What Is Negotiation? Understanding the Seven Elements of Successful Negotiation

Many people dread the idea of negotiation without realizing they engage in it every day.

In both personal and professional life, we negotiate constantly—sometimes formally, sometimes informally. We might:

• Discuss the terms of a job offer
• Bargain over the price of a car
• Finalize a contract with a supplier
• Persuade a toddler to eat vegetables
• Resolve a workplace conflict
• Convince a client to accept a delayed delivery

As Roger Fisher, William Ury, and Bruce Patton write in Getting to Yes:

“Like it or not, you are a negotiator… Everyone negotiates something every day.”

So, what do these negotiations have in common? And what tools help us negotiate more effectively—whether the stakes are large or small?

What Is Negotiation?

Negotiation can be defined in several complementary ways.

In Getting to Yes, Fisher, Ury, and Patton describe negotiation as:

“Back-and-forth communication designed to reach an agreement when you and the other side have some interests that are shared and others that are opposed.”

Similarly, Leigh Thompson, author of The Mind and Heart of the Negotiator, calls negotiation an:

“Interpersonal decision-making process” necessary whenever we cannot achieve our objectives single-handedly.

And in Judgment in Managerial Decision Making, Max H. Bazerman and Don A. Moore explain:

When two or more parties need to reach a joint decision but have different preferences, they negotiate.

Taken together, these definitions highlight three core features of negotiation:

1. Interdependence – You need the other party.
2. Mixed interests – Some goals overlap, others conflict.
3. Communication – Agreement requires dialogue.

The Seven Elements of Negotiation

Most people are not natural-born negotiators. The good news? Research shows that negotiation skills can improve dramatically with preparation and practice.

Members of the Harvard Negotiation Project developed the Seven Elements framework to help negotiators prepare more effectively for negotiation and reduce surprises. These seven elements provide a practical roadmap for creating and claiming value.

Here’s an overview:

1. Interests

Interests are the fundamental drivers of negotiation—your underlying needs, desires, fears, and motivations.

Positions are what people say they want.
Interests are why they want it.

Skilled negotiators:

• Ask probing questions
• Look beyond surface demands
• Identify shared and differing priorities

Understanding interests opens the door to creative solutions.

2. Legitimacy

Fairness matters.

Even if a deal benefits you objectively, you may reject it if it feels unfair. Legitimacy refers to objective standards or norms that justify proposals—market value, precedent, expert opinion, industry benchmarks.

To strengthen legitimacy:

• Use independent standards
• Cite comparable agreements
• Frame proposals around fairness

When both sides feel respected, agreement becomes more durable.

3. Relationships

Negotiation is not just about outcomes—it’s about relationships.

Whether you are negotiating with:

• A long-term client
• A colleague
• A supplier
• A stranger

How you manage the relationship effects reputation, trust, and future opportunities.

Strong negotiators:

• Build rapport
• Separate people from the problem
• Maintain ethical standards
• Avoid personal attacks

In ongoing relationships, preserving trust can be more valuable than winning a single issue.

4. Alternatives and BATNA

Your BATNA—Best Alternative to a Negotiated Agreement—is your backup plan.

As emphasized in Getting to Yes, knowing your BATNA gives you power. If you have strong alternatives, you negotiate from confidence. If your alternatives are weak, you may feel pressured.

Preparation should include:

• Identifying realistic alternatives
• Improving them where possible
• Estimating your counterpart’s BATNA

Your BATNA sets your walk-away point.

5. Options

Options are possible solutions that satisfy parties’ interests.

Rather than arguing over one issue (like price), negotiators can:

• Add new issues
• Trade across differences
• Propose contingent arrangements
• Brainstorm without commitment

Options create value by capitalizing on differences. The more issues on the table, the more potential trades.

6. Commitments

A commitment is a promise, agreement, or formal obligation.

Commitments can range from:

• “Let’s meet Tuesday at 10.”
• A written proposal
• A signed contract

Clear commitments reduce misunderstanding. Effective negotiators ensure commitments are:

• Specific
• Realistic
• Mutually understood
• Documented when necessary

7. Communication

Every negotiation is a communication process—whether face-to-face, by phone, email, or video.

Communication choices shape outcomes:

• Do you threaten or inquire?
• Do you assume or ask?
• Do you demand or brainstorm?
• Do you listen actively?

Miscommunication can derail even well-structured deals. Skilled negotiators ask questions, paraphrase, and check for understanding.

Why Preparation Matters

The Seven Elements framework is powerful because it shifts focus from improvisation to preparation.

Before negotiating, ask yourself:

• What are my interests?
• What might theirs be?
• What is my BATNA?
• What legitimacy standards apply?
• What options could create value?
• How will I manage the relationship?
• What commitments am I prepared to make?

Armed with this preparation, you are better positioned to:

• Create value
• Claim value
• Address fairness concerns
• Reach sustainable agreements

Negotiation is not reserved for diplomats and CEOs. It’s a daily skill—one that improves with intention.

Do you consider yourself a natural-born negotiator? Or have you developed your skills through experience and practice?