By Dr. Nguyen Vu Thuan and Mr. Dang Hoang Huy – PureHigh Negotiation Academy
The Strategic Leader’s Dilemma: Creating Value Without Losing Your Edge
In the commercial meeting rooms and boardrooms, most negotiators fall into one of two traps: they are either too “soft,” focusing entirely on the relationship and leaving money on the table, or too “hard,” aggressively fighting for every cent and destroying long-term trust. The most sophisticated negotiators, however, understand that negotiation is not a single-track process. It is a dual-tension exercise between Value Creation and Value Claiming.
This tension is called the “Negotiator’s Dilemma.” To create value, you must be open and share information; yet, sharing that very information can make you vulnerable to a partner who only wishes to claim value for themselves.
The Strategy of Expansion: Creating Value
Value creation is the process of “expanding the pie” before it is divided. According to the Harvard, the most effective way to do this is to move from positions (what people want) to interests (why they want it).
- Trading the differences that value: trading across issues that are valued differently by each party. For example, a supplier might value early payment terms more than a 2% price increase, while the buyer values cash flow less than budget certainty. By “trading” these differences, both sides gain more than they would in a simple price haggle.
- The Value Circle: negotiators should focus on the “Circle of Value,” which includes not just the substance of the deal, but the relationship, the process, and the legitimacy of the terms. By broadening the scope, you find more “pegs” on which to hang a deal.
The Strategy of Capture: Claiming Value
Once the pie has been expanded, you must still claim your fair share. Claiming value is often seen as “distributive bargaining,” but it can be done ethically.
- Framing and Anchoring: Research highlights that how you “frame” an offer—as a gain or a potential loss—drastically changes the recipient’s risk appetite. Setting a strategic “anchor” (the first offer) often dictates the range of the final agreement, provided it is backed by legitimate data.
- The “If…Then” Principle: you should never give anything away for free. Every concession intended to “create value” must be linked to a reciprocal move (“If you can move on the delivery lead time, then we can look at the volume commitment”). This ensures that value claiming happens simultaneously with value creation
Managing the Tension
The secret to high-level negotiation is sequencing. Start with an “Integrative” mindset to build the pie—sharing information about priorities but not your bottom line. As the deal nears completion, transition to a “Distributive” mindset to ensure the final slice reflects your brand’s worth. Value-based negotiators don’t just sell products; they sell “commercial excellence,” which requires capturing the value of the innovation and service they bring to the table.
By mastering this balance, Key Account Managers transform from mere “order takers” into strategic partners who drive growth for both their own organization and their clients.
References
Bazerman, M.H. and Moore, D.A. (2012). Judgment in Managerial Decision Making. 8th edition. Wiley.
Falcão, H. (2010). Value Negotiation: How to Finally Get the Win-Win Right. Pearson Education.
Fisher, R., Ury, W.L. and Patton, B. (2011). Getting to Yes: Negotiating Agreement Without Giving In. 3rd edition. Penguin Books.
Harvard Program on Negotiation (PON) (2025). Value Creation in Negotiation.
IMD Business School (2025). Negotiating for Value Creation.
Lax, D.A. and Sebenius, J.K. (1986). The Manager as Negotiator. New York: Free Press.
