The Negotiating Gifts from Greece - How not to Negotiate

Gift One: Preparation

1. A few lessons in How not to negotiate.
1. Being Unprepared hands control to those who would seize it. The lack of a clear idea of what the consequences of Grexit might be make it difficult, or even impossible, to have clarity of purpose or objective. Why has this not been done? Daring to think the unthinkable is a negotiator's skill (but not a politicians).
2. Two wrongs do not make a right - Remember where you start from. How good was the agreement that created the situation? Was the last agreement respected and honoured? Had either party carried our any diligence to check the integrity of the relationship?
3. What is the relationship like? Can it be repaired / improved through the processes of negotiation? How important is the relationship? Does it matter?
4. Membership qualifications were not met although the rules for membership are clear. The consequences for turning a blind eye were always clear to see. This should have meant that all parties should have been working to resolve this looming crisis years ago. However, it would appear that eviction from the Union is not catered for. (Another unthinkable).
5. No should mean No. But what does No mean in the Eurozone and European Union?
6. Poor strategy, but all too common! It goes like this: "Let’s see what the other side come up with and then make our minds up / decide what to do". Or: "We will listen to what they say and then tell them it is not enough" A typical buyers gambit but often leads to a game of slow surrender. It allows the skilful negotiator to set the agenda; it can signal to other side that you do not know what you want; it may signal that you are ready to negotiate when you are not (make concessions / surrender / change the rules / disunity).
7. Be realistic! - Objectives need to be realistic. Proposals need to be realistic (unless being used to cause deadlock). Can the terms be met? Would you meet the terms if you were sitting on the other side? If the objective is agreed, will it be honoured / implemented? Can you trust the other side? Can you trust yourself?
8. Objectives that are more about avoidance may be part of the problem. Avoid "giving in"; Avoid being seen / perceived as losing; Avoid evicting a member state; Avoid losing face; Avoid taking a "haircut"; Avoid being seen as weak by one's own electorate; Avoid giving in (set some other party up). The list goes on.

Negotiating and Risk

Poor Negotiating creates Dangerous Risk - You Pay in the End!

A key objective (and responsibility) of the good negotiator is to reduce and manage risk. The professional negotiator see these as fundamental and part of the constant set of objectives always on your list of objectives - Relationship, Risk.

•  To protect the security and safety of the organisation.
•  To make sure that in doing a deal with other parties, those parties will not put at risk the security and safety of the organisation.
• To ensure that there is adequate conditional protection built in to the deal.
•  To make sure all parties are clear about the penalties for not honouring the agreement in full.
•  That there is no doubt that the organisation and its servants have the determination to go through with the penalties and that is clearly understood by all parties to the agreement.
• That all parties understand that subject to the above, the deal will be honoured in full as agreed.

 However, in politics, being seen to negotiate may be more important than agreeing a deal. Sometimes there is no intention of going through with a deal anyway; it is enough to be at the negotiating table to buy into a club. During the process objectives, strategies and responsibilities become confused. Instead of negotiating to clearly defined outcomes, the game is corrupted by conflicting agendas - the original goal becoming lost in a fog of politics and vested interest.

 Politicians sitting around the negotiating table add risk by allowing their own personal objectives to influence their party’s objectives, their sponsor’s objectives and their country’s aspirations.  With this level of complexity at work, simple mistakes and hidden agendas can have very significant consequences! In politics we often see a reliance on trust - but trusting politicians is risky business. 

Negotiating Lessons from The Past

It is an interesting time to be working as an Industrial relations specialist and negotiating expert. The pendulum is swinging back towards another period of unrest as relations between “Management” and “Union” become increasingly strained. There is a fear that we might be returning to the 70’s. This is most unlikely, as today’s economic situation is very different. However, what we are witnessing are reminders of past lessons.

Issues of the moment in the current round of disputes include:

• Forced changes in contractual pay and conditions

• Pay freezes and reductions in benfits and conditions of employment

• Reductions in pensions , closure of schemes, major deficits in funding of schemes

• Job security (insecurity)

• Bullying and competitive management behaviour

• A challenge to industrial democracy and a perceived attempt at union busting

Many of these disputes have declined into attacks between personalities. Some are taking on new issues as situations grow worse and objectives become blurred. This is leading to deadlock followed by blame being directed across the table.

So what is going on?



1. Leadership Issues

 If a company suffers a strike it is the Management’s responsibility. It is part of the negotiating landscape. Both sides are responsible for allowing issues to escalate to the point where one side or the other has to take this level of action. An unwanted strike will be a failure of planning, communications, management of expectations, realism, sensitivity, understanding and more importantly, leadership.

If any of the current levels of dispute have not been anticipated by the managements involved, then both the dispute and the management are “out of control”.

Too often we see objectives which are unclearly specified at the outset become further distorted as a dispute escalates. Managements who pursue single inflexible strategies fail, even if the objective is reasonable and fair. Macho, confrontational behaviour to be seen as a strong tough leader creates intransigence, deadlock and out of control confrontation. 70’s behaviour. When both sides indulge in this behaviour they cease to represent the interests of those on whose behalf they act.

2. Listen to The Language

A key role for the Manager as Leader is to look after the interests of those they manage. It is the Manager who should be communicating company positions, explaining the challenges ahead, clarifying offers on the table and ensuring their employees understand. If this key channel breaks down, or is not trusted, then management leadership is failing and the vacuum invites others in who will have different agendas.


Engage with employees as employees. When a company starts to talk about “Union Members” rather than “Our Staff” or “ Our Employees”, it signals a breakdown in relations. The conflict is  described by personality not issue.

When the dispute is over, relationships will need to be rebuilt and then strengthened.


Key Negotiating Lessons:

Objectives need to be absolutely clear.

You should always review the impact on relationships. For management, internal relationships are critical; for investors they may be irrelevant.

Beware – Improved staff relationships will most likely be both an objective in itself as well as a strategy for managing change. Ask yourself:

• What kind of staff relationships do you want to have following the outcome of the negotiation?

• How quickly do you want to implement change?

• What will be the impact on your own employees if you pursue the current strategy?

• What is the best way to achieve widespread support? For objectives and strategy? To rebuild?

• Do you want the Management to represent the best interests of your staff or do want this to be taken over by others? Who do you want them to trust most?

• Listen more talk less