Jun 16, 2021

Three types of leverage

In theory, leverage is the ability to inflict loss and withhold gain. In practice, where our irrational perceptions are our reality, loss and gain are fluid, and it often doesn’t matter what leverage actually exists against you; what really matters is the leverage they think you have on them. 

Negotiation expert, Chris Voss, says there is always leverage: as an essentially emotional concept, it can be manufactured whether it exists or not. To get leverage, you have to persuade your counterpart that they have something real to lose if the deal falls through. 

There are three kinds of leverage: Positive, Negative, and Normative. I will dedicate a separate post to discuss each one.