Idea in Brief
The Challenge
Negotiators often mainly react to the other side’s moves. But for complex deals, a proactive approach is needed.
The Strategy
Strategic negotiators look beyond their immediate counterpart for stakeholders who can influence the deal. They intentionally control the scope and timing of talks, search for novel sources of leverage, and seek connections across multiple deals.
The Payoff
Tactical negotiating can lock parties into a zero-sum posture, in which the goal is to capture as much value from the other side as possible. Well-thought-out strategies suppress the urge to react to moves or to take preemptive action based on fears about the other side’s intentions. They lead to deals that maximize value for both sides.
When we advise our clients on negotiations, we often ask them how they intend to formulate a negotiation strategy. Most reply that they’ll do some planning before engaging with their counterparts—for instance, by identifying each side’s best alternative to a negotiated agreement (BATNA) or by researching the other party’s key interests. But beyond that, they feel limited in how well they can prepare. What we hear most often is “It depends on what the other side does.”