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

Wednesday, July 15, 2015

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.



Friday, May 29, 2015

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.