6 Reasons Why Collaborative Negotiation Is the Future of Your Business

Every company has a founder who wants to close more deals faster, attract top talent, enhance team capabilities, and increase profits. The smartest minds recognize that these goals are linked and depend on the value of agreements made with partners. This necessitates a type of conversation known as “collaborative negotiation” before reaching any agreement.

Here are six reasons why the future of your business lies in collaborative negotiation.

Collaborative Negotiation Increases Team Capability

Collaborative negotiation requires greater skill than competitive negotiation. The ideal model—to maximize deal value and strengthen relationships—is a diplomatic approach. Diplomats possess highly developed communication and emotional intelligence skills such as empathy, emotional regulation, and creative problem-solving. This makes teams more effective not only in negotiations but also in daily business operations.

Closing More Deals

Collaborative negotiation focuses on understanding the deal’s value for both parties. Competitive negotiation prioritizes self-interest; collaboration requires understanding the other party’s needs and interests.

Understanding what the other party values allows for crafting easily acceptable agreements, increasing deal closure rates through a better understanding of their needs and priorities.

Faster Deal Closure

Demonstrating understanding and interest fosters an environment of openness and trust, facilitating decision-making. The efficiency derived from trust and collaborative negotiation skills reduces agreement time and builds a strong foundation for future deals.

Attracting More Talent

The better a team is at creating value and building relationships, the more skilled it is at teamwork. Increased curiosity means less judgment and conflict—internally and with external stakeholders. Companies with a strong collaborative negotiation culture are seen as better places to work and grow professionally. This culture recognizes the importance and power of influence, increasing the perceived value for all employees and future stakeholders.

Increased Profitability

Collaborative negotiation facilitates value creation and the discovery of hidden value with others. With greater trust and transparency, opportunities expand to broaden deal value and find innovative solutions impossible in more adversarial situations. This ultimately leads to opportunity growth and increased profits for both parties. Competitive approaches may yield short-term wins but cost more in terms of unrealized value and opportunities lost due to distrust and lack of transparency.

Building a Strong Foundation for Business

Stronger, more resilient business relationships create more value, along with a team capable of adapting and thriving under uncertainty. Skilled negotiators are adept at planning, positioning, and paving the way. Negotiation isn’t just what happens at the table. Fostering a culture of continuous learning and adaptability makes businesses not only resilient to shocks but also able to leverage them for growth.

In short: Negotiation is an expression of our identity and our team’s. Developing collaborative negotiation skills within our team allows us to transform the value of our agreements, enhancing both our work and ourselves.