Most negotiators ignore the fact that having limits on their authority
can make their jobs easier – it's a source of negotiating power.
A negotiator with limits becomes harder to deal with.
They can say "no" gracefully – someone else is saying it. That someone
else can be a procedure, a policy, a budget, an engineering standard,
or maybe a regulation that can't be budged.
Often one person's limits can become the other person's
problem. If you and I are negotiating and I have limits to my
authority, it is up to you to figure out a way around them. You are
forced into a choice: either accept the deal at my limits or make a lot
of work for yourself, and maybe get no deal at all.
If you challenge my lack of authority by taking the
problem to a higher authority, other apprehensions set in. Now you must
take on my boss, or their boss, or the legal department, or the
engineering staff – all of whom represent new relationships and a
greater degree of preparation on your part. Also, if you do go to
higher levels, there is always a chance the party you are negotiating
with will get angry.
There is greater strength in not having authority than
in having it. A person going into a negotiation would do well to ask,
"What limits do I want imposed on my authority?" Well chosen limits can
make a big difference in the outcome of your negotiation.
Dr. Chester L. Karrass brings extensive experience, advanced academic credentials in negotiation techniques, and over 35 years experience in seminar delivery. After earning an Engineering degree from the and a Masters in Business, Dr. Karrass became a negotiator for the Hughes organization
