BACKGROUND
The situation was further exacerbated by a seemingly unrelated event – the capture of an American economics student, Frederic Pryor by the recently established German Democratic Republic (East Germany) around the same time.
BACKGROUND
The situation was further exacerbated by a seemingly unrelated event – the capture of an American economics student, Frederic Pryor by the recently established German Democratic Republic (East Germany) around the same time.
CONVENTIONAL SALES
As a result, they see a sales meeting as an opportunity to “sell” themselves and “pitch” their products or services. They allow themselves to launch into a monotonous monologue about their expertise, successes and how their products or services will realize every dream of the potential customer. They become so absorbed in their enthusiastic rhetoric, that they fail to notice the visual cues that convey utter boredom and lack of interest on the part of their prospective customers. They are quite oblivious to the fact that in all probability, they have already lost them. Sound familiar?
Introduction
Often, despite our best efforts, our negotiations fail, or meander along a lengthy unproductive path resulting in eroded relationships and sub-optimal outcomes. To mitigate the chances of a failed or sub-optimal negotiation, we need to learn to play a dual role at the negotiation table – both that of negotiator and that of mediator!
Consider the July 2012 collective bargaining negotiations between the NHL (National Hockey League) and the NHLPA (NHL Players’ Association) for a renewed contract before the September 15th expiration of the existing contract. One of the more aggressive demands of the NHL was to reduce players’ revenue shares from 57% to 43%, a proposal that understandably was not well received by the NHLPA.
The negotiators were unable to reach any agreement at all which eventually resulted in a 113 day lockout!
Introduction
Many negotiators perceive the negotiation process as being to persistently assert their demands, to declare their positions and to impose their proposals without any consideration of the other side’s concerns or needs whatsoever. They think that the more insistent they become, the better negotiators they are. They believe that the only way to “win” is to continuously and repetitively state and pitch their positions without allowing their opponent to get a word in edge-wise. Oddly, they don’t seem to realize that they are engaged in a terribly inefficient and unproductive process at best and a downright destructive one at worst.
Truly effective negotiators actually do remarkably little talking.They listen very carefully, ask purposeful questions and demonstrate immaculate understanding. They are composed, relaxed and almost conversational.
COMMON SCENARIOS AND STRATEGIES TO COMBAT THEM
INTRODUCTION
Faced with any one of these sweat-producing, heart-pounding scenarios, we feel helpless, weak and impotent. This unfortunately often results in reluctant acquiescence and the acceptance of very poor agreements.
In this column I will present a few common scenarios of perceived weakness and possible ways to combat them so as to achieve better outcomes.
INTRODUCTION
A negotiation which is efficient, but results in low value gains, or one that achieves high value gains but destroys the relationship, or one with a lot of wasted time due to severe inefficiencies is said to be “sub-optimal”. For a negotiation to be optimal and to achieve a high investment/return ratio, it should be efficient in process, attain strong value gains and result in good and trusting working relationships.
Although to cover these three axis’s in the detail that they deserve is beyond the scope of this one-minute read, nevertheless I will provide some useful guidelines that you can immediately implement.
LESSONS FROM THE IRANIAN FRAMEWORK AGREEMENT NEGOTIATIONS
The recent framework agreement that the P5+1 reached with Iran over the nuclear weapons issue, drew very conflicting responses from heads-of-state, diplomats, politicians and pundits from all over the world. There were those who felt it was an acceptable deal, others felt, that although it was not great, it was still better than no deal. At the same time there were others who felt that no deal would have been preferred. In addition, some were concerned with compliance,verification and enforcement. What was most conspicuous however, was that the P5+1 did not attempt, nor were they able to defend and support the terms of the agreement or to alleviate the concerns of the many detractors and critics!
In any negotiation, if we are unable to explain to ourselves, to our superiors, to constituents or to others as to why we consented to a particular agreement, it is a clear indication that the negotiation process was flawed and that the outcome is bound to be suboptimal.
REASON AND RATIONALE VS. UNREASONABLE DEMANDS
The first group were instructed to simply ask: “I have five pages, may I cut in and use the copying machine?”. In sixty percent of these cases, the people in line allowed the one who made the request, to go first.
Another group was instructed with a small but important variation of the first request and ask: “I have five pages, may I use the machine because I have to make some copies?” The only difference being that the second request included a reason “because…”, even though the reason was the same as the others in line, presumably. The results of this request was that ninety three percent of the people approached, allowed the requester to cut in line. The finding suggests that people are more likely to respond to reason and rationale rather than unreasonable and imposed demands.
INTRODUCTION
In studying how to measure success in a negotiation, the latest negotiations in Minsk between the Ukraine and Russia is a good case to examine. In a recent article, the Washington Post declared Putin as the unequivocal “winner” in those negotiations, because he avoided further economic and military costs to Russia. This implies that Poroshenko of the Ukraine, was the loser.
However, as we analyze the concerns of the Ukraine and Russia and how the thirteen points of the Minsk agreement addresses those concerns respectively, a different picture begins to emerge.
INTRODUCTION
One insight that emerged for me during that visit was the difference between an agreement and a treaty. An agreement is a legal document which states and defines legal obligations, considerations, warranties and covenants between the parties, and is sustained by the rule of law and enforced through judicial consequences. (Or in cases of international law, by the United Nations charter and the International Court of Justice). A treaty, on the other hand, is not only a legal agreement, but goes way beyond that, in that it also defines the desired relationship between the parties. It is sustained not only by the rule of law, but moreover by trust, honesty and integrity. In addition to being a legal agreement, it is also very much a moral one too.
What further struck me in seeing that exhibit was how differently the United States viewed treaties as compared to the American Indian Nations.