Several types of power can influence the outcome of a negotiation. We emphasize the word “can,” because if you have power but don’t use it, the power adds no value to the negotiation.
-
Position. Some measure of power is conferred on the basis of one’s formal position in an organization. For example, a marketing manager can influence the decisions that affect the marketing department. However, the marketing manager has little power to influence the decisions that affect the finance department.
-
Knowledge or expertise. People who have knowledge or expertise can wield tremendous power. Of course, knowledge in itself is not powerful. It is the use of knowledge and expertise that confers power. Thus, you could be an incredibly bright person and still be powerless.
-
Character or ethics. The more trustworthy individuals are, the more power they have in negotiations. The big issue here is whether they do what they say they are going to do-even when they no longer feel like doing it.
