What’s the key to securing better agreements? Whether negotiating internally across business functions or externally with suppliers, advisors or software providers, finance leaders are increasingly expected to deliver outcomes that balance cost, risk and long-term value.
For today’s CFO, negotiation is no longer an occasional requirement, it is a core leadership capability. So how can finance professionals consistently achieve stronger outcomes? Three senior experts share their perspectives on what separates effective negotiators from the rest.
Preparation creates leverage
For Dr Lohyd Terrier, associate professor in organisational behaviour at EHL Hospitality Business School, successful negotiation begins long before anyone enters the room. “The more time you invest in preparing for your negotiation, the greater your chances of success,” he explains.
Silence without purpose creates tension rather than cooperation
Understanding what happens if a deal fails and having a strong fallback position is, in Terrier’s view, the single most powerful lever in any negotiation. Entering discussions without credible alternatives significantly weakens negotiating power. By contrast, knowing your options enables clearer decision-making and greater confidence during difficult conversations.
But preparation is only part of the equation. Terrier argues that negotiation is ultimately a skill built through repetition. “If you want to improve your negotiation skills, negotiate,” he says. Everyday situations – from discussing subscription pricing to purchasing decisions – provide opportunities to understand how others think, decide and compromise. Over time, this practice helps leaders identify solutions where others see impasses.
Empathy drives better outcomes
While preparation builds structure, Vineta Bajaj, CFO at Rohlik Group, believes successful negotiation is fundamentally human. “Negotiation is driven by empathy and understanding,” she says. “It’s about more than contracts, it’s about tapping into what motivates the people you’re negotiating with.”
While finance leaders are accustomed to data-driven decision-making, understanding counterpart incentives, pressures and objectives can unlock outcomes that rigid bargaining cannot.
Bajaj emphasises that mutual respect frequently produces stronger long-term results than an overly aggressive stance. Open communication is central to achieving this balance. Ensuring both sides feel heard encourages collaboration and problem-solving. Conversely, silence used purely as a tactic can backfire.
“Silence without purpose creates tension rather than cooperation,” she notes. Instead of advancing discussions, it can shut down dialogue and make resolution harder to reach.
Learning negotiation across the business
Amy Luke, senior director of the Financial Leadership Practice at BIE Executive, sees negotiation capability as closely linked to cross-functional exposure, an area where aspiring and sitting CFOs can actively invest.
If you want to improve your negotiation skills, negotiate
While formal negotiation courses can provide useful frameworks, Luke stresses that real development comes from hands-on experience. “Seek the opportunity to partner with procurement, supply chain and commercial teams, ensuring you understand their objectives, levers and tactics. Not only will this develop your skills but also will help you build strong relationships across the business. Spending time with legal to understand commercial contracts is valuable as CFOs are expected to understand and manage the business’s risks, which are often deep in the small print.”
Lastly, Luke says it’s worth bearing in mind that many CFOs today are expected to oversee procurement, so having competence in this area is a big tick in the box when applying for a new role.
What’s the key to securing better agreements? Whether negotiating internally across business functions or externally with suppliers, advisors or software providers, finance leaders are increasingly expected to deliver outcomes that balance cost, risk and long-term value.
For today’s CFO, negotiation is no longer an occasional requirement, it is a core leadership capability. So how can finance professionals consistently achieve stronger outcomes? Three senior experts share their perspectives on what separates effective negotiators from the rest.
