Lessons on Negotiating Contracts

By William Mwangi, CIPM

Business Development Manager | HR & Technology Solutions | Strategic Sales | Relationship Building | Spearheads High-Impact Partnerships and Revenue Growth Across Pan-African Markets | Professional Saxophonist

 

January 20, 2025 – ABOUT 5 years ago, I was tasked with negotiating a service agreement with the management of a family-owned business in Kenya. Before we even got to the discussion table, I remember vividly I was invited to a lunch meeting at the family’s rural homestead. The host, a respected elder, emphasized the importance of starting with “breaking bread together.”

We spent hours talking—not about the contract, but about life, family, and shared experiences. I learned about their late patriarch’s legacy and how the business was a continuation of his dreams. It was only on the second meeting that we addressed the terms of the agreement.

When the discussion began, their focus wasn’t solely on pricing or deliverables but on trust, integrity, and alignment with their family’s values. I leaned into what I had learned during our earlier conversations, emphasizing how our services would honor their vision. By demonstrating cultural sensitivity and patience, I not only secured the deal but also built a relationship that has flourished over time.

 

This experience taught me that in many African cultural setups, negotiation is as much about relationships as it is about the transaction. Respect for traditions, patience, and genuine engagement can open doors that technical expertise alone cannot.

Negotiating is both an art and a science. Through my experiences, I’ve come to appreciate that every negotiation is unique, shaped by the cultural, emotional, and relational dynamics at play. Reflecting on my journey, here are the key lessons I’ve learned:

1. Build Trust Before Anything Else

Trust is the foundation of any negotiation. In many cultures, particularly in Africa, relationships take precedence over transactions. A handshake, a shared meal, or a personal story can carry more weight than the most compelling business case. I’ve learned that building trust isn’t just about being reliable—it’s about demonstrating genuine care and shared values.

2. Adaptability is Key to Success

Every negotiation is different, not just because of the people involved but also because of their cultural contexts. Some negotiators prefer formal structures, while others lean towards casual conversations. I’ve learned to assess and adapt quickly, meeting people where they are to ensure discussions flow smoothly.

3. Listen Beyond Words

Active listening has been one of the most powerful tools in my negotiation arsenal. It’s not just about hearing words—it’s about reading between the lines. Paying attention to body language, tone, and even moments of silence often reveals more than what is said outright.

4. Emotions Can’t Be Ignored

Negotiations are inherently emotional. Whether it’s excitement, hesitation, or frustration, emotions shape decisions. I’ve learned to be emotionally aware—not just of myself but of my counterparts. By managing emotions and responding empathetically, I’ve been able to turn tense situations into opportunities for collaboration.

5. Pace Yourself According to the Context

Some negotiations move swiftly, while others unfold over weeks or months. I’ve discovered that matching the pace of the other party is crucial. In fast-paced environments, being prepared with facts and figures is essential. In slower negotiations, patience and persistence often pay off.

6. Decision-Making Varies Across Cultures

In some cultures, decisions rest with a single authority, while in others, consensus is the goal. Early in my career, I learned the importance of understanding decision-making hierarchies. Engaging the right stakeholders at the right time ensures momentum and avoids unnecessary delays.

7. Trust Transcends Data

While data and performance metrics are essential, I’ve found that some negotiators place more value on shared values and personal rapport. Demonstrating integrity, aligning on long-term goals, and showing commitment to mutual success often outweigh technical details.

8. Respect Risk Tolerance Differences

Every negotiator has a different appetite for risk. Some are bold, willing to embrace uncertainty for potential rewards. Others are cautious, requiring thorough justifications before moving forward. I’ve learned to tailor my approach, presenting proposals that align with their level of comfort.

9. Patience and Persistence Pay Off

There have been times when deals seemed to stall, but persistence proved invaluable. Showing commitment to the process—without being pushy—demonstrates seriousness and respect for the other party’s concerns.

10. Balance the Short-Term and Long-Term

I’ve realized that successful negotiations aren’t just about closing deals; they’re about creating lasting partnerships. This perspective has helped me focus not just on immediate outcomes but also on building relationships that yield long-term benefits for everyone involved.

11. Every Negotiation is a Learning Opportunity

Each negotiation, successful or not, offers lessons. Whether it’s a cultural nuance, a new tactic, or a personal insight, I’ve come to view every experience as an opportunity to grow.

Thank you,

William Mwangi