How do you deal with power asymmetry in competitive negotiation?

1 Collaborative mode

Collaborative negotiation is based on the idea that both parties can benefit from working together to find a mutually acceptable solution. This mode requires trust, openness, and cooperation from both sides. Collaborative negotiators focus on the interests and needs of both parties, rather than their positions or demands. They try to create value by exploring options, sharing information, and generating creative alternatives. Collaborative negotiation is suitable for situations where the relationship between the parties is important, the issues are complex, and the potential for synergy is high.

2 Competitive mode

Competitive negotiation is based on the idea that one party's gain is another party's loss. This mode requires assertiveness, persuasion, and power from one side. Competitive negotiators focus on their own goals and interests, rather than those of the other party. They try to claim value by making offers, making threats, and using pressure tactics. Competitive negotiation is suitable for situations where the relationship between the parties is not important, the issues are simple, and the potential for compromise is low.

4 Power asymmetry

Power asymmetry refers to the situation where one party has more resources, influence, or leverage than the other party in a negotiation. This can create an imbalance in the bargaining power and the outcomes of the negotiation. Power asymmetry is more common and more problematic in competitive negotiation, where one party can use its power to dominate, coerce, or manipulate the other party. However, power asymmetry can also exist in collaborative negotiation, where one party can use its power to influence, persuade, or deceive the other party.

5 How to deal with power asymmetry

If you are in a competitive negotiation and you face a more powerful party, you need to find ways to increase your power or reduce their power. To do this, you should prepare well and research the other party's interests, alternatives, and weaknesses. Additionally, you can build alliances and coalitions with other stakeholders who can support your position or pressure the other party. You can also use objective criteria and standards to justify your proposals and counter their arguments, as well as appeal to their values, emotions, or reputation. If the negotiation becomes too unfair or hostile, you can walk away or take a break.

On the other hand, if you are in a collaborative negotiation and you face a more powerful party, you need to find ways to balance the power or use it to your advantage. To do this, you should establish rapport and trust with the other party and show them the benefits of working together. Additionally, you can ask questions and listen actively to understand their interests, needs, and concerns. You can also use creativity and brainstorming to generate win-win solutions that address both parties' interests. Moreover, you can use reciprocity and concessions to exchange value and build goodwill, as well as transparency and honesty to reveal your intentions and expectations and avoid hidden agendas or manipulation.