Boardroom negotiation requires a strategic balance of give and take.
Glin Bayley GAICD, negotiation specialist and author of The Negotiation Playbook: Strategies that work and results that last, views it as a mutual exchange of value that requires careful planning. She outlines five tactics for better negotiation outcomes in the boardroom.
Understand your value
Successful negotiation begins with an understanding of what both parties need. What are you bringing to the table that may be meaningful? What do you need in return?
“When we can understand what each party values, we can develop our skills in learning how to best exchange that value with each other,” says Bayley. “When we negotiate, we are essentially exchanging value, but it’s important to acknowledge our intrinsic value as a human being is never on the table to be negotiated up or down. As directors, you need to put your internal narrative to one side and focus on the extrinsic value you’re seeking to negotiate. That extrinsic value is determined by the usefulness and benefit of what you’re offering to the other party, and vice versa.”
Gather and analyse data
Data can inform strategy and help to predict the outcomes of negotiation. “Some directors might get excited by the thought of analysing data, while others might feel a sense of dread, but it’s useful to simplify it,” says Bayley. “There are two sources of data. The first is what we get from people through stories, conversation and sharing of ideas. The second is published data from sources like reports, research or internal management reviews. You need to decide which data sources to lean into. Data provides information, which builds power and confidence for negotiation.”
Identify your advantage
This is where power dynamics come into play. Bayley says it’s vital to recognise the leverage you have in any negotiation. If you have something valuable the other party needs or wants, you hold a powerful position, which can inform your strategy and approach.
“You can choose to take a ‘power over’ approach, which comes across more as force, or a ‘power with’ approach, which is a more compassionate use of power,” she explains. “We need to move towards a compassionate use of power, because value can’t be created unless there’s trust, and trust can’t be established unless people feel safe. So we have to use power wisely and with care.”
Accept a degree of discomfort
Bayley describes negotiation as an exercise in stepping into the unknown. Depending on the stakes, it may not always feel comfortable. “Embracing feeling uncomfortable is all about how you maintain your composure and your confidence when negotiating to maximise the value that can be exchanged in a deal. This is true whether it’s an internal deal with a stakeholder such as the CEO, or an external deal. Value needs to be discovered and not everyone is aware of the value they’re sitting on within their organisation or teams. It requires us to lean into more uncomfortable conversations to explore what someone might not have even put on the table yet. You won’t get to that unless you’re willing to embrace your own discomfort with asking deeper questions.”
Discomfort experienced during negotiation “leaks” value. “If you’re nervous about what you’re proposing, the way you use your language, verbally and non-verbally, gives information to the other party about your position. So, in a strategic negotiation, embracing your feelings of discomfort allows you to maintain that composure and not give away information at the most inappropriate time.”
Prepare and implement your plan
Successful negotiation requires a clear plan, but Bayley says most people don’t have one. “Most focus their attention on what happens at the negotiation table, rather than spending time designing the deal and identifying the value before the negotiating begins.”
Planning in advance can also help. “If we’ve planned our negotiation, we are considered, we understand what the other party might object to and can be more present with them,” she says. “Do the planning and thinking in advance so you can effectively negotiate in the moment.”
It’s also important to consider what may happen after a negotiation.
“This can be forgotten, because in the joy of getting to an agreement and the release of the tension, people can fail to put the appropriate measures in place to ensure the deal that’s been agreed will actually be executed and is clearly measurable,” says Bayley. “Executing the plan requires an end-to-end view of the journey, not just what you’re doing at the negotiating table.”
This article first appeared under the headline ‘Five ways to succeed in boardroom negotiation’ in the February 2025 issue of Company Director magazine.
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