Many people think that power in a negotiation stems from a high position, a large company, or a generous budget. In practice, something else proves to be far more decisive. True power in a negotiation actually comes from somewhere else.
Suppose two people are negotiating a car. One is a board member at a multinational corporation. The other is an independent entrepreneur with one important client. On paper, the power dynamic seems clear.
Yet it is precisely that entrepreneur who can be in a stronger position at the negotiating table. Not because he negotiates harder, but because he knows he can turn to someone else.
Power in a negotiation does not lie in job title or company size. Research shows that it works even if you only imagine it.
The strongest negotiator often has the best alternative.
The less dependent you are on a deal, the stronger your position becomes.
Researchers have been pointing to the same principle for decades. The most important source of power in a negotiation is not your position, experience, or organization. It is your BATNA: Best Alternative To a Negotiated Agreement. Or in Dutch: your best alternative when negotiations do not result in an agreement.
People with a strong alternative generally set higher goals, make more ambitious proposals, and are less susceptible to pressure from the other party.
That makes sense. Someone who knows there are other options doesn't need to cling as desperately to this one deal. That independence is reflected in attitude, choices, and behavior during the conversation.
Therefore, an entrepreneur with limited resources can sometimes negotiate more strongly than someone with an impressive job title. Not because he has more power on paper, but because he is less dependent on the outcome.
Even an imaginary alternative increases your negotiating power.
Not only a real alternative, but also the prospect of an alternative influences your behavior. Research by INSEAD shows that people negotiate more ambitiously when they think about realistic alternatives in advance, even if they are not yet actually available.
The participants who envisioned such an alternative set higher goals and achieved better results than participants who started the negotiation without that preparation.
Researchers are even talking about a Phantom BATNA: a possible alternative that is not yet certain to become reality. The mere idea that there are other options appears to influence how people perceive their position.
Power is therefore largely a matter of perception. And perceptions can be trained.
Why this also applies to psychological power in general
Your sense of influence partly determines how you conduct yourself at the negotiating table. Researchers Adam Galinsky and Joe Magee discovered that people negotiate differently when they recall a moment in advance when they felt powerful or influential. That memory makes people less likely to accept an initial proposal and more actively seek a better outcome.
Power therefore operates on two levels. There is the objective power of a good alternative. And there is the psychological power of your own sense of self-confidence, which you can activate simply by thinking about moments when you stood strong.
Why a sense of dependence makes you vulnerable
Those who feel powerless are more easily influenced by the behavior of others. Research by Gerben van Kleef shows that negotiators with little power are more sensitive to the emotions of the opposing party. When the other party displays anger, irritation, or frustration, they are more inclined to make concessions. Negotiators who experience more power appear to be significantly less sensitive to this.
That makes a weak position of power risky. You are not only more dependent on the deal itself, but also more susceptible to pressure from the conversation. As a result, emotions can start to play a greater role than the content.
Strong negotiators are naturally also affected by emotions, but do not lose sight of their goal.
Why power has a fixed place in my negotiation model
Effective negotiation requires a healthy balance between steadfastness and flexibility. In my training sessions, I work with four axes: content, power, relationship, and creativity. Power forms an important part of this.
The power axis runs from little resistance to dominant behavior. The goal is not to be as dominant as possible. It is about standing firm enough to protect your interests without swinging to the other extreme.
The first law of negotiation aligns with this as well: consciously build your position of power. Not because negotiating is a fight, but because dependence almost always leads to less influence on the final outcome.
That is why I work with the BOZO principle: the Best Option Without Agreement. A good BOZO provides peace of mind, increases your freedom of choice, and ensures you appear at the negotiating table in a stronger position. It is the source of your negotiating power, even before you have said a single word.
Four ways to immediately strengthen your position of power
Bargaining power arises primarily from preparation.
- Determine your BOZO in advance: What do you do if this agreement is not reached? What other options do you have? The more concrete your answer, the stronger your position.
- Explore alternatives before you start negotiating: Don't wait until a conversation stalls. Make sure you know what other options are available beforehand.
- Stay alert to emotional pressure: Do you notice that irritation, anger, or haste on the part of the other person is influencing your decisions? Then consciously step back to the content of the conversation.
- Activate a sense of power: Think back beforehand to a situation in which you were successful, persuasive, or confident. That helps to start a conversation more firmly.
Power ultimately revolves around freedom of choice.
The strongest position arises when you know you can move forward even without this deal. Power is rarely found in a job title, a business card, or the size of an organization. Power arises when you have alternatives, can think independently, and make conscious choices.
The less dependent you are on a single outcome, the more room you have to negotiate calmly, professionally, and effectively.
Power in a negotiation: how to strengthen your position
Power in a negotiation revolves around freedom of choice. Therefore, strengthen your best alternative (also known as BATNA): the less dependent you are on a single deal, the more power you retain in a negotiation.