Best Practices for Effective Negotiations
Disclaimer: The summaries and interpretations provided on this page are unofficial and have not been reviewed, endorsed, or approved by the Canada School of Public Service (CSPS).
Summary
- Asking questions is fundamental to successful negotiation, particularly questions that establish rapport and build relationships by learning about someone’s background, education, and personal details
- The most valuable questions in negotiations focus on understanding people’s interests, priorities, and what truly matters to them versus what is less important
- Seasoned negotiators think creatively about multiple options and alternatives to solve problems, considering very different approaches that inexperienced negotiators might miss
- Effective communication skills are essential for experienced negotiators, but listening is equally important and often neglected in negotiation contexts
- Active listening involves reading back what you heard to confirm understanding and asking clarifying questions to ensure accurate comprehension of the other party’s position
- Good negotiators understand that negotiations become stagnant without proposals, so they make offers at appropriate times to move the process forward
- Making the first proposal is typically advantageous, but regardless of who makes it, someone must initiate concrete offers to avoid endless discussion
- After making an offer, negotiators should be patient and wait for a point-by-point response before making any additional offers to avoid negotiating against themselves
- A sophisticated strategy involves putting two or three equivalent proposals on the table that have roughly equal value to you and are near your target, allowing the counterpart to choose
- Even if all proposals are rejected, you can ask the counterpart to rank order them from most distasteful to most acceptable, which reveals valuable information about their priorities
- Post-settlement settlements recognize that initial agreements can often be improved through subsequent meetings to explore mutually beneficial changes
- Information tends to flow more easily after a basic solution is in place, making post-settlement discussions productive for finding additional improvements
- Successful negotiations achieve four key outcomes: enhanced relationships, perceptions of winning or doing well for all parties, creation of collective benefit, and claiming at least your fair share
- These four hallmarks of effective negotiation are difficult to achieve simultaneously but serve as guiding principles for making decisions during complex negotiations
Actionable Advice
- Ask rapport-building questions about background, education, and personal details to establish relationships
- Focus your questions on understanding the other party's interests, priorities, and what truly matters to them
- Distinguish between what is critical versus what is not important to the other party through targeted questioning
- Practice active listening by reading back what you heard and asking for confirmation of your understanding
- Think creatively about multiple different approaches and alternatives to solve the same problem
- Make proposals at appropriate times to move negotiations forward rather than allowing endless discussion
- Be the first to make an offer when possible to gain strategic advantage
- After making an offer, wait patiently for a complete point-by-point response before making any additional offers
- Avoid negotiating against yourself by making multiple offers without receiving counteroffers
- Put two or three equivalent proposals on the table that have similar value to you and let the counterpart choose
- If all proposals are rejected, ask the counterpart to rank order them from least to most acceptable
- Use rejection and ranking information to learn about what truly matters to your counterpart
- Schedule follow-up meetings after reaching initial agreements to explore potential improvements
- Propose post-settlement settlements by asking if changes could be made that would benefit everyone
- Aim to enhance relationships during negotiations rather than damaging them
- Work to ensure all parties feel they have won or done well in the negotiation
- Focus on creating collective benefit and value for everyone involved
- Claim at least your fair share of the value created in the negotiation
- Use the four hallmarks of successful negotiation as guiding principles for decision-making throughout the process