Strategic Navigation: Mastering Negotiation

In the world of business, every opportunity is a sale—whether it’s recruiting, fundraising, or pitching. And every closing deal involves negotiation, like hiring, securing investments, or signing contracts. One major mistake many make in negotiation is focusing on the wrong goal. New negotiators often aim to "win" and beat the competition, but seasoned pros know that “winning” isn’t the real objective.

The true goal in negotiation is to maximise the value for everyone involved and then capture as much of that value as possible. So, how can you do this effectively?

The 3+3 Approach

The 3+3 approach has two main parts: Substance and Process. Substance is about the core elements of the negotiation (like price and terms). Process covers everything else, which is often where deals are won or lost due to poor management.

The 3+3 method works in any high-stakes situation—from closing big transactions to securing job offers and funding. Here’s how to use it:

Substance

1. Define the Outcome Spectrum Clearly outline three possible outcomes: great, acceptable, and bad. Place these on a spectrum and ask yourself:
2. It’s crucial to understand your boundaries from the start.
3. Expand the Variable Set Understanding your variables is just one part. You need to grasp what matters to the other party too. Most people focus only on price, but terms and conditions can be even more important. Consider factors like time, leverage, reputation, risk, and access. Don’t assume their priorities are the same as yours.
4. Break the Box Think outside the box in negotiations. If you can’t agree on a term, it’s not the term itself that’s the problem—it’s the conditions around it. Use contingencies, performance parameters, and commitments to align on terms. You can structure anything creatively.

Process

1. Build the Relationship Negotiations are between people, not robots. Trust is key to creating a valuable deal. Early on, find common ground. What are your shared interests and priorities? Seeing each other as teammates rather than adversaries increases the chance of a valuable outcome.
2. Communicate Appropriately How do you prefer to communicate—text, email, phone, in person? What about the other party? Miscommunication often derails deals. At the start, ask how they prefer to communicate to avoid small issues snowballing into big problems.
3. Accelerate the Velocity Time can kill deals because it increases the chances that external factors (like market changes or shifting priorities) interfere. Keep the conversation moving swiftly to avoid unnecessary delays.

Remember, It’s About Value, Not Winning

Negotiation is about creating and capturing value, not about winning. Just like in our last discussion, it’s better to get a slice of a watermelon than to have an entire grape. Focus on creating value for both sides to achieve the best results.