How can you handle negotiations when the other party threatens to walk away?

Its always better to know which terms are non negotiable and on which terms you willing to compromise. Knowing the real reason behind the threat of walk away is also important. Also, knowing your walk away point is most important as you should not be desperate to make a bad deal.

Exploring options and alternatives during negotiations, especially when the other party threatens to walk away, is like playing a game of chess. Start by considering your moves strategically, much like planning your chess pieces' positions. Understand that negotiation is a dynamic process, and sometimes, the threat to walk away is a strategic move itself. Analyze the board (situation) and consider different scenarios. By exploring options and alternatives thoughtfully, you can make informed decisions and navigate negotiations successfully, even in the face of threats. Keep communication open and respectful, and remember that just as chess players shake hands before and after a match, building rapport is crucial in negotiations.

Building rapport and trust during negotiations, especially when the other party threatens to walk away, is like constructing a sturdy bridge. Start by laying a strong foundation of communication and respect, much like the solid base of a bridge. Listen actively to the other party's concerns and needs, just as engineers survey the landscape before building. Build trust brick by brick through honesty and transparency. Trust is the bridge that connects both sides, allowing for effective negotiation even in challenging situations. Approach negotiations as if you're co-architects co-designing a bridge. Show your commitment to creating a strong connection, and the other party is more likely to cross over to a mutually beneficial agreement.

Seeking feedback and following up during high-stakes negotiations, especially when the other party threatens to walk away, is like a critical Navy SEAL operation. In high-stakes scenarios, meticulous planning (negotiation strategy) is paramount, just as SEALs plan for life-or-death missions. Actively gathering real-time intelligence (feedback) is crucial, mirroring how SEALs adapt to rapidly changing situations. Like a SEAL team conducting an after-action review, analyze each negotiation for lessons learned to fine-tune your approach for future high-stakes encounters. Remember, in high-stakes negotiations, the ability to gather feedback and adjust is often the difference between a successful outcome and a costly failure.

It is important to agree on the process that you will follow right at the start of negotiations. Use this opportunity to start building a rapport and sending cues on expected behavior. For instance, stating and restating the need for open discussion, giving cue that feedback is expected and appreciated etc. People do not want to be seen to have failed a process or to have dishonored pre-agreed ‘rules’ so they are likely to avoid walking away when there was an agreed ‘acceptable’ behaviour because walking away would mean that they lack good faith

Handling negotiations in my professional field (Pharmaceutical Market Access) when the other party (Ministry of Health and/or Payer body) threatens to walk away can be challenging but manageable, Here are the headlines of what else you can consider to keep your negotiation healthy: Understand Other Party Perspective, Walk in Their Shoes, Highlight Mutual Benefits, Leverage Third-Party Support, Document Everything. And remember that negotiations can involve complex legal, ethical, and regulatory considerations. Seek legal counsel to ensure that your actions comply with all applicable international laws and local regulations, and be prepared to make informed decisions based on the specific circumstances of your negotiation (Pro-actively)