Collaborative Negotiation Techniques

Negotiations don’t go wrong—they start wrong. Through my experience, I can often tell within the first 30 minutes whether a negotiation will take a collaborative or positional direction. The early signals—the tone, structure, and mindset of the parties—set the course for either value creation or value extraction. Too often, negotiations begin with adversarial positioning, where each side stakes out demands, focuses on "winning," and sees concessions as the primary path to agreement. This zero-sum mentality is where most negotiations start wrong. The problem isn’t what happens later—it’s how we approach the process from the outset. Do you negotiate how to negotiate before you start negotiating? This is a game-changer. Before discussing numbers or terms, set the stage for success. Consider opening with: "I am here today to help you reduce your risk, cost, and liabilities while improving your profits. Would you be interested in having me assist you with this?" This shifts the conversation from position-based bargaining to problem-solving and mutual value creation. SMARTnership® negotiation flips the traditional approach. Instead of defaulting to competitive bargaining, it starts by identifying asymmetric values, trust currency, and hidden gains that can turn the negotiation into a collaborative value-maximizing process. The real difference lies in: ✔ Mindset: Are we here to protect our own turf or explore mutual benefit?  ✔ Communication: Is the focus on claiming or creating value?  ✔ Trust: Is there openness to share real needs, costs, and priorities? If the first 30 minutes are spent staking positions, debating individual gains, or withholding critical information, the negotiation is already off track. But if we establish transparency, mutual benefit, and creative problem-solving early on, we unlock the hidden potential of the deal. Next time you step into a negotiation, ask yourself: Are we starting right? #Negotiation #SMARTnership #ValueCreation #TrustCurrency Tarek Amine Tine Anneberg Francis Goh, FSIArb, FCIArb Francisco Cosme Gražvydas Jukna Juan Manuel García P. Darryl Legault World Commerce & Contracting BMI Executive Institute #negotiationtraining Daniel McLuskie

They thought they had no choice. That’s why they almost gave in. I was in the room when it happened. A client (let’s call them Pollocks Pipelay) had been working with the same supplier for years. Solid relationship, reliable service. But one day, the supplier walked in and said: "𝙒𝙚’𝙧𝙚 𝙞𝙣𝙘𝙧𝙚𝙖𝙨𝙞𝙣𝙜 𝙥𝙧𝙞𝙘𝙚𝙨 𝙗𝙮 𝟯𝟬%. 𝙉𝙤𝙣-𝙣𝙚𝙜𝙤𝙩𝙞𝙖𝙗𝙡𝙚." Immediate silence and panic. They needed this supplier - They started calculating how to absorb the cost - There was no backup - No safety net Then I asked the team: "𝙒𝙝𝙖𝙩 𝙝𝙖𝙥𝙥𝙚𝙣𝙨 𝙞𝙛 𝙮𝙤𝙪 𝙬𝙖𝙡𝙠?" Nobody had an answer! I aimed to shift their view from fear to power Most negotiators consider a Fallback Plan (BATNA) a concept The best negotiators 𝙬𝙚𝙖𝙥𝙤𝙣𝙞𝙨𝙚 it. - We took a step back - We mapped the fundamental alternatives - We found a smaller but reliable European supplier Was it perfect? No Was it good enough to remove the fear of walking away? Absolutely At the next meeting, Pollocks Pipelay didn’t beg for a price adjustment Instead, they confidently said: "𝙒𝙚’𝙧𝙚 𝙬𝙚𝙞𝙜𝙝𝙞𝙣𝙜 𝙤𝙪𝙧 𝙤𝙥𝙩𝙞𝙤𝙣𝙨, 𝙗𝙪𝙩 𝙬𝙚 𝙬𝙖𝙣𝙩 𝙩𝙤 𝙢𝙖𝙠𝙚 𝙩𝙝𝙞𝙨 𝙬𝙤𝙧𝙠" You should have seen the supplier’s face The power dynamic instantly flipped: - Pollocks Pipelay secured better payment terms - The supplier dropped their price increase entirely - They knew they’d never be backed into a corner again I see this mistake constantly. Smart professionals walking into negotiations without a strategic fallback plan → 85% of negotiators lack a strong fallback plan →Those who anchor first with a solid BATNA secure deals 26% closer to their goals →Having a fallback plan reduces bad deals by 40% while preserving relationships Yet so many people still fear walking away. Make your Fallback Plan your power move 1️⃣ Before the negotiation: Identify at least two real alternatives. Don’t rely on assumptions. Map your ZOPA (Zone of Possible Agreement). Study their BATNA—what are their options if you walk? 2️⃣ During the negotiation: Signal strength (“We’re weighing options, but I’d like to find common ground”) Stay flexible—adjust if new information emerges. 3️⃣ After the negotiation: Document what worked. Refine your BATNA for next time. The Best Negotiators Don’t Fear Walking Away—𝗧𝗵𝗲𝘆 𝗙𝗲𝗮𝗿 𝗦𝗲𝘁𝘁𝗹𝗶𝗻𝗴 𝗳𝗼𝗿 𝗟𝗲𝘀𝘀. Don't be aggressive in negotiations. Just know your worth and your options. Think about your negotiations. Do you have a Fallback Plan? Or just hope for the best? Have you ever been in a deal where you felt trapped but found a way out? Or maybe you’ve walked away, and later realized it was the best move you could’ve made? Drop your story in the comments. Let’s talk about how having (or not having) a fallback plan (BATNA) changed your outcome.

𝐈𝐧 𝐯𝐞𝐧𝐝𝐨𝐫 𝐧𝐞𝐠𝐨𝐭𝐢𝐚𝐭𝐢𝐨𝐧𝐬, 𝐟𝐚𝐢𝐥𝐢𝐧𝐠 𝐭𝐨 𝐤𝐧𝐨𝐰 𝐲𝐨𝐮𝐫 𝐧𝐮𝐦𝐛𝐞𝐫𝐬 𝐢𝐬 𝐚 𝐝𝐢𝐫𝐞𝐜𝐭 𝐭𝐡𝐫𝐞𝐚𝐭 𝐭𝐨 𝐲𝐨𝐮𝐫 𝐩𝐫𝐨𝐣𝐞𝐜𝐭’𝐬 𝐬𝐮𝐜𝐜𝐞𝐬𝐬. Preparation is the backbone of every successful vendor negotiation. When you understand your costs, set clear terms, and align on value, you’re building not just a contract but a reliable partnership. Here are some of the best practices we have learned for effective vendor negotiations at Venwiz: 1. 𝐃𝐚𝐭𝐚-𝐃𝐫𝐢𝐯𝐞𝐧 𝐄𝐬𝐭𝐢𝐦𝐚𝐭𝐞𝐬: Arriving at project cost estimation through detailed cost analysis sets a solid foundation. Use methods like Zero-Based Costing for detailed estimations, apply inflation adjustments to the last purchase cost, or use weighted averages from multiple quotes. When vendors see that you know your numbers, it builds credibility and respect, setting the stage for more productive discussions.     2. 𝐒𝐞𝐭 𝐂𝐥𝐞𝐚𝐫, 𝐀𝐜𝐡𝐢𝐞𝐯𝐚𝐛𝐥𝐞 𝐓𝐞𝐫𝐦𝐬: Define concrete targets for service levels, timelines, and ceiling costs. A well-defined service agreement—including specifics like payment schedules, quality & safety standards, and warranty terms—establishes a strong foundation. This clarity avoids misunderstandings and creates a structure that supports efficient, respectful negotiations.     3. 𝐋𝐨𝐨𝐤 𝐁𝐞𝐲𝐨𝐧𝐝 𝐁𝐮𝐝𝐠𝐞𝐭 𝐭𝐨 𝐅𝐨𝐜𝐮𝐬 𝐨𝐧 𝐕𝐚𝐥𝐮𝐞: Budget matters, but so does value alignment. Quality vendors look for clients who understand this. Show commitment by offering flexibility in terms, such as adjusting payment timelines or considering future projects. If a vendor can provide an extended warranty or additional service terms, it may justify a slightly higher costs if it aligns with your project’s goals.     4. 𝐇𝐚𝐯𝐞 𝐚 𝐁𝐀𝐓𝐍𝐀 (𝐁𝐞𝐬𝐭 𝐀𝐥𝐭𝐞𝐫𝐧𝐚𝐭𝐢𝐯𝐞 𝐭𝐨 𝐚 𝐍𝐞𝐠𝐨𝐭𝐢𝐚𝐭𝐞𝐝 𝐀𝐠𝐫𝐞𝐞𝐦𝐞𝐧𝐭): Always have a clear fallback plan. A strong BATNA isn’t just a backup; it’s a powerful leverage tool that ensures you’re negotiating from a position of confidence rather than necessity. In vendor relationships, the best negotiations are built on value, transparency, and mutual respect. When both sides understand the stakes and goals, you pave the way for enduring partnerships that drive long-term results. 𝐖𝐡𝐚𝐭 𝐧𝐞𝐠𝐨𝐭𝐢𝐚𝐭𝐢𝐨𝐧 𝐬𝐭𝐫𝐚𝐭𝐞𝐠𝐢𝐞𝐬 𝐡𝐚𝐯𝐞 𝐲𝐨𝐮 𝐟𝐨𝐮𝐧𝐝 𝐦𝐨𝐬𝐭 𝐞𝐟𝐟𝐞𝐜𝐭𝐢𝐯𝐞 𝐢𝐧 𝐛𝐮𝐢𝐥𝐝𝐢𝐧𝐠 𝐬𝐭𝐫𝐨𝐧𝐠 𝐯𝐞𝐧𝐝𝐨𝐫 𝐫𝐞𝐥𝐚𝐭𝐢𝐨𝐧𝐬𝐡𝐢𝐩𝐬? 𝐋𝐞𝐭’𝐬 𝐥𝐞𝐚𝐫𝐧 𝐟𝐫𝐨𝐦 𝐞𝐚𝐜𝐡 𝐨𝐭𝐡𝐞𝐫—𝐬𝐡𝐚𝐫𝐞 𝐲𝐨𝐮𝐫 𝐭𝐢𝐩𝐬 𝐛𝐞𝐥𝐨𝐰! #Venwiz #CapEx #Procurement

In my MBA, we had a subject on negotiation, and I remember how exciting it was. We were taught that negotiation is an art, a skill that, if mastered, can help you get the best deals, whether at work or in life. But over the years, I’ve realized that negotiation is neither an art nor a skill. More often than not, it is a PRIVILEGE. People don’t take lower-paying jobs or accept less-than-ideal offers because they LACK negotiation skills. They do so because they don’t have the privilege to negotiate. When you have bills to pay or responsibilities to meet, walking away isn’t always an option. Why is negotiation a privilege? 🚗 The Power of Alternatives: Negotiation works when you have options. Many don’t. If your alternative is unemployment or financial instability, there’s no real room to negotiate. 🚗 Structural Barriers: Gender, caste, disability, and background shape negotiating power. Some can ask and receive, while others face resistance or penalties for doing the same. 🚗 Financial Security: Negotiating confidently comes from knowing you have a safety net. Without that, asking for more feels risky. 🚗 Social Conditioning: Many are taught to accept what they get and be grateful. That’s not lack of skill—it’s how society conditions people. What can companies do? 🚙 Transparent Pay: Set clear salary structures so negotiation doesn’t favor the privileged. 🚙 Fair Hiring: Hire based on capability, not who negotiates best. 🚙 Growth for All: Ensure opportunities are accessible, not just for those who push for them. 🚙 Bias-Free Policies: Create environments where everyone can advocate for themselves without penalty. Fair workplaces ensure people don’t need privilege to thrive. —————- Alt text is embedded in the image

𝐓𝐡𝐞 𝐒𝐞𝐜𝐫𝐞𝐭 𝐭𝐨 𝐚 𝐆𝐫𝐞𝐚𝐭 𝐃𝐞𝐚𝐥? 𝐔𝐧𝐝𝐞𝐫𝐬𝐭𝐚𝐧𝐝𝐢𝐧𝐠 𝐭𝐡𝐞 𝐎𝐭𝐡𝐞𝐫 𝐏𝐚𝐫𝐭𝐲! A contract is more than just a legal document—it's a mutual understanding between two parties, built in a collaborative environment. Too often, we focus solely on drafting a “good agreement” while overlooking the nuances that truly define a successful deal. Contract negotiation isn’t just about securing favorable terms; it’s about ensuring long-term success by addressing the real needs of both parties. Take this scenario: You’ve secured a project and are preparing the agreement. You might emphasize technical requirements but overlook client experience concerns. While the contract may check all the technical boxes, it could still fall short in meeting the client's expectations—leading to potential dissatisfaction and disputes. So why should this matter more than you think? ✅ 𝐓𝐫𝐮𝐬𝐭 𝐢𝐬 𝐭𝐡𝐞 𝐟𝐨𝐮𝐧𝐝𝐚𝐭𝐢𝐨𝐧 of any successful business partnership. Addressing mutual concerns demonstrates commitment and strengthens relationships. ✅ 𝐂𝐥𝐚𝐫𝐢𝐭𝐲 𝐩𝐫𝐞𝐯𝐞𝐧𝐭𝐬 𝐜𝐨𝐧𝐟𝐥𝐢𝐜𝐭𝐬 - A well-structured agreement reduces ambiguities, minimizing the risk of costly legal disputes. ✅ 𝐌𝐮𝐭𝐮𝐚𝐥 𝐯𝐚𝐥𝐮𝐞 𝐟𝐨𝐬𝐭𝐞𝐫𝐬 𝐥𝐨𝐧𝐠-𝐭𝐞𝐫𝐦 𝐬𝐮𝐜𝐜𝐞𝐬𝐬 - Agreements that create value for both sides lead to sustainable, productive collaborations. ✅ 𝐅𝐥𝐞𝐱𝐢𝐛𝐢𝐥𝐢𝐭𝐲 𝐢𝐧 𝐧𝐞𝐠𝐨𝐭𝐢𝐚𝐭𝐢𝐨𝐧𝐬 𝐥𝐞𝐚𝐝𝐬 𝐭𝐨 𝐛𝐞𝐭𝐭𝐞𝐫 𝐨𝐮𝐭𝐜𝐨𝐦𝐞𝐬 - Understanding the other party’s priorities allows for more strategic and adaptable deal-making. A great deal isn’t just about what’s on paper—it’s about creating lasting partnerships. How do you approach contract negotiations? Let’s discuss!

The real world out there sometimes gives interesting insights. The current global dynamics has led me to think about the art of negotiations. Something people in #procurement and #contractmanagement often have to deal with. So let’s dive into power driven negotiations. They are doomed to fail. Negotiation is an art form that requires a delicate balance of strategy, empathy, and communication. While power-driven negotiations—where one party seeks to dominate or control the outcome—might seem effective in the short term, they often fail to deliver superior results in the long run. Here’s why: Power-driven negotiations will erode trust between parties. When one side uses its leverage to extract concessions, it can lead to resentment and a breakdown in relationships. Trust is a cornerstone of successful long-term partnerships, and without it, collaborations can quickly unravel. While power tactics may yield immediate benefits, they often come at the cost of long-term value. Negotiations that focus solely on winning at all costs can overlook the potential for creative solutions that could benefit both parties. This short-sighted approach can result in missed opportunities for innovation and growth. Organizations that consistently engage in power-driven negotiations risk damaging their reputation. Other businesses may become wary of entering into agreements, fearing aggressive tactics and unfair treatment. A tarnished reputation limits future opportunities and partnerships. Power-driven negotiations often kills collaboration and innovation. When parties are focused on asserting dominance, they may overlook the value of working together to find mutually beneficial solutions. Collaborative negotiations, on the other hand, foster an environment where creativity and innovation can Negotiations based on power can lead to increased conflict and disputes. When one party feels marginalized or coerced, it can lead to ongoing disagreements and legal battles. These conflicts can be costly, both financially and in terms of time and reputation. For negotiations to yield superior results in the long run, a balanced approach is essential. This involves understanding the needs and interests of all parties, fostering open communication, and building trust. By prioritizing collaboration over domination, businesses can create sustainable partnerships that drive success and innovation. Power-driven negotiations might offer a quick win, they rarely provide the foundation for enduring success. Embracing a more balanced and collaborative approach can lead to richer, more rewarding outcomes for all involved. However in the real world as in the corporate world showing personal success is something that hampers as people want to show a victory. That that victory might be hollow and empty in the future is unfortunately usually not their problem as they have moved on. #negotiation #collaboration

I stocked up on business books when Borders closed in 2011. One bargain paid off this week. I was negotiating an agreement with a prospective partner. We had built rapport and were aligned on the goals of the collaboration. But when it was time to agree on the terms, we were further apart than I had imagined. Before reading this book more than 10 years ago, I would have thought that a successful negotiation has a winner and a loser. (Present-day rhetoric in the media often portrays that perception.) But that couldn’t be further from the truth. In their 2007 book, Negotiation Genius, authors Malhotra and Bazerman of Havard Business School describe a central idea that’s stuck with me: The goal of negotiating is to maximize the value for all involved parties. If a single party wins, every party loses. Back to the situation. I wasn’t 100% satisfied with where we landed and asked for a second meeting. Instead of playing hardball, I shared my perspective and sought to listen and understand my partner’s perspective. And guess what? Their arguments made sense. I didn’t get the exact terms I had hoped for, and that’s okay. We agreed on terms that support both our businesses. A strong partnership that grows the pie for both is more valuable in the long run than a rigid focus on one-time revenue (and losing the partnership). Negotiating to increase the value means putting your ego aside and staying flexible to see different vantage points, and crafting a win-win outcome. The more invested you are, the harder it gets. And it takes practice to adjust your mindset. So, the next time you’re preparing for a negotiation, consider potential options and alternatives as well as your non-negotiables, so you can adapt in the moment and maximize value for all. Have you negotiated to make the overall value bigger? #ArtificialIntelligence #Leadership #IntelligenceBriefing

The Orange dilemma: Why splitting the difference might be splitting the opportunity Picture this: You’re in a #negotiation class. You’ve been paired with a stranger, given one orange, & told both of you need it. Naturally, everyone’s inner toddler emerges. "Mine!" echoes silently. The clock is ticking. What do you do? Most pairs—proud of their brilliance—cut the orange in half. Problem solved? Not quite. Both walk away with 50% of what they need. But here’s the kicker—nobody asks why their partner wants the orange. Now imagine this: one person needs the juice, the other needs the rind. Instead of splitting, they could both get 100% of what they want—if only someone had asked: "Why do you need the orange?" This isn’t just a fruity parable; it’s a reflection of what happens in #business negotiations all the time. Harvard research on integrative negotiation strategies highlights that focusing on interests (not positions) leads to higher-value outcomes. Yet, most negotiators default to positional bargaining—fighting over the orange—without ever exploring the underlying reasons. The "split the orange" mindset plagues businesses: • Budget battles: Two departments argue over resources & end up sharing a meager slice instead of collaborating to unlock new funding sources. • Partnership deals: Companies compromise on terms instead of digging deeper to discover complementary goals. • Hiring negotiations: Employers haggle over salary without discussing non-monetary benefits that might satisfy both parties. According to a study by The Program on Negotiation at Harvard Law School, #negotiations that prioritize interest-based solutions create 42% more joint value than those that default to splitting the pie. Yet, businesses often rush to divide rather than multiply outcomes. Why we default to splitting? 1. Lack of curiosity: People focus on positions (“I need the orange”) instead of interests (“I need juice”). 2. Time pressure: Urgency pushes quick fixes. 3. Fear of rejection: Asking deeper questions feels risky. 4. Cognitive biases: Daniel Kahneman calls this "System 1 Thinking"—the brain’s tendency to leap to conclusions without critical analysis. To avoid the orange fiasco in your next negotiation, try these tips: • Start with 'Why?': Understanding motivations creates better outcomes. • Focus on interests, not positions: Ask, "What problem are you trying to solve?" • Be curious, not combative: Approach negotiations like a detective, not a gladiator. • Expand, don’t divide: Harvard’s Getting to Yes promotes win-win solutions by enlarging the pie. Next time you’re negotiating—whether budgets, partnerships, or literal oranges—don’t rush to slice. Instead, peel back the layers, squeeze out details, & zest up your curiosity. Because the best deals aren’t made by cutting things in half. They’re made by finding ways for everyone to walk away whole. So, ask the question that could change everything: "Why do you need the orange?" #Leadership

8 proven strategies to achieve better negotiation outcomes While the old adage "If they don't see the light, let them feel the heat" might be tempting in negotiations, building sustainable negotiation relationships requires a more nuanced approach to influence. We approach a negotiation with our own perceptions of reality, e.g. about power dynamics or the issues at stake. Yet research shows that negotiation outcomes can improve significantly when parties adapt towards a "shared reality," i.e. a common understanding of both the problem, potential solutions and the consequences of a failure to adapt. Here are eight proven strategies that can help us get there: ✅ Agree on a common, long(er)-term goal from the start and a process for getting there. ✅ Use objective facts to demonstrate the consequences of not agreeing. ✅ Be strategically transparent about alternatives: When you have a strong BATNA make it known if the other party remains intransigent. This isn't about threats but establishing clear parameters for meaningful dialogue. ✅ Prioritise clearly: Being assertive about your key concerns helps focus the discussion on what truly matters. ✅ Do reality testing: Instead of pushing positions, ask future-focused questions such as "If we don't resolve this, where do we realistically end up? Is that where either of us wants to be?" ✅ Frame solutions through their lens: When presenting options, connect them directly to your counterpart's stated priorities and concerns - in their world, to their benefit. ✅ Be transparent about your constraints and goals: Appropriate vulnerability often strengthens your influence by building trust and encouraging reciprocal openness. ✅ Use Multiple Equivalent Simultaneous Offers to demonstrate flexibility and give the other party decision-making autonomy.   What (ethical) approaches have you found effective for getting others to move in your direction?

Effective negotiation and conflict resolution aren't just tools for crisis, they're the lifeblood of healthy teams and thriving organizations. When rooted in strong Organizational Psychology, negotiation moves beyond mere deal-making, becoming an engine for trust, clarity, and shared purpose. Team Science shows us that understanding dynamics, motivations, and relationships transforms potential conflicts into opportunities for growth and innovation. Service Design complements this by proactively structuring interactions and processes that minimize friction and maximize collaboration. At the heart of successful negotiation and conflict resolution is recognizing and navigating power dynamics. This is where stakeholder mapping and power mapping become indispensable. By visually identifying who holds influence, interests, and stakes, organizations can strategically engage stakeholders, balance power imbalances, and foster transparent dialogue. Ultimately, organizations that master these tools don't just survive conflicts, they leverage them to strengthen bonds, innovate solutions, and build resilient, high-performing teams. Determine who is: 1. Core Team 2. Involved 3. Informed Make sure everyone on the team knows who holds the decision making power. And where everyone reports to and what their motives and agendas are, as it relates to your project. Ask me anything. if I don't know about it, I know someone who does. #OrganizationalPsychology #Negotiation #TeamScience #ServiceDesign #StakeholderMapping #Leadership