Negotiations are an integral part of doing business. I once joined a Teams call with a client to discuss the terms of a complex agreement with a potential customer. Our small group of two was outnumbered by a team of ten (!!!!), each representing perspectives from engineering, sales, operations, and legal roles. As discussions unfolded, it became clear that their expectations were not fully aligned. Progress slowed as we worked together to clarify their goals and priorities.

This scenario illustrates how diverse perspectives can either enrich or derail negotiations. While every negotiation is unique, certain principles can help facilitate collaboration and achieve meaningful results.

Be Respectful, Even If You Disagree

Negotiations naturally bring together diverse viewpoints. Respecting differences ensures everyone feels heard and valued, fostering a constructive atmosphere that strengthens collaboration and builds lasting relationships.

For purpose-driven organizations, respect also reflects shared values like empathy and understanding, transforming disagreements into opportunities for innovative solutions.

Be Reasonable

Reasonableness encourages flexibility and understanding. Recognizing constraints and approaching discussions with a willingness to compromise helps address challenges productively and keeps progress on track. It is also about looking beyond initial positions to understand the underlying interests that drive them. When participants focus on the “why” behind a request or concern, they can create solutions that satisfy both practical and strategic needs.

Explain Your Position

Clarity is a cornerstone of effective negotiation. Explaining the reasoning behind a position—whether in written comments within the document or in a conversation—encourages understanding and builds trust. Providing context helps participants find areas of agreement and focus on shared goals.

Clear communication also allows small businesses to address potential challenges in advance, ensuring smoother discussions and progress toward productive resolutions. It is not just about addressing the issue at hand, but about creating a foundation of understanding that supports future collaboration.

A Collaborative Approach

Negotiations tend to work best when respect, reasonableness, and clear communication guide the process. These principles can transform even complex discussions into opportunities to find alignment, build understanding, and achieve meaningful outcomes. At its best, negotiation is about working together to find solutions that reflect the objectives and goals of everyone involved.

Categories: Business Contracts