In this episode, I sit down with Chris Krause, a seasoned supply chain executive with more than 30 years of experience in procurement, change management, and organizational restructuring. We get under the skin of negotiation strategy and tactics—exploring everything from the difference between planning and action to the essential role of data, preparation, and goal alignment in high-stakes deals.
Chris shares his proven rule of thumb for negotiation preparation, his top tactics for gaining leverage, and invaluable advice on handling aggressive negotiation moves. He also tells an illuminating real-world story, highlighting the importance of transparency, open communication, and mutual respect—even when negotiations get tough.
Understanding the foundation of successful negotiation begins with clarity on terms. Chris Krause highlights a crucial distinction: strategy is your overarching plan, crafted before the negotiation starts, while tactics are the actions employed during the negotiation itself.
Strategy is about setting your objectives, outlining concessions, and knowing your limits. It includes data gathering, goal setting, and scenario planning.
Tactics come into play at the negotiation table—your body language, the way you present your case, and how you respond to offers. Whether negotiating face-to-face, walking side by side, or even over casual conversation, tactics are the tools used to achieve the strategic goals you've set.
Before any high-stakes meeting, Chris's go-to strategy is to amass as much data as possible—not just about his own position, but about the other party as well. This includes:
Armed with this knowledge, negotiators move from a position of power, specifically, the power that comes from knowledge. Chris advocates a "five to one" rule: for each hour of negotiation, spend at least five hours preparing. This encompasses scenario planning, identifying must-haves vs. nice-to-haves, and determining both concessions and firm asks. In his words, "Planning, preparation, and positioning" are the three Ps of negotiation excellence.
Chris shared his three favorite tactics for gaining leverage in challenging deals:
He refers to this comprehensive approach as his "trifecta" for negotiation success.
One of the most valuable strategies in complex negotiations is what Chris calls "goal alignment." Rather than rushing into a pitch, engage first in an open conversation to establish what both sides need to achieve. Are they solving a quality issue? Chasing cost savings? Seeking a new technology?
Especially for salespeople, Chris warns against focusing solely on your own objectives. Self-centered pitches quickly turn off experienced negotiators. Instead, understanding and aligning with the buyer's business priorities sets the stage for trust and long-term partnership.
High-stakes negotiations sometimes involve aggressive tactics—last-minute demands, take-it-or-leave-it offers, or extreme anchoring. Recognizing these moves is part of the game, but Chris emphasizes sticking to your strategy and being prepared for multiple rounds of negotiation. Rarely, he says, is a one-and-done deal the most fruitful.
Mutual respect and keeping communication open, even when emotions run high, are vital for coming through tough spots and ultimately reaching an agreement.
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