What’s needed in modern day negotiations

In a world where hybrid work, polarised views and digital communication shape how we connect, the art of negotiation has never been more crucial for leaders. Professor Gillian Ku, Professor of Organisational Behaviour at London Business School, has long explored how people make decisions and influence one another. Her earlier LBS video, ‘The art of negotiation: Six must-have strategies’, introduced six interpersonal principles of how we interact with people that affects our ability to influence and persuade others. But, the landscape has changed and negotiation must evolve with it, says Gillian.

Moving beyond persuasion

Reflecting on the interpersonal principles, Gillian acknowledges that negotiators focus on classic influence levers – reciprocity, social proof, and authority to name a few. These levers remain useful, but they represent only one slice of what negotiation requires today. Those tactics centre on claiming value but the reality leaders face is far more complex.

In Gillian’s view, negotiation can no longer be reduced to a win-lose contest. Influence and persuasion can play a part, but modern negotiation demands a broader lens – one that balances protecting your interests with expanding the total value available. This is the shift from getting your way to joint problem-solving, explains Gillian.

Preparation: the underrated leadership advantage

Gillian begins with a deceptively simple point: be prepared. The more you understand what you want, the more you understand what the other side wants, which means the better off you will be. Many negotiations falter not because of conflict, but because leaders haven’t clarified what truly matters to them or what they can afford to trade away.

Crucially, giving something up can be a strategic move. If an issue is low value for you, trading it may unlock something more valuable in return. Rather than weakening your position, this creates space for progress and collaboration and potentially value for you.

Why perspective matters more than ever

The centrepiece of Gillian’s updated thinking is perspective-taking – the ability to see beyond what someone demands and uncover why they want it. Whether the issue is budget, responsibilities or timelines, understanding someone’s underlying motivations enables leaders to move past surface-level statements and engage with the real problem.

She also highlights the importance of perspective-giving – being transparent about your own reasoning. In today’s digital first environment, where emails and video calls strip away tone and nuance, miscommunication is more likely. Leaders must make their intentions clear to prevent unnecessary tension.

“In today’s environment, it’s easier to miscommunicate. It’s easier to unintentionally offend someone,” Ku notes. Perspective-taking and perspective-giving help keep conversations grounded in curiosity rather than assumption.

Balancing cooperation and competition

Negotiation, Ku says, is a ‘mixed motive world’. Leaders must constantly balance when to cooperate – sharing information, making trade-offs, growing the pie – and when to compete, protecting themselves from being taken advantage of. Get the balance wrong and you risk either giving away too much or shutting down progress entirely. Get it right and you enable value creation and fairness. Perspective-taking, she explains, equips leaders to recognise the moment the other side switches from collaborative to competitive behaviour and respond accordingly.

A nuanced model for modern leadership

As the pressures facing leaders intensify, negotiation becomes central to how they guide teams, resolve disagreements and unlock joint value. Ku’s updated approach proposes a more thoughtful model – one built not on tactics alone, but on empathy, strategic preparation and a mindset of shared problem-solving.

“If you’re prepared, you’re not going to be surprised,” she says. Preparation, perspective-taking and an understanding of when to cooperate or compete allow leaders to navigate difficult conversations with clarity and confidence.

Her message resonates strongly: negotiation today isn’t about playing psychological tricks. It’s about understanding others, communicating with purpose and making deliberate trade-offs that move everyone forward. For leaders operating in an increasingly complex world, this shift may be the key to sustainable influence and to building outcomes that endure.