Negotiation Practice Scenarios for Managers and Team Leads

Negotiation is one of those skills that people don’t often consider. Despite that, we negotiate all the time. 

Think about it. If you’re a manager or team lead, how often do these situations arise?

  • A team member pushing for more flexibility. 
  • A client asking for a discount. 
  • A colleague competing for the same limited resources.

Okay, so these aren’t boardroom showdowns, but they all involve classic elements of negotiation.

Here’s the problem, though. For 25 years, I’ve worked with business leaders, sales teams, management executives, and far more at varying levels of seniority. 

The majority have never had any formal training on how to negotiate. They learn in real time, under pressure, with real consequences. Some people are naturals – they have the gift of the gab. 

But the rest of us?

It takes experience. Learning what works and what doesn’t. Practice.

And that’s why, in this article, I’ll share a series of practical negotiation scenarios tailored for managers and team leads. These aren’t abstract case studies. They’re realistic, everyday situations. Feel free to use them:

  • As a role-playing exercise with your team or peers
    Assign roles and take turns running through each scenario. Debrief afterwards: What worked? What didn’t? What would you do differently?
  • In one-to-ones or coaching sessions
    These scenarios make great discussion starters. Ask your team how they’d handle each situation and work through their reasoning together.
  • For journaling or scripting
    Pick a scenario and write out how you’d approach it – what would you say, what might the other side push back on?

3 Internal Negotiation Scenarios

Not all negotiations involve contracts or clients. In fact, some of the trickiest ones happen inside your own organisation (I’m sure you’re familiar with office politics).

I’ve picked out three scenarios that managers often face internally. Use them however you wish – for team role-play exercises, to test yourself,  build confidence, and sharpen your approach.

Scenario 1: Competing For Resources

The situation:

You’re leading a time-sensitive project and need an extra pair of hands. The problem? Another department has just requested the same person.

Your challenge:

Convince your peers that your project takes priority, without harming relationships.

Here’s what I recommend practising in this scenario:

  • Uncover their needs: Ask when their deadline is, what they need the person for, and for how long.
  • Look for overlap: Is there a way to stagger support or share the resource on alternating days?
  • Build a case: Clearly explain the potential impact or risks to your project if support isn’t available.
  • Avoid binary thinking: It doesn’t have to be all or nothing—look for flexible options.

What have you practised here?

Scenario 2: Handling Salary Expectations

The situation:

A top performer has just had an excellent performance review and feels they’ve earned a pay rise. You agree they’ve earned it, but there’s no room in the budget.

Your challenge:

Manage expectations while maintaining trust and motivation.

Here’s what I recommend practising in this scenario:

  • Lead with empathy: Acknowledge their contribution and show appreciation.
  • Be honest, not defensive: Explain the financial context and constraints clearly.
  • Offer alternatives: Development opportunities, extra responsibilities, or a review date for future pay discussions.
  • Keep the relationship intact: Make sure they leave the conversation feeling heard, even if the outcome isn’t what they hoped.

What have you practised here?

  • Balancing empathy with difficult messaging
  • Maintaining morale during disappointing conversations
  • Offering non-financial rewards

Scenario 3: Pushing Back On Deadlines

The situation:

Senior leadership has set a tight deadline for a high-profile project. You’ve spoken to your team and it’s clear that the timeline just isn’t feasible.

Your challenge:

Push back on the deadline without sounding like you’re making excuses.

Here’s what I recommend practising in this scenario:

  • Present your case clearly: Use timelines, data, and resource planning to back up your position.
  • Propose solutions, not problems: Can you deliver in stages? What support would make the deadline feasible?
  • Understand the context: Why is this deadline important? Is there flexibility on scope or timing?
  • Project confidence: You’re protecting delivery quality, not dodging responsibility.

What have you practised here?

  • Assertive communication under pressure
  • Reframing conversations around outcomes, not problems

3 External Negotiation Scenarios

I’ve picked out three more scenarios below. These ones are the most common ones my delegates have when they’re dealing with clients and suppliers.

Scenario 4: Contract Renewal With Cost-Conscious Client

The situation:

A key client is up for renewal, but they’re pushing for a 15% discount. You know they’re fishing for a deal, but your margins are already tight.

Your challenge:

Hold firm on value without risking the relationship or the renewal.

Here’s what I recommend practising in this scenario:

  • Explore options: Can you offer added value instead of a discount? Adjust the scope to meet the budget?
  • Be prepared to walk away: Know your breakeven point and stick to it.
  • Stay calm under pressure: Avoid concessions and buy time if you need it.

What have you practised here?

This scenario is obviously quite useful if you’re in business development or account management. If you would like more advice to help you hit your sales or renewal targets, then check out our guide: Negotiation Skills for Sales Professionals.

Scenario 5: Negotiating Better Terms With A Supplier

The situation:

You’ve found a promising new supplier, but their payment terms (50% upfront) aren’t workable for your cash flow.

Your challenge:

Negotiate more flexible terms without damaging the relationship before it’s begun.

Here’s what I recommend practising in this scenario:

  • Lead with transparency: Explain why the terms don’t work and what you need.
  • Offer something in return: Longer commitment, larger order, early payment on delivery.
  • Frame it as a partnership: Remember, this is supposed to benefit both sides.
  • Ask, don’t demand: Keep the tone collaborative, not transactional.

What have you practised here?

  • Negotiating from a place of mutual benefit
  • Making concessions without giving up leverage
  • Building strong partnerships from the start

Scenario 6: Managing Scope Creep

The situation:

The client keeps asking for tweaks and extras that weren’t part of your original agreement. It’s starting to affect timelines and, worse, team morale.

Your challenge:

Push back without damaging the relationship.

Here’s what I recommend practising in this scenario:

  • Refer to the original agreement: Use documentation, but avoid sounding like a jobsworth.
  • Offer solutions, not shutdowns: Can the request be handled in Phase 2? Does it require a change request or additional fee?
  • Acknowledge their intent: Show that you get it, and they’ll be receptive to your position.
  • Practice your language: “Happy to help, but we’ll need to revisit the scope” lands better than “That’s not in the contract.”

What have you practised here?

  • Setting boundaries with clients
  • Separating the people from the problem
  • Dealing with a conflict of interest

Final Thoughts

In my negotiation skills training course, attendees spend an entire afternoon working through example scenarios like these. 

It’s a really powerful thing to do, and I highly recommend giving it a try. Otherwise, when are you going to practice a skillset that, as it turns out, you need almost daily?

But, in truth, the scenarios in this article are just a starting point. Rehearsing them can build confidence and ‘muscle memory’, but if you’d like to go further, our hands-on negotiation workshops can help you and your team build these skills in a practical, supportive setting.

Our courses are available either in London, at your offices, or over Zoom. Get in touch to book a place!

Alternatively, if you’d like to learn more about the art of negotiation, we’ve written a series of guides you might be interested in: