Closing the Deal

Closing the deal after reaching an agreement is the last but most critical part of any negotiation process. It is certainly not simple, and is not just about outcomes. It also has to do with building relationships and making sure that the negotiated agreements can be carried out smoothly. Closing the deal properly is especially important when negotiated agreements are complex and multi-dimensional.

Preparing to close

Before you close the deal, both you and your counterpart need to understand that the purpose of making the deal is not to sign the contract, but rather to accomplish what the contract specifies. What goals is each party pursuing through the deal and what will it take to accomplish them? As you depend on each other to accomplish your goals, it is important to make sure that both parties are signing the contract wholeheartedly. Review both parties’ key interests and ensure that nothing has been neglected. It is quite possible for the other party to decide to overturn the entire deal if he or she feels pushed into an agreement without having their own needs taken care of.

Closing a deal

• Have you considered all possible stakeholders?

• Have you clarified the purpose of the deal?

• Have you made sure that both parties understand what it takes to implement the agreement?

• Have you built a relationship with the other party, to pave the way for future collaboration?

• Have you made enough arrangements for another team to implement the agreement, if another team is taking over?

Considering implementation

Most negotiators underestimate the importance of implementation. If not considered, the intense process of negotiation can undermine your ability to achieve your goals after the deal has been signed. For example, if you have used hard negotiation tactics to push the other party to agree to the deal, the other party may feel, upon signing the contract, that they have been unfairly treated and sabotage the deal, or fail to deliver.

Before you put pen to paper, discuss the implementation of the deal with the other party. What you agree must fulfill the needs of both parties if you are to ensure successful implementation. Unless both parties have confidence that the deal can be successfully implemented, there is no point in continuing the discussion.

Reaching agreement

A written agreement usually marks the closure of a negotiation. The agreement, which includes solutions for both parties, may be summarized and you may ask the other party to sign this document. This is the most simple and natural way to conclude a negotiation. Changes should be allowed after the agreement has been signed. In other words, if circumstances change, both parties should feel comfortable contacting the other party to discuss these changes. Upon mutual agreement, such changes can be incorporated into the new agreement. Make sure you include this last point in the agreement, as a deal is not done until it is done—it is better to allow for some flexibility than to force the other party to overthrow the entire deal, should the circumstances change.

Ensure effective implementation