Business Negotiations

Effective business negotiation is a core leadership and management skill. This is the ability to negotiate effectively in a wide range of business contexts, including dealmaking, employment discussions, corporate team building, labor/management talks, contracts, handling disputes, employee compensation, business acquisitions, vendor pricing and sales, real estate leases, and the fulfillment of contract obligations. Business negotiation is critical to be creative in any negotiation in a business setting. Business negotiation strategies include breaking the problem into smaller parts, considering unusual deal terms, and having your side brainstorm new ideas.

Leveraging the contrast effect is also a powerful tool in negotiations. You might ask for more than you realistically expect, accept rejection, and then shade your offer downward. Your counterpart is likely to find a reasonable offer even more appealing after rejecting an offer that’s out of the question. Additionally, offering several equivalent offers that aim higher than your counterpart is likely to accept will elicit reactions that can help you frame a subsequent set that, thanks in part to the contrast effect, are more likely to hit the mark.

Building a team is critical to negotiations in business. To prevent conflicts among diverse, strong-minded team members from overshadowing group goals, negotiation teams should spend at least twice as much time preparing for upcoming talks as they expect to spend at the table. Because the other side will be ready and willing to exploit any chinks in your team’s armor, it’s important to hash out your differences in advance.

Other business negotiation tips include curbing overconfidence, creating value in the negotiation, establishing a powerful BATNA, effective use of emotions at the bargaining table, caucusing, delineating your zone of possible agreement, and other skills geared toward an integrative bargaining outcome rather than a distributive, or haggling, bargaining outcome.

In addition, considering the ethical and legal repercussions of a deal to insure that it is a true win-win is the hallmark of every experienced business negotiator.

Articles include many business negotiation examples, and explore concepts such as creative dealmaking, renegotiating unfavorable deals, seeking advice from a negotiation opponent, identifying a solid BATNA and crafting draft agreements.

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Dear Negotiation Coach: What Hostage Negotiations Can Teach Any Negotiator

PON Staff   •  05/06/2021   •  Filed in Business Negotiations

hostage negotiations

Business negotiations often fail; meanwhile, hostage negotiations have an incredibly high success rate—up to 94%. We spoke with former police psychologist and hostage negotiator George A. Kohlrieser, the Distinguished Professor of Leadership and Organizational Behavior at IMD Business School in Switzerland and the author of Hostage at the Table: How Leaders Can Overcome Conflict, Influence Others, … Read More 

Framing in Negotiation

Katie Shonk   •  05/06/2021   •  Filed in Business Negotiations

Framing in Negotiation

So, you’ve offered what you think is a great deal, but your counterpart doesn’t seem to agree. What’s the problem? The offer may be excellent—it’s how you’ve approached framing in negotiation that’s holding you back. … Read More 

The Process of Business Negotiation

Katie Shonk   •  05/06/2021   •  Filed in Business Negotiations

process of business negotiation

Negotiators are more satisfied with the outcome of a negotiation when they think the process has been fair, research shows. To maximize satisfaction and build a strong working relationship, don’t leave the process of business negotiation up to chance. Given the importance of negotiation in business communication, you’d be wise to consider the following seven … Read More 

How to Respond to Questions in Negotiation

PON Staff   •  05/04/2021   •  Filed in Business Negotiations

How to Respond to Questions

What’s the toughest question you’ve ever been asked during a negotiation? Do you know how to respond to questions when they’re out of your comfort zone? If you negotiate frequently, it might be hard to narrow it down to just one. Focusing on job interviews, here are a few negotiation questions that candidates often dread:

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5 Ways to Be a More Strategic Business Partner

PON Staff   •  04/29/2021   •  Filed in Business Negotiations

strategic business partner

If you’re looking to be a strategic business partner, you need to have your eyes and ears open at all times.

In the world of mergers and acquisitions, some acquirers try to improve the companies they purchase by expanding them and emphasizing innovation, while others choose to focus on cutting costs. Due in part to millennials’ … Read More 

The Importance of Negotiation in Business and Your Career

Katie Shonk   •  04/08/2021   •  Filed in Business Negotiations

Importance of Negotiation in Business

What are the essential ingredients to getting ahead in the workplace? Hard work, communication skills, and a generous dose of luck all play a role, of course. Another key ingredient—one that is often overlooked—is the ability to recognize and capitalize on opportunities to negotiate for your career success. Why is negotiation in business important? Because … Read More 

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