Higher Authority (HA): the person building the deal is not the person who signs it off. HA is standard negotiating practice for good reason. But as much as it’s a powerful tool, HA can also be a deadly pitfall.
Tactical power:
In a collaborative negotiation, using an HA enables the dealmaker to reflect and shift position. In a competitive one, it has more uses: it limits the conversation to purely your agenda “that’s not something I can talk about”, it legitimises “final” moves “I’m only allowed to go up to that level” and it can give a second bite at the cherry “I really thought she’d sign it off but...”. Very tactical, but all very effective in the short-term
Tactical pitfalls:
A weak or un-aligned HA is a dangerous liability when negotiations move towards a power-play. Lack of alignment can be exploited by the other team, escalating disputes to create tension and put pressure on your dealmaker. Worse, an uncommitted HA can pull the rug from under their own team if the risk of a fall-out looks bigger than they’d expected. It may be tactically right, but an 11th hour u-turn invariably cripples the deal and permanently weakens your position.
Avoiding the pitfalls:
As an HA, you must take responsibility to walk through all high-stakes negotiation plans, and ensure you can live with the risks. Similarly, dealmakers must pressure-test plans to ensure their HA is committed to the strategy, understands the pressure points, and has responses prepared for any unscheduled contact from the other party.
USE FOR: reducing risk, narrowing scope and stretching at the close
ENSURE: total HA / dealmaker alignment before major power plays, HA can never be used as an entry-point to create division and pressure
For part two: Higher Authority in a Strategic Negotiation, click here