Friday, October 10, 2008

You can only Spend it Once (WIGIG)

One of the fundamental rules of negotiating is to ensure that you know the real value of your concession before offering it conditionally. So before making a proposal, it is wise to know all the values in play, know all the priorities that need to be addressed, and sensitive to those of one's partners. Additionally, know the level of risk. If it can go wrong it will! If you are going to make a generous offer, then make sure that the conditions match it.

The problem in today's highly dangerous climate is that there are so many “unknowns” to consider; so much that we know that we don't know - that it is high risk to throw one's money around without a clear grasp of how complexity works and what might be the consequences of a hasty gesture. You only get to spend your money once – spend it wisely – but only when you know all the risks and have a very clear – crystal clear – view of the impact of the investment. Will it really have the affect you anticipate? Does the market share your opinion and your analysis?

This is no time for grand gestures. There is nothing new about today's problems, it is just a bigger mess than usual.

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