Negotiating with Integrity: The Need for a New Methodology

The world of commercial negotiations is a complex one, where negotiators regularly grapple with a central dilemma - how do we achieve the best deal without sacrificing our personal integrity?

While many negotiation theories provide valuable insights, they often fail to address the crucial question of character in the negotiation process. At Synergy Law we believe in negotiating with integrity. This isn’t simply because it’s the ‘right thing to do’ – it also makes great business sense and leads to better outcomes for both parties and other stakeholders in the long and short term. In this article, we introduce a five-step approach that synthesises multiple negotiation methodologies, emphasising integrity as the cornerstone of successful negotiation – and the way to achieve the best commercial outcomes.

Understanding the Negotiator’s Dilemma

At its core, negotiation is more than just a skill; it reflects our values and character. The negotiator’s dilemma encapsulates the challenge of balancing the desire to achieve favourable outcomes with the need to remain true to oneself. It’s about creating and claiming value without compromising who we are. Thus, the key issue is not merely winning - but how we can win whilst upholding integrity.

The Role and Impact of Structure in Negotiations

Each party enters a negotiation believing they can achieve a better outcome by reaching an agreement. To genuinely excel in negotiation, one must learn to shape and shift outcomes creatively. An essential aspect of negotiation is to understand its underlying structures. This structural framework dictates potential outcomes, regardless of individual negotiation skills. 

• Shaping – Of course, superior negotiation skills can tilt outcomes slightly in one’s favour, allowing them to secure a larger portion of the overall ‘deal value.’ However, superior skills will never eliminate the natural tendency of commercial parties to converge around a common point.

To illustrate this principle, consider a business that is valued differently by two parties. the negotiation will likely gravitate toward a middle ground—a process driven more by the negotiation structure than by individual skill. By meeting in the middle, this doesn’t demonstrate either party’s negotiation skills. Instead, it is more indicative of the natural shape or structure in the negotiation process.

For example, consider a scenario where one party values a business at $10 million, while the other values it at $20 million. Without a shared perception of value, agreement is unlikely. However, if both parties adjust their expectations, they may settle around a midpoint of $15 million—a process largely influenced by the principle of reciprocity and fairness. This is the middle ground and can be achieved with no negotiation skills. But here’s where superior skills re-enter the picture – by using tactics and weapons of influence (skills I’ll explain further in an upcoming article) you may be able to achieve a larger portion than the common middle ground.

• Shifting: This technique enlarges the negotiation pie, creating win-win scenarios that benefit all parties involved while still maintaining an equitable split of resources. The goal is to find creative solutions that meet both parties’ goals.

Imagine if you and a competitor are both small businesses that produce paint. Why not work together and compete with a larger paint producer? And that’s the challenge – if a deal creates value, somebody will claim it. In other words, if you aren’t the claimant, the other side will be. If both deal-makers are good at claiming more than their fair share of value, they might enlarge the pie, yet still end up with less. This is the dynamic behind the feeling of being cheated when you have acted in good faith and the other party has not, i.e. when your good deeds go unrewarded. 

• Combining Shaping and Shifting: The most effective negotiators can both expand value and ensure they claim a larger share. This dual approach maximises their outcomes without compromising their integrity, allowing them to benefit from the value generated collaboratively. That is the core technique that Synergy Law deploys when entering into negotiations for clients and when negotiating in our own right.

Maintaining Integrity in Negotiation

Synergy Law (and most negotiators) aspires to be, and be seen as, fair, honest, and trustworthy. In spite of this, commercial negotiations tend to be cast in a competitive light and parties tend to adopt a competitive, win-at-any-cost stance, rather than a collaborative, everyone-wins approach. A winner-takes-all approach can quickly turn into a race to the ethical bottom, deceptive practices and the abandonment of core values. This leads to the crucial question: how can you claim value without resorting to these deceitful tactics?

Five Steps to Effective Negotiation

To address the value-challenges inherent in negotiation, our methodology proposes a model that centres integrity while incorporating essential negotiation skills. It has five key steps: 

1. Analyse Your Needs: Clearly define what you want from the negotiation—this includes your material, emotional, and character needs. Understanding these will help guide your approach. Consider not only the tangible outcomes but also how you want to feel and be perceived after the negotiation.
2. Diagnose Your Power: Assess your negotiation power relative to the other party. Consider your ability to yield, walk away, endure, and persuade based on prevailing standards. Understanding your leverage can help you navigate the negotiation more effectively.
3. Select Your Principles: Determine how to approach the negotiation based on the situation—whether it’s competitive, collaborative, or a problem-solving scenario. Different situations call for different strategies; adapting your approach is key to success.
4. Apply Your Skills:
   • Shape the negotiation: Use strategic tactics to create favourable conditions for an advantageous outcome.
   • Communicate effectively: Establish connections and share information transparently. Effective communication builds trust and rapport, which are essential for successful negotiation.
   • Negotiate appropriately: Use techniques suitable for the type of negotiation at hand. Recognise when to be assertive and when to collaborate.
   • Resist manipulation: Stay alert to and counteract any attempts by the other party to manipulate you. Awareness of psychological tactics can safeguard your interests.
5. Maintain Integrity: At every step, prioritise tactics and strategies that align with your character needs, ensuring you are perceived as the person you aspire to be. Integrity is your strongest asset in negotiation; upholding it can foster long-term relationships and enhance your reputation.

Synergy Law’s approach to negotiation empowers individuals to navigate the complexities of deal-making while preserving their integrity. Ultimately, it’s about striking a balance between getting what you want and being true to who you are. Our methodology not only enhances negotiation effectiveness but also fosters a sense of personal fulfillment and ethical responsibility throughout the process. By focusing on integrity and understanding the psychological dynamics at play, negotiators can create successful agreements, and lasting relationships built on trust and respect. 

If you need any help with commercial or legal negotiations or negotiation training, please reach out to Synergy Law. Our team has the right combination of skills, experience and integrity to help you meet your negotiation challenges.