What are the benefits and risks of extending or shortening a negotiation deadline?

1 Why deadlines matter

Deadlines are an important element of any negotiation, as they create a sense of time pressure and scarcity that can affect the behavior and motivation of both parties. Deadlines can also signal the importance, urgency, and value of the deal, and influence the expectations and perceptions of the outcome. Deadlines can be external, such as legal, contractual, or market-based, or internal, such as personal, organizational, or relational. Depending on the type and source of the deadline, you may have more or less flexibility and control over it.

2 Benefits of extending a deadline

Extending a deadline can be a useful strategy in some situations, especially when you need more time to gather information, prepare your offer, or explore alternatives. Extending a deadline can also help you build trust and rapport with your counterpart, by showing your willingness to cooperate, accommodate, or compromise. Extending a deadline can also reduce the risk of making hasty or suboptimal decisions, or leaving value on the table, by allowing more time for creativity, problem-solving, and value-creation.

6 How to choose the right deadline

When it comes to choosing the right deadline for a negotiation, there is no one-size-fits-all answer. It depends on various factors such as your goals, interests, alternatives, power, and style, as well as your counterpart's. However, some general guidelines include aligning your deadline with your strategy and objectives and communicating it clearly and convincingly to your counterpart. Additionally, you should be flexible and adaptable to changing circumstances, and be prepared to adjust the deadline if necessary or beneficial. Furthermore, it's important to be realistic and reasonable about the deadline; avoid setting it too high or too low, or making it too rigid or too vague. Lastly, be respectful and empathetic about your counterpart's deadline. Try to understand their perspective and constraints while also being creative and collaborative about finding ways to use the deadline as an opportunity to create value and mutual benefit.