Inspired by a recent insightful webinar “The Secrets of Successful Negotiation” by Law Firm Ambition, we explore the key strategies and tips we took away from the webinar to help lawyers refine their negotiation styles and enhance their effectiveness.  

Negotiation is a functional activity that blends strategy and emotion, where great influencing skills can make a significant difference. It is not just about reaching an agreement; it is about navigating the interests and perspectives that each party bring to the table. The key to a successful negotiation lies in planning, understanding human needs, and aiming for a mutually beneficial outcome—often referred to as a “win-win” solution. 

Key Needs in Negotiation: 
  • The Need to Feel Safe and Secure: Ensuring the other party feels safe promotes trust and openness. 
  • The Need to Feel in Control: Everyone wants to have some sense of control during negotiations. Acknowledging this need allows for smoother communication. 
  • The Power of the Word “Fair”: People have a strong emotional response to fairness. Using the word strategically can enhance agreement. 
Common Negotiation Situations for Lawyers
In non-contentious matters, the biggest pain point is often costs, especially contingency fees. The primary challenge for law firms is managing client expectations and maintaining clear communication around fees. Fee negotiation is not just about the number – it is also about the terms of the relationship and finding ways to collaborate for long-term success. 
 
Negotiator Profiles 
Negotiators can be broken down into three main profiles; combative, collaborative, or cooperative. Your approach should be tailored to the situation and your counterpart’s style. 
  • Combative: Focused on winning, often at the expense of the other party. 
  • Collaborative: Seeks win-win solutions by working together. 
  • Cooperative: Willing to compromise, but still with personal goals in mind.

 

Buyer Types: 
  • Cost-Focused Buyers: Care mostly about price (10% of buyers). 
  • Value Buyers: Want the most value for their investment. 
  • Relationship Buyers: Focus on the long-term relationship. 
 
Planning for Negotiation 
While many enter negotiations without detailed preparation, effective planning increases success. A poll conducted Law Firm Ambition during the webinar showed that only 12% of negotiators always plan, while 44% do so sometimes. Common issues with lack of planning include rushing into negotiations without strategy, and not handling the other party’s concerns effectively. 
 
To avoid these pitfalls:
  • Write a Negotiation Plan: Knowing the objectives and walk-away points is essential. 
  • List Variables: Identify what you and the other party can trade. 
  • Understand Value: Don’t focus only on features; understand what the other party values. Are you selling a product or a service? 
 
The Role of Trust and Timing 
Trust is crucial in negotiations. A person who constantly negotiates everything may seem untrustworthy, which can undermine long-term relationships. Timing is also key rushing can lead to mistakes, while silence and pauses can give you leverage. 
 
Behaviour and Strategy in Negotiation 
Different personalities approach negotiations differently. For example, a “red” (direct, assertive) person negotiates differently from a “yellow” (social, engaging) or “green” (thoughtful, steady) person. Understanding the behavioural style of both parties is crucial. 
 
Key Strategies for Success: 
  • Invent Options for Mutual Gain: Collaborate with the other party to find creative solutions that benefit both sides. 
  • Don’t Rush: Use silence strategically and avoid letting adrenaline or pressure dictate the conversation. 
  • Playback Technique: Repeating back what the other party says can give them a chance to reconsider their stance. 
  • Shock and Pause: Using numbers and pauses can shift the dynamics of the conversation. 
  • Be Realistic: Recognise your strengths and weaknesses and focus on the overall quality of the interaction.
 
Final Tips: 
  • Reframe Negative Points: Like barristers in court, present weaknesses with your own spin. 
  • Don’t Give Away Something for Nothing: Always seek to receive something in return when making concessions. 
  • Leverage Non-Round Numbers: Less obvious numbers can shift perceptions in your favour. 
  • Consider Relationships: Understand whether the negotiation is part of an ongoing relationship or a one-off deal and adjust your strategy accordingly. 
 

Special thanks to Law Firm Ambition hosted by Andy Poole, and speakers Jim Thomas, Richard Allen and Andrew Hampel for another informative session. 

Sign up for Law Firm Ambitions next webinar in November “Current AI and Automation in Law Firms” here. Cashroom are proud to be one of the founding partners of Law Firm Ambition. Sign up to our newsletter and follow us on LinkedIn for early bird offers to next year’s Annual Conference in London. 

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‘The Cashroom have been an integral part of MBM from their inception. They has supported the growth of MBM from a small firm of 15 people all the way to the 70+ partners and staff now working in the firm. I have first hand experience of the wealth of skill employed within the business and the cashiering knowledge is unrivalled. The fluid ability of Cashroom to adapt to the changing requirements of a firm on a daily basis, as well as the ability to cover holiday periods seamlessly would be a benefit to any law firm. The Cashroom portal provides a first class workflow system for all cashiering requests and, more importantly, provides the level of security that email instructions do not. Cashroom provide both a cost effective fully outsourced service that can deliver almost everything that an internal finance team would be charged with, as well as a wraparound service to support an internal finance team.’ 

Stewart MacBride
Finance Director, MBM Commercial LLP
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