Fun With Seesaws, Or In Other Words: Leverage!


All right, we've got you all prepped for your negotiation and we've got you thinking about the importance of where you're going to hold your negotiations. Now, we need to spend some time thinking about how LEVERAGE will affect your negotiations and how you can affect the leverage in any deal.


Begin by evaluating the Leverage situation as early as possible into the Negotiation. Time is a huge factor in determining Leverage and many times, the seconds ticking off the clock alone can change the balance of power in a negotiation. If you know that deadlines and time pressures will only become greater for yourself or the other party based on the timing of negotiations, this can be a powerful tool for you to affect the outcome.


Next, take some time to think about the surrounding environment and circumstances in which you are negotiating. Sometimes things are great, everyone is amicable and life is good.  Sometimes it's not quite like that. If you can identify the points of friction and understand how the underlying circumstances within the organizations at the table could affect the outcome of the negotiation, you'll be prepared for stormy weather if you encounter it.


Your actions and those of your negotiation partner can also be indicators of Leverage. Some things to watch for:

  • Neediness - Are you eager, willing, bending over backwards to get things done? 
  • Emotions - People blowing their tops and becoming emotional can signal important crossroads in your negotiation that might have otherwise seemed unimportant.
  • Drafting Control - Often times, the initial draft becomes an anchor for the negotiations. If drafting the agreement is taken up by the other party, don't be sucked into using their paper as your anchor.
  • Individuals Involved - The number of people involved and their prestige within the organization is a great barometer as to how important this negotiation will be. 
During the course of your negotiation, there are several actions you can take that will either help you to boost your own Leverage or to reduce the strength of your opponent's Leverage.

Boosting Your Leverage:
  • Create alternatives
  • Match your offerings to their needs
  • Discount their alternatives
  • Create a deeper relationship
Reducing Their Leverage:
  • Be disinterested
  • Identify deficiencies
  • Expand the scope of your project
  • Establish an exit strategy
Finally, remember that when dealing with Leverage, PERCEPTION IS REALITY.  So when you are prepared to serve up your Leverage, remember that this can be done in a variety of ways:
  • Present it - Just let the other side see the strength of your position
  • Leak it - Drop hints, provide strategic leaks, don't give it all away, but show enough to bolster your position.
  • Feign it - Fake it until you make it! (We don't really follow or like this strategy, but it is often employed and you should be aware that it could be used against you!)
Have fun on the Seesaw! We hope you have the tools to stay ahead of the leverage game and keep yourself in as strong a position of Leverage, from beginning to end, as possible.

Next week: Negotiation Strategies - Let The Mind Games Begin! 

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