Negotiation & Influence

Module 10

Negotiation & Influence

Interests vs positions, BATNA, anchoring, creating value, and the principles of influence. You'll negotiate scope, fees, and recommendations constantly.

You will negotiate more than you expect — your fees, your scope, which recommendation gets adopted, which compromise a divided client team can accept. Negotiation isn't about being aggressive; the best negotiators are usually the ones who understand the other side best. This module gives you the core moves, used honestly.

Interests, not positions

A position is what someone says they want ("I need a 20% discount"). An interest is why they want it (cash flow this quarter, looking shrewd to their boss, fear of overpaying). Positions clash; interests often don't. The single most powerful negotiation habit is to dig past the stated position to the underlying interest, because there's usually a creative option that satisfies the real interest without conceding the position — phased payments instead of a discount, for instance. Ask "why does that matter to you?" more than you argue.

BATNA — your real source of power

Your BATNA is your Best Alternative To a Negotiated Agreement — what you'll do if this deal falls through. It, not bluster, is the true measure of your power: the better your alternative, the more you can walk away, and the less you'll accept a bad deal out of fear. Two practical moves: strengthen your BATNA before you negotiate (line up another option) and understand theirs (the weaker their alternative to dealing with you, the more flexible they'll be). Knowing your walk-away point in advance, grounded in your BATNA, stops you accepting deals you'll regret in the room's heat.

Anchoring

The first number on the table exerts a strong pull on where you end up — that's anchoring. It means the opening offer matters more than people think, and you should usually be willing to make a considered first offer rather than always waiting for theirs, especially when you have good information. It also means being aware when you're being anchored: an extreme opening number is a tactic, and you counter it by re-anchoring with your own reasoned number rather than negotiating off theirs.

Claiming value vs creating value

Weak negotiators treat every deal as a fixed pie to fight over (pure claiming). Strong ones first try to grow the pie by trading across things the two sides value differently — you care most about price, they care most about timing, so a small concession on timing might unlock a big one on price. Look for these differences in priority; they're the raw material of deals where both sides genuinely do better than their alternatives. Then, having created value, claim your fair share with your BATNA in hand.

Influence — the principles behind a yes

Beyond formal negotiation, getting recommendations adopted is influence. The well-evidenced levers (from Robert Cialdini) are worth knowing and using ethically: reciprocity (people return favours), commitment/consistency (people honour what they've publicly agreed), social proof (people follow similar others), authority (credible expertise persuades), liking (we say yes to those we trust and relate to), and scarcity (limited things feel more valuable). Used honestly — to help true ideas land — these are how good advice wins adoption. Used to manipulate, they're how bad advice does, which is why your reputation depends on the line between them.

Key takeaway

Negotiate interests, not positions; know and strengthen your BATNA; be deliberate about anchoring; grow the pie before you split it; and use the principles of influence ethically to help good recommendations get adopted. The best negotiators understand the other side better than the other side understands itself.

For Orelis & the app

Two uses. First, you'll negotiate fees, scope, and partnerships constantly while building Orelis — the BATNA and interests-vs-positions moves directly protect your margins and your sanity. Second, "help me prepare for this negotiation" (with a counterpart, a vendor, an investor) is a concrete, high-value, very buildable feature: structured prep around interests, BATNAs, anchors, and a walk-away point is exactly the kind of grounded help users would pay for.

Test yourself

Q1A client demands a 20% discount or 'the deal's off.' Instead of caving or refusing, what's the first thing to explore?
Show a worked answer
Their interest behind the position. Ask why the discount matters: is it a cash-flow constraint this quarter, a need to show their boss a 'win,' a budget cap, or genuine doubt about value? Each opens a different creative option that protects your price — phased payments for cash flow, a scope adjustment for a budget cap, added value for a 'win,' a small pilot for doubt. You only concede on price once you've ruled out an option that serves the real interest without it.
Q2Two consultants quote the same fee; one is desperate for the work, the other has three other prospects. Who negotiates from strength, and why?
Show a worked answer
The one with three other prospects — because their BATNA is strong. If this deal collapses they have good alternatives, so they can hold their price and walk away from bad terms without fear. The desperate consultant has a weak BATNA (no fallback), which pressures them to concede. The lesson: build your alternatives before you negotiate. Power in a negotiation comes from your walk-away option, not from how the conversation feels in the moment.
Q3You and a supplier are stuck on price. You care most about cost; they care most about a long commitment. How might you grow the pie?
Show a worked answer
Trade across the things you value differently. You care about price; they care about commitment length and certainty. Offer a longer-term commitment (which they value highly and costs you relatively little) in exchange for a lower per-unit price (which you value highly). Both sides end up better off than a pure price fight, because each gave up something cheap to them for something valuable to them. That's value creation — find the difference in priorities and trade on it before splitting the pie.