Why the Boss Shouldn’t Always Lead the Negotiation Team

In many organisations, there is a natural assumption that the most senior person should lead the most important negotiation. But some of the very behaviours that help people succeed in senior leadership - being decisive, using authority and moving things forward - can actually make negotiation harder.

They can be more prescriptive

Senior people are often used to being decisive. They listen, assess the situation and decide what should happen next. In many leadership situations, that’s exactly what’s required.

Negotiating, however, is different.

You’re in control of what you say at the start, but then you’re responding to what the other side says and does. They may challenge an assumption, introduce a new issue or reject something you thought was entirely reasonable.

Imagine the other side says:

“We can work with the price, but we need you to hold considerably more stock.”

The temptation might be to give a definitive answer immediately:

“No, we can’t hold stock.”

But perhaps it is better to structure expectations while staying curious:

“That would be difficult for us. What’s the importance of that?”

Perhaps stockholding is part of a larger issue - warehouse space, just-in-time deliveries, service levels or quality concerns.

Shutting the issue down too quickly might mean missing an important priority.

Sometimes the best negotiators are the ones who stay curious for longer.

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Having more power can make discipline harder

Senior people usually have greater authority to make decisions. That can be useful, but it can also create problems.

If you have the authority to improve the offer, waive a charge or agree an exception, it becomes very easy to just do it. You can imagine someone saying:

“OK, you can have the additional support.”

It may feel decisive. It may feel generous. But what came back in return?

There can also be a natural desire to be the person who gets the deal done - the one who breaks the deadlock and shakes hands at the end.

That can subtly change the objective from:

“How do we achieve the best deal?”

to:

“How do I get this over the line?”

And that is when unnecessary movement can creep in.

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There may be nowhere left to go

One of the most useful phrases available to a negotiator is:

“I need to take that away and discuss it internally.”

It creates time and space. It gives you the opportunity to review what has moved, think about what could be traded next and consider alternative ways forward. It also shows that you are taking what the other side has said seriously.

But if the Managing Director is already leading the negotiation, who exactly are they taking it away to? There may be nobody left to refer to.

That can make the conversation more brittle. Instead of:

“Let me take that away and see what might be possible.” the discussion can become much more binary: “Yes, we can” or: “No, we can’t”

Sometimes having all the authority in the room can limit your flexibility.

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They can become impatient with the process

Senior people are usually busy and used to making things happen. So, when a negotiation slows down, there can be a temptation to say:

“Let’s just get the ball rolling.”

The problem is that “something” often means movement.

Another 2% off the price. An improved payment term. Some extra support. A concession made simply to create momentum.

But once you move, you have changed the negotiation. You may have given away something that could have been traded later, and you may also have taught the other side that if they wait long enough, you will move.

Senior people may also be less inclined to call a timeout because there can be a feeling that, as the most senior person in the room, they should be able to deal with the issue there and then.

But a timeout is not a sign of weakness. It gives you the chance to step away, compare what is happening against your plan and consider different ways forward.

Sometimes the best way to get a negotiation moving is to stop it for ten minutes.

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So, should the senior person stay out of the negotiation?

Not necessarily.

Some senior people are excellent negotiators, and there are situations where their involvement is essential.

The question is whether they should automatically lead simply because they are the most senior person in the room.

There may be times when a more skilled or better-suited negotiator should lead the discussion, while the senior person provides authority, expertise and support without being responsible for every move.

Because the person with the most authority is not necessarily the person with the most negotiating flexibility.

Sometimes, keeping a little authority out of the room gives you more options, not fewer.

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