Negotiation Strategy Series: 1 Planning and preparation

10 steps to set yourself up for successful negotiations.

Welcome to the first in a series of four articles on defining your negotiation strategy and enhancing your skills to bring your strategy to life by Javier Marcos, Professor of Strategic Sales and Negotiation.

Negotiation is an essential skill in business, leadership, and everyday life. Whether you’re securing a business deal, managing stakeholder relationships, or discussing your next career move, the ability to negotiate effectively can be a game-changer.

Successful negotiation isn't about charm or natural talent – it's about preparation. I estimate that 70% of a successful negotiation happens before the conversation even begins. Whether you're securing a business deal, discussing your next career move, or managing stakeholder relationships, these ten preparation tactics will transform your negotiation outcomes.

1 Define a clear process and be mindful of your behaviour

A successful negotiation is a combination of two elements: process (the structured approach you take) and behaviour (how you interact and communicate). Many negotiators focus on one over the other but aligning both is what sets top performers apart.

The key is to establish a structured, step-by-step framework that guides your negotiation from start to finish. Before entering any negotiation, map out the five key phases:

Planning and preparation,
Connection and exploration,
Making proposals,
Exchanging and bargaining,
Seeking agreements.

Think of this as your negotiation roadmap. It prevents you from getting lost in the heat of the moment and ensures you cover all essential ground. Write down your process and refer to it throughout the negotiation to maintain focus and direction.

Remember that preparation is everything, and that understanding both interests and constraints is vital. Negotiation isn’t just about demands but also about recognising the motivations and limitations of all parties involved.

2 Always negotiate

Many people hesitate to negotiate, but I would encourage you to adopt the mindset that every situation presents an opportunity for negotiation, regardless of how fixed the terms might initially appear.

Challenge the assumption that terms are non-negotiable. Even when faced with ‘standard’ offers, remember that negotiation increases satisfaction both psychologically and in tangible outcomes – people naturally value what they've worked to achieve.

Start by asking simple questions like "What is the flexibility we have here?" or "What options might we explore?". This approach opens doors that seemed permanently closed and often reveals unexpected opportunities for mutual benefit.

3 Engage in systematic planning

Conducting thorough preparation that goes beyond surface-level research to understand key variables, interests, and constraints will significantly contribute to both positive negotiation processes and outcomes.

Begin by categorising all the elements of your negotiation into fixed (non-negotiable) and flexible (negotiable) variables. Map out both parties' interests and constraints – what drives them, what limits them, and what they truly need versus what they say they want. Build momentum by starting discussions with flexible elements rather than contentious fixed points. Research the other party's background, recent challenges, and priorities. As Dwight Eisenhower noted, "Plans are nothing; planning is everything."

4 Create empathy

Developing a genuine understanding of the other party's perspective, motivations, and worldview without necessarily agreeing with their position is fundamentally what empathy is all about.

Shift your focus from your own objectives to understanding theirs. Before the negotiation, research their business challenges, market pressures, and personal motivations. During conversations, use active listening techniques and ask open-ended questions about their concerns.

Remember that empathy doesn't mean agreement – it means understanding how they see the world. This strategic advantage, utilised even in hostage negotiations, provides crucial insights that inform your approach and builds the foundation for collaborative solutions.

5 Be prepared to make the first offer

Setting the initial anchor point for discussions in negotiation gives you control of the negotiation's direction.

Research shows that 50% of the variance in negotiation outcomes directly relates to the first offer, so preparation here is critical. Before making your offer, thoroughly research market rates, comparable deals, and industry standards. When ready to present your offer, avoid single figures and instead suggest a range within which you wish to negotiate. This approach provides three key benefits: expectation setting, increased flexibility, and enhanced control over the negotiation's trajectory.

6 Use precise numbers

Employing specific, detailed figures rather than round numbers will help you create an impression of accuracy and thorough analysis. When discussing salary or pricing, present a range that positions your ideal outcome at the lower end of the spectrum. Additionally, using precise numbers (e.g. £23,233,200 instead of £23m) can create a perception of accuracy and credibility.

The precision implies that you have insider knowledge or sophisticated analysis supporting your figure, making the other party less likely to dismiss it as arbitrary. However, ensure your precise numbers are genuinely researched and defensible – this tactic only works when backed by solid preparation.

7 Offer calculated concessions

Making strategic compromises that are clearly labelled, conditional, and designed to trigger reciprocity whilst maximising value exchange is a key skill in negotiation.

Structure your concessions with four key principles:

Always label them explicitly ("We are prepared to offer this concession...").
Start small and avoid large initial compromises that signal desperation.
Make concessions conditional ("If you can commit to X, then we could consider Y").
Focus on high-value, low-cost trades. Offer what's valuable to them but costs you little, whilst seeking the reverse. This approach triggers psychological reciprocity and maintains the perceived value of what you're offering.

8 Learn to disagree effectively

Developing the skill to challenge positions and push back constructively without creating destructive conflict underpins most negotiation processes.

Understand the difference between disagreement and argument; disagreement focuses on issues and positions, whilst arguments become personal. Practice expressing dissent professionally: "I see your perspective, but I have concerns about..." or "I understand your position, though I view it differently because...".

Frame disagreements around data, principles, or mutual objectives rather than personal judgements. Sometimes, strategic disagreement prevents unnecessary concessions and clarifies true priorities for both parties.

9 Trigger strategic "No" responses

Deliberately create opportunities for the other party to say "no" to give them a sense of control and psychological safety.

Use carefully crafted questions that invite "no" responses, such as "Have you given up on your objective to reach a mutually satisfactory agreement?" This technique provides several benefits:

Empowerment through choice,
Increased autonomy,
Enhanced sense of control,
Psychological safety.

When people feel they have the power to refuse, they paradoxically become more open to collaboration. This approach, borrowed from hostage negotiation techniques, helps reduce defensive responses and opens pathways to genuine dialogue.

10 Make contingent agreements

Creating contractual arrangements that depend on specific future events or conditions allows both parties to manage risk whilst maintaining mutual benefit.

Identify areas where you and the other party have different expectations about future outcomes. Structure agreements that account for various scenarios:

"If sales exceed X, then payment terms will be Y; if they fall below Z, then alternative arrangement W will apply."

This approach manages risks, aligns incentives, and creates mutually beneficial outcomes even when parties disagree about likely futures. Contingent agreements often unlock deals that seemed impossible under fixed-term arrangements.

Conclusion

These ten strategies work best when applied systematically rather than individually. Begin every negotiation with thorough planning (strategies 1-3), establish empathy and control early in the conversation (strategies 4-6), then manage the exchange process strategically (strategies 7-10). Remember that negotiation is both process and behaviour—your systematic approach must be paired with authentic relationship-building and genuine problem-solving.

The most successful negotiators understand that preparation isn't just about knowing your numbers—it's about understanding people, planning for multiple scenarios, and approaching each conversation as an opportunity to create mutual value. With these ten strategies as your foundation, you will find that better outcomes naturally follow better preparation.

Cranfield’s Strategic Negotiation Programme

Ready to transform your negotiation outcomes?

The strategies outlined above represent just a glimpse of the comprehensive approach taught in the Cranfield Strategic Negotiation Programme. This immersive experience goes beyond theory, offering hands-on practice with professional behavioural experts, in realistic scenarios that challenge and refine your skills.