Negotiating for Europe #5 – Discipline at the Close

Beware Last Minute Nibbles.

During the end game, there were some public declarations that a deal was close and that there were just a few minor details to sort out. I suspect that these declarations of being nearly there were made more out of habit and in hope than in all seriousness. It is common for many negotiators and hagglers to try to push for concessions in the end game by bringing up small demands whilst dangling the prospect of a deal. The hope is that the incentive of reaching the deal, especially after long and protracted sessions, may be so inviting that unconditional  concessions will be easy to secure. Most often it is Buyers who use this successfully when dealing with Sellers who just want to secure a deal. Trades Union negotiators use it when they know a Management team is under pressure to get the deal and get back to work.

The tactic may have worked in previous rounds of these Greek Debt negotiations, but this time, after all that has passed, this was not going to happen. As Trust has been lost, it has been important to make sure that all the required conditionality was in place and was going to be “honoured” if an agreement was to be reached and to work.

The German position, as reported by Paul Carrel of Reuters, was made clear by Ralph Brinkhaus, deputy parliamentary floor leader for Merkel’s conservatives:

“The more money is handed out in one stroke, the less leverage one has to stop payments if the reform process in Greece does not pan out as planned and as promised.

“A lot of trust has been lost in recent months,” he said, adding that aid should only be provided in return for Greece delivering reforms.

Read more: http://uk.businessinsider.com/r-senior-german-conservative-sees-open-questions-on-greek-bailout-2015-8?r=US&IR=T#ixzz3igZYLg7g

The lesson in the end game is to make sure that all concessions are traded against the agreement of specific conditions. That if a last minute concession is being sought it is traded on agreeing the deal and bringing it to a close. The concession being traded should be small and conditional that the deal is now done. And if trust is a problem, it should be agreed on the basis of everything being clearly understood and how it will all be implemented and what the penalties will be incurred for failing to honour the accord.

The Negotiating Gifts from Greece - 3# - Be Sharp but Beware Clever Clever

Experienced Negotiators Know how to use a Weak Position to Advantage

1. If you are in a Lose / Win situation your options provide plenty of scope to be proactive by making proposals or pursue varied strategies. After all, you have nothing to lose. Proposals can be realistic or unrealistic depending on whether you wish to move forward or just buy time. Strategies can be outrageous in a multilateral negotiation with many parties, as the complexity  of the situation and the needs for a level of unity protects (and hampers) all.
   
2. Following the old negotiator’s adage “one is always in a stronger position than one thinks”, and taking courage; being proactive and making a proposal can bring surprising results:
1. It can steal the agenda,
2. Give uncommitted parties something to work with,
3. Force a response,
4. Seize the high ground,
5. Control the deadlock.
   
3. Pursuing varied strategies and tactics can lock the parties in a dangerous and escalating competition in which each tries to prove their ideas are better (more clever) than everyone else’s. This is a modern day negotiating curse - being too clever in developing smart games, gambits and tactics - brings in high risk as strategy becomes more important than the original objective.
   
4. Beware that being sharp is not confused with being clever, and being clever may be no better than being stupid.
   

The Negotiating Gifts from Greece - #2 - Kicking The Can Down The Road - Deadlocking

How to Deadlock the Negotiation -

1. Argue and keep arguing - whilst arguing you are not making concessions or even proposals. In fact you are not negotiating (attempting to secure an agreement). You keep the position in stasis by playing the argument game. Negotiations appear to be ongoing, but the reality is deadlock. This is used for many reasons - for example: to buy time - encourage concessions as the other parties surrender through frustration - allow deadlines to be overrun - appear to be fully engaged in the negotiation when not - grandstand to the audience (audience as in noise to listen to)
2. Unrealistic Proposals - making proposals that one knows to be unacceptable are designed to create argument - deadlock. It allows one to push the onus to the other side and make them responsible for lack of progress. It is high risk, but often tried. If the other side sees it for what it is it is matched by an equally unrealistic response. There are elements of this behaviour operating between the Greeks and Germans as I write.
3. Appeal to higher authority - referendum - seek the view of the electorate and use their answer to deadlock further.The danger is two can play at this game. Another matching game to deadlock the process or bring people to their senses.
4. Making an agreement but then take it away for approval / ratification and then finding all sorts of problems with it. Kicks can down the road, but attempts to set up opportunities to amend the agreement. Lots of this going on.
   

These techniques are used often by parties who:

• May not know what they want.
• Do not know what is likely to happen if they go through with threats or agree to something they do not fully understand.
• Have nothing to lose.
• Know it costs less to deadlock than to negotiate / make concessions.
• Find that by using frustration tactics they get rewarded - especially if some parties are keen to “get a deal”.
• Want to appear to be negotiating by being at the meeting, but have no intention of allowing progress.
• Think that winning the argument is negotiating - it is not.