Multilateral Contract Negotiation Techniques

When negotiating, do you think the big wins happen at the table? They don't! The real magic happens before the first word is spoken. Success in 80% of negotiations is due to preparation. It's taking small steps to control the process, foresee challenges, and set small goals. I coached a procurement manager stuck in a deadlock with a supplier. Both sides had drawn firm lines: • The supplier demanded upfront payments. • The procurement team refused. • They feared cash flow issues. For weeks, the talk had gone in circles. It made no progress. When I stepped in, I asked one question: “𝙒𝙝𝙖𝙩 𝙙𝙤𝙚𝙨 𝙩𝙝𝙚 𝙨𝙪𝙥𝙥𝙡𝙞𝙚𝙧 𝙧𝙚𝙖𝙡𝙡𝙮 𝙣𝙚𝙚𝙙?” The team realized the supplier's main concern wasn't money. It was to reduce delivery risks. By focusing on interests, not positions, we found a solution: 𝗔 𝘀𝗺𝗮𝗹𝗹 𝘂𝗽𝗳𝗿𝗼𝗻𝘁 𝗽𝗮𝘆𝗺𝗲𝗻𝘁, 𝗽𝗹𝘂𝘀 𝗺𝗶𝗹𝗲𝘀𝘁𝗼𝗻𝗲 𝗽𝗮𝘆𝗺𝗲𝗻𝘁𝘀 𝘁𝗶𝗲𝗱 𝘁𝗼 𝗱𝗲𝗹𝗶𝘃𝗲𝗿𝘆 𝗽𝗵𝗮𝘀𝗲𝘀. The result? The deal closed in two days, with terms that worked for both sides. That negotiation taught me this: →  Preparation isn't just logical. → It's also strategic and emotional. I'm happy to share here how I prepare for a negotiation: 𝗦𝗲𝘁 𝗦𝗠𝗔𝗥𝗧 𝗴𝗼𝗮𝗹𝘀 𝗳𝗼𝗿 𝗲𝘃𝗲𝗿𝘆 𝘀𝘁𝗮𝗴𝗲. • Be Specific, Measurable, Achievable, Relevant, and Time-bound. • No vague goals like “get the best deal,” aim for concrete outcomes: → Add a long-term partnership clause → Reduce delivery timelines by 10% → Secure flexible payment terms 𝗙𝗼𝗰𝘂𝘀 𝗼𝗻 𝗶𝗻𝘁𝗲𝗿𝗲𝘀𝘁𝘀, 𝗻𝗼𝘁 𝗽𝗼𝘀𝗶𝘁𝗶𝗼𝗻𝘀. • Ask, why does the other side want this? • When you negotiate based on interests, you create options that meet both parties’ needs. 𝗣𝗿𝗲𝘀𝗲𝗻𝘁 𝗠𝘂𝗹𝘁𝗶𝗽𝗹𝗲 𝗼𝗳𝗳𝗲𝗿𝘀 (𝗠𝗘𝗦𝗢𝘀) • Successful comes with always having options ready. For example: → Offer A: A 5% discount for upfront payments. → Offer B: Standard payment terms and extended service coverage. If you present choices, you reduce deadlock and keep control of the conversation. 𝗨𝘀𝗲 𝗘𝗺𝗼𝘁𝗶𝗼𝗻𝗮𝗹 𝗜𝗻𝘁𝗲𝗹𝗹𝗶𝗴𝗲𝗻𝗰𝗲. 𝗡𝗲𝗴𝗼𝘁𝗶𝗮𝘁𝗶𝗼𝗻 𝗶𝘀𝗻'𝘁 𝗷𝘂𝘀𝘁 𝗹𝗼𝗴𝗶𝗰—𝗶𝘁'𝘀 𝗮𝗯𝗼𝘂𝘁 𝗰𝗼𝗻𝗻𝗲𝗰𝘁𝗶𝗼𝗻. • Practice self-awareness to stay composed under pressure. • Show empathy to build trust. • Use "Feel, Felt, Found" on objections, and it'll guide decisions. Negotiation is like a dance. Both sides need to move in sync, adjusting their steps as they go, to create a harmonious outcome. And the best dances are choreographed long before the music starts. So, what’s been your biggest negotiation breakthrough? Have you ever unlocked a deal by shifting focus from demands to solutions? Found success by preparing better than your counterpart? Drop your story in the comments—I’d love to hear it. Or DM me if this resonates with a challenge you’re navigating. Let’s talk about what works.

Two weeks before contract signature, my incumbent supplier added £240,000 to the price. And I was meant to be on a flight to Spain. 9 months of procurement work Countless stakeholder workshops. A high-profile transformation hanging in the balance Now, my “done deal” had just exploded in cost Egg about to be smeared all over my face My CIO was saying: “We can’t delay. Just make it happen.” Instead of wine with my husband and parents in Alicante, I was pacing my flat in Manchester. Back then, I had plenty of negotiation tactics in my head. But my “strategy” was really just random acts of tactics. A push-back here A vague threat to re-tender there An awkward silence for good measure There was no system No process Just grasping Since then, I’ve built a step-by-step procurement negotiation framework I use whenever a supplier tries to move the goalposts. Here are my first 4 with real procurement examples: 1️⃣ Re-anchor to value before price Suppliers want you focused on the increase. You want them focused on the deal. "Before we talk numbers, let’s recap what’s on the table so we’re aligned." Spend 3-4 minutes on: 🔹The business problem 🔹Why they were selected (unique capabilities) 🔹The agreed scope 🔹The business impact if delayed Example: "This upgrade eliminates £500k a year in manual workarounds and is on track for a Q4 launch, which is critical for your client references in this sector." Now a pure “price increase” conversation is twice as hard for them to win. 2️⃣ Get all the asks on the table When you re-anchor, they’ll hit you with one demand. Example: "We need two extra consultants to meet your timeline." Don’t solve it yet. "If we worked with you on that, what else would be in the way of moving forward?" Keep asking until they say: “Nothing else.” Then confirm: "So if we resolved X, Y, Z, there’s nothing else stopping us from signing?" 3️⃣ Stack rank their demands Suppliers will give you a laundry list, new resources, extended payment terms, travel expenses.... Make them prioritise: "Which is most important to you, and which least?" Now you can decide where to give a little to protect what really matters. 4️⃣ Uncover the real driver If you negotiate only on what they ask for, you’re bartering. You need the why. Example: "What’s driving the need for two extra consultants?" 🔸Maybe they’re short-staffed 🔸Maybe it’s risk avoidance 🔸Maybe they’ve overpromised internally Once you know, you can: 💠 Offer your own project resources for certain tasks 💠 Shift non-critical deliverables to phase two 💠 Negotiate a capped rate for the additional consultants That 2016 project? The supplier walked away with scope they could deliver comfortably. We walked away £180k under their revised ask. And I still caught the last two days with my family in Spain. -- Enjoyed this? I write more Procurement stories in my newsletter. Link in my highlights.

Negotiation success: Think smarter, not argue harder. How to use De Bono’s Six Thinking Hats. In my 30 years as a negotiation consultant, Edward de Bono’s Six Thinking Hats combined with state-of-the-art Negotiation principles have often been the difference between success and failure. Especially in extremely challenging negotiations. These thinking styles unlock clarity, creativity, and stronger relationships, even in situations that initially seemed hopeless. Edward de Bono’s Six Hats represent distinct thinking styles crucial for effective negotiation: → White Hat: Facts and objective information. → Red Hat: Emotions and intuition. → Black Hat: Risks and critical judgment. → Yellow Hat: Optimism and positive outcomes. → Green Hat: Creativity and innovative solutions. → Blue Hat: Process control and management. Here’s how I’ve effectively applied these hats in difficult negotiations: 1️⃣ Focus on Interests, Not Positions → White & Red Hats • Clarify underlying facts and interests objectively (White Hat). • Empathize with emotional motivations behind positions (Red Hat). e.g., Employees demand permanent remote work; management wants office return. Objective questioning (White Hat) reveals productivity metrics and workspace usage. Empathy (Red Hat) uncovers emotional interests like flexibility and family time, leading to a hybrid solution. 2️⃣ Invent Options for Mutual Gain → Green & Yellow Hats • Generate creative solutions (Green) highlighting mutual benefits (Yellow). e.g., Companies negotiating resource sharing creatively design a joint venture benefiting both economically. 3️⃣ Use Objective Criteria → White Hat • Anchor negotiations in data-driven benchmarks and unbiased facts. e.g., Parties reference market standards and independent appraisals in lease negotiations, agreeing on fair terms. 4️⃣ Prepare Your BATNA → Black Hat • Critically assess risks, alternatives, and consequences of no agreement. e.g., A buyer evaluates alternative suppliers’ costs and reliability, clearly identifying the best fallback option. 5️⃣ Build Relationships → Red Hat • Recognize and address emotional aspects to build trust. e.g., In heated negotiations, acknowledging frustration and validating concerns reduces tension significantly. 6️⃣ Separate People from the Problem → Blue Hat • Objectively manage the negotiation process to minimize personal conflicts. e.g., A good negotiator sets clear agendas prioritizing shared goals, preventing personal grievances from derailing talks. Next time you’re stuck, pause and ask, “Which hat am I wearing?” Switching hats can open unseen doors.

Most negotiations don’t fail because people lack arguments. They fail because people argue the wrong thing. This carousel isn’t about clever lines or pressure tactics. It’s about how value is actually created in real negotiations. Here’s how to read what you’re about to swipe through. 1. Start with value, not position Most negotiators defend positions. Great negotiators explore value. When you start with yes or no, you shrink the pie before the discussion even begins. When you start with what does this unlock, new options appear. Think of a supplier pushing price versus one exploring delivery timing, risk reduction, or volume planning. Same deal. Very different outcome. 2. Separate people from the problem When people feel attacked, they protect themselves. When they feel respected, they collaborate. This isn’t about being soft. It’s about keeping the conversation productive when stakes are high. You can be firm on the issue and respectful with the person at the same time. 3. Trade — don’t concede Concessions leak value. Trades create it. If something has value to the other side, it has value back to you. Giving something away just to move on trains the counterpart to wait for more. 4. Make value visible If value isn’t visible, it doesn’t exist in the decision. Cost reductions. Risk removed. Time saved. Revenue protected. This is where negotiations become a math problem, not a debate. 5. Use trust as a currency Trust isn’t nice-to-have. It’s measurable. High trust lowers transaction costs, speeds decisions, and reduces the need for legal safeguards. Low trust does the opposite — and both sides pay for it. 6. Design the decision — don’t push it People resist conclusions they didn’t help shape. Strong negotiators don’t push outcomes. They design choices, scenarios, and options — and let the counterpart choose the path. 7. Think long-term, even in one-off deals Short-term wins often destroy long-term value. A simple test: Would you accept this deal again? Would you recommend this counterpart? SMARTnership negotiation isn’t about being nice. And it’s not about being tough. It’s about creating measurable value, reducing risk, and building outcomes that last. Negotiation is a skill — not a talent. And it can be learned. #negotiation The Program on Negotiation at Harvard Law School World Commerce & Contracting BMI Executive Institute BMI Alumni Executive Club UCLouvain I BMI Executive Institute AAU Executive - MBA and HD at Aalborg University Tine Anneberg Gražvydas Jukna Juan Manuel García P. Jason Myrowitz Tiffany Kemp Moïse NOUBISSI Said A. ,(MBA, EFQM) Francisco Cosme Dr. Tarun Rochwani