Expanding the Pie: Strategies for Creating Value in Negotiations

Negotiations are often perceived as battles where each party tries to extract as much as possible, leaving the other side with less. This zero-sum thinking assumes that the value at stake is fixed, and any gain by one side is a loss for the other. But we think that’s a limiting mindset. Instead, adopting the strategy of expanding the pie often offers an alternative that creates value for all parties involved.

Expanding the pie in negotiation means increasing the total value available so that both sides walk away with more than they initially expected. In this article, we’ll explore the strategies for creating value in negotiations and show you how expanding the pie can lead to better, more satisfying outcomes for all parties.

What Is Expanding the Pie in Negotiation?

Expanding the pie refers to finding creative solutions that increase the overall value of the deal, rather than fighting over the limited resources available. In traditional negotiations, both parties typically focus on their individual interests, which can lead to a narrow, win-lose approach. But expanding the pie shifts the focus to collaboration—identifying shared interests and generating options that allow both sides to benefit.

For example, instead of haggling over price alone, both parties might explore ways to add value through extra services, long-term commitments, or other concessions that make the overall deal more attractive. The idea is that by enlarging the scope of the negotiation, everyone can walk away with more.

Let’s dive into the strategies that can help you put this expanding negotiation tactic to work.

Identify Shared Interests and Goals

The first step in expanding the pie is to identify areas of shared interests and goals. Finding common ground helps both parties see that they’re not just opponents but potential collaborators working toward a mutually beneficial solution.

For instance, if two businesses are negotiating a partnership, they may both be interested in long-term success and growth. Recognizing this shared goal can shift the conversation from adversarial to cooperative. By understanding what the other party values, you can better align your offers and proposals to create more value for both sides.

Brainstorm Creative Solutions

Once shared interests are identified, it’s time to get creative. Brainstorming creative solutions allows both parties to think outside the box and discover ways to add value beyond the traditional terms of negotiation.

For example, bundling services or offering flexible payment terms might be appealing options that weren’t initially on the table. You could also explore opportunities to swap assets or find third-party solutions that benefit both sides.

The goal is to expand the possibilities so that there’s more value to share, rather than sticking to a narrow, win-lose dynamic. Keep in mind that not every idea will work for both parties, but discussing a variety of options ensures that you cover all potential avenues.

Build Trust and Rapport

Negotiations often become tense and confrontational, especially when both sides are focused on their own interests. Building trust and rapport can soften these tensions and make it easier to reach a collaborative agreement. When parties trust each other, they’re more willing to share information and work together to find solutions that benefit everyone.

Trust can be established by demonstrating a genuine interest in the other party’s success, being transparent in your communications, and following through on commitments. When both sides feel they’re working toward a common goal, they’re more likely to open up and engage in productive negotiations.

Use Objective Criteria to Guide the Process

When it comes time to negotiate the details of the agreement, using objective criteria can help maintain a focus on fairness and mutual gain. Instead of relying on subjective opinions or emotional appeals, both parties can agree to base their decisions on impartial data or expert recommendations.

For example, market data can provide a fair baseline for pricing, while third-party experts can offer guidance on complex technical issues. Relying on objective standards ensures that both sides feel confident in the fairness of the final agreement, which reduces the risk of future disputes.

The principled negotiation approach, popularized by Harvard’s Program on Negotiation, emphasizes the importance of focusing on objective criteria as a way to resolve differences without devolving into conflict.

Stay Positive and Flexible Throughout the Negotiation

Negotiations rarely go according to plan, and sometimes unexpected challenges arise. Maintaining a positive and flexible attitude allows you to adapt to changing circumstances and continue working toward a mutually beneficial solution.

For instance, if one avenue for expanding the pie is blocked, stay open to other possibilities. Flexibility shows the other party that you’re willing to collaborate rather than dig in your heels, which can help move the negotiation forward. By keeping a positive outlook and exploring new ideas, you increase the chances of finding a solution that satisfies both sides.

Why Expanding the Pie Leads to Better Outcomes

The key advantage of expanding the pie is that it transforms negotiations from a competitive struggle into a collaborative opportunity. When both parties focus on creating value rather than just splitting the existing value, they are more likely to reach agreements that go beyond their initial expectations.

By identifying shared interests, brainstorming creative solutions, building trust, using objective criteria, and staying flexible, you can expand the scope of negotiations and open up opportunities for greater success. Expanding the pie creates a dynamic where both parties feel they’ve gained something valuable, which strengthens the relationship and sets the stage for future collaboration.

Create Value by Expanding the Pie

Next time you’re at the negotiation table, remember that the best deals aren’t about squeezing the other side for every last bit of value. They’re about finding ways to expand the pie—adding value that benefits both parties. By focusing on collaboration, exploring shared goals, and staying open to creative solutions, you’ll be able to create agreements that leave everyone better off.

Negotiation doesn’t have to be a zero-sum game. Strategies for creating value in negotiations—such as building trust, brainstorming creative solutions, and using objective criteria—help turn potential conflict into opportunity. As you incorporate these strategies into your negotiations, you’ll not only secure better deals but also build lasting relationships based on mutual respect and trust.