Wharton@Work

May 2025 | 

Break Through Stalemate: Navigate Negotiation Impasses

How to Navigate Negotiation Impasses

One of the most stressful, frustrating experiences in negotiation is hitting an impasse.  You make what you see as a reasonable proposal to close the deal, and the other side says, “Never in a million years. No way.” Is the negotiation over? How can you get it back on track without making a major, perhaps unwarranted, concession?

Professor Richard Shell, who leads the Executive Negotiation Workshop, one of Wharton Executive Education’s longest-running and highest-rated programs, says the first thing to do is step back, take a breath, and relax. “Impasse is part of the game,” he says. “It is a common feature of many negotiations, not a sign of failure. People often view deadlocks as the end of the road, but more often they are just another step on the path. … The best negotiators understand the different types of impasses, prepare for them, and have smart strategies ready to go.”

The first thing you need to ask, Shell says, is what sort of impasse you are experiencing. And that depends on where you are in the process. They can happen at three distinctive stages: the beginning, the middle, and the end. Each type calls for a different response.

Stalled Before You Start?

“We tend to think of negotiation impasses as happening only at the end of a negotiation,” he says, “when you just can’t close the final gap. But it's important to know an impasse can happen anywhere along the way. If your customer won’t return your call, or if you can't get them to commit to a specific time or place to meet, you’re likely at an impasse before the negotiation has even started.”

He explains that strategic reasons usually motivate this type of impasse, so the key is understanding why they are reluctant to engage. “Sometimes it’s to buy time while they develop another alternative to improve their leverage. Or it may have something to do with the individual who is negotiating. For example, this person may be in the middle of a career switch and is delaying the deal so they can hand it off to someone else. Perhaps they are stalling because their boss is pressuring them to give the contract to one of your competitors, even though they would prefer to give it to you. Whatever the cause, there may be political reasons they can't tell you what is going on.”

When an impasse happens at the beginning, Shell says, your political skills will be called on to find a path forward. One useful step might be to tap someone you know who is in the other party’s network — an assistant, a colleague, or a mutual contact — to get a sense of what's happening behind the scenes. Another might be to lower the stakes of communication. Reframe what you are doing from “making a proposal” to “researching market conditions” or “exploring potential partners.” Once you have their attention for even a few minutes, you may gain useful information about what the problem is and where they are in their decision-making process.

“Remember,” says Shell, “every step in a negotiation, no matter how small, is an ‘advance.’  Your job as a negotiator is to accumulate these advances, step by step, to learn what their needs are so you can shape a deal that meets those needs.”

Stuck in the Middle: What to Do When Momentum Stalls

Even after a strong start, negotiations can lose traction. Shell notes that mid-negotiation impasses often arise when expectations shift, new information surfaces, or you hit on an issue that they refuse to even discuss. “When they look uncomfortable, move the topic to something else, or say they lack authority to talk about the issue, you need to note that shift in tone.” Once again, Shell says, political skills rather than bargaining skills are the key. Show some empathy. “I sense that this issue may be especially difficult for you,” you might say. “Can you help me understand why it is so sensitive? We may be able to work around it or help you on another issue that could make this one easier.”

Trust is often a “secret sauce” that helps when sensitive topics are in play, Shell explains.  And even a little bit of trust may be all you need to nudge them toward an advance. One good way to get that trust re-started in a negotiation is to reveal a problem you are having on your side of the table. Try to make common cause with your counterpart over the demands you are each facing. Another might be to test a “trial balloon” that includes a possible concession. You could say that you “might” be willing to consider moving a bit on an issue they have identified as very important to them if they would be open to a similar move on the “tough” issue in question — then see how they respond.

Follow up with questions that get at the underlying reasons why the issue is so troublesome. Perhaps they refused to give another customer the term they are holding back in your deal. They may feel bound in principle to keep it out. “There can be a lot of reasons why a particular term is a hot button,” Shell says. “But you cannot start trying to solve the problem until you know what the problem is. After you do, you can put your creative hat on and come up with options to address their concerns. Give the issue another label.  Make it an option for the second year of the contract, not a concession today.”

No matter what is causing the middle-of-negotiation impasse, getting past it will require “diplomatic skills, tactfulness, emotional intelligence, and persuasion,” Shell says. “Awareness of process options is also crucial, something the negotiation workshop focuses on every day.” Step back and shift the focus to the end of the process, revisiting what success needs to look like for them at the end of the deal. Or change the medium by expanding the bandwidth available for mutual understanding: if you’re emailing, switch to phone or video calls, or move from a call to a face-to-face meeting. The overall goal, Shell says, “is to see if you can get a relationship going that has a little more trust in it. What's going on with this mysterious refusal to move on — or even discuss — something?”

Dealing with a Finish Line Fade

An impasse at the end is often “the most dramatic one,” says Shell. “You might have been negotiating for days or even months, but at the end, someone says, ‘We have to have this, or we’re walking away.’ If both sides lock horns, each claiming the issue is a dealbreaker, everyone walks away, and it looks like the deal has failed.” When this happens, Shell says, it’s important to understand that there are two kinds of impasse at the end, not just one.

The first type signals that the negotiation is truly over. The other side will firmly state they won’t return unless a specific demand, such as a price minimum, is met. Shell advises making your position equally emphatic. “’To be clear,’ you might say, ‘if we could give you everything else you have been asking for but not this issue, then you are telling us this deal is over. Is that correct?’ Then you need to be equally committed on your side that there will be no negotiations going forward unless there is a concession on that issue,” he explains. “Call the question. Be clear and firm. The goal is to test for a bluff.”

The second type of end-of-negotiation impasse sounds similar, but often includes “weasel words,” such as “We absolutely cannot continue these discussions at this time.” Or “We have no authority to talk about this issue any further.” This opens the door for you to ask what time might work or who might have authority.  You might suggest taking a break and getting back together later, saying, “With whom should we be dealing on this issue?” Or “What timeframe might be better to review this issue in the future?”

Shell says either way, “a walkout at or near the end of a deal is an emotional display meant to show seriousness. It’s your job to understand why.”

Anticipate the Impasse

Overall, Shell advises, expect impasses to be a normal part of the process right from the start. “By anticipating potential roadblocks, you can be more strategic about the information you reveal early on. This approach allows you to control the flow of the conversation, keeping key details back until the timing is right. When you’re prepared for a potential impasse, you can navigate the negotiation more effectively, making it easier to respond to challenges without losing ground.” And if you are surprised by a smooth, trusting negotiation with a great counterpart and no bumps in the road, so much the better. Very few negotiators are fired for preparing too much, Shell says. But many make serious mistakes when they are surprised by impasses.