Why leaders must have the ability to effectively negotiate?

Leadership Development

While we can agree that there’s some true to the saying “excellent leaders are born, not made”, the capacity for outstanding leadership is intrinsic. People can become great leaders as long as they’re willing to learn, make mistakes, and share their experiences with others.

Why should CEOs, managers, business owners, and entrepreneurs master negotiations? It’s because otherwise they can’t impose themselves in front of their subordinates. Efficient bargaining skills are not easy to master, which is why every leaders must ward off their fears and start learning more about negotiations. Here are some ideas to help you understand that negotiation skills are a critical aspect in every leader’s portfolio.

The great importance of self-assessment

Every leader must know his strengths and weaknesses. Prior to entering a negotiation, ask yourself this: “What do I want from this deal?” “Am I prepared to win?” “Do I have any reason to fear my opponent?”. It’s really important for business people to know where they stand. Everybody has shortcomings, but that doesn’t mean you are weak. Quite the opposite; weaknesses make us stronger; they can help us improve our strategies and ward off our fears.

Assess your position at the negotiation table. Write down everything you think can help you win. Are you determined and motivated? Do you have a goal? Do you know what you want? It’s important to focus on facts without poisoning your mind with unnecessary information? “What if they ask me a question I can’t answer?” “What if I give the wrong answer?” “What if they don’t like my negotiation style?” All these are useless questions that should be eradicated from your thoughts. Keep your eyes on the prize and showcase essential leadership skills – determination, wisdom, and patience.

Razor-sharp perception

Do you have any idea how people perceive you? If you don’t, you should. Great leaders must stand out, but not showcase an arrogant attitude and be bossy in front of their people. Rather than seem intimidating, you have to be honest, calm, and sympathetic. These are traits that can also help you win negotiations. Do you want to know what others think of you? Then ask. One of the smartest ways of establishing a pleasant work environment is to be open to communication. Listen to the demands of your employees and negotiate a way to make the work environment more productive. Leaders should be responsive to the needs of their people. Value their creativity, let them take risks, and don’t be too harsh on them.


To achieve success, today’s business professionals should rely on teambuilding. As a leader, you have to encourage your team to speak their mind, contribute with ideas, and argument their claims. It can be tough to convince employees to participate in a discussion, particularly if the relation you have with your people is strictly professional. Negotiate your way to the heart of your employees. Encourage them to speak up, value their ideas, and offer them something in exchange for their contribution.

Organize a weekly brainstorming session. Talk about new ideas for your project, ask them to share their thoughts too, and at the end of the meeting, take them out for lunch. Leaders should bond with their team in order to make them feel comfortable and relaxed. Teambuilding is an excellent motivator – it helps leaders attain goals using negotiation skills the smart way.

Excellent negotiation techniques make leaders excellent business people

Every leader looking for his big break in the business world should master negotiations. Dealing with vendors, customers, investors, and employees is not something everyone can do. Smart bargaining skills can help create relations, and good relations can have an excellent impact on your company’s reputation. Some leaders use aggressive negotiation techniques to get what they want. Now if you’re Donald Trump, that’s understandable. He can afford to be aggressive.

The smart way to make yourself noticed is to negotiate reasonably. Reach agreements, make sensible concessions, and find a way to close a good deal without intimidating an opponent. Negotiation training may be required, especially if you’re a leader with little experience in business. Practice, practice, practice, and eventually you’ll become a skilled venture capitalist with a great company and lots of people looking up to you.

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