Enhancing Negotiation Skills: The Significance and Strategies of Effective Negotiation
- Jayson Lau
- Aug 20
- 5 min read
Updated: Aug 21
For years, Hong Kong has been selected as one of the preferred seats of Arbitration, and with the establishment of the International Organisation for Mediation in Hong Kong in May 2025, it is clear that Hong Kong has become the heart for ADR (Alternative Dispute Resolution). This evolution highlights why strong negotiation skills are essential for legal professionals, mediators, and parties involved in any form of ADR.
Author: Jayson Lau, Campus Ambassador 2023/24
Importance of Negotiation
There is an increasing trend for parties in a dispute to opt for ADR over taking their cases to court, primarily due to the lengthy and costly nature of court proceedings. Parties may appreciate the opportunity for creative settlements, the ability to maintain control over the process, and the advantage of avoiding public exposure.
Among various ADR methods, mastering negotiation stands out as one of the most crucial. On top of that, negotiation skills are indispensable in commercial settings, particularly during discussions involving high-stakes deals like mergers and acquisitions. Earlier in 2024, Mr. Ravenscroft graciously led a master class focusing on the fundamentals of mediation and, notably, the essential skills required to excel as a negotiator. This blog highlights some key skill sets that distinguish a successful negotiator.
Eight key tips for handling a negotiation
Break down the question.
When addressing a dispute, it's crucial to divide the points of contention into smaller, manageable parts, much like outlining an essay. Disputes are often lengthy and complex, making it nearly impossible to resolve everything at once. By breaking the dispute into finer points, you can tackle each aspect individually, simplifying the negotiation process and making it more manageable.
Do not get stuck on one issue
It is often more effective to reach tentative agreements on individual matters, allowing for later adjustments, rather than losing the essence of the issue in the pursuit of a perfect compromise. In such a situation, it may be desirable to take a step back and reconsider the whole situation. Adjourn tricky problems and revisit them later.
By temporarily setting aside contentious issues, trust can be built and progress can be made in other areas, which can lead to creative solutions emerging naturally. This strategy not only keeps the negotiation moving, but also helps prevent conflicts from escalating, resulting in a more comprehensive and satisfactory resolution for all parties involved.
Consider global solutions
While the first tip suggests breaking down the question into smaller parts, the solution does not necessarily have to provide an answer to each of the problem's constituent elements. When it becomes overly challenging or time-consuming to address each issue individually, it might be more efficient to consider a comprehensive approach that encompasses all the issues in a single deal. Some components of the question may present little to no novel challenges, making it wise to consolidate similar points and allocate more time to addressing the more contentious aspects.
Consider the type of offer that is more likely to be successful
Adjust your negotiation approach to cater towards the particulars of the dispute, such as the preferences of the other party. Having a good contextual understanding of the opposing party is important when making a deal suitable for both parties, for example, “Will they accept less for an early payment or are they willing to wait and get paid in installments?”. This not only can reduce the guesswork while making an offer, but also reduce the time required to go back and forth on offers that are set for failure in the first place.
Exploit differences and understand that parties value things differently
Each party can always provide something the other cannot. Meaning that it is crucial for you to understand the strength of your hand and respond appropriately to achieve the best deal with what you have. For example, it is possible that the other party may be able to deliver something your party really wants that they do not value highly. In this case, you can leverage this information to your benefit. By identifying these opportunities, you can negotiate more favourable terms by offering something of value in return. This exchange capitalises on mutual interests and can lead to a win-win situation.
Different risk aversions
It is not always about being the most intelligent person around the table. Other than having a tactical master plan, being able to show respect and manners to the opposition will contribute to the success of the negotiation. Ultimately, it is not about who is right or wrong, and definitely try to avoid stirring up emotions during the negotiation. The key motivation is to settle on a common ground. Likewise, although persuasion techniques are key to negotiation, never overdo it. If persuasion techniques are not well executed, they can play against you and put the negotiation at a standstill.
Seek areas for cooperation
Since the goal is to reach a settlement, it is paramount to identify where mutual interests align and explore collaborative solutions. When exploring collaborative solutions, parties can foster a greater sense of trust and understanding. The exchange of ideas, perspectives, and concessions in a constructive manner can improve the likelihood of achieving their individual objectives and form a mutually beneficial agreement. Building upon common ground and working together towards a shared goal not only facilitates smoother negotiations, but also paves the way for stronger relationships and potential future collaborations.
Effective Communication
Last but not least, the importance of meaningful and precise choice of words cannot be overstated. This might sound cliche, but in a lot of scenarios, negotiators are overly fixated on executing their negotiation strategies and forget about the basics such as clarity of expression. It is pivotal to be able to communicate your points explicitly and succinctly rather than using a lot of flowery language that adds little substance to your point. Remember, less is more!
Negotiation: a mix of style, debate and openness to alternative solutions
The above tips do not constitute an exhaustive list of all possible negotiation tactics. These insights are some of my takeaways from Mr. Ravenscroft’s master class and my personal experience while participating in negotiation competitions. Feel free to add your own twist to the above tips and make a personalized set of tactics suitable for your specific needs!
There are no fixed and fast rules governing how one should approach a negotiation. Each negotiator will have their unique style. Ultimately, negotiation is not a debate, meaning no party will be entirely right or achieve all their desired outcomes. Negotiations are primarily a means to resolve conflicts as a first step. Therefore, if discussions break down, alternative solutions will still be available to address the issue
If you are interested in gaining insight on mediation, feel free to look into articles written by Mr. Ravenscroft.
Jayson is a gradudate from law school at King's College London. In the academic year 2023 - 2024 he was the King's Campus Ambassador for Ravenscroft & Schmierer.
Jayson Lau
Campus Ambassador
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