Company size is a starting condition. It is not the outcome. In the Power and Leverage module of the Academy of Business Negotiations, Ken Trent draws a line operators miss: structural leverage versus situational leverage.
Structural leverage is the hand you are dealt. Situational leverage is the power you earn in this deal, at this moment. Mixing those two up is how smaller brands freeze and how growing companies leave dollars on the table. The org chart tells you who looks strong. The deal tells you who needs what, and when.
Structural leverage is baked in
Structural leverage comes from who you already are in the market. Size. Share. How much of your counterpart’s revenue you represent. Whether you are the only realistic supplier of something people actually want. Amazon has structural leverage. A small brand selling to a large buyer often does not.
You do not pick that overnight. If you are the smaller party, treating the org chart as the whole story will keep you from seeing the actual negotiation in front of you.
Situational leverage is earned
Situational leverage is different. It is the power you create in a specific negotiation, right now. Ken saw this during COVID in fitness equipment. Spreetail was not the largest buyer in the category. Then gyms closed, home fitness demand spiked, and the team had logistics, reach, and channel relationships ready to use. That shift did not come from company size. It came from timing, capability, and a counterpart’s acute need. For a stretch, that situational position produced 10x growth in the category.
You cannot change your company’s size this quarter. You can create alternatives, widen relationships, improve timing, and solve the problem your counterpart cares about this week.
Ask a better question
Stop asking what power you have. Start asking what leverage you have in this specific deal, right now. Score the moment: their deadline, your uniqueness, your options, and the problem you can solve that they cannot easily replace.
Practical takeaway: Treat structural leverage as context. Treat situational leverage as the work. Improve one lever in the next 30 to 90 days before you put a number on the table.
Want the framework behind this? Download the free 5 Laws of Negotiation ebook: 5laws.negotiationsacademy.com
