Negotiation skills and Leadership

In this article, we will talk about why negotiation is important in leadership as a vital component of leadership. You can use it as approach to resolve differences in opinion, challenges in the workplace, or to get from disagreement to consensus.

The basic principles of good negotiation underpin internal and external communications, within the company, customers and vendors.

We can use negotiation on any topic of discussion, except religion and morals. It is important that we negotiate willingly and freely. As you focus on developing your leadership negotiation skills, you will be better able to facilitate problem-solving, build professional relationships, and get support from your team.

What are negotiation skills?


Negotiation skills are often defined as interpersonal skills. Examples of negotiation skills include abilities such as communication, persuasion, collaboration, planning and strategy development. If you want to become strong in negotiation, you need to understand all these skills first.

The type of negotiation skills you need will be determined based on some things, such as workplace environment, the intended outcome and the people involved.

What are negotiation types?

There are several types of negotiation, which includes:

  • A one-time negotiation, an individual or unique event. This type achieves maximum success in the least amount of time. It also comes with a probable outcome in which one side wins and the other loses.
  • Continuous negotiations, which are based on an ongoing business relationship with partners, suppliers and customers. We can describe this type of negotiation as the type that is influenced by the quality of the relationship in previous confrontations. It is also possible to anticipate future relationships and push them towards success.
  • Direct negotiations, which are characterized by direct contact established between the parties involved. This connection is on a personal level, which can have both advantages and disadvantages at the same time. Sometimes, it can be influenced by the behavior of either party involved.
  • Indirect negotiation, which is facilitated by a third party representative or negotiator. The challenge in this type of negotiation is the interest of the third party, which may not align with the other parties involved.

7 rules of negotiation & how to get better at it

There are many negotiation skills and techniques that you need to use to become a more effective leader. For that i want to share these 7 rules that make you an effective leader and negotiator. They will help you undoubtedly to understand the importance of negotiation in leadership.


Starting Point

As an effective negotiator, it is essential that you keep your views open and avoid being biased. The point is to keep emotions in check throughout the negotiations. Because this can enhance trade relations, as it translates into easier negotiation, problem-solving and decision-making.


Emphasis on Timing

 Negotiations should be time-bound, because knowing what to ask for is crucial is very important, as well as knowing when to ask for it. Effective negotiators know when to move forward and when to back off. When everything aligns with the way you planned and your ability, it’s time to pay and get what you came for.


Active Listening

 Hearing and listening seem one thing, but in reality they are completely different from each other. If you fail to listen effectively, all of your strategies, tactics, and development will be ineffective. Sometimes you will need to solve some problems, hear and understand the ideas of the other party, as well as negotiate with them. You may also get constructive results that positively affect the outcome of the negotiation process.


Honor Commitment

 The outcome of the negotiations is affected by the commitments made by the parties. If one of the parties involved cannot follow through on their obligations, they risk losing integrity and losing trust, which is almost impossible to restore.



 It’s always great to set high expectations and be realistic about them. Also. As a leader, you must start preparing for alternative solutions to negotiations if the original plan cannot reach an agreement, by having the options of backup or other alternative plan.  This will allow you to be more cooperative and flexible depending on the situation.


Art of Persuasion

 Active listening, commitment, and trust all play an important role in any negotiations. As you seek to build a healthy relationship, your chance of applying the skill of persuasion increases exponentially. To upgrade your persuasion skills, you have to use the storytelling style. Because collecting important information in a descriptive language will help you draw a mental picture in the mind of the other party, which will make it easier for you to convince the other parties through visualization instead of telling.


Closing Point

 At the end of any negotiation, make a quick summary of everything that was covered during the negotiation process. This will help confirm if everyone understands and agrees. Don’t leave any questions unanswered or any loose ends.

Role of Leadership in Negotiation

Both of leadership and negotiations go hand in hand. Choosing an excellent strategy can be used in a variety of ways, but your success depends on how well you prepare for negotiations. Being an effective negotiator, a positive outcome depends on your ability to consider all of the fundamentals and options. You should also avoid bias and be realistic.

Always consider the other party in the negotiation as your partner, not your opponent. The end goal is a win-win outcome by reaching common ground between the parties involved. Always keep in mind that negotiation is a must, as it is one of the effective leadership skills.

If you want to develop your own leadership skills or to acquire more new skills, Optimus provides you with Professional leader Program that is ideal for those who seek a simple and efficient way to enhance their key leadership skills by focusing on their managerial behaviors. All Optimus certifications are certified by ATHE & QUALIFI.

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