Leverage Building: The “alpha dog of bargaining strategies”

In Creative Conflict, Bill Sanders and Frank Mobus offer “a practical guide for business negotiations.” Some of the most valuable material is provided in Chapter 5, “Bargaining Strategies.” They explain “how successful negotiating is driven by both competition and cooperation, often at the same time.”

They are advocates of what they characterize as “creative negotiation.” They believe that business negotiation is at another inflection point, a “watershed.” How so? “Over the last half-century, two polar philosophies have ruled the field: the win-lose combat taught by the training wizard Chester Karrass, and the win-win creed of the mega-bestselling Getting to Yes. Both were leaps in their day. But neither fully meets the test of our volatile, disruptive, ultracompetitive world. In a time where problem-solving and problem-finding are of the essence, the old rules go out the window. In short, it’s time for something new.” (Page 3)

Sanders and Mobus wrote this book to show a third way, a more effective way, to conduct business negotiations, one driven by competition and collaboration. Negotiators “need a mix of sharp-edged tactics and collaborative strategies. They need to be tough and creative…Most of all, they need negotiating skills for different situations.” Sanders and Mobus are convinced — and I concur — that “the spectrum of business relationships demands a range of negotiating approaches” and that “basic bargaining techniques, by themselves, won’t guarantee success.”

Here is what they say about the fifth component of creative negotiation, leveraging building, the”alpha dog of bargaining strategies”:

“While people dependably react — or overreact — to the power wielded by the other side, they often underestimate their own. One way to strengthen your position is to look at the deal from the other person’s standpoint. Critical questions: How much strength do I have coming into the negotiation — could it be more than I thought? I know I’m feeling heat to close the deal, but what pressure is the other party under? How can I create more options for myself — or narrow options for them?”

Sanders and Mobus examine each of the components of leverage building that, each to a varying degree, usually come into play: Time, Authority, Commitment, Risk, Creating (or Taking Away) Options, Legitimacy, and Persistence.

“Leverage building moves from purely consequential leverage (to make the other side fear the repercussions if they don’t fall in line and compromise) to a mix of consequential and positive leverage, where they’re incentivized to collaborate to get more out of the deal. It’s the difference between the stick and the carrot.”

See Pages 63-66 and 135.

Creative Conflict was published by Harvard Business Review Press (June 2021).

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