Traditional approaches to contract negotiation, heavily focused on risk mitigation, are increasingly misaligned with business needs. New research shows that while companies spend considerable time haggling over legal protections, the most common sources of disagreement during contract execution are practical issues like pricing, scope, and delivery. The path forward requires a fundamental shift in how we approach negotiations. This isn’t about abandoning risk management — it’s about recognizing that the best risk management strategy is often creating clear, practical agreements focused on mutual success. Organizations that make this shift are seeing tangible benefits: faster negotiations, better acceptance rates, and most importantly, more successful business relationships.

In navigating today’s turbulent business environment, open and collaborative relationships are increasingly essential. This is a point recognized by many executives and endorsed by more than 80% of contract negotiators. Yet our recent global study reveals a startling truth: most companies remain stuck in an outdated, adversarial approach to deal-making. This conflict-oriented mindset not only hampers innovation and growth but also leaves significant value on the table.