Showing posts with label Risk. Show all posts
Showing posts with label Risk. Show all posts

Friday, June 28, 2019

#Negotiating Lessons from #Brexit Experience - Lesson Five - Deadlock

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The UK Westminster Government have been in deadlock, even stasis, for many months; a situation of its own making and repeated at various levels. This state of affairs means that we may have participants involved who do not know how to move forward: do not understand how deadlock works, how to analyse it and seem unable to listen or take advice and so are caught in the headlamps of stasis. Whatever the case, it is not good for the reputation of Parliament, the reputation of MPs, the knowledge and experience of Government Ministers and their advisors – both Permanent and bought in.

Problem One – Deadlock should always be under control – Your control. It is a very useful tool or weapon depending on the nature and style of the negotiation. Even if one has not set up the deadlock, one should see it coming and be able to manage it.

Deadlocking is useful

because:

·      The cost is cheaper than having to negotiate.
·      The political cost is often cheaper than moving to another tactic / strategy (e.g. General Election) – but only if there is a way out.
·      It buys time to work out new strategy or tactic and review objectives – after all they more no longer be realistic or achievable.
·      It provides time to sort out Negotiator / Negotiating Team if they are not up to the job – have personality issues with the other side – have lost credibility.
·      It applies pressure of time and silence on the other party which may force movement.
·      It allows one party to frustrate and irritate the other – although this is a risky game.
·      While in deadlock one does not have to negotiate. Remember, negotiators often will create long and varied arguments designed not to persuade but to deadlock. These tactics keep the other party engaged – give the appearance of a negotiation but are in reality a means of stopping the process.
·      Threat of not negotiating and deadlocking may not be real but is worth suffering than changing a deal and may be rewarded by the other side backing off.

The current deadlock besetting the UK is under the control of the EU.

Why? Because:

·      They have done a deal with the UK and to renegotiate is a precedent. To recognise a change in PM as a reason for renegotiation is a precedent. The value of the unity of their 27 is higher, far higher, than the UK being in a mess.
·      They do not want the UK to leave the EU and whilst deadlock keeps UK as a member state it suits both EU and Remainer factions.
·      Maintains a Status Quo
·      Buys time for moves by Remain parties to frustrate, build strength, undermine Leavers.
·      Allows time to use persuasion to rehearse arguments of the benefits of EU membership
·      Maintains the unity of the EU amongst the 27 members.
·      Enables “Business as Usual” during deadlock period
·      International business will reposition their assets within the EU to avoid the uncertainty thus benefitting EU states
·      Provides time for a change in the Commission, EU Parliament etc.
·      Causes UK Leavers to “think again”.
·      Keeps the strategy of “While the UK has not left there is the chance they will remain.”

To break out from the Deadlock the costs to the other party (EU) have to be escalated so that the advantages of negotiating or getting on with the leaving process outweigh the costs of maintaining the status quo. The position that the EU is blocking is to allow the UK to negotiate new trading relationships right now which might give it an advantage and demonstrate the value of being independent and fully sovereign outside the EU. Having been a member for so long and an architect of this rule makes the current situation very ironic.

But of course, until the EU has set up the new appointments to the offices of the EU it will not be ready to change anything. At present it will not want to move anyway as:

·      Precedent – Maintaining the 100% solidarity of the member states is a priority. EU will do nothing to disturb this.
·      Face – Ensuring the Union is seen to be strong, united and the 4 pillars remain non-negotiable.
·      Concessions – Until the EU knows exactly what the UK wants from the EU in the long term it is unable to assess trading options. It only desires one thing (the UK to remain). Until the UK actually leaves, the current situation suits the EU.
·      It will be happy to take on the UK over outstanding debts, duties and contributions as the EU institutions and advisors all benefit from legal process.

At the moment the EU has to do nothing as the UK indulges itself in this stasis; primarily because of the internal problems besetting the Conservative Party. However, to the outside observer what has been learned?

·      The UK does not appear to have a clear long-term objective for itself which unites its citizens. EU membership or isolated independence are strategies without a coherent objective.
·      In not knowing clearly what the ultimate objective is, it is difficult to negotiate.
·      Without clarity of objective it is not surprising that outsiders are not clear how committed the UK is to anything.
·      There is no vested interest helping the UK to determine the way forward or selecting the right leadership.

When there is no clear set of objectives or goals to provide clarity of direction, then one must look at what must be avoided (the direction from which to retreat):

·      Break-up of the United Kingdom with Scotland leading the way for independence, followed by a “me too” campaign to unite Ireland as a common market.
·      A breakdown of the British economy leading to serious damage to our lead service industries and consequences to tax raising.
·      Loss of status as a Global Player.


It is a time for professional negotiating. The UK leaving the EU is not the problem – It is the need for experienced leadership to navigate the negotiating process with confidence. Far greater negotiations lie ahead which are being damaged already by the performance of the current players.

Wednesday, February 08, 2017

#Negotiating Lessons from the #Brexit Experience - Lesson Four

Structuring Expectations: One  

The pre-negotiation phase: The negotiation has begun already! 

Many people make the mistake of thinking that in the period running up to the formal start of a negotiation the parties are not negotiating. They could not be more wrong. The reality is that once one becomes aware that someone wants something, then the opportunity to make a deal means that the negotiation is off and running. From the moment this reality begins expectations are being structured.


Every action, statement, move, meeting, event sends out messages as to the aspirations of the parties; how they intend to behave towards each other and indications as to the priorities they are working to. What they want and (often more importantly) what they want to avoid.
 


The unguarded are giving information away all the time and not realising it. Discipline and coordination in this phase are all important.

If the negotiating landscape has a considerable number of interested parties
 trying to influence objectives and strategy,  discipline can become very problematicAn experienced negotiator can read much from watching from the other side. It provides useful information about how well prepared the other side is, what problems they are having within their team, who the key influencers may be, where the real power is and who the key decision maker is. 

 
In this phase the internal conversations within one side maybe the real negotiation. It can be very difficult to get the clarity of objectives and priorities when there are too many fingers in the pie.  But it gives away a lack of togetherness, conflicting objectives and strategies and possible lack of real negotiating knowledge and ability.

Monday, July 18, 2016

#Negotiating Lessons from the #Brexit Experience - Lesson One


Multilateral Bargaining - It is always dangerous to have separate, bilateral meetings when trying to get a collective agreement involving three or more parties, although often necessary. For the unwary and inexperienced it is easy to get picked off by more expert and prepared negotiators.

Having a private meeting with one party when there are up to 28 parties to the deal, can lead to making a concession unilaterally to each one in turn to gain each as an ally. All of the 27 other Premiers might ask for a different condition in return. This could lead to 27 concessions (favours) being made for just one gain. Using up considerable currency in a very inefficient manner. And if the deal does not happen, the other parties now know of 27 possible concessions that they might (should demand) gain during the next negotiation.

Buying favours to build up alliances can lead to secret agreements that are “called in” later as part of other deals. An ever present danger.

It is one thing to have informal discussions to “get a feel” as to how things might go in the formal negotiation - what interests and concerns the other parties might have, but to go beyond the preparation and investigative dialogue stages will be a step too far.

Once one has the “intelligence” gathered in, then comes the time to construct powerful proposal options which will bind in all the parties. This approach maximises the efficiency of one’s trading currency, but needs plenty of practise and experience.

Wednesday, June 15, 2016

EU Referendum - We are All Prisoners of an Ill Thought Through Dilemma.

Articles are mounting up in the world's press highlighting the dilemmas facing the British voters, the political parties and the EU member states.

Conflicts and Contradictions:

If the state of the NHS will be threatened by Brexit - why put it in jeopardy by having the Referendum? The Referendum was tactical in dealing with UKIP and the Tory Euro Sceptics; Strategic in attempting to negotiate reform with the other EU states, but did not meet the critical objectives of the main manifesto priorities -  Security of the nation, maintaining The United Kingdom, protecting the NHS, maintaining economic growth.

Proper setting of objectives - clarity of priorities - analysis of foreseeable consequences of the alternative strategic choices and tactical plays (Leadership!) would have identified all of the current risks before the last General Election.

WTO chief says post-Brexit trade talks must start from scratch - Guardian

Britain's debate over Europe has been disappointing - Chicago Tribune

No 10 mulls last-ditch attempt to revisit free movement negotiations - Guardian

EU referendum: Osborne warns of Brexit budget cuts - BBC

Praying it will work? Chancellor plotting 'punishment' Budget with THREAT 'to add 2p to income tax' and increase death duty, booze and fuel costs. - Daily Mail

Conservative Party Manifesto - 2015


The ability to negotiate is far more important than spin. 

Wednesday, January 06, 2016

Saying you are negotiating may not be negotiating!

Setting the prime objective of a negotiation as just “closing a deal (any deal)” is not negotiating and dangerous. It underlines your priority objective to the other side giving away leverage on the one hand and leaving one no exit if deadlock occurs.

However many may think that they are negotiating when they are saying they are trying to get the best deal. It is not. It is giving in to the other side before you start. It puts all the control in the hands of the other party and you get what others are prepared to give you / let you have - not what you want and only what you deserve.

Being seen to negotiate by  going through the motions of negotiating - meetings, discussions, arguments,  - may just be grandstanding for the audience. Trying to make it look tough and difficult to get an agreement are old games which have been played out many times over  hundreds of years which should not fool anyone these days. However, these little dramas are still attempted by the inexperienced, less skilled and under-prepared performers - especially if PR gets in the way.

Often the other side will go along with this game. Why? Well because they may have to protect the relationship between the parties by playing along so as to humour them and keep them from embarrassing themselves. Protecting the other side’s “face” is often important - especially in the world of politics and international affairs.


Anyone can say "yes" just to get a deal, but it will be a deal on the other party's terms.

Wednesday, July 22, 2015

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.