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When do you walk away from a negotiation impasse?

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Negotiation is a key skill for business relationship managers (BRMs) who need to align the interests and expectations of their stakeholders and partners. However, sometimes negotiation can reach a deadlock, where neither party is willing to budge or compromise. How do you know when to walk away from a negotiation impasse and what are the consequences of doing so? In this article, we will explore some factors and strategies that can help you make this difficult decision.

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1 The costs and benefits of walking away

Before you decide to walk away from a negotiation impasse, you need to weigh the costs and benefits of doing so. On one hand, walking away can save you time, energy, and resources that you can use for other opportunities. It can also signal your confidence and assertiveness, and prevent you from accepting a bad deal that could harm your reputation or relationship. On the other hand, walking away can also mean losing a valuable partner, customer, or supplier, or missing out on a potential win-win solution. It can also damage your credibility and trustworthiness, and create resentment or hostility.

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2 The alternatives to walking away

Walking away from a negotiation impasse is not the only option you have. You can also consider some alternatives that might help you break the deadlock and move the conversation forward, such as taking a break or timeout to cool off and reflect, changing the negotiator, venue, agenda, or format to create a fresh perspective, seeking a third-party mediator, arbitrator, or facilitator to help you find common ground and resolve the conflict, offering or requesting a concession, trade-off, or contingency to show goodwill and flexibility, or expanding the scope or value of the negotiation to create more options and possibilities.

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Dr Deirdre Clark

Clinical Research Leader | Pharma & Biotech | GxP, Data Integrity & Clinical Inspection Readiness | Excelling in Clinical Operations, Regulatory Compliance, DCT Innovations| Study Management | Board Member | Training
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Arbitration and mediation provide a neutral platform where an unbiased third party can facilitate discussions, ensuring that all concerns are addressed without the intensity and pressure that direct negotiations can sometimes bring. This method not only promotes clarity and understanding between the parties but can also introduce fresh perspectives. Mediation, in particular, allows both parties to communicate their viewpoints in a safe and structured environment, with a mediator guiding the conversation to ensure it remains productive. decision based on the facts presented. Either of these two paths open the door for a collaborative resolution, showing commitment to a mutually beneficial outcome.

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3 The best practices for walking away

If you decide that walking away from a negotiation impasse is the best course of action, you need to take certain steps to minimize the negative impact and preserve the relationship. Communicate your decision in a respectful way, without blaming or insulting the other party. Explain your reasons and rationale for walking away without being defensive or aggressive. Additionally, express your appreciation and gratitude for the effort and time invested in the negotiation, without being sarcastic or patronizing. Furthermore, leave the door open for future communication and collaboration without making false promises or unrealistic expectations. Finally, follow up with a written confirmation and a summary of the main points of disagreement, without reopening the negotiation or creating confusion.

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4 The signs of a fake impasse

Sometimes, a negotiation impasse is not real, but a tactic used by the other party to test your resolve, pressure you to concede, or gain more information. To identify and respond to a fake impasse, you can ask open-ended questions to probe the underlying interests and motivations of the other party. You can also challenge their assumptions and assertions with facts and evidence. Reframing the problem or solution in a different way that highlights the benefits and value for both parties is another option. Utilizing silence or humor to diffuse tension and create rapport, as well as ignoring or deflecting threats or ultimatums with confidence and calmness, are also effective strategies.

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5 The lessons from walking away

Walking away from a negotiation impasse can be a learning opportunity for you and your organization. To gain the most from this experience, you should conduct a post-mortem analysis to identify what went wrong and what went right. Additionally, seek feedback from the other party, your team, your manager or mentor to gain insights and perspectives on your performance and behavior. Furthermore, review your goals, priorities and criteria for negotiation success and failure to adjust them with your reality and expectations. It is also important to update your knowledge, information and resources on the market, the industry and the stakeholders to enhance your preparation and planning. Finally, practice your negotiation techniques, tactics and styles to develop your competence and confidence.

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6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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Maximillian Katzer, M.A. Psych

Sr. Director - Commercial Property Management at Denver International Airport - City & County of Denver Dept of Aviation
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Sure, sometimes you have to walk away… If you can’t find an overlap between your negotiating partner’s minimum and your maximum (or perhaps the other way around depending on the situation) then it’s time to either consider your best alternative to a negotiated agreement (BATNA) and walk away, or my favorite - get creative! Sometimes when I’m about to “walk” I’ll just say as much, and ask if we can stop negotiating for a minute and just be transparent about our goals and high-level desires, who knows you might find some hidden gem that can help you come to an agreement…

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When do you walk away from a negotiation impasse?

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2

3

4

5

6

1 The costs and benefits of walking away

2 The alternatives to walking away

3 The best practices for walking away

4 The signs of a fake impasse

5 The lessons from walking away

6 Here’s what else to consider

Business Relationship Management

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When do you walk away from a negotiation impasse?

1

2

3

4

5

6

1 The costs and benefits of walking away

2 The alternatives to walking away

3 The best practices for walking away

4 The signs of a fake impasse

5 The lessons from walking away

6 Here’s what else to consider

Business Relationship Management

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