In an exclusive interview, Klaus Lassert and Anna Cajot, N-Conference Director at the Schranner Negotiation Institute, delve into the complex landscape of corporate board negotiations, explaining why traditional tactical skills are no longer enough. His perspective reframes negotiation not as a reactive skill, but as a proactive leadership strategy – one that aligns organizations, anticipates conflict, and shapes long-term value. His insights speak directly to the core of what the Negotiation Conference 2025 explores: the psychology of power, influence, and decision-making in complex, high-stakes environments.
Anna: Klaus, you describe negotiation as corporate strategy rather than simply a tactical or transactional skill. How does this differ from how most organizations approach negotiation?
Klaus: A tactical or transactional skill is what an individual learns – a skill that can be practiced, trained, and improved. Many companies, in fact, most companies, offer negotiation training to their staff. Some do it at a very high level, and that’s great. You need skilled individuals.
But here’s the thing: if every corporation already has trained negotiators, then that no longer gives you a competitive edge. It's like going to war with the confidence that all your soldiers completed basic training – that’s the minimum standard, not a strategy.
What’s often missing is the organizational aspect: creating negotiation as a corporate capability. That includes defining robust processes, building specialized team structures, and ensuring that these are applied consistently. Each company can even develop its own best tactical approach customized to its culture and sector.
And then, there’s a broader layer. Sometimes negotiations have a public or symbolic dimension, especially at the senior level or when the stakes are high. So, this becomes not just a skill issue, but a leadership, organizational, and sometimes a public strategy challenge.
Anna: From a board-level perspective, what do you see as the most critical ways organizations can approach negotiation as a strategic process beyond just what happens at the table?
Klaus: The biggest opportunity, the first and indispensable step is recognizing that this is a strategic task. Imagine two organizations negotiating – one sends in uncoordinated teams, the other operates like a well-drilled military unit. Who has the advantage?
The organization that is better aligned internally will always have the edge. Their teams are prepared for conflict, they anticipate what’s coming, and they are clear on objectives. Most negotiation failures aren’t about what happens at the table; they’re about what didn’t happen behind the scenes.
Front-line teams must be given leadership from above – clear expectations, defined authority. They need to know precisely when they’re allowed to walk away, what constitutes success, and how they'll be evaluated. If they're unsure, they will play it safe, and “playing it safe” often means losing value.
Then comes internal alignment. Sales, production, and finance, they all need to be on the same page before an external negotiation happens. I’ve seen deals collapse or appear profitable on paper, only to turn disastrous because the internal “pre-negotiation” was fuzzy, imprecise, or politically compromised.
And that brings us to one more thing: decision-maker clarity. In too many cases, it is unclear who the true decision-maker is beneath the CEO. And in a corporate hierarchy, the rule is: there's always someone above. That ambiguity undermines confidence at the table. It's dangerous.
Anna: Let’s turn to negotiation-specific advice for board members. What psychological biases or blind spots most often derail negotiations at the board level, and how can leaders effectively address them?
Klaus: Every negotiator is a human being with their own personality profile, and that creates strengths, preferences, and blind spots. For instance, someone might favour relationship-building but avoid confrontation, or vice versa. You need to know that about yourself, and as a leader, you need to know it about your team.
That’s why team composition is crucial. Who plays which role? Who runs the side channels? Who leads? Who will be accepted as a leader by the other side?
Now, you asked about specific blind spots. At the board level, there’s what we call the Superman Effect. It's not always arrogance; often, it's a desire to help. A CEO may say, "Let me jump in. I’ve done this before." But high-stakes negotiation requires extreme trust. You’re sending people into very ambiguous, high-pressure situations. And the CEO, by stepping in, may unintentionally derail the process, not because they’re unskilled, but because they change the team dynamic and control the narrative.
Let me give you a famous example: the Lehman Brothers collapse in 2008. There was a meeting between Dick Fuld, Lehman’s CEO, and Hank Paulson, the U.S. Treasury Secretary. Fuld came away with what he believed were encouraging signals. Paulson later denied this interpretation. Fuld had gone in alone, and when a CEO negotiates alone, they become the sole narrator of what happened.
That’s one danger. Another was the brief celebration Lehman’s board had when Barclays appeared poised to step in. The relief turned into unfounded optimism, which disconnected them from reality; hours later, the hope evaporated.
This pattern of clinging to positive signals under extreme stress is a very human reaction. But in board-level negotiation, it can be fatal.
Anna: When board members enter high-stakes negotiations, how should they navigate power dynamics (the complex mix of alliances, loyalties, and interpersonal dynamics) that often influence decision-making in the boardroom?
Klaus: The boardroom is a shark tank, where every eyebrow raised counts and where small manoeuvres may have significant consequences for the company.. You’ve got alliances, sub-alliances, and shifting loyalties. A may support B on one issue, but C on another. Now you’re all in the same room. Where does the loyalty lie?
So, you need the ability to speak without speaking, to communicate nuance while protecting political capital. You’re paid to make decisions, but you also have to navigate a web of interpersonal dynamics.
Now, in every boardroom, three levels operate simultaneously:
Here’s the danger: strategic decisions are highly complex. So people either:
Get sucked into endless speculation about the future (rabbit hole). Or they retreat into gut feeling or run with alliances, ignoring the real issues.
The second path is especially dangerous. People align with whoever seems authoritative, not because it's right, but because it’s safe. That’s about political survival. Remember, there are ten seats at the table and a hundred or a thousand people who want one. Everyone’s on alert.
And let’s be honest, if someone is about to leave the board for another company, what incentive do they have to promote the best outcome here? They may even benefit if things go south after they’ve left, as long as they’re not blamed. These things happen. Not often, but often enough.
Anna: Klaus, tell me more about your recent book. Who is it for, those already on boards, or aspiring board members? What will readers take away from it?
Klaus: On the back cover, it says: “For anyone on a board or who wants to get there quickly.”
The book equips you in three key areas:
- Mastering Your Emotions Under Pressure
When everyone in the room is smart, experienced, and highly trained, the decisive factor is who deviates least under stress. It’s the regression effect: under pressure, you drop from 100% of your capability to 99%, and in these settings, 99% might not be enough.
- Handling Other People’s Emotions
Even top-level professionals fear how others will feel. You walk into a meeting and hesitate not because you don’t know your argument, but because you're afraid of being the reactions you evoke. You should not lose all empathy. But you must develop professional detachment under pressure.
- Understanding and Playing Power Games
Most people see only what’s being said. They miss the power games being played: Who's dominating, who’s aligning, who’s maneuvering where? That’s why I give readers practical tools and real-life exercises: to analyze power games in real time and act without hesitation.
There’s also a deep focus on profiling: Understanding your own style, strengths, and traps. That allows you to avoid self-sabotage and deploy your natural strengths to maximum effect.
It’s not about memorizing 48 laws of power. It’s about seeing what’s really going on, second by second, and being able to move within it without needing to retreat and overthink.
We’re excited to welcome Klaus to our Negotiation Conference 2025, where she’ll be leading the workshop “ Negotiation as Corporate Strategy: A Board Member’s Perspective.”
Learn more about the Negotiation Conference: https://www.n-conference.com/conference/zurich