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Negotiation is an essential business skill that can make or break deals, partnerships and relationships. A leader's ability to negotiate can significantly influence the organization's future. In high-stakes negotiations, the key is not merely about getting what you want but understanding what the other side values and leveraging that knowledge to create mutual gains.
Here are ten strategies I have learned through 25 years of experience as a business leader and coach to help you prepare for your next high-stakes conversation.
Related: 8 Negotiating Tactics Every Successful Entrepreneur Has Mastered
1. Know the other party's needs
Research is your best ally. You need to learn how to conduct deeper and more cost-effective research. Before entering negotiations, take time to understand the other party's needs, goals and constraints.
Knowing their pain points and desires helps you frame your proposals to address their specific concerns. Visit their website, review their past projects or check their LinkedIn profiles to gather valuable insights.
2. Know your differentiators
Consider what sets you or your company apart. In negotiations, highlight these unique advantages. For example, what can you offer that others cannot? Lean into your strengths and ensure these differentiators are central to your value.
Related: I Faced My First True Professional Meltdown — And It Led to an Eye-Opening Revelation
3. Set ambitious goals
Establish a clear goal for the negotiation, and don't be afraid to ask for more than you expect to get. Research shows that the party who makes the first offer often achieves better results, as it sets the parameters of the discussion.
This helps the other party understand the framework within which you're willing to negotiate and protects your ideal scenario by factoring in "security margins" on that initial offer.
4. Offer multiple solutions
Dr. Victoria Medvec uses the term "Multiple Equivalent Simultaneous Offers" to gather information while demonstrating flexibility. Present several options that are equal in value to you but may appeal differently to the other party. This uncovers their preferences and signals your willingness to collaborate on a mutually beneficial solution.
5. Listen actively
Great negotiators know when to listen. After making your offer, take time to listen to the other party's perspective genuinely. Failing to truly understand their position can lead to missed opportunities for a win-win solution. Active listening builds trust and uncovers key insights into their priorities.
6. Develop a strong plan B (BATNA)
A powerful negotiation strategy is to enter with a strong "Best Alternative to a Negotiated Agreement" (BATNA). This means having a viable alternative if the deal doesn't go through. Knowing you have an exit strategy provides leverage and gives you the confidence to make bold offers.
Related: How to Strategically Exit as a Leader
7. Stand your ground
While flexibility is crucial, don't be afraid to stand firm when necessary. A common negotiation tactic is for the other party to push back, expecting concessions. Remember, they need what you have, so maintain your position when appropriate.
This can often lead to a better outcome for both parties. Be prepared to walk away if the deal isn't worthwhile, doesn't align with your values, or doesn't fit your strategy.
8. Learn the art of conceding
In negotiation, making concessions isn't a sign of weakness — it's part of building trust and ensuring both parties feel satisfied with the deal. When you concede, do so strategically and highlight the value you're still providing. The goal is to make the other party feel positive about the "extras" they achieved, even if you had already planned to make those concessions.
Related: The Best Way to Win Is to Know When to Quit
9. Know when to walk away
Not every deal is worth making. Set clear boundaries and know your exit point. Remember the saying, "A good deal is when both parties feel like they won." If you're not getting what you need and your BATNA is more appealing, walking away is okay.
10. Close the deal with confidence
Finally, when closing the deal, ensure all parties are clear on the next steps. Establish deadlines, confirm key points, and maintain a positive tone. A well-structured closing can prevent misunderstandings and set the stage for a successful relationship moving forward. Always list the next steps for both sides and follow up accordingly. High-stakes negotiations are always focused on long-term relationships.
Negotiation is about much more than dividing the pie; it's about growing it so both sides feel they've gained. By following these ten strategies and focusing on understanding the other party's needs, you can master the art of negotiation and secure better deals for your business. Also, if you negotiate regularly, I recommend deepening your expertise through a specialized negotiation program.
I once heard, "A good deal is when both parties feel like they won." Uncovering both sides' real needs sets you up for success.
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