Negotiation techniques for executives.

Negotiation techniques for executives are too often confused with selling techniques, and the two work differently. A salesperson is closing one transaction; an executive is closing an agreement that will govern a relationship for one, three or five years. The objective function is different, and so are the tools.

This article condenses the three frameworks that, in my experience advising B2B SMEs across multiple sectors, change the negotiation outcome the most. They are not new — the Harvard book Getting to Yes is from 1981 — but their disciplined application in Spanish SMEs remains rare.

BATNA: your best alternative to a negotiated agreement

BATNA is the answer to the question "what will I do if this negotiation breaks down?". It is the floor under which you will walk away. The executive who enters a negotiation without a clear BATNA negotiates from fear. The executive who has prepared the BATNA in writing, with concrete numbers, negotiates from calm.

To prepare a BATNA: list at least three real alternatives you can pursue if the deal collapses, value each in €, choose the strongest, and write it down before the meeting starts. From that moment, anything above the BATNA is acceptable; anything below is not.

ZOPA: the zone of possible agreement

ZOPA is the overlap between your minimum acceptable and the counterpart's maximum acceptable. If there is no overlap, there is no deal. If there is, the negotiation is about where exactly within ZOPA the agreement will land.

Estimating ZOPA requires research: what does the counterpart's BATNA look like? What are their public alternatives? What is their cost structure? An estimated ZOPA is better than no estimate at all.

The Harvard method: four principles of principled negotiation

1. Separate the people from the problem. Be hard on the issue, soft on the person.
2. Focus on interests, not positions. A position is what the counterpart says they want; an interest is why they want it. Two opposing positions often share an underlying interest.
3. Generate options for mutual gain before deciding. Brainstorm in joint session.
4. Use objective criteria. Anchor the agreement to market data, industry benchmarks, public references — not to the louder voice.

Tactical techniques that work in B2B

• Anchoring. The first number on the table heavily influences the final number. Anchor first when you have data; let the counterpart anchor first when you do not.
• Framing. The same offer presented as "€3,000 monthly investment in commercial leadership" lands differently from "€36,000 annual cost". Choose the frame deliberately.
• Strategic silence. After making an offer, stop talking. The counterpart will fill the silence, often with information you needed.
• Concession ladder. Never concede the maximum at once. Plan three concession steps in advance, decreasing in size.
• Logrolling. Trade what you value less for what the counterpart values less. Volume vs. price, term vs. exclusivity, payment timing vs. discount.

Common mistakes by SME executives

• Negotiating price first when the counterpart's real interest is term, scope or payment timing.
• Showing the BATNA too early ("if you don't accept, I'll go to your competitor") and losing leverage.
• Accepting the first counter-offer because you are uncomfortable with conflict.
• Closing the deal verbally and writing the contract weeks later, when memory of what was agreed has diverged on both sides.
• Negotiating without authority and then renegotiating internally, which destroys trust with the counterpart.

Related: Consultative selling: high-value services.

Authored by Ángel Ortega Castro · independent consultant in strategy, quality and digitalisation for SMEs.