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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Salary Negotiations in the NBA and Beyond

PON Staff   •  01/24/2022   •  Filed in Business Negotiations

salary negotiations

In negotiation, one great deal can beget another. For the National Basketball Association (NBA), its stellar 2016 national television contract begat dozens of stellar salary negotiations for top players and even mediocre ones. But after the boom year passed, players’ expectations bounced up against reality. The story, which could repeat itself after the next TV … Read More 

Negotiation Research You Can Use: Are Women More or Less Likely than Men to Use Deceptive Tactics in Negotiation

PON Staff   •  01/20/2022   •  Filed in Business Negotiations

deceptive tactics in negotiation

Men tend to claim more resources than women in negotiation. Why? Gender discrimination and men’s greater propensity to negotiate are two explanations backed up by research. In a study, University of North Carolina professor Jason R. Pierce and Northwestern University professor Leigh Thompson identified another reason: men are more willing than women to resort to … Read More 

Framing in Negotiation

Katie Shonk   •  01/06/2022   •  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   •  01/06/2022   •  Filed in Business Negotiations

Introductory 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 

Negotiation Skills: Four Steps for Changing Negotiation Practices in Your Organization

PON Staff   •  12/28/2021   •  Filed in Business Negotiations

negotiation skills

Individual negotiators are sometimes overwhelmed by the idea of leading organization-wide changes to negotiation practices. In fact, it doesn’t take much time or effort to set the wheels of reform in motion, write Hallam Movius and Lawrence Susskind in Built to Win. Here are four simple steps to implement in your workplace. … Read More 

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