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.

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

Auditing Negotiating Trainers

Some of my assignments over the past years have included audits of Negotiating Skills Training Courses and Trainers for clients. These have been to check that the quality of a client’s courses meet a standard that allows clients to have confidence that a training event delivered in the UK will be as good as one delivered in the USA or China. Also I have assessed trainers and potential trainers as they work with the material to see if they are able to deliver at the right level and with genuine authority. The real lesson from carrying out these assignments has been that Trainers without real experience as negotiators do not make very effective negotiating trainers.

The problems I see regularly are:

Sterile Delivery

• They do not understand the material they try to deliver which can cause confusion and false messages.

• They are not engaged with the subject and as a result there is no enthusiasm

• There is a lack of authority because they are unable to work outside the straitjacket of the script. They do not have their own experiences from which to draw illustrations and anecdotes.

• When using scripted stories, they are often poorly delivered and many times told out of context.

No Authority:

• Their lack of real “hands on” experience limits the ability to give credible answers and explanations

• Working to the script (someone else’s experience and expertise) is too easily recognised by trainees – once this is seen, the credibility is lost

• Relying on the crutch of a Power Point Driven presentation may provide comfort, but it does not build confidence. Need I say more?

• A trainer giving signs of lack of confidence encourages challenge and argument from the floor which can destroy the event for the other trainees

• Case work loses its effectiveness if a trainer without credibility attempts to critique participants


The Key Lessons:

Know your subject!

Work with an experienced professional who can train / present – they will provide the quality and teach you a thing or two. Develop a professional partnership

Be honest – If you don’t know the answer, admit it – it gains respect. – But make sure you can answer it next time

Get out and acquire some real experience of your chosen subject. Remember many are convinced the trainer has chosen to train because of past failure elsewhere. As trainers we should be the best passing on best practice.

Get some serious Train the Trainer development and practise practise practise

Negotiation Requires Courage and Talent: Get Organised - Get Ready - Develop.

As we go into the dark days of the winter and we batten down the hatches to weather the storm of Brexit and take stock about who and what really matters; this is a good time to look around, contemplate strengths and weaknesses, to prepare for the challenge ahead and to evaluate one’s resources. This is the time when you will find out whether you really have leaders within your ranks – really have talent. Anyone (almost) can play a strong hand if you are holding all the Aces, but it needs a lot of skill, experience and practice to play a weak one.

So, who around you has what it takes? Have you looked after them during the good times so that they will stay with you and be ready to cope with the tough ones ahead? Who are the ones with real talent who need to be better equipped to succeed and prepared to take on more responsibility? Who is ready to take on your challenges?

Now is the time to “cut the crap” and focus on development that really makes a difference and will give a real return; training and coaching that will draw out the talent, build the confidence, excite, energise and motivate.

Profit from adversity – be courageous – use the time – build the team.

Make contact through our site - Sharppractices.co.uk