Negotiation is not a single event with a clear finish line. It’s a process that can extend well beyond the moment you think it’s “done.” Whether it’s hitting a stalemate, shaking hands on a deal, or even signing the contract, thinking “it’s over” can lead to lost opportunities and costly missteps. Skilled negotiators understand that an impasse isn’t final, that business agreements can unravel over terms and conditions, and that even after a deal is signed, real negotiation continues during the execution stage. Maintaining this mindset keeps you alert, creative, and prepared to secure lasting value.
Impasse Isn’t Final
An impasse can feel like hitting a brick wall. Both sides dig in and no agreement feels possible. But reaching impasse doesn’t mean the negotiation has failed; it’s often a signal that something has yet to be uncovered or addressed. Perhaps not all underlying interests have been explored, or maybe a creative solution is waiting in the wings. The worst mistake here is walking away too soon, thinking further negotiation is pointless. In reality, impasse is just another phase where flexibility and problem-solving become crucial. Coming to impasse often indicates there are untapped options or information gaps, so it’s a cue to dig deeper, not give up.
How can you break through a deadlock? Consider these strategies when an impasse threatens to derail talks:
- Reframe and explore interests: Step back from rigid positions and revisit the core interests of both parties. By understanding why each side holds their stance, you may discover new trade-offs or package deals that satisfy everyone’s needs. This is where thorough negotiation preparation on goals and priorities pays off.
- Introduce creative options: Don’t limit yourself to one offer at a time. Try presenting multiple equivalent proposals simultaneously to give the other side choices. Research has shown that offering MESOs (Multiple Equivalent Simultaneous Offers) can increase the other side’s satisfaction and boost the odds of reaching agreement. By widening the pie of options, you invite collaboration rather than confrontation.
- Take a timeout or get a fresh perspective: Sometimes a short break or bringing in a neutral third party can defuse tension. A mediator or even a colleague with fresh eyes might suggest alternatives neither side has considered. This pause can prevent knee-jerk “it’s over” reactions and open the door to new ideas in what seemed like a hopeless difficult negotiation.
- Re-evaluate your BATNA and priorities: Use an impasse as an opportunity to revisit your best alternative to a negotiated agreement. Are you truly better off walking away? Often, the answer is “no” which means it’s worth finding a breakthrough. Knowing that both sides likely prefer a deal to their alternatives can motivate a more flexible approach to get past the stalemate.
In short, impasse is not the end. It’s a challenge to be overcome with creativity and persistence. The negotiator who can think outside the box at this stage often unlocks value that a less determined counterpart would leave on the table. Avoid the dangerous mistake of prematurely calling it quits.
The Hidden Risks After Agreement
Great! You’ve finally shaken hands on the main business deal. It’s a big relief, but don’t be fooled: the negotiation isn’t over yet. One of the most overlooked pitfalls is assuming that once you’ve agreed on the headline terms, the rest is just detail. In fact, negotiating terms and conditions can be a minefield that sinks deals. The period after a verbal agreement but before a contract is signed is fraught with risk, because that’s when lawyers, stakeholders, and the fine print come into play. If you relax at this stage thinking the work is done, you may lose the deal altogether.
Why do deals unravel after the initial agreement? Often, parties discover they had different interpretations or expectations once they delve into the details. Critical points like payment schedules, deliverables, intellectual property, or liability can trigger conflict if they weren’t fully hashed out. Negotiators sometimes revert to hardball tactics on these points, reopening what felt like a settled negotiation. Complacency is costly here. If you act like it’s a done deal, you might concede too much on remaining issues or miss red flags about the other side’s commitment. Nibbles are common at this stage.
Things to consider:
- Lock in clarity in writing: As part of concluding the deal, collaboratively draft a detailed term sheet or memorandum of understanding. This ensures both sides are literally on the same page. During the Conclude Stage of negotiation, savvy negotiators verify that the other side can follow through on promises and that all key points are documented. Don’t consider the negotiation over until you have a written agreement reflecting the complete understanding.
- Anticipate the hard questions: Before finalizing, ask “What could derail this deal?” Maybe an executive needs to approve, or technical specifications need review. Proactively negotiate how contingencies like this will be handled. For example, if certain contract clauses are non-negotiable for your side (compliance requirements, warranty terms, etc.), address them early rather than waiting for attorneys to battle it out later.
- Keep negotiating collaboratively: Maintain the same cooperative tone you had when you reached the handshake. If new issues arise in drafting the contract, approach them as joint problem-solving exercises. Remember that both sides want the deal to succeed; use that as common ground. Often a bit of flexibility on non-critical points or creative compromise can resolve last-minute sticking points without sacrificing your core interests.
- Don’t celebrate too early: It’s fine to be optimistic once you have a tentative deal but be cautious. Stay engaged until the ink is dry. Many a deal that looked great at the table has fallen apart in the legal review or procurement approval stage due to neglect or misunderstanding. The negotiation isn’t over until every stakeholder is on board and the documents are signed.
Negotiation After the Deal
Even once a contract is signed and the deal is officially closed, a seasoned negotiator knows the process isn’t truly finished. The execution of an agreement will inevitably require ongoing negotiation. Conditions change, misunderstandings pop up, and external factors can impact what was agreed. If you assume the negotiation ended when the deal was signed, you’ll be unprepared to handle these changes and opportunities. The best negotiators continue negotiating after the deal, actively managing the partnership to ensure mutual success.
Think of a signed deal not as the end, but as the beginning of a working relationship. As our recent Watershed Insight pointed out, a deal is not a relationship. You have to build and sustain that relationship through communication, trust, and yes, continued negotiation. For example, if market conditions shift or one party’s needs evolve, the rigid terms on paper might not suit reality. A renegotiation or adjustment may be necessary. Far from indicating failure, such adjustments (when done collaboratively) are a sign of a healthy, adaptable partnership. In fact, negotiation research from Harvard introduces the idea of post-settlement settlements, or a “PSS.” A PSS is a creative approach to finding ways to improve the deal even after it’s signed. This means both sides keep looking for additional value or efficiencies once they’ve locked in the contract, rather than walking away thinking all value has been extracted.
Here are a few reasons post-deal negotiation and relationship management are so critical:
- Changing circumstances: No contract can anticipate every scenario. When unexpected events happen (supply chain delays, regulatory changes, a pandemic, etc.), the parties will need to negotiate adjustments. If you’ve maintained a good working relationship, you’re more likely to find solutions that work for both sides instead of resorting to legal battles. Ongoing dialogue and a problem-solving attitude are key to sustaining agreements over time.
- Performance and expectations: During execution, one side might feel the other isn’t fully delivering on promises, or perhaps the outcomes aren’t meeting expectations. Rather than letting frustration fester (or, conversely, blindly assuming all is well), effective partners talk it out. They negotiate tweaks to the scope, additional support, or revised timelines. Regular check-ins can be framed as mini-negotiations to realign on expectations and keep the relationship strong.
- Future opportunities: If you treat every deal as isolated and “done,” you may miss out on the bigger picture. By contrast, viewing a signed deal as a platform for future collaboration allows negotiators to find new negotiation opportunities post-deal. Maybe there’s a chance to expand the partnership, tackle a new project together, or restructure aspects of the deal for greater mutual benefit. When you continuously negotiate in the spirit of partnership, you are investing in the long-term pie. This long-term focus is the essence of relationship-based negotiations and it’s how trust is built incrementally.
Never assume a negotiation is truly over. An impasse isn’t the end, it’s just another problem to solve. An agreement in principle isn’t final until all the terms are secured. And a signed contract isn’t the finish line, because real-world execution will demand flexibility and continued communication. Adopt a mindset of continuous negotiation: you stay prepared, you stay alert to risks, and you stay ready to collaborate on emerging needs. This approach ensures that the value you negotiated is not just won at the table, but realized and amplified over the lifetime of the deal. In negotiation, as in business, it’s never really “over.”