RomeenSheth outlines 3+3 negotiation

- Romeen Sheth set out a “3+3” negotiation framework in a May 2023 post and companion essay that splits deal work into substance and process. (romeensheth.com) - Sheth’s core argument is that negotiators should “expand the pie” before trying to capture value, and that process errors sink many deals. (romeensheth.com) - The framework’s six levers give leasing teams, founders and operators a checklist for the next live negotiation, rather than a price-only fight. (romeensheth.com)

Romeen Sheth’s “3+3” negotiation framework is a simple way to widen a deal conversation when talks start collapsing into a single variable. In a May 2023 post and a longer write-up on his website, Sheth divided negotiations into two buckets: three “substance” drivers and three “process” drivers. (romeensheth.com) His premise is that most people aim at the wrong target. Sheth wrote that amateur negotiators focus on “winning,” while better negotiators try to create more total value first and then capture their share of it. (romeensheth.com) ### What are the three substance drivers? (romeensheth.com) Sheth’s first bucket covers the core economics of a deal: price, terms and the range of acceptable outcomes. The first move, in his framework, is to define an outcome spectrum rather than a single ideal result. That means identifying what a great outcome looks like, what an acceptable fallback looks like, and where the walk-away line sits. (romeensheth.com) The second move is to expand the variables under discussion. Sheth argues that negotiators get stuck when they fixate on one headline point, usually price, instead of adding other levers that can create value for both sides. (romeensheth.com) The third substance driver is to use guardrails to break impasses. In practice, that means structuring choices and trade-offs so the conversation can keep moving without either side feeling it has conceded everything at once. That approach is especially useful in leasing, hiring, vendor contracts and other deals where timing, scope, flexibility or service levels can matter as much as headline economics. (romeensheth.com) That final application is an inference from Sheth’s framework, not a direct quote. ### Why does Sheth put so much weight on process? Sheth wrote that “most deals are lost because the process drivers are managed too casually / lackadaisically.” His point is that a negotiation can fail even when the economics are close, if the people running the process mishandle pace, trust or communication. (romeensheth.com) That second bucket starts with relationship-building. Sheth treats rapport as part of the negotiation itself, not as a soft extra layered on top. He also calls for matching communication styles, which means adjusting how information is presented and discussed depending on the counterparty. (romeensheth.com) The final process driver is velocity. Sheth argues that speed matters because slow-moving negotiations create openings for confusion, fatigue and competitive interference. A faster process, in his telling, can preserve momentum and improve the odds of closing. (romeensheth.com) ### How does this apply in a warehouse or leasing negotiation? In a lease negotiation, the framework gives brokers, landlords and tenants a way to stop arguing only about rent. A team using Sheth’s model could widen the conversation to include free rent, tenant improvements, expansion rights, commencement timing, renewal options, operating flexibility or notice periods. (romeensheth.com) That application follows directly from Sheth’s instruction to expand variables beyond price. For leasing teams, the process side can matter just as much. A landlord that answers quickly, adapts to a tenant’s decision style and keeps principals aligned may preserve a deal that would otherwise stall. (romeensheth.com) Sheth’s framework does not promise a better outcome in every case. It does offer a checklist for the next round of talks: define the range, add levers, set guardrails, build trust, match style and keep the process moving.

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