Use a post-settlement settlement to improve a deal after agreement
Once you have a deal, offer to keep exploring whether a better one exists for both sides.
Key takeaways
- What it is: Once you have a deal, offer to keep exploring whether a better one exists for both sides.
- Why it works: The pressure of reaching agreement often locks negotiators into the first workable deal rather than the best possible one. A post-settlement settlement (PSS) reduces that pressure: both sides commit to the current deal as a floor, then explore alternatives with nothing to lose. Because the fallback is secured, both sides can take creative risks they wouldn’t take earlier.
- Evidence: Backed by observational / correlational evidence.
- Avoid: Opening PSS exploration before formalizing the original agreement, which removes the safety net and puts the deal back at risk.
Why it works
The pressure of reaching agreement often locks negotiators into the first workable deal rather than the best possible one. A post-settlement settlement (PSS) reduces that pressure: both sides commit to the current deal as a floor, then explore alternatives with nothing to lose. Because the fallback is secured, both sides can take creative risks they wouldn’t take earlier.
How to do it
- 1Once a deal is signed, propose: “We both have what we agreed. Would you be open to exploring whether there’s a version we’d both prefer?”
- 2Bring a neutral third party or a structured format if trust is low.
- 3Any alternative must beat the existing deal for both sides or it is rejected.
- 4Set a time limit for the exploration so it doesn’t unsettle the deal.
What the evidence says
ObservationalPSS was developed and studied by Howard Raiffa; his work showed negotiators consistently reach better joint outcomes when allowed to continue exploring after initial agreement under a guaranteed fallback.
Honest caveat: The approach requires both sides to trust that the original deal truly is the floor; if one party fears re-opening will lose them ground, they will refuse.
- — Raiffa (1985), Post-settlement settlements, Negotiation Journal
Common mistake
Opening PSS exploration before formalizing the original agreement, which removes the safety net and puts the deal back at risk.
IX Coach prompts you after a completed negotiation to reflect on what issues might still have room — and whether a follow-up conversation is worth proposing.
Practice this with IX Coach →