Creating Value - Before You Divide It.

Negotiation isn’t just about slicing the pie. It’s about making the pie bigger—then dividing it wisely. At Sheer Negotiations, we call this value creation, and it’s at the core of all sustainable, interest-based negotiation work.

Expanding the Pie: Going Beyond the Obvious

One of the most effective ways to create value is to expand the pool of negotiable items. Many negotiations suffer from a narrow view of what’s “on the table.” We teach clients to dig deeper and find creative, often non-obvious, negotiables.

For example:

  • Delivery dates

  • Access to data or future rights

  • Brand alignment

  • Acknowledgment or naming rights

  • Flexibility in execution methods

This reflects research from Lax and Sebenius (1986) in The Manager as Negotiator, where they emphasize the importance of “differences” in interests as the source of potential value—not obstacles.

Interest Mapping and Asymmetry

Once interests are clear, we often find asymmetry in needs and values. One party might value liquidity; the other values speed. One party wants visibility; the other wants discretion. These differences can be transformed into value if we ask the right questions.

In a classic study published in Organizational Behavior and Human Decision Processes (Bazerman et al., 1985), researchers showed that negotiators who understood the other party’s preferences were more likely to reach efficient, high-value agreements than those who focused solely on positions.

Moving From Fair to Effective

Dividing value by what feels “fair” often misses the mark. We teach clients to divide value by need or utility rather than evenly. For example, if one side values a feature 10x more than the other, it may make sense for them to “pay” more—financially or otherwise.

This aligns with the concept of logrolling—trading on issues of differing importance. As Fisher and Ury put it: “Invent options for mutual gain.”

Practical Tools We Teach

  • Negotiable Item Brainstorming: Expand the scope of the deal.

  • Value Drivers Matrix: Compare and prioritise interests across parties.

  • Logrolling Techniques: Exchange concessions with unequal value.

  • Identifying opportunities for mutual gain: Methods of uncovering potential value. 

In Conclusion

Creating value is where negotiation turns from zero-sum, to transformative. It requires a mindset of generosity, curiosity, and the mastery of nuance.

 
Noa Sheer