come From?
Sources of Power
Organizational Power
TBT or SPS? (II)

18. When David Meets Goliath:
Bargaining with More
Powerful Parties
What do you do ?

19. Bargaining with More Powerful Parties
A. Determine whether the other side Really is more Powerful?
B. Determine whether Adversaries Understand and will Use their Power
C. Use Opening Moves to Set the Tone and to Deflect Power Ploys
Whether opponent has power over us
Aware of power & willing to use it!
“Primacy Effect”

20. Bargaining with More Powerful Parties cont.
Use information Strategically to Increase Power
Develop Additional Alternatives to Improve Ones “Walkaway Point”
Research Available Legal Protections
Information = Great opportunity
BATNA

21. Bargaining with More Powerful Parties cont.
Explore Interests As Alternative to Power Ploys
Avoid Unnecessary Conflict, But Retaliate If Necessary
Identify & Counter Plays

22. Bargaining with More Powerful Parties cont.
Involve Mediators to Balance Power Differentials
Form an Alliance Against the More Powerful Party
Appeal to a Powerful Adversary’s Sense of Justice and Fairness
Use weakness as a source of Strength
Facilitated negotiation
Strength in numbers

23. Conclusion
Negotiation Power is the ability to influence in an adversary’s perception into believing in what you want them to believe and agree to it.
Use of the 10 powerful principles can increase effectiveness in negotiating with Bigger entrepreneurs.
Understanding the different Power Sources and mastering the approaches allows negotiators to ask the right questions and focus on the right issues in complex negotiations

24. Additional Extract:
To have effective power, one must be willing to use it or be able to convince an opponent that one will use it
Power in negotiations typically arises from the dependence that each party has on the other
Negotiation power depends less on the other side's strength than on one's own needs, fears, and available options
Having greater power does not guarantee successful bargaining outcomes
Source: (2013) essentials.lexisnexis.com/
2000 Harvard Negotiation Law Review, Robert S. Adler+, Elliot M. Silverstein