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Case Study

Navigating the negotiation staircase

By Michael D. Watkins

February 2025

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Reference: IMD-2660

This technical note introduces the Negotiation Staircase Framework, a comprehensive approach to understanding and managing complex negotiations. The framework presents six distinct levels of negotiation: Set-up, Process Definition, Guiding Principles, Shared Fact-bases, Deal Architecture and Detailed Bargaining. The note explains how skilled negotiators move both down and up the staircase as needed, addressing issues at the appropriate level to achieve optimal outcomes. Through a detailed case study of a technology partnership negotiation between TechNova and MediOptimize, the note demonstrates the practical application of the framework at each level. Special attention is given to implementation strategies, including recognizing and diagnosing negotiation challenges, explicit communication techniques and maintaining the relationship . The note provides guidance for managing transitions between levels and maintaining progress throughout complex negotiations.

Learning Objective

Understand the six levels of the Negotiation Staircase Framework and their interconnections.
Master techniques for moving effectively between different levels of negotiation.
Learn to diagnose and address negotiation challenges at appropriate levels.
Apply the framework to complex business negotiations using practical implementation strategies.

Keywords

Negotiation, Decision Making, Stakeholder Management, Value Creation, Strategy, Negotiation Process, Deal, Framework

Type

Generalized Experience

Available Languages

English

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