How can you use power and trust to influence the negotiation process and outcome?

1 Power and value creation

Power can affect how parties create value in a negotiation, which is the process of expanding the pie or finding mutually beneficial solutions. Parties with more power tend to have more leverage, resources, alternatives, and information, which can help them generate more options and influence the agenda. However, power can also have negative effects on value creation, such as reducing creativity, cooperation, and empathy, and increasing resistance, defensiveness, and conflict. Therefore, parties with more power should use it wisely and strategically, and avoid being coercive, arrogant, or aggressive.

2 Power and value claiming

Power can also affect how parties claim value in a negotiation, which is the process of dividing the pie or reaching an agreement. Parties with more power tend to have more confidence, assertiveness, and flexibility, which can help them make more favorable offers, concessions, and demands, and achieve better outcomes. However, power can also have drawbacks on value claiming, such as creating unrealistic expectations, overconfidence, and backlash, and damaging the relationship, reputation, and trust. Therefore, parties with more power should balance their interests and needs with those of the other party, and avoid being greedy, unfair, or unethical.

3 Trust and value creation

Trust can influence how parties create value in a negotiation, which is the process of expanding the pie or finding mutually beneficial solutions. Parties with more trust tend to have more openness, communication, and collaboration, which can help them share information, explore interests, and generate options. Trust can also foster creativity, innovation, and learning, and reduce uncertainty, risk, and stress. Therefore, parties with more trust should use it to build rapport, understanding, and joint problem-solving, and avoid being secretive, manipulative, or deceptive.

4 Trust and value claiming

Trust can also influence how parties claim value in a negotiation, which is the process of dividing the pie or reaching an agreement. Parties with more trust tend to have more fairness, reciprocity, and satisfaction, which can help them make reasonable offers, concessions, and demands, and achieve optimal outcomes. Trust can also enhance the relationship, reputation, and commitment, and prevent disputes, impasses, and regrets. Therefore, parties with more trust should use it to create value for both sides, and avoid being exploitative, opportunistic, or selfish.

5 How to use power and trust

Power and trust are not fixed or static, but rather dynamic and interactive. Negotiators should be aware of their own and the other party's power and trust, and how they affect the negotiation process and outcome. To use power and trust effectively and ethically, assess your power and trust sources, such as your alternatives, resources, information, expertise, network, reputation, and relationship. Additionally, identify the other party's power and trust sources, and how they perceive and react to yours. Adapt your power and trust strategies, such as your goals, interests, options, offers, concessions, demands, and communication style, to the situation and the other party. Use power and trust to create and claim value, by expanding the pie and dividing it fairly, and by finding win-win solutions and building long-term relationships. Lastly, monitor and manage your power and trust levels, by being confident but not overconfident, assertive but not aggressive, cooperative but not naive, and fair but not generous.