MIT Sloan's negotiation curriculum, synthesised and adapted for carbon removal deals, fractional consulting, and commercial strategy. Six modules. Real frameworks. Applied to your world.
Sessions 1–2: Introduction · What Kind of Negotiator Are You?
Developed by the Harvard Negotiation Project (Fisher & Ury), the Seven Elements is the foundational diagnostic tool used throughout MIT 15.667. Before any negotiation, you map all seven dimensions. Most people think only about two — positions and price. Professional negotiators work all seven.
The power of this framework is that it forces you to separate the surface argument (what they say they want) from the underlying need (why they want it). Once you understand the underlying need, options multiply.
| Element | What it means | Your application |
|---|---|---|
| Interests | What each side actually needs — not the position they state | A carbon removal client says "we need a strategy." Their interest might be: board approval, regulatory compliance, PR positioning, or genuine decarbonisation. Find the real interest. |
| Alternatives (BATNA) | Best Alternative To a Negotiated Agreement — your fallback if no deal | Before any fractional engagement call: "If this client says no, I approach [3 specific prospects]." Your BATNA IS your power. |
| Options | Possible deals that satisfy both sides' interests | Client cannot afford your retainer? Options: reduced scope, milestone payments, equity + reduced fee, deferred payment with premium, success fee structure. |
| Legitimacy | Fair standards both sides accept — market rates, benchmarks, precedent | "Fractional CROs at Series B typically charge £8,000–£12,000/month based on Vendux and RevenueCXO market data." External standards remove ego from price. |
| Commitment | What each side will actually do, spelled out in writing | Never leave a call without: "So we have agreed X by Y date. I will send the engagement letter today." Ambiguity kills deals. |
| Communication | How you talk, listen, and manage the process | Structured discovery calls (your Launch Kit script). Most consultants wing it. Process control = negotiation power. |
| Relationship | The ongoing connection — trust, history, future value | Carbon removal is a small world. A client who says no today refers you tomorrow if the conversation was excellent. |
Developed by Kenneth Thomas and Ralph Kilmann (1974), this self-assessment instrument identifies your default conflict-handling style. The course uses it in Session 2 to help students understand their natural tendencies — and where those tendencies help or hurt.
There are five modes, arranged along two axes: assertiveness (how much you pursue your own concerns) and cooperativeness (how much you pursue the other party's concerns). The skill is not in mastering one mode — it is in knowing which mode fits each situation.
| Mode | When to use | When it backfires | Your scenario |
|---|---|---|---|
| Competing | Quick decisions needed; protecting core interests; you are right and it matters | Damages relationships; misses integrative opportunities | Walking away from a lowball fractional offer that undervalues your work |
| Collaborating | Both interests matter; relationship is long-term; complex issues | Time-consuming; overkill for small issues | Designing a carbon removal commercial strategy with a new partner |
| Compromising | Time-pressed; moderate importance; roughly equal power | Neither side gets what they really want | Splitting a co-development arrangement or speaking fee |
| Avoiding | Trivial issue; need time to think; cost of conflict exceeds benefit | Problems fester; you lose by default | A prospect clearly tyre-kicking — disengage gracefully |
| Accommodating | Relationship matters more than issue; you were wrong; building goodwill | Exploited; sets precedent of low rates | Reduced fee for a strategic referral partner (but get something back) |
References:
Sessions 3–4: Distributive Bargaining · Integrative and Mixed-Motive Bargaining · Ethics
This is the single most commercially important distinction in the entire course. Distributive bargaining is slicing the pie — fixed resources, my gain is your loss. Think procurement teams squeezing suppliers on price. Integrative bargaining is expanding the pie — creating value for both sides through trades where each gives something cheap-to-them but valuable-to-the-other.
Most fee negotiations default to distributive because both sides frame it as a price fight. Your job is to reframe it as integrative — shift the conversation from "how much" to "what structure creates the most value for both of us."
Williams (1983) studied legal negotiators and found roughly 70% are "cooperative" — they seek mutual gain. 30% are "competitive" — they treat every negotiation as zero-sum. The competitive types often win individual deals but lose relationships and referrals over time.
In carbon removal and fractional consulting, your reputation IS your pipeline. A single aggressive negotiation can close doors across an entire niche. Play integrative — unless the relationship is genuinely transactional and one-off.
DISTRIBUTIVE APPROACH (weak):
Client: "We were thinking £5,000/month."
You: "I charge £10,000."
Client: "That is too much."
→ Deadlock, or you discount to £7,000 and feel resentful. The pie shrank.
INTEGRATIVE APPROACH (strong):
Client: "We were thinking £5,000/month."
You: "I understand budget constraints. Let me ask — what would success look like in six months if we worked together?"
Client: "We would want to see pipeline triple and have a repeatable sales process."
You: "If I can deliver that, what would it be worth to the business?"
Client: "Well… a lot. But we cannot afford £10k/month upfront."
You: "What if we did £6,000/month base plus a performance element — say 2% of new revenue above your current baseline? If I deliver, you pay more. If I do not, you pay less."
→ Pie expanded. Both sides have upside. You aligned your fee to their success metric.
| You give | They give |
|---|---|
| Reduced base fee | Performance bonus / equity / success fee |
| Shorter initial commitment (3 months) | Higher monthly rate or longer renewal |
| Case study rights / testimonial | Discounted rate |
| Faster start (this week) | Longer commitment (6 months) |
| Additional scope (team training, audit) | Higher total fee |
Session 3 covers Lewicki's Chapter 7 on ethics — a topic most negotiation courses gloss over. The core question: what are you allowed to conceal, and what must you disclose?
Lewicki identifies four ethical standards people use: (1) Golden Rule — treat others as you want to be treated; (2) Universalism — would you want everyone to do this?; (3) Utilitarianism — greatest good for greatest number; (4) Distributive Justice — is the outcome fair?
The practical rule for consulting: you may not lie about facts, but you are not obligated to volunteer your BATNA or your minimum acceptable price. Strategic silence about your walk-away point is not unethical — it is competent.
Sessions 5–6: Competitive vs Cooperative Styles · Cross-Cultural Negotiation · Emotional Intelligence
Building on the Williams (1983) data from Module 2, Session 5 dives deeper into what drives competitive vs cooperative behaviour. Menkel-Meadow's research shows that cooperative negotiators consistently achieve better outcomes in long-term relationships — more referrals, repeat business, and willingness from the other side to share information.
Competitive negotiators win on individual transactions — they extract more value in a single deal. But they pay a long-term cost: counterparties become guarded, defensive, and less likely to refer. In fractional consulting, where 80%+ of new business comes from referrals, competitive negotiation is a strategic error.
The research also shows that expectations shape outcomes. If you expect the other side to be competitive, you become more competitive yourself — creating a self-fulfilling prophecy. If you expect cooperation and signal it, you elicit cooperation.
Session 5 addresses culture directly. The key insight: negotiation norms vary across cultures along several dimensions — directness (how explicitly you state positions), time orientation (deal-first vs relationship-first), hierarchy (who decides and how), and risk tolerance (how much uncertainty the culture accepts).
For carbon removal work — which is inherently international (UK, EU, US, Middle East, Africa, Asia) — this matters enormously. A UK board expects crisp, direct commercial language. A Middle Eastern partner may expect a relationship-building phase before business is discussed. A US client expects speed and decisiveness. A European client may expect thorough process documentation.
The mistake is assuming your negotiation style is universal. The skill is adapting your style without abandoning your interests.
Session 6 assigns Goleman's Emotional Intelligence (pp. 35–45, 148–163). The course argues that EI is not a "nice to have" — it is the single biggest predictor of negotiation success among experienced professionals.
Goleman's five components applied to negotiation:
| EI Component | In negotiation |
|---|---|
| Self-awareness | You notice your own emotional triggers — the client who makes you defensive, the price that makes you anxious. You cannot manage what you cannot name. |
| Self-regulation | You pause before responding. "Go to the balcony" (Ury). You do not let their emotion dictate yours. |
| Motivation | You are driven by your BATNA and interests, not by the need to "win" each exchange. You can tolerate short-term discomfort for long-term gain. |
| Empathy | You read the room. You notice when the client is uncomfortable, excited, or hiding something. You ask questions that surface unspoken concerns. |
| Social skill | You manage the process — framing, pacing, temperature-checking. You make the other side feel heard even when you disagree. |
Sessions 7–8: Naming-Blaming-Claiming · Dispute Resolution Systems · Engagement Design
Felstiner, Abel, and Sarat (1980–81) identified the three-stage process through which a perceived problem becomes a formal dispute. This is the most important framework in the course for preventing conflicts before they escalate.
Stage 1 — Naming: "Something is wrong." A client senses unhappiness but has not articulated it yet. They feel the engagement is not going well but cannot point to why. This is the easiest stage to resolve — a simple check-in surfaces it.
Stage 2 — Blaming: "It is their fault." The client identifies a cause and assigns responsibility. "The consultant overpromised." "They are not delivering." At this stage, emotions are engaged and positions harden. Harder to resolve, but still possible with structured communication.
Stage 3 — Claiming: "I want redress." The client demands action — a refund, reduced fee, scope change, or termination. At this stage, you are in damage control. The relationship is at risk.
The insight: catch disputes at the naming stage and they rarely reach the claiming stage. This is why the bi-weekly temperature check (below) is so powerful.
Prof. Rowe's central thesis: most disputes are system failures, not people failures. If your engagement letter does not define scope, payment terms, and change mechanisms clearly, disputes are inevitable — regardless of how good the relationship is.
| Risk | Prevention mechanism |
|---|---|
| Scope creep | Engagement letter with explicit scope, change-order clause: "Any work outside this scope is billed at £X/day" |
| Payment disputes | 50% upfront, monthly invoicing, late fee clause, "work pauses if invoice is >14 days overdue" |
| "We thought you would also do X" | Week-one alignment memo: "Here is what I will deliver. Here is what I will not. Sign here." |
| Client changes contact person | Contract clause: "If primary contact changes, a 30-day re-alignment period applies" |
| Performance disputes | Weekly written status reports. Both sides acknowledge receipt. Creates a paper trail. |
| Unspoken dissatisfaction | Bi-weekly 15-minute temperature check: "On a scale of 1–10, how are you feeling about this engagement?" |
Sessions 9–10: Conciliation · Mediation · Investigation · Arbitration · Difficult People
When two parties cannot resolve a dispute directly, a third party can help. But the type of third-party intervention matters enormously. The course covers four distinct roles, each with different power dynamics and appropriate use cases.
As a fractional commercial leader, you will sometimes be the third party — mediating between sales and marketing, between founders and investors, or between a client and their supplier. Understanding these roles helps you choose the right intervention.
| Role | Power | When to use | Your application |
|---|---|---|---|
| Conciliator | Low — just opens communication channels | Parties have stopped talking | Reopening dialogue between a client's sales and product teams |
| Mediator | Medium — facilitates but does not decide | Both sides want resolution but cannot get there alone | Helping two co-founders align on commercial strategy direction |
| Investigator | Medium-high — gathers facts and reports findings | Dispute hinges on disputed facts | Diagnosing why a client's revenue declined — neutral fact-finding |
| Arbitrator | High — imposes a binding decision | Parties want a definitive outcome | Rarely your role as consultant, but contract arbitration clauses matter |
Christopher Moore's The Mediation Process (assigned: Chapters 2, 6, 7) is the definitive text on mediation strategy. The course assigns it for Session 9 because mediation skills are directly transferable to consulting — you are constantly helping clients resolve internal conflicts.
Moore's mediation has distinct phases: opening (establishing ground rules and trust), issue identification (what are we actually disputing?), option generation (brainstorming without commitment), negotiation (trading and narrowing), and closure (formalising agreement).
As a fractional CCO/CRO, you run a compressed version of this every time you facilitate a commercial alignment session between departments. The key insight from Moore: never skip the issue-identification phase. Most failed mediations fail because parties jump to solutions before agreeing on what the problem actually is.
Session 10 assigns the Halliburton Dispute Resolution Program as a benchmark case. Halliburton built an integrated dispute resolution system with multiple escalation tiers — from informal problem-solving to formal arbitration — giving employees and partners a clear path for any grievance.
For your purposes, the lesson is about building escalation paths into your engagements. If a client is unhappy, what happens? If you are unhappy, what happens? A simple escalation clause prevents disputes from festering:
Session 11: Ury's Five-Step Breakthrough Strategy · The Abrasive Personality
William Ury's Getting Past No is assigned in its entirety for Session 11 — the final session. Prof. Rowe calls it "arguably one of the two or three best books of its type." It is a practical, step-by-step system for negotiating with hostile, aggressive, or stalling counterparties.
The core problem Ury addresses: when someone attacks, your natural response is fight or flight. Both are reactions, not responses. Ury's five steps give you a structured alternative — a way to convert confrontation into collaboration without conceding your interests.
| Step | What you do | Applied example |
|---|---|---|
| 1. Go to the balcony | Mentally step back. Do not react. Buy time. Name your emotion, then set it aside. | Client says "Your fee is ridiculous." Pause. "I understand budget is a concern. Can you help me understand what you would consider reasonable, and what is driving that number?" |
| 2. Step to their side | Acknowledge their position without conceding. Listen actively. Do not argue. | "You are right to be careful about costs at this stage. What would make you feel confident this investment is worth it?" |
| 3. Do not reject — reframe | Turn their attack into a problem to solve together. Change "me vs you" to "us vs the problem." | Client: "We do not trust consultants." You: "That is exactly why I propose a 30-day pilot with specific deliverables and a money-back guarantee. If it does not work, you lose nothing." |
| 4. Build them a golden bridge | Make it easy for them to say yes. Save face. Let the solution look like their idea. | "Based on what you said about needing board approval, what if I put together a one-page summary you can take to them? That way the decision is theirs, with all the information." |
| 5. Use power to educate | Do not threaten. Show them the cost of no agreement (their BATNA is worse than they think). | "I want to be transparent — I have capacity for one more client this quarter. If we can agree terms by Friday, I can start Monday. If not, my next availability is October." |
Session 11 also assigns Harry Levinson's "The Abrasive Personality" — a classic study of a specific difficult-person type you will encounter in executive work: the brilliant but hostile leader who alienates everyone around them.
Abrasives are often high-performers who got promoted for technical brilliance but lack interpersonal skill. They compensate for insecurity with aggression. They view collaboration as weakness. They do not understand why people avoid them.
As a fractional commercial leader, you will work for and alongside abrasives. Ury's strategy is your toolkit — but Levinson adds a nuance: abrasives often respect competence more than charm. Do not try to win them over with warmth. Win them with expertise, directness, and results. Deliver value fast, communicate in data not feelings, and let results build the relationship.
The single most leveraged concept in the course
BATNA — Best Alternative To a Negotiated Agreement — is your fallback position. It is not what you hope happens. It is the concrete, specific alternative you will execute if this negotiation fails.
Your BATNA determines everything: your confidence, your willingness to walk, your ability to hold price, and your emotional state during the negotiation. A negotiator without a BATNA is a negotiator who will accept bad terms.
| BATNA Level | Example | Power |
|---|---|---|
| Weak | "I need this client — I have no other prospects" | You will discount. You will accept bad terms. You will feel resentful and the client will sense it. |
| Medium | "I have 3 other active conversations" | You can hold your rate. You can walk away if terms are genuinely bad. You feel calm. |
| Strong | "I have a signed retainer at full rate starting next month, plus a waitlist" | You negotiate from abundance. You set the terms. You say no to bad deals without anxiety. |
1. The Pipeline Rule: Never negotiate with fewer than 3 active prospects. If you have 1 prospect, they have all the power. Three is the minimum for psychological leverage — even if the other two are not as attractive.
2. The Walk-Away Number: Before the call, write down the absolute minimum you will accept — in fee, in terms, in scope. If they go below, you leave. No exceptions. This number must be decided before you are in the room, when you are rational, not during the call when you are emotional.
3. The Alternative Plan: Write down: "If this client says no, I will [specific action]." Not "I will figure something out." A specific action: "I will call [Name], pitch [Company], and launch [Initiative] by [Date]."
Reading frameworks is not enough. Negotiation is a skill — it requires deliberate practice.
Before every call: Write down their interests (3), your BATNA (1 sentence), and three acceptable options. Do this for 5 calls. Review after each: did you miss any interests? Did your BATNA hold?
In every fee discussion, do not quote a number first. Ask what success looks like. Then propose at least one integrative trade — performance element, different scope, different commitment length. Notice how the conversation shifts from price to value.
Next time a prospect or client pushes back on price or scope, do not react. Go to the balcony. Step to their side. Reframe. Practise the full five-step sequence on one real conversation. Write down what happened.
Review your current engagement letter against the Module 4 risk table. Add: scope clause, change-order clause, bi-weekly temperature check, and escalation path. If you do not have a contract template, build one this week.
MIT OCW 15.667 — Negotiation and Conflict Management →
Prof. Mary Rowe · Sloan School of Management · Spring 2001 · Graduate level
Adapted from MIT OCW 15.667 under Creative Commons BY-NC-SA 4.0.
Original course by Prof. Mary Rowe, MIT Sloan School of Management.
Applied scenarios and practice exercises original to this guide.