Why there is no one best way to negotiate.
Negotiation is often portrayed as a battle of wits, where the most aggressive or persistent party triumphs. Others depict it as an exercise in collaboration, where compromise and mutual gain define success. In reality, both perspectives oversimplify the nuanced art and science of negotiation. There is no one best way to negotiate.
Effective negotiation is not about adhering to a single approach—be it adversarial or cooperative. Instead, it is about behavioural agility: the ability to adapt one’s approach to fit the dynamics of the situation.
We have developed the Negotiation Behavioural Compass, a behavioural framework that underpins the Cranfield Strategic Negotiation Programme. It provides a structured yet flexible model for negotiators to tailor their approach and adapt their behaviour to maximise commercial and relational outcomes. The Negotiation Behavioural Compass is not about following a set formula but about mastering the ability to shift between different negotiation styles in response to the circumstances you encounter. Let’s start exploring these.
Key factors influencing the most effective negotiation approach
Several factors determine how a negotiator should engage with the other party. The requirement for trust, the level of dependency between the parties, the longevity of the relationship, the complexity of the negotiation, and the strategic importance of the relationship all influence how one should behave at the negotiation table.
Some negotiations require a high degree of trust, such as those involving joint ventures or long-term strategic partnerships. In these cases, negotiators must focus on building credibility, demonstrating transparency, and fostering a climate of cooperation. They need to listen intently, ask insightful questions, and remain open to creative solutions. When trust is low or unnecessary, as in purely transactional exchanges, a more cautious and analytical approach may be appropriate, ensuring that concessions are made tactically rather than based on goodwill.
Dependency plays a significant role in shaping power dynamics. A company negotiating with a sole supplier of a critical component has far less leverage than one with multiple sourcing options. Conversely, suppliers who rely on a single major client may find themselves in a vulnerable position. In such situations, negotiators must manage their perceived power carefully. Those in a weaker position can mitigate risks by exploring alternative options, while those in a dominant position must consider the long-term consequences of exploiting their advantage too aggressively.
The longevity of the agreement is another crucial factor. A one-time negotiation, such as the sale of a product with no expectation of future engagement may justify a more assertive and transactional approach. However, when parties expect to work together over the long term, the negotiation must be conducted with an eye toward sustaining collaboration. A focus on mutual benefits becomes essential in these cases, as the quality of the relationship will influence future interactions.
Complexity should also inform negotiation behaviour. Simple, price-based transactions often follow a straightforward bargaining process. In contrast, multi-stakeholder negotiations—such as mergers, cross-border trade agreements, or joint ventures—require greater adaptability, structured planning, and an ability to navigate multiple competing interests. The more complex the negotiation, the greater the need for deep questioning, and creative problem-solving.
Finally, the importance of the relationship dictates how negotiators balance assertiveness with cooperation. In high-stakes partnerships, the focus should be on building trust and ensuring that agreements are sustainable. In contrast, if the relationship is of low strategic significance, the negotiator may prioritise short-term gains over long-term goodwill.
Understanding these factors enables negotiators to make an informed choice about their approach.
The Negotiation Behavioural Compass
The Negotiation Behavioural Compass identifies four distinct styles—Bargaining, Trading, Win-Win, and Partnering—each suited to different negotiation contexts.
Fig. 1 - The Negotiation Behavioural Compass
Bargaining: Tactical and Competitive
Bargaining is a highly tactical, competitive approach best suited to short-term, transactional negotiations often where price and value capture are the primary concerns. It is often employed when the requirement for trust is low, the relationship is of limited importance, and both parties are focused on claiming the largest possible share of the deal.
In a bargaining scenario, negotiators use a range of techniques to maximise their position. They pre-condition their counterpart early, establishing a strong bargaining stance before discussions formally begin. Control over the discussion is maintained through anchoring and agenda-setting, ensuring that the terms discussed subsequently favour their position. A sharp analytical focus is maintained to track proposals, evaluate risks, and push for an optimal outcome.
This approach, when used in the right context, can yield significant short-term gains. However, over-reliance on bargaining can damage relationships and close the door to future opportunities. A negotiator who consistently takes a hard-line stance may find that counterparties become less willing to engage in the future, particularly in inter-organisational relationships where long-term relationships are critical.
Trading: Exchange and Reciprocity
Trading builds on bargaining by introducing the concept of reciprocity. Rather than simply pushing for the best deal, negotiators in this mode focus on structured exchanges—ensuring that both sides feel they are gaining something of value. Concessions are given only in response to clear value trades. This approach is common in commercial negotiations, contract renewals, and supplier agreements, where mutual benefit is necessary but where deep trust has not yet been fully established.
Successful trading requires a disciplined approach to concessions. Rather than making unilateral offers, negotiators exchange proposals based on value—offering something meaningful in return for a concession from the other side. To this end, negotiators should seek to bring variables into the discussion that can act as levers - giving them the opportunity to offer a concession in return for a gain on a more important issue. Emotional control is crucial, as immediate, reactive responses can lead to unnecessary compromises. Skilled negotiators in a trading environment remain receptive to counterparty proposals, actively seeking trade-offs that improve the overall value for their party.
Trading allows for constructive exchanges, ensuring that both parties walk away feeling that they have achieved something of value to them. It is particularly useful in negotiations where trust is moderate, relationships are ongoing, and the focus is on securing practical outcomes rather than purely competitive advantage.
Win-Win: Collaborative and Creative
The win-win approach shifts the focus from claiming value to creating value. Rather than treating negotiation as a zero-sum game, win-win negotiators seek to expand the pool of potential benefits by identifying solutions that satisfy both parties' underlying interests. This approach is especially effective in complex, multi-issue negotiations where creativity and flexibility are required.
A win-win mindset is built on deep questioning and active listening. Skilled negotiators go beyond stated positions to uncover the true motivations and priorities of their counterparts. They approach discussions with an open mind, exploring alternative solutions and thinking creatively to generate mutual benefits. They plan strategically, structuring discussions with commonly agreed agendas and ensuring that key issues are addressed methodically.
Win-win negotiation requires a baseline level of trust and cooperation. If one party is unwilling to engage in good faith, the risk of exploitation increases. Successful negotiators must balance their openness with strategic caution, ensuring that they remain assertive in protecting their interests.
Partnering: Strategic and Long-Term
At the highest level of collaboration is the partnering approach, which is essential for negotiations involving long-term interdependence, high trust, and shared strategic goals. This is the approach used in joint ventures, strategic alliances, and multi-year business partnerships, where both parties have a vested interest in ensuring joint success.
Partnering requires a deep commitment to relationship-building. Trust is actively cultivated, and negotiators emphasise mutual respect without sacrificing value. Creativity is used to solve immediate issues and to identify and bring long-term value opportunities to the table. Negotiators ensure that both sides remain cooperative even in the face of challenges.
Mastering the partnering approach requires balancing strategic interests with the long-term health of the relationship, ensuring that agreements are both commercially viable and sustainable over time.
Mastering the Behavioural Compass
The most effective negotiators are those who can seamlessly shift between these four approaches based on the context. By mastering the Negotiation Behavioural Compass, negotiators can navigate complex discussions with confidence, balancing assertiveness with collaboration, flexibility with structure, and self-interest with relationship-building.
Negotiation is not about adhering to a single style—it is about reading the situation, understanding the dynamics at play, and choosing the right behavioural approach to achieve both immediate success and long-term value.
The Strategic Negotiation Programme
Cranfield School of Management has created the Strategic Negotiation Programme executive development course to address the themes outlined in this article. This integrated and holistic programme combines methods and approaches to develop both your negotiation skills and your team and organisational capabilities, enabling the design and execution of effective negotiation processes. Holistically it addresses the cognitive, behavioural, and emotional aspects of negotiation.
Download the brochure to discover more:
Authors
Javier Marcos - Professor of Strategic Sales and Negotiation, Cranfield School of Management
Alistair White - Former Partner at The Gap Partnership
