The Negotiation Society - Issue 1

ISSUE 1
The Negotiation Society
THE EXCLUSIVE MAGAZINE FOR ALUMNI OF THE GAP PARTNERSHIP
FLINCHING
The ultimate guide
CROSS-CULTURAL
NEGOTIATION
Navigating the minefields
RECORD BREAKER
How Michael Jackson landed
The Beatles’ songs
WHEN STEVE
MET CHRIS
The Gap Partnership’s CEO Steve Gates
in conversation with ex-FBI hostage
negotiator Chris Voss

INSIDE THIS ISSUE
06 11
When Steve
Met Chris
Commercial negotiation
expert Steve Gates and
hostage negotiator Chris
Voss trade insights from
their respective worlds.
Advantage
Agassi
12 16
Negotiating
Around The
World
Understanding the impact
of culture on negotiation
style and etiquette.
The extraordinary story of
how Andre Agassi succeeded
in defeating Boris Becker.
The Art of
The Flinch
20 28
We Need to Talk
About Kevin
Getting under the
skin of Regional
Head of Consulting,
Kevin Lecompte.
Why flinching in response
to a proposal is so effective
and how to avoid falling
victim to it.
Question
Time
Leaders from the retail,
consulting, employee
relations and tech
industries offer their
point of view on Brexit.
WELCOME FROM STEVE
A warm welcome to this first edition of
The Negotiation Society magazine. Over the
past 20 years, we have consulted with hundreds
of businesses and tens of thousands of negotiators
have attended our workshops in over 60 countries.
And, because the team at The Gap Partnership
believe that negotiators should never stop learning,
we formed The Negotiation Society, a community
available to all of our alumni.
Why The Negotiation Society? Well, not only do
we want to promote great ideas and share negotiation
insights, we also want to keep alive the incredible
enthusiasm for getting great deals agreed that we
experience when working with you, our clients.
When you consider the skills, strategies, behaviors,
tactics and relationships which are fundamental
to how business gets done, within a discipline that
demands composure, preparation and control of one’s
ego, and yet can deliver incredible incremental value
that others would not even recognize…you start to
get a sense of why negotiation is fundamental to
business. The Negotiation Society is about you and
those you build agreements with, based on an activity
that for every minute you invest your time, will be
repaid many times over.
This edition includes an insight into the
consulting projects undertaken by our own Kevin
Lecompte, thoughts from alumni members on
relationships and how EQ can positively impact
your negotiation, as well as analysis and tips for
high performance negotiation.
I hope you enjoy reading and we welcome your
feedback and ideas for the next one.
Steve Gates
CEO, The Gap Partnership
2

THE NEGOTIATION SOCIETY
OUR CONTRIBUTORS
Kristina Pereira Tully Angela Barbazeni Chris Webber
As a member of
The Gap Partnership’s
US PR and communications
team at Caliber Corporate
Advisers, Kristina works with
senior executives running PR
events and media training.
She originally hails from
California and received her MBA
from New York University’s
Stern School of Business.
Angela has 15 years experience
in commercial business as well
as Mergers and Acquisitions.
She is fluent in German, Italian,
English and French, and speaks
conversational Spanish.
Angela currently resides in
Australia, delivering world class
negotiation training to hundreds
of people each year.
Chris’s areas of specialism
in negotiation include the
psychology of influence,
strategic and tactical aspects
of planning, and managing
difficult relationships. As well
as delivering negotiation
consulting, Chris is a regular
contributor to The Negotiation
Society, writing frequent articles
and thought pieces.
Matt Maia Amaryllis Jones Alistair White
Matt currently helps start-up
businesses build brands, bring
new products to market and
develop selling strategies.
He developed a passion for
brands, products and innovation
after a decade-long career in
FMCG. It was after attending
a TCSN while at General Mills
that Matt became particularly
fascinated with negotiation.
Amaryllis is a professional in the
CPG industry, managing key
retail accounts and a portfolio
of professional customers for
Duracell. She is passionate about
youth and female empowerment,
coaching students across Canada
and volunteering with Lean In
Canada and Forward Together
Canada. Amaryllis is currently
pursuing her MBA.
Alistair has three decades
experience in the FMCG and
perfume industries, and now
specializes in negotiation as
Head of Quality for Europe at
The Gap Partnership. Alistair is
an accomplished linguist, fluent in
French and German, and a prolific
writer on both the theory and
practice of negotiation.
3

MY HEAD
LAURA D’ANDREA
IS VP OF SALES IN THE CONSUMER BEAUTY DIVISION OF
COTY. THIS DEPARTMENT COMBINES COTY COLOR COSMETIC
AND FRAGRANCE BRANDS WITH P&G COSMETICS AND HAIR
COLOR TO FORM THE LARGEST DIVISION AT COTY.
How did you end up working in the
beauty industry?
I worked in the toy industry prior
to beauty. When I made the move
to Coty, I thought that it would be
a comparable CPG category – same
structure of doing business, same KPIs,
and so on. Over time I learned that
beauty is a unique industry within
CPG for a few reasons – its complexity
and depth of assortment, the pace
of innovation, and the emotional
response beauty evokes both in
retailers and consumers. It really is
an “art and science” business and it’s
very compelling as a result.
What do you like most about
your role?
I love the multi-faceted aspect of my
role. I have responsibility for sales,
trade marketing, category management,
in-store execution and customer supply.
All of these functions are intertwined
in our business and each is essential
to building a successful plan. Our best
work occurs when multiple functions
contribute and feel accountable to
the end result. There is usually some
healthy conflict to get us there but a
common sense of pride and fulfillment
in the end.
What is the biggest achievement
of your career?
Ten months ago we doubled in size
with the acquisition of P&G’s beauty
brands. As a result, we are truly a
start-up but with instant scale. It
has been a rewarding and exciting
experience to articulate how we will
impact the beauty industry in Canada
moving forward, while optimizing how
we operate and working to ensure we
have the right team to get us there.
How important has negotiation
as a skill been for you?
Incredibly important. In the beauty
business there is often a need for
collaboration and compromise on
both the brand side and the retailer
side to develop truly breakthrough
execution plans. Relationships are
of the utmost importance as a result.
The most successful results are driven
by relationships where there is enough
trust and mutual respect to have tough
conversations that facilitate what is
ultimately right for the business.
What has been your
greatest negotiation?
I’ve certainly enjoyed some more than
others! The ones that stand out are the
ones that produce something tangible
that changes the landscape of the
business – a new brand, a new
go-to-market idea or a category
strategy that drives organic growth.
Any negotiation disasters?
I had a strange experience years
ago in a previous company. I was
negotiating a deal with a party
chain in the U.S. when in walks CNN
filming a spot on the retailer for their
“Business Unusual” segment. I just
remember really bright lights and
wondering if this was a tactic…
What’s the most important lesson
that you’ve learned as a negotiator?
Probably that truly understanding
what is meaningful to the other party
is the key to unlocking solutions.
Questions, questions, questions…
And that less is more when it
comes to stating your position.
4

THE NEGOTIATION SOCIETY
They say you never forget your first pet, first teacher and first love.
But what of your first TCSN? We asked our alumni for their enduring
memories of The Complete Skilled Negotiator.
TCSN PRIMER
What’s TCSN?
The Complete Skilled Negotiator
Workshop length:
3.5 day residential
How many delegates: 8
What can be expected?
An intensive journey of self
discovery that enables delegates to
adopt appropriate negotiation skills
to ensure maximum value creation
in every scenario.
I will never forget the
group exercise run by
Kevin Lecompte. We all
learned a very valuable
lesson, a negotiation is
no place for winning.
Sarah Harris, Oxford, UK
If you don’t have anything
to say...shut up!
Marcillat Etienne,
Frankfurt, Germany
Giving nothing for free...
If you...then we...
Siddhartha Medhi,
Mumbai, India
‘Get comfortable with being uncomfortable.’
Brian said this and it has stuck with me to this day.
Amaryllis Jones, Toronto, Canada
I remember the first
exercise, I was too honest
to reduce my costs to
the minimum. Lesson
learned!
Edith Darteh,
Ghana, Africa
Focus on getting inside
their head and not on
winning. Leave the other
side feeling satisfied.
Great job by Rodrigo.
Cristian Rubio,
Adriasola, Chile
‘Generosity engenders
greed’ – such unintuitive
wisdom in a simple
phrase.
Will DelHagen,
San Francisco, USA
I think I hold the TGP
record for the first
negotiation…we won’t
share that though Mark
Davis!! Also a key learning
from me around body
language and psychology,
people enjoy getting
things that are hard to get
so make it hard for them.
Alex Smith,
Peterborough, UK
The first day was HE_ _ ...
I still remember debating
if I needed to fly back later
that night or stick it out.
I’m glad I stayed.
Sherry Prather,
Texas, USA
5

When Steve
met Chris
Kristina Pereira Tully sat down with Steve Gates,
CEO of The Gap Partnership and Chris Voss, former
FBI hostage negotiator, to discover how two of the
most powerful voices in the field of negotiation came
to discover their love of the subject, and to share with
us some of what they have learned on the way.
6

WHEN DID YOU FIRST REALIZE THE IMPORTANCE OF
EFFECTIVE NEGOTIATION?
STEVE If I look back, negotiations have shaped the decisions
I’ve made since I was a child. As children, we hear the
word “no” but we don’t listen. We ask and ask and ask like
a broken record to wear our parents down or concede to a
demand when an offer of enticement is made. Fairness has a
different meaning as a child until of course you are educated
to be more rational. As I got older I recognized that tenacity
and positioning were important but so was collaboration
and creativity. The concept of winning changes as you look
beyond the here and now. Later in life, I learned to overcome
customer objections, present different ideas which allowed
them to “win”, and which won the customer over.
Getting creative, understanding people’s egos and the law of
relativity resulted in a lot of great deals. I learned to create
value and thought “Wow, this is like magic”.
CHRIS I first understood the power of negotiation when I was
volunteering on a suicide hotline. During one memorable
call, a guy desperately said, “I need your help to put a lid on
this day.” He told me he was battling the disease of paranoia.
The following day he was due to go on a car trip with his
family, and while they were very supportive, he knew his
paranoia was going to cause him to meltdown. Knowing
what was coming, the night before the trip, his mental state
was in crisis. He was melting down over melting down.
I’d been taught to use a tool called an “emotion label”
in hostage negotiations, something that helps a person
understand their own emotions. I said three things at key
points in the conversation:
Initially: “You sound frantic.” This immediately connected
with the caller. He felt understood and it removed some of
his anxiety.
About halfway: “It sounds like your family is very close.”
“We are close”, he replied and he suddenly changed his
tone and told me about the steps he was taking to try to
beat his paranoia.
Just before the end: “Wow, you sound really determined”,
I said. To which he replied, “You know, I am determined.
I’m going to go on that car trip tomorrow, and I’m going
to be fine. Thanks for everything you did.”
I was blown away by how three small sentences could
make such a big difference.
INTRODUCING TWO
NEGOTIATORS AT THE
TOP OF THEIR GAME
STEVE GATES
CEO and founder of The Gap Partnership,
Steve has worked with the world’s leading
businesses and supported them on their
most critical negotiations. Author of
The Negotiation Book, he is currently
writing a new book which examines the
critical impact of time on negotiation.
CAN YOU DESCRIBE THE MOMENT YOU KNEW YOU
WOULD MAKE NEGOTIATION THE FOCAL POINT OF
YOUR CAREER?
CHRIS When I applied to become a hostage negotiator with
the FBI I was told I was “uniquely unqualified”! “Sure, you
want to be a hostage negotiator”, they said, “Everyone wants
to, but what are you bringing to the table? If you really
want to be a hostage negotiator, go volunteer on a suicide
hotline, but until you do, go away!” So I volunteered. When I
returned they were so surprised to see me again that I quickly
found myself sitting in the FBI Crisis Negotiation course
surrounded by people from across the FBI and even across
the world. I had walked into this international community,
and by the second day, I thought: This is what I’ve been
living my whole life for.
CHRIS VOSS
Chris spent 24 years at the FBI and became
their lead hostage negotiator, working on
numerous high profile and high-stakes deals.
His book Never Split the Difference explains
how the negotiation principles he developed
in that role can be successfully applied to
everyday working life.

STEVE I was working for a company called Kingfisher, which
is a UK-based retail group that has hundreds of buyers
who do business internationally across various disciplines,
including electrical, health, beauty and DIY. My boss
approached me about a new project, saying, “Steve, we would
like you to work out what negotiation best practice looks like
from around the world. We’ll give you 12 months to come
back and tell us what you find.”
In that year of researching and studying the various
models and philosophies which were advocated as best
practice negotiation, I read dozens of books and became
consumed by how negotiation influences world economics,
politics, all the way down to family affairs. I also came to
realize the complexity of human interaction – and to learn
that while there are countless different ways to negotiate, the
one thing that gets in the way of good negotiation practices
most often are human beings. I wanted to understand more
about the psychology versus the process. I just thought, “This
is what makes the world go round.” There’s so much value
you can create by making better deals, and I decided my
career focus would be to help organizations and individuals
to optimize their negotiations.
“If you bring in a SWAT
team and threaten to
shoot, that’s effectively
taking away their ability
to say, ‘no’, and the guy
inside will likely say,
‘Go ahead and shoot me’.
– Chris Voss
HOW DO YOU MEASURE SUCCESS IN NEGOTIATION?
STEVE There are a variety of factors you can benchmark
against. What success looks like is largely determined by
what is valued. For example, one business may take a higher
price, while another might be happier with a lower risk
profile and greater certainty in the longevity of the deal. If
you understand what you want, optimize what is before you,
and optimize the level of value possible, I would consider
that a success. Some will measure in relative terms – is it
better than what we were on or could attain elsewhere? What
you should set out is your definition of success before you
start, otherwise you leave yourself open to reinterpretation,
later justifying your performance based on circumstance.
CHRIS I consider a deal successful if we get something better
than what we expected. It kind of boils down to that.
Most people think, “If I meet my objectives to start with,
then this was a successful negotiation.” But because it’s
impossible to know everything, it’s impossible to know the
best deal that’s available right at the outset. So, if we get
something better than expected, that means we discovered
some cool stuff in the deal and we’re really happy about it,
and most of the time the other side are, too.
CHRIS – IN YOUR BOOK NEVER SPLIT THE
DIFFERENCE, YOU PRESENT THE IDEA THAT THE
ART OF NEGOTIATION LIES IN MASTERING THE
INTRICACIES OF “NO” – NOT “YES”. CAN YOU
TELL US MORE ABOUT THE POWER OF “NO” AND
WHY THE NUANCES OF “NO” ARE SO ESSENTIAL
IN HIGH-STAKES SCENARIOS?
CHRIS “No” is one of those words that is massively different
when you hear it from when you say it. A key point in any
negotiator’s journey is to stop being horrified by “no”. The
thinking is that if “yes” is success, then “no” must be failure.
But what we’ve discovered is that when people say “no”,
they feel protected and safe – and they have a tendency to
listen more. Steve made the comment earlier about kids
negotiating with their parents, and how kids actually become
immune to the word “no”. I think a big part of that is that
we say “no” to our kids, having protected ourselves with the
word, we’re then more willing to hear them out and even
change our minds.
When my son was seventeen, he’d start to ask me
something, “Dad, can I –” and I’d just say, “No”, before he’d
even finish his sentence. But I always found myself after I’d
said “no” thinking, “Right, now I can hear him out,” because
I already said “no”, and I felt protected. So I think we’re not
so much teaching our kids to be immune to the word “no”
as we’re teaching them that after we’ve said “no”, we’re more
willing to listen.
8

THE NEGOTIATION SOCIETY
I discovered that concept when I was reading the book
Start with No, which is about the effect on someone if you
let them know they’re free to say “no”. It’s an autonomy
issue, and that’s what hostage negotiation is all about.
In law enforcement, we realized we needed hostage
negotiators when we saw that as soon as we took away
somebody’s right to say “no”, they’d die over it. If you bring in
a SWAT team and threaten to shoot, that’s effectively taking
away their ability to say, “no”, and the guy inside will likely
say, “Go ahead and shoot me”. And that leads to shooting
people you don’t have to shoot.
If you intentionally get someone to say “no” to make that
person feel safe and protected, it’s going to make a huge
difference. They’ll be able to hear you at that point. “No” is
one of the most powerful of emotional words, and its impact
depending on whether you hear it or say it, is nothing alike
– it might as well not even be the same word. Operating
under that principle is how we’ve really made a big difference
in the way people approach negotiation.
STEVE – IN YOUR BOOK, APTLY TITLED,
THE NEGOTIATION BOOK, YOU DETAIL THE TRAITS AND
BEHAVIORS OF THE COMPLETE SKILLED NEGOTIATOR.
SPEAKING FROM YOUR EXPERIENCE, HOW MANY
OF THE BEHAVIORS AND TRAITS OF THE COMPLETE
SKILLED NEGOTIATOR SHOULD BE INHERENT AND
HOW MANY CAN BE LEARNED?
STEVE All the behaviors can be learned and through selfawareness
we can manage our strengths and weaknesses
effectively. So the book sets out to promote the idea of
understanding and being honest with yourself. You can only
be in charge of a negotiation if you have self-control and
self-awareness. Human beings can be very emotional in their
responses to situations when there is a perception of conflict
and become drawn to that rather than maintaining
9

“When you can negotiate
well, you really can create
something out of nothing.
– Steve Gates
perspective. It’s essential that a complete skilled negotiator
is able to consciously consider the situation they face and do
that which is appropriate to the situation rather than become
a victim of emotional decision making.
In the book I also outline other desirable characteristics
including nerve, curiosity, and tenacity. Those who are able
to hold their nerve tend to be better equipped to think and
articulate in a measured manner, controlling the frustrations
that will inevitably arise. Curiosity helps us to see the other
party’s perspective and establish and qualify their interests,
priorities and what value they place on their issues. Tenacity
gets you through the setbacks and rejections and helps when
discussions drag out, wearing away at your resolve. Traits are
what you are and behaviors are what you do. The book sets
out to challenge the reader to be what they need to be and
do what they need to do rather than just be yourself which is
likely to lead to unnecessary compromise.
WHAT IS THE HARDEST NEGOTIATION YOU HAVE EVER
BEEN INVOLVED IN?
CHRIS When somebody’s life is at stake, be it at their own
hands or those of others, every negotiation becomes the
“hardest”. There was one particular kidnapping negotiation
that does however stand out. In this situation, all our
intelligence pointed to the fact that the victim’s life in
question was in effect already lost. So the focus of the
negotiation shifted to publicly showing who was really
responsible for the death of the soon-to-be deceased.
We needed to ensure that nothing the family said publicly
would enhance the hostage takers’ image as terrorists, but
instead, would actually show them to be the criminals they
were. This was an emotionally incredibly delicate balance
to strike in supporting and advising the family.
STEVE In 2014 we decided to sell a stake in TGP that would
enable us to realize some capital that we wanted to reinvest
and grow the business, buy back shares from ex-business
partners and also to reward those who had been with us
along the journey. At the time TGP was a business that I
had grown and led for 17 years. It was a negotiation that
would have a huge financial impact on my colleagues, friends
and their families. For some it would be life changing.
This negotiation was not just business, it was personal.
But, at the 11th hour I had to take a decision to abort the
negotiation. The deal on the table was simply not what we
set out to achieve. It made sense as a business to walk away,
take stock and re-examine the situation. It was the right
decision. But it was the hardest decision I have ever had to
take. Two years later we completed a successful deal but I
still bear the scars from the decision to pull out in 2014.
WHAT ARE YOUR FINAL THOUGHTS FOR READERS
OF THIS MAGAZINE AS THEY PURSUE SUCCESSFUL
NEGOTIATIONS WITHIN THEIR OWN CAREERS?
CHRIS Going back to what Steve said about how he fell in
love with this in the first place, I agree. It seems like magic
when you can get good at this. When you can negotiate
well, you really can create something out of nothing.
You can make things happen that nobody else expected
or thought could happen.
STEVE And, as Chris said, when you get into it, it’s not just
fascinating. It’s something you can use to help people change
their lives and the direction they take with them. In my case,
that has to do with their careers. The number of people who
have told me the work we’ve done for them has projected
their careers beyond what they’d ever hoped gives me a
massive sense of satisfaction and purpose. TNS
10

THE NEGOTIATION SOCIETY
When Agassi began to consistently defeat his
arch-rival, Boris Becker, the world watched in awe.
But what was his secret? Years later he revealed the
surprising truth. Floris Wils looks back at
what happened and draws out the learning
for negotiators.
ADVANTAGE
AGASSI
PHOTO GETTY IMAGES
J
ust recently, a friend of
mine sent me a link to an
intriguing short film on
YouTube. I duly clicked
on it and proceeded to
watch the film agog. In what is surely to
become part of sporting history’s folklore,
it showed tennis legend Andre Agassi
revealing an incredible secret to his
success in defeating the devastating
Boris Becker serve.
The story goes that Agassi retreated
to his dressing room after having been
beaten by Becker in all of their first three
matches, utterly bewildered as to how he
was ever going to read that demon serve.
But he knew he had to try. And so, by
intensively and repeatedly studying film
of Becker’s game he spotted a pattern.
Each time Becker prepared for his serve
he unconsciously stuck out his tongue in
the direction he intended to serve. He was
completely unaware of his body language,
and also the signal he was sending out to
his opponent. This gave Agassi the ability
to accurately predict where Becker was
going to place his serve.
This immediately got me thinking
about how our unconscious behavior
can affect our success in negotiations.
In commercial negotiations, untrained
negotiators are mostly unaware of their
verbal and non-verbal communication,
which gives the trained negotiator the
advantage as it provides invaluable
insight into the position of the other
party. Effective negotiators are always
interpreting the behaviors of the other
party to gain useful information.
The really clever bit to Agassi’s ongoing
success was that he was careful not to
inadvertently reveal his newly gained
insight about Becker’s body language.
As a conscious competent he deliberately
missed some returns of serve so that he
could keep his secret for crucial moments
in the match. As a result he followed his
three initial consecutive defeats by winning
nine out of eleven subsequent matches.
Skilled negotiators are always
consciously competent. They leave nothing
to chance. Everything they say and do,
they say and do for a reason.
A consciously competent negotiator
can even send messages to the other party
that they want them to interpret in a
particular way by using deliberate verbal
and non-verbal gestures. They give the
other party the symbols of success, while
they focus on the outcome.
Just imagine if Boris Becker had
worked out what Agassi was up to. He
could then have turned the consciously
competent table around and started to
consciously poke his tongue out in the
direction that he wasn’t then going to
serve. Or, if he was clever like Agassi,
to make the tongue-poking direction
random, and put Agassi back in the
position he originally was in – with no
predictive powers.
The lesson for commercial negotiators?
If you are not consciously competent, you
will pay the price for your behavior when
faced with a skilled negotiator. TNS
11

NAVIGATING THE
MINEFIELDS
Do you arrive at your meeting five minutes early,
or on principle half an hour late? Who do you
field in your negotiation team? Do age, beauty or
linguistic gymnastics confer an advantage? And,
what skulduggery should you look out for from
your counterparty?
We asked TGP consultants from around the
world to share their insights into how to navigate
the minefields of cross-cultural negotiation.
12

THE NEGOTIATION SOCIETY
SOUTH AFRICA
By Miles Hodge
‘Africa time’ does not lend itself,
as such, to the notion of punctuality
and timekeeping. More time than you
may at first consider necessary needs
to be allowed for during negotiation.
Moreover, it is essential that you
invest time upfront in relationship
building. With fewer commercial
choices in South Africa, business is
fundamentally driven by this.
Language too can have a tactical
dimension. South Africa has eleven
official languages, and while English
is the common one, it’s possible for a
team to hide behind the fact that the
meeting is not being held in their first
language. Someone who previously
appeared to be fluent in English
may suddenly become linguistically
challenged as the negotiation heats up.
Make sure you recognize this tactic
and adjust your approach accordingly!
South Africa is still very
patriarchal. The most sensible advice
is be prepared and aware. Similarly,
the age of the negotiator can play a
role. Direct eye contact from a young
person to an older person can be seen
as disrespectful so is best minimized.
Broader cultural dynamics make it
essential that due process is followed
and the right people are spoken to in
order to get to the decision maker.
Finally, a small but significant
piece of advice. Take into account
the numeracy of your counterparty.
Historically lower levels of maths
education can mean calculations
within a discussion take longer.
Be respectful and allow all parties
the time they need. It’s in no one’s
interests to reach a number that is
misunderstood and then reneged on.
ITALY
By Alex Adamo
In many places in Europe, being
just three minutes late can be
considered rude and unacceptable.
In Italy, time is, shall we say,
more “fluid” and it can be entirely
acceptable for a meeting to start up
to thirty minutes late. Moreover,
lateness is sometimes used as a power
statement to show just who’s boss.
A client I worked with in Italy told
me how the buyer he was dealing with
would consistently be up to two hours
late for their meetings. The net effect
was Giovanni felt disempowered
and out of control. After discussing
an appropriate strategy to adopt,
Giovanni went back to his buyer and
told him politely, but firmly, “If you
make me wait more than five minutes
again, we won’t do business.”
The buyer did not speak for an
intensely uncomfortable five seconds,
but then said, “I am very sorry, it won’t
happen again.”
Proxemics is the study of how
close people tend to get to each other
when they interact (Hall, 1963).
While some cultures may extend
their arm fully when shaking hands,
Italians can get as close as kissing each
other on the cheek during greetings.
Equally, it is culturally acceptable for
an Italian to invade your personal
space when emphasizing a point in a
tense negotiation. This behavior may
unsettle the international negotiator
who has not prepared for it!
Finally, in Italy, verbosity is greatly
admired and more is definitely
more! Using the most amount of
words possible to describe a concept
indicates wisdom and language skills,
all of which suggest credibility. In
negotiation, however, the more you
say the more you give away. Silence
can be the best form of counterattack.
Three seconds of silence
in Italy can feel longer and more
uncomfortable than five seconds in
the UK, and nine seconds in Japan.
RUSSIA
By Pyotr Sviridov
Preparation before a negotiation
can get a little…heated. Despite
the antiquated image of Russians
as unsmiling and cold, emotion
plays a very important role in
Russian negotiations. Establishing
an emotional connection between
parties is as important as agreeing
the commercial terms. Russians will
ask themselves – “Can I trust you?”,
“Are you the right person to talk
to?”, and even, “Do I like you?” This
inherent need to connect necessitates
time given to the “preliminaries” of
a negotiation. One common activity
often called upon to contribute to
a successful pre-negotiation period
is meeting informally in a Russian
“banya” or sauna. One of the main
Moscow banyas markets itself as the
ideal place for business meetings and
chatting together in the baths is seen
as the ultimate ice-breaker, as a neutral
territory where both parties feel at ease
(or at least the Russian ones do!).
The ‘creative’ negotiator is highly
prized in Russia and creativity is
hardwired into the genes of Russian
negotiators. With the complexities
of the law and volatile market
conditions, Russians have evolved to
find a way to get things done. They
are ingenious, proactive and think
laterally. They establish close personal
connections. If you can do the same,
you open up enormous opportunities.
Once the negotiation is underway
several discomfiting tactics may be
deployed. This can include invading
personal space and confrontational
behavior. If you are on the receiving
end, it’s important to stand your
ground. Be prepared and demonstrate
a resolve to do so. This will help
to ensure that your counterparty
recognizes you as an equal.
13

GREATER CHINA
HONG KONG, CHINA, TAIWAN
By Wai Lau
Due to Hong Kong’s unique
history, they are the closest to a
“Western” negotiation style, but be
aware that people in Hong Kong
can be extremely blunt and will put
things on the table with no qualms
at all. Their determination and hard
working culture can come across
as uncompromising.
Taiwan, just a short flight away and
Western educated, is in contrast to
Hong Kong, very relaxed. They have a
slower pace of business and take time
getting things done.
China is a country of many faces.
Your counterparty could have grown
up in metropolitan China and have
since done business all over the world.
Or they could have been raised and
still live in the rural provinces running
a large agricultural joint venture.
Despite these complexities, some
general rules can apply to all:
» Understand the concept of life
changing. China had one of the
lowest literacy rates post World
War II, but today ranks one of the
highest in the world. The person
you’re negotiating with could
have personally experienced such
dramatic change.
» Stay away from stereotypes.
Some “junior” people you negotiate
with may have responsibility for
$20m a year.
» Be aware of hierarchy and the
traditional deference to age
and experience.
» Language skills can run deep and
may surprise you.
LATAM
By Rodrigo Malandre
In Latin America there is typically
a different approach to business
depending on whether you are dealing
with a local Latin American company
vs that of a multinational organization.
Hierarchies, bureaucracy and
following process tends to play an
important part in negotiations with
Latin American companies, while
multinationals are often able to work
in a quicker, flexible manner.
Conversations here are often
verbose. People take a long time
to say things and feel the need to
express and justify themselves –
which provides an excellent source
of information for the skilled listener.
In addition, people often need
“higher approval” to accept or concede
decisions, either because they are very
cautious or because they are truthfully
not empowered. Despite this, it is
unwise to attempt to “jump” seniority
levels. This would almost certainly
disrupt relationships. Instead, ensure
you leave the time to go through the
process and accept it as the cultural way.
NETHERLANDS
By Floris Wils
Holland has a rich history and trade
negotiating comes naturally to Dutch
people; you could say it’s in our DNA.
Timekeeping may be fluid in some
parts of Europe, but the Dutch like to
be on time. Don’t expect to be
kept waiting for a meeting, and don’t
be late – unless you are using this
as a tactic.
Although the Netherlands has
some very large companies, quite a
few are still privately owned. Don’t
be surprised if you find yourself
negotiating directly with the CEO or
owner. While these businesses aren’t
on the Stock Exchange, they can be
powerful in revenue and scope. Don’t
be intimidated by the job title and
never underestimate your own power.
Remain focused on getting inside
their head – albeit a very senior one.
A few countries in LATAM
over-index on bureaucracy and
there can be a lot of red tape.
As such negotiations might take
longer and require greater creativity
to solve issues, avoid restrictions and
make deals work.
Latin Americans are generally
very polite and friendly in
negotiations. Nevertheless, this
positive attitude towards people
doesn’t mean that the other party trusts
you. The idea of maintaining a “good
relationship” with your counterpart
often means little conflict, being polite,
avoiding disruption, but never lowering
your guard.
The Dutch are, in general, tough
negotiators. Be prepared for directness
and a willingness to embrace conflict.
Use this straight talking style as
an opportunity to get information,
understand their company and the key
stakeholders. Bear in mind the maxim
“going Dutch”. This saying didn’t
appear from nowhere, so let’s just say
that in Holland we are not inclined to
fritter or give away money or indeed value.
A final thought. Due to a milk
surplus in the 1970s, the government
in Holland launched a campaign
extolling the virtues of several
daily glasses of milk, and the habit
has stuck with many. So, if your
counterpart has a glass of the white
stuff and not the more usual tea,
coffee or water – pass no comment.
It’s entirely normal.
14

THE NEGOTIATION SOCIETY
FRANCE
By Cyril Fontaine
French people are well-known
to have a natural need to argue. This
desire for argument stems from the
education system which has an early
focus on the importance of language
and rhetoric. Students spend hours
learning how to analyze, interpret and
argue, as they immerse themselves in
historic French texts from literature,
philosophy and history.
Furthermore, there are about five
noted engineering and commercial
colleges (the “voie royale”), where
people are recruited as the managers
of the future. Graduates are seen as
the “crème de la crème” – and leapfrog
over the more junior positions to start
near the top.
The sum of these two observations
– 14 years of education based on
rhetoric and a love of argument
alongside six years of theoretical
studies through the “royal path” – is a
healthy ego, a desire to win, and a need
to argue!
How to respond? There are three
cornerstones of what makes a skilled
negotiator that will help you when
negotiating in France: 1) Plan and
prepare; 2) Recognize that people
negotiate with people; 3) Negotiation
takes place in the other party’s head.
However, perhaps the most useful
thing you could do – although certainly
not the quickest or easiest – is to learn
French. Many discussions will quickly
turn to French, and it will build trust
and avoid your counterparty feeling
inferior (and therefore less collaborative)
because of their perceived lower level of
English. Bon chance!
GERMANY
By Thomas Strack
Germans, particularly the older
generation, tend to keep business and
private life very separate. It is quite
common that informal discussion will
not include mention of their family or
hobbies which can make relationship
building more challenging. Be aware
that a firm handshake as greeting and
goodbye with men and women alike
is a very common custom – but not so
much the kiss on the cheek!
Furthermore, German is not
“German”. Language dialects are
so diverse that the people from the
north in “Ostfriesland” will not
necessarily understand their fellow
countrymen from “Bavaria”, let alone
people from the bordering countries
speaking Austrian or Swiss German.
Establishing the language to be used
in the negotiation ahead of time is
therefore worthwhile.
On arrival at your negotiation
meeting, punctuality will be expected,
but remember the German negotiator
will expect the planned end time of
your meeting to be adhered to as well.
Structure, organization, process and
order are important disciplines here.
Once you begin your negotiation ensure
there is a clear agenda and follow it
sequentially ending with a summary and
follow-up. If you want to wrong-foot a
German, ignore the above!
You may find that keeping silent
comes more naturally here than in
other European cultures. Germans
have less of an urge to fill an awkward
silence and prefer only to speak when
they have something meaningful to
say. Your counterpart in Germany will
appreciate precision and directness,
with minimal beating about the bush.
Say it like it is. The use of buzz words,
platitudes or ambiguous phrases can
be regarded as incompetence and time
wasting. If you want respect, keep an
eye on the waffle. TNS
15

The Art of
the
Flinch
flinch (flĭnch)
intr.v. flinched, flinch•ing, flinch•es
1. To start or wince involuntarily, as from surprise or pain.
2. To recoil, as from something unpleasant or difficult; shrink.
n. An act or instance of starting, wincing, or recoiling.
16

THE NEGOTIATION SOCIETY
Learning how to flinch – and displaying it at the appropriate time – is a
critical skill in the complete skilled negotiator’s toolkit. But flinching does
not always come naturally, for good reason. Angela Barbazeni explains why.
ILLUSTRATIONS MATTHEW HOLLINGS
Anyone who’s been on the receiving end of
a well-timed and perfectly executed flinch
knows the impact it can have. It can leave
the recipient feeling disempowered and
wrong-footed. Uncomfortable. Perhaps
even a little foolish. In negotiation, a flinch is designed to
send the message that the proposal that’s just been put on
the table is both totally ludicrous and entirely unacceptable,
irrespective of whether it is or isn’t.
To understand why flinching in response to a proposal is so
effective, it’s necessary to consider some of the hard-wiring
of human behavior. As social animals, we accept that there
are certain rules to observe and ways to behave in order to
have a stable and functioning society. One such rule is that
we should not cause offence or upset people unnecessarily.
If everybody consistently disobeyed that rule, societies and
other groupings – families, companies, clubs, friendship groups
– would fall apart, and this
breakdown could negatively
“Flinching is something
everyone struggles with
initially. Most people find it
challenging because it feels
fake and not genuine.
impact our very survival.
Understandably we are, on
the whole, highly motivated
to avoid this happening.
The flinch exploits this. It
implies that the recipient has
broken some rule or societal
norm and has caused offence.
The instinctive reaction to
the flinch, developed over
millennia of social development, is to remove the cause of the
offence and repair the damage. Our social conditioning makes
us think that we are the guilty party, and we take that guilt
on ourselves and pay the price of redemption. In negotiation,
the price could be high – and significant value lost – as the
recipient of the flinch recalculates their proposal (to their own
detriment) to avoid causing further “offence”. Likewise, a
flinch can work to give the other party false satisfaction, that
is to suggest to them that while their offer was unacceptable
they can move closer to you without giving away unseen
value on offer.
Negotiation consultant Brian De Fatta is passionate
about the importance of the flinch. He acknowledges that,
“Flinching is something that everyone struggles with initially.
Most people find it challenging because it feels fake and
not genuine.” The reality is that we do flinch naturally and
instinctively – when our subconscious is in control. It’s so
automatic in fact that we rarely think about it. As Brian
points out, “Think about your reaction when someone cuts
you off in traffic. Probably pretty pronounced – maybe you
shouted or thumped the steering wheel. This type of a big
reaction may be appropriate for negotiations that fall from
1 to 5 on the Clockface. Then consider your reaction when
you have a disagreement with your partner about how to
spend your anniversary – you want a luxury hotel, they
suggest camping. Perhaps you shook your head in mild
disagreement or grimaced slightly. You are again sending a
message, albeit this time smaller, that you are rejecting what
you just heard. This smaller reaction is more appropriate for
negotiations that occur from 6 to 11 on the Clockface, but
the fundamental message of disagreement and rejection is
still the same.
“The difference between flinching in the car and
anniversary scenarios and in a negotiation is that in the
latter you are choosing (consciously) to send a rejection at
an unnatural time (the proposal could be good but you still
need to reject it). Therefore it’s the opposite behavior of
your subconscious sending messages naturally. So it’s crucial
that you remain ‘consciously
competent’ to land this and
send the message you want
the other party to receive
– that they need to keep
conceding because the deal
isn’t good enough for you.”
So no matter how good
the proposals from the other
party get, a skilled negotiator
continues to flinch
appropriately throughout
the negotiation, until they “reluctantly” accept. Not only
that, but they learn how to flinch in a credible way. This is
not to suggest that you can’t have more than one type of
flinch, depending on how strong the rejection message that
you want to deliver is. The further around the Clockface, the
more appropriate it may be to soften the flinch. Equally, it
is essential not to over use the flinch, to become an actor in
your own play. Finally, stay mindful that any change in your
message to the other party may signal to them that they are
inside the bargaining range and they may stop conceding.
And that means lost value for you.
If the thought of that is enough to have you practicing
your flinches morning, noon and night, Brian has 3 golden
rules of flinching to keep top of mind: “Flinch appropriately,
flinch consistently and flinch authentically.” If following that
advice results in mutual value creation in your negotiations,
then overcoming the result of thousands of years of social
conditioning will have been worth the effort.
The theory may make sense, but if you’re short of
inspiration for how to perfect your own authentic flinch,
turn the page for our tongue-in-cheek guide.
17

THE TANTRUM
Throwing a pen down on the table
and looking annoyed.
Channel your inner child. A grown-up
version of stamping the foot, this move
combines physical drama with
sound effects.

THE DRAMATIC EXIT
Leaving a meeting room.
Sends a strong message but requires
confidence. Need to consider the
possibility you won’t be called back.
THE HIGH SCHOOL PRINCIPAL
Raised eyebrows and silence.
Like the uncomfortable silence of
being sent to the principal’s office,
this flinch is silent but effective.
THE HAWK
Indignant glare from above the
rim of spectacles.
A dramatic build on the raised
eyebrows for those that wear glasses.
THE DRAMA QUEEN
Face changing color and veins
popping on the head.
For Oscar-worthy performers only.
One to practice in the bathroom mirror.
THE JOKER
Laughing out loud.
Suggesting the offer made is simply
laughable and cannot be taken seriously,
it undermines the other party’s position.
THE PATRONIZER
“You are new to this, aren’t you?”
Devastating, with a high “insult”
warning. Effective with the
right audience.
THE TIME BUYER
Rapid blinking and long silence.
Suited to highly collaborative yet
tense negotiations (9-12 o’clock on
the Clockface).
THE CHALLENGER
“WHAT?!” Paired with a look
of disbelief.
An easier flinch to implement.
Less offensive than The Joker, but
plied with similar intent.
THE HOTHEAD
Pounding the table after
an awkward silence.
Physical and intimidating. Highly
effective, but should be used sparingly.
19

20

THE NEGOTIATION SOCIETY
WE NEED TO
TALK ABOUTKevin
Alistair White tracked down Regional Head of Consulting,
Kevin Lecompte to discover why being instrumental in others’
success is what gets him out of bed in the morning.
Most people recognize The Gap
Partnership as a expert in
developing negotiation skills.
However, there is another side
to our business that is much less known, that
of negotiation consulting. Here we work with
clients to create and execute plans for specific
negotiations. The specifics of which are nearly
always highly confidential, further adding to
the mystique of “what do they actually do”?
The Negotiation Society asked me to spend
some time with Kevin Lecompte, Regional
Head of Consulting, to lift the veil on the
world of negotiation consulting.
Kevin arrives for our interview at the appointed
time, takes a seat opposite me, leans back in his
chair, folds his hands behind his head and smiles
mischievously. “What do you want to know?”,
is his opening line.
I think about the five years I have worked with
Kevin and realize how little I know about the
day-to-day work that he and his team do.
“Tell me what a negotiation consultant does”,
is my somewhat uninspired opening. Then
something quite strange happens; and indeed it
happens again and again over the subsequent
hour of our conversation, to the point where I
come to expect it. As dramatic as it may sound,
it’s as if someone has passed a small electric charge
through Kevin’s body. He jolts forward, his eyes
light up, and there is an almost palpable crackle
of energy about him as he replies.
“We don’t tell clients what to do or give them
‘the answers’, that would be arrogant and lazy.
We combine the best of what we do with the best
of what the client does. We provide a process, a
methodology, a toolkit and our experience, and
we combine that with the client’s intelligence
and market knowledge to create a plan that is
crystal clear, purposeful and robust. Essentially we
question and challenge the client’s thinking in a
process that I describe as ‘collaborative wrestling’,
until we are both convinced that we have
a solution.”
Before joining The Gap Partnership, Kevin
worked for a number of other consultancy
companies, including a division of KPMG.
I wondered what was different about his work
with The Gap Partnership compared to his
previous consulting experience.
“That’s easy. I get to see a result. When I
was with other companies, we would develop
a strategy document, draw up a five year
business expansion plan or formulate a change
management program and I rarely got to see the
outcome. With The Gap Partnership, we are part
of the strategy development but, critically, we get
involved in the execution of the plan. That means
we get to see the deal done and we see a tangible
result, a number on a profit and loss account.
21

The feeling of being instrumental in someone else’s success is
something I never experienced before and it is one of the best
bits about this job.”
Someone else’s success? As I said, I have known Kevin
for 5 years and I know he has a healthy level of self-esteem.
(Some may describe it as ego, although I’ve never really
understood why that has to be a negative trait. And for
Kevin’s line of work a robust sense of your own ability is
surely a non-negotiable).
Given this, I decide to tease him a little. Really, Kevin?
You enjoy being part of other people’s success? You enjoy
watching other people take the credit for what you helped
bring about?
“Absolutely. I, or one of my team, are hired by someone at
one of our client companies to do a job for them, to secure a
commercial result. When we get that result, it is only right
that the client who put their own reputation on the line
by hiring us should get the corporate acclaim, the promotion,
the bonus, whatever. My satisfaction comes in surpassing
client expectations.”
I am starting to believe him. “80% of our consulting
business comes from clients with whom we have already
worked. We do our job, people want to hire us again,
and that gives me the
personal satisfaction.”
By now he is in full flow.
I resolve to try and take
him down a peg…“Kevin”
I interject, “You just said,
‘When we get that result.’
Surely you mean ‘if ’? There
must be occasions when you
don’t get the result you were
aiming for?”
Kevin leans forward
and I prepare myself for
a volley of elegantly
articulated abuse. “This
is not a ‘win some, lose
some’ game of poker. This
is about taking the element
of chance out of the equation – it is about detailed preparation,
pre-conditioning, risk assessment, contingency planning.
To date it has worked because we have never not hit
an objective.”
He lets that statement hang in the air for a while, just to
make sure I got the full implication. I am wondering, is he
confident, or cocky? For now, let’s call it confident.
“So, what’s the secret?”, I ask mischievously, goading him
again. “Is Kevin Lecompte a magician, an alchemist, some
kind of negotiation guru?” To my surprise – and I must
admit, to my secret satisfaction – a flash of irritation
crosses his face.
“It’s not about me or how well you can bluff or stay strong
at the table or any of those other Hollywood preconceptions
about negotiation. We have a very robust process, we have
some versatile tools and we have a reservoir of confidence and
experience that we have built up over the years. I said before that
what I do is question, challenge and provide insight.
“The first question I ask is ‘What do you want to achieve?’
Many people struggle to answer that question and it would
surprise you to know how many different answers I hear
“My job is to guide people
through a process of planning
and preparation, acting as
guardian angel and devil’s
advocate in equal measure.
Well, probably more devil’s
advocate, if I am truthful.
from different people within the same company. I think
one of the reasons we hit our objectives is because we spend
so much time at the outset of a project defining what the
desired outcome is. If we think that the client’s vision of a
desired outcome is unachievable, then we will say so, I regard
that as part of our job. But, until we have secured unanimous
agreement to an objective across all management levels, we
don’t move forward. But once we get that level of clarity and
focus, it makes delivering – and frequently exceeding – the
objective so much easier. If we – the client and The Gap
Partnership – start to get lost in detail or we start to feel the
pressures of expectations, we just ask ourselves if what we are
doing is helping to achieve the objective. That really helps to
re-focus our work.
“My job is to guide people through a process of planning
and preparation, acting as guardian angel and devil’s advocate
in equal measure. Well, probably more devil’s advocate,
if I am truthful.
“I am constantly amazed how so many people do not
make the time to prepare adequately for a negotiation.
They say they don’t have the time. So they end up doing
a deal and they then spend the next five years trying to
make it work or trying to improve the profitability. Why
not take a few weeks up
front and invest the time in
negotiating a better deal in
the first place? To me, that
is a no-brainer. Just recently,
we worked with the CEO
of a client company who
was planning an acquisition
with a budget of $900m.
Previously M&A activity
was not planned in terms
of a negotiation strategy
and objectives were only
approximately achieved.
In this instance he and his
colleagues invested eight
weeks of their time with
our consulting team, spread
over a period of five months and they ultimately acquired
the target company for just over 12% less than they had
budgeted. That’s an ROI of nearly $3m a day.”
Kevin pauses for breath and there is a moment of silence
as we both contemplate the prospect of $3m a day. He leans
back in his chair and I get the sense that he is almost a
little embarrassed at the impassioned nature of his previous
statement. Almost, but not quite.
I look down at my notes and one phrase leaps off the page
– devil’s advocate. What form does that typically take? Does
he find himself more frequently putting a brake on clients’
ambitions or emboldening clients to aim for greater things?
“Almost always the latter”, is the response. “People tend to
underestimate their own negotiating power – we provide an
objective, third party assessment of an outsider’s perception
of their negotiating power. Perception is the key word.
The majority of the work we do happens long before anyone
sits down at the negotiating table and much of it is devoted
to influencing the perception of the balance of power.
If we can shift that perception from 40/60 to 60/40, that
can be worth a lot of money.”
22

THE NEGOTIATION SOCIETY
I decide to get personal. “What are the best bits about
the job of a negotiation consultant? What excites Kevin
Lecompte?”
“The fact that, at the outset of any project, no matter
how well briefed I am, I am walking into the unknown
and I will need to think on my feet. The bottom line is
that this is the client’s negotiation and they know their
business infinitely better than I ever will. Hearing about
their circumstances, their environment for the first time and
having to absorb that quickly is always a challenge, but a
genuinely exciting one. And the confidence that grows in
me as I figure out how we can add value and deliver a result
is one of the best elements.
“Frequently, we get called in because things have gone
wrong, a bit like going to the doctor; you don’t go to see
them when you are healthy, you go when there is a problem.
There is a lot of pressure in the early stages of a new
project. But I never feel more alive than when I am having
breakfast in a hotel prior to the first day’s engagement on
a new project. Just thinking through the various issues and
permutations and how I balance these with the risks to
manage an outcome and continue the run of hitting
the objective. It is an intoxicating mixture of excitement,
anticipation, nerves, apprehension. Fantastic feeling.”
And the worst bits?
“The travel can be a bit of a drag. If I never see the inside
of another airport in my life, I wouldn’t complain.”
Kevin pauses. “One of the biggest frustrations is being
called into a project when clients are encountering problems,
particularly with newer clients. I often think how much more
we could have achieved if we had more time. But I suppose
that is inherent in the nature of the job. With established
clients, we more typically get involved at an earlier stage
and the difference is huge.”
Our hour is up. We stand to say our goodbyes, before
walking perhaps twenty feet or so to our respective desks.
As I walk I ponder, what must it be like to work on a project
that not even your spouse will know about, to achieve
heady results, and then to keep them shrouded in a veil of
confidential secrecy? But Kevin has reached his desk before
I can ask. TNS
23

UNDER
PRESSURE
FIVE STRATEGIES TO KEEP EMOTIONAL
CONTROL DURING A NEGOTIATION
One of the major game changers in negotiation is the ability to successfully
control emotional responses. A counterpart may use shock tactics such as
aggression to create an unplanned emotional reaction. In this state it is all too
easy to accidentally disclose information that can tip the balance of power.
The skilled negotiator is aware of this risk and is prepared to be provoked.
Matt Maia proposes five strategies for channeling
emotions to your advantage during a negotiation.
STRATEGY 1
REACTION RESET
In order to prepare yourself for an impending emotional
response, it’s important to understand your vulnerabilities.
Everybody is different so there is no one solution to
managing emotions. To take control you need to address your
own specific weaknesses and blind spots.
First things first: reflection and self-assessment.
Start to keep a record of your emotional reactions, feelings
and associated body language each time you have conducted
a negotiation. Remember, negotiations don’t happen
exclusively in the office, so consider the negotiations you
are undertaking in all aspects of your life. If possible, ask for
feedback from colleagues, family and friends.
Try to identify patterns. Do you start to shake or stumble
over words when you are nervous or uncomfortable?
Could a counterpart spot a smirk or blush that could give
away your position?
Next step: action plan.
Once you begin to understand the situations you need to
manage, you can begin to utilize strategies to change your
behavior. If you can manage your emotions and discomfort
better than your counterpart, you are more likely to take control.
Pair up with a colleague to conduct a mock negotiation
making sure that your colleague deploys the triggers that you
know will unsettle you. Practice responding in a different way
to your instinctive reaction. For example, if you know your
tendency is to talk quickly and stumble over words, take time
to pause and breathe deeply before you reply.
Once you have practiced in the safe environment with
your colleague, start utilizing your techniques in the real
world. Keep returning to step one and reflecting and
assessing your progress.
This strategy is simple: understand yourself, practice, change.
24

THE NEGOTIATION SOCIETY
STRATEGY 2
MENTAL COACHING
“When it comes to negotiations, leave your emotions
at the door.” In The Negotiation Book Steve Gates writes:
“Behavioral, mental control and emotional detachment are all
needed to get inside the other party’s head.”
I cannot emphasize this enough. The emotional part
of your brain, the limbic lobe, creates reactive and often
irrational responses, filling in gaps with non-factual
theories. The more rational part of your brain, the frontal
lobe, calculates a course of action based on facts and data,
with input from your emotions. During negotiations it is
imperative to pay special attention to this part of your brain
and your more rational approach to thinking.
This second strategy is very simple but requires
organization and reasoning. The objective is to effectively
pause or hold your emotions until an appropriate time. Prior
to going into a negotiation you must remind yourself that
emotional analysis and emotive reactions are helpful to get
a broader perspective, but during this meeting they are not
needed and you will review the situation fully with your
emotions after the meeting. Be very clear with yourself and
allow ten minutes after each negotiation (planned into your
diary) to make a list of your emotional responses and thinking.
This is a great exercise that will not only relieve stress but will
decrease tension in your mind between your frontal lobe, and
your limbic lobe, allowing you to think more clearly.
This approach is explored in more detail in the book
Mind Management by Professor Steve Peters.
STRATEGY 3
30 MINUTE PREP
Let’s face it, there isn’t always enough time to prepare a
detailed plan for negotiations. However, it is very often the
more prepared party that will maximize the value of the deal.
If you find yourself in a situation where you have limited
time to prepare, this 30 minute strategy will ensure you cover
the fundamentals and are emotionally prepared for
your negotiation.
First, write a list of topics that if raised during the
negotiation could provoke an emotional response. Remember
to include your own emotional triggers that you identified
in Strategy 1.
Secondly, add to the list areas where you think it is likely
your counterpart will try to apply pressure. For example,
if you are currently negotiating with a retail buyer who
continuously attempts to weaken your position by calling your
company non-collaborative, assume they will do the same again.
Finally, for each topic you have identified, decide on and
write down your response. For example:
Topic: Raised voice and aggression
Response: “Please do not raise your voice. I would like us to
speak to each other in a professional manner.”
Topic: Extreme demand for cost reduction
Response: Extreme demand for distribution improvement
You will be surprised at the number of areas you can
predict during this preparation, and how much more
comfortable you feel having completed this exercise,
despite its brevity.
STRATEGY 4
MINDSET MANAGEMENT
Once you understand your own mindset and emotional
processing, you will start to understand the emotions of
others, and you will be able to identify highly emotive states.
By mastering your own mindset you can begin to exert
influence on others.
There are many different ways to approach this topic.
Meditation and mindfulness can offer great benefits by
enabling you to clear your head of emotive thinking, remove
stress easily, and be in the present moment. Yoga is also a
discipline that can aid focus and strength of mind.
Any and all of these methods can positively aid the skills
of the successful negotiator by placing control more firmly in
their hands.
STRATEGY 5
COMMUNICATE HONESTLY
This strategy is for those instances when you are
struggling to gain control of your emotional reactions
during a negotiation. The most important thing is to firstly
recognize when this is happening. You will start to see your
behavior taking on the patterns that you identified in yourself
during Strategy 1.
The next step is to breathe. Stop talking, and try to put
the rational part of your mind back into control. This can
be an extremely difficult task. You may be experiencing
many emotions all at once. You may be fearful of a loss of
a contract, and resent the other party because of this. You
may be ashamed if you lose the business, and nervous about
what the other party will do next. Remember that being
led by your emotions means your brain fills in the gaps and
overthinks as a built-in protection strategy. Giving into this
can cause more stress and an emotionally driven reaction.
Honest communication is a critical strategy for
these occasions.
Typically, people in an emotive state will try to hide the
fact that they are emotional, and struggle through a meeting
with their mind clouded. They then make poor decisions or
rush to solutions too quickly minimizing value. Take a timeout.
Tell the other party you would like a break in order to
reflect on where the negotiation has reached. You could say:
“I would like to take five minutes of my own time to reflect
on where the deal is.”
This strategy is about being aware of yourself, and
having the ability to take control of proceedings. This
requires a high level of confidence, as it will certainly
make you feel uncomfortable, but it will be highly
beneficial to the outcome. TNS
25

OPEN
FOR BUSINESS
Understanding and managing relationships in negotiation
is an important skill, as Amaryllis Jones explains.
n the earlier part of my career, as a fresh and
bright-eyed new graduate, I honed in on my
social skills to develop my style of negotiation.
Eager to be flexible and fierce, I entered my
negotiations with the facts and fundamentals
of my business to demonstrate why the
“opportunity of the month” could drive the
business in the interest of the retailer and vendor. However,
little did I know that it was the predeveloped relationship
and my understanding of emotional intelligence, or EQ as
it’s commonly referred to, that swung the pendulum in my
favor (most of the time).
Working in the CPG (consumer packaged goods) is
probably similar to other industries you have worked
in that we exist as an interconnected community of
individuals that know someone through a “friend
of a friend of mine.” Anyone that can recognize
this intermingling early enough can imagine
the amount of leverage every internal and
external interaction can have on
the quest to master the art of
relationships. We often like to
perceive ourselves as experts in
networking, where we
skillfully work the room at the
annual business summit – wine
in hand, business cards in pocket
and the intent to lock in that
15 minute chat with a
decision maker that could
propel the proposal.
But how skillful can
we be when we haven’t
taken the time to pave
the foundation for that
relationship? Think about
this…when was the last time you
emailed or called a past client, colleague or
customer, regardless of if you do business with
them currently, to say “hello”?
When I start a new relationship with a
manager, client or customer my first priority
is to negotiate time. “My preferred frequency
for customer connects is bi-monthly” or “I will
be scheduling weekly 1:1 meetings”…so on and
so forth. Why? Because in a fast paced and highly
competitive environment, I want to ensure that I have
locked in my fair share of time with the key individuals
important to my success. Remember, it’s better to give
time back than to ask for more. Each of these interactions
provide an opportunity to build the relationship by
allocating time at the beginning,
not the end, of the meeting to
learn more about the individual on
an emotional level. This is the magic
ticket to learning what excites, ignites
and infuriates the individual. But this
is also where the hard work starts –
because understanding EQ is impossible
if you simply don’t understand yours. EQ
is “the ability to identify and manage your
own emotions and the emotions of others.”
The key is to draw connections between your
EQ and your counterpart’s, gathering “clues” to
conclude how best to work together. Individuals
with a high EQ exhibit the ability to cope with
environmental demands and pressures while
demonstrating empathy, accountability and
emotional labor.
As a TGP-trained negotiator, I am sure many
of you struggled with being too fair (at least I did).
“How skillful can we be
when we haven’t taken the
time to pave the foundation
for that relationship?
In my most recent negotiation I caught a bad case of
“fairness” – I was a new face to the customer at a rocky time
where the business was not growing and there were national
changes ahead. I couldn’t help but feel like the customer got
the short end of the stick. But in actuality it was the low EQ
of the buyer resurrecting these emotions in me. Recognizing
that the buyer was emotionally frustrated because his
targets were at risk while transitioning the business to a new
individual on his team helped me to exercise empathy rather
than fairness. It was during my short interactions with him
that I learned about his career changes in the new year and
his eagerness to set his successor up for success. So, “How
bad do you want it?” These are the infamous six words that
I ask myself in every sticky situation, and when I uncovered
how badly the buyer wanted resolution I pounced at the
opportunity to negotiate creatively.
In any situation, understanding emotional intelligence is
critical for productivity but even more so when embarking on
a negotiation. Taking the time to reflect and own yours can
truly help you master the art of relationships. TNS
26

THE NEGOTIATION SOCIETY
ASK ALISTAIR
In the first of our Ask Alistair series, negotiation expert
Alistair White answers questions from our alumni.
Q: My boss is always giving away
value in our negotiations.
How can I stop him?
Kevin, FMCG, UK
A: Don’t take him with you!
But seriously, 90% of the time,
you can eliminate this problem
through preparation and having
a conversation in advance to
agree the proposals you are
going to make, the sequence
and where your breakpoints
lie. Decide which of you will
do the talking, which of you
will make decisions and, crucially,
separate these two. Perhaps agree
that, before you deviate from your
pre-laid plan, you take a time-out to
discuss. At all costs, avoid spontaneous,
ill-considered concessions.
Q: The hardest discussions I have
are internal. What are your tips for
negotiating internally?
Wayne, Procurement, Sydney
A: The same principles apply
equally in internal as well as external
negotiations. The difference lies in
how we feel about them. There is an
expectation that because you work for
the same company, your negotiation
should be collegial. But
if you are negotiating
over the same, finite,
internal resource –
budget, manpower,
deadlines – it is hardly
surprising that these
discussions are hard.
Moreover, the potential
to exchange low-cost
for high-value (the
commercial foundation
of more collaborative
negotiations) is much lower in internal
negotiations than when negotiating
with an external partner with a different
business model and different KPIs.
My advice is to analyze the circumstances
dispassionately and focus less on the fact
that you are dealing with a colleague.
Q: When is extreme too extreme?
Elodie, CPG, USA
A: We only discover where a frontier
lies by crossing it. So the short
answer to your question is, “Only
in retrospect.” The fact that you ask
this question tells me that, because
you are concerned about opening too
extreme, there is less likelihood that
you will. Most people who open too
“We only discover where a
frontier lies by crossing it.
extreme have not even considered the
consequences in advance, so you are
already ahead of the game. Consider
this – would you rather open too
extreme, or not extreme enough? With
a little forethought and experience you
will rarely, if ever, overstep the mark.
Q: I’m involved in tenders. How do I
get my number on the table first?
Eric, Oil & Gas, UK
A: You can’t. Most tenders in my
experience have a firm, or at
least indicative, pricing level.
However, there are a couple of
things you can do. In many
instances, you know in advance
that a tender is on its way,
and you can make an effort to
influence the conditions of the
tender, including the pricing,
before your customer draws
up the final draft. If that proves
impossible, as soon as you receive
the tender, enter into a conversation
with your customer about how the
product or service in question could be
specified, configured, delivered, priced,
etc...differently. If your customer is
prepared to entertain this discussion
then you have an opportunity to
redesign the parameters of the tender
and effectively move the tender onto
a negotiation ground more of
your choosing.
Q: All my customer ever wants to talk
about is price. How do I manage to
broaden the discussion?
Alena, FMCG, China
A: Send an agenda up
front which documents
the issues you want to
discuss. Assuming you
are commercially able
to do so, make one
or more conditional
proposals which offer
your customer a partconcession
on price, in
return for something
which compensates you
for this concession. An “if you...then
we...” proposal is the simplest way of
achieving this. In this way, you are
forcing your customer to consider what
you want to talk about because you are
making his reward conditional on you
getting what you want. TNS
27

QUESTION
T I M E
Brexit has been
described as “the mother
of all negotiations”, but
what negotiation lessons
has it taught us so far?
We asked a panel of
experts from different
industries to give us
their assessment.
Ian Rennie
FORMER GENERAL SECRETARY, POLICE
FEDERATION, ENGLAND AND WALES
From 2008–14 I had responsibility
for negotiating the pay and conditions
for all police officers in the UK.
My biggest challenge was managing the
expectations of those I represented and
convincing them they should accept
the deal that we had achieved. This
was only ever successful if I agreed a
clear mandate beforehand with a set of
principles and negotiating strategy.
The Brexit negotiations are an
object lesson in how to minimize your
prospects of achieving a negotiated
settlement that doesn’t worsen the
arrangements that currently exist. The
Chief Negotiator appears to be going
into negotiations with no clear mandate
on what those behind him – in the
government, parliament or the country
– actually want, and more importantly
what they are prepared to concede.
The Foreign Secretary’s comments
that we can “have our cake and eat
it” and the EU “can whistle” for any
divorce money have only served to
make the negotiators’ task more
difficult. The Prime Minister’s stance
of “Brexit means Brexit” and “no deal
is better than a bad deal” together with
her red line positions have done little to
improve the negotiating environment.
The referendum question was asked
without any real knowledge of what a
deal to leave would look like. Only now
are the complexities of EU membership
and the consequences of leaving
becoming apparent. The government
has belatedly produced a series of
position papers which the EU team
has criticized for lacking clarity and
“realism.” The negotiations appear to
be stalled before they have started with
our Chief Negotiator left pleading for
“imagination” and “flexibility.”
The two parties look like they
couldn’t be much further apart and
the chances of getting any deal,
never mind a good deal, appear to
be getting slimmer by the day. But
whatever comes out of the negotiations
the hardest part will be selling it to
parliament and to the country.
Graham Ross
MANAGING PARTNER, CONTINENTAL
EUROPE, THE GAP PARTNERSHIP
We haven’t learned much about
the Brexit negotiations just yet.
But we should not have expected to.
Negotiation has existed since the dawn
of civilization, but is still remarkably
misunderstood. Certainly, the execution
of Brexit is complex. Many laws and
rules of the EU will have their first tests.
The interesting thing right now is the
similarity in messaging that negotiation
teams are sending on both sides of
the channel.
Undoubtedly Messrs. Barnier
and Davies, May and Juncker have a
tough job. They must come to some
agreement. But they must also convince
their stakeholders – the various EU
governments – the agreement is worth
accepting. However, their stakeholders
are the electorate. That’s a lot of people
with little education of the process who
need to be satisfied the solutions are the
best available.
As any skilled negotiator knows,
people value that which is hard to
obtain. This deal, with so many people
looking for satisfaction, will have to look
very hard to obtain. With work and
some humility, initial positioning should
develop to proposing and eventually
some elements of the deal should start
to emerge.
In the meantime currencies are
fluctuating, input and transfer costs vary
across our region, and renegotiation is
necessary to reallocate profits and costs.
All before we consider the impact of
potential new tariffs and red tape. It is
not a question of whether there will be
commercial change, but a question of
when, by how much, and how frequently
we will have to renegotiate.
For now we should brace ourselves
for the public face of these negotiations
to be tough. Claims that either side
is “underprepared”, “unrealistic”,
“unimaginative” or “inflexible” shouldn’t
surprise. There will be deadlocks,
breakthroughs, and late-night meetings,
with tired-looking protagonists reporting
the outcome to the cameras. How else
will we be satisfied that our negotiators
have given everything they could?
28

Andrew Magowen
GENERAL COUNSEL & COMPANY
SECRETARY, ASOS
The Brexit negotiations (is it a
“negotiation” if you don’t appear
interested in offering anything tangible
to the other side, and instead seem to
be talking about completely different
things?) demonstrate something that it
took me a long time to learn.
You have to trust your counterparty.
Because ultimately, you will have to
move. You’ll need to get past the feeling
that you might lose face or be seen as
weak. You’ll need an outcome and a set
of trade-offs that you can explain. And
you can only do that when you trust
the other side to reciprocate. That trust
comes from building a relationship. It
doesn’t happen when you belittle or
refuse to engage with their concerns.
Trust is only created when you
properly listen to the other side, try to
understand their views and position
(even if you don’t agree), and attempt to
address their issues in the way that least
impacts you.
You won’t win someone over with
your power or intellect, or browbeat
them into seeing your point. It may
sometimes feel like it, but a negotiation
is not a fight. A negotiation is a trade.
You have to have something the other
side wants (or wants to avoid), and you
have to help them get that in order to
get what you need.
And that means you have to know
what you need (or need to avoid).
You must understand what’s likely to
happen if you don’t strike a deal, and
how you can live with that. Not what
you hope might happen. Not what
you think you might get away with.
What’s likely to happen. Only then can
you understand the best way forward,
whatever the public glare and whatever
your ‘face’ may be telling you. Only
then will you be able to explain the
good points from a deal that justify the
compromises you had to accept.
Barry Hoffman
GROUP HR DIRECTOR,
COMPUTACENTER
It is fairly clear that the British
public is an unpredictable and
somewhat fickle bunch of voters.
Brexit has taught us a number of
things about negotiation – from the
impressive hubris and inflated claims
of Boris Johnson, which had more
impact than expected (for him as
well as us), to the powerful groups
of minority voters who were severely
underestimated by the government.
But more than that, it has shown us
that agility and the ability to adapt to
rapidly changing circumstances is what
makes governments, businesses and
individuals successful. Who’d have ever
thought that Boris would end up as the
UK government’s Foreign Secretary?
Whatever the outcome, Brexit will
have a profound impact for many
years to come. The good news is
that there can be winners. As an IT
services business, Computacenter has
more business outside of the UK than
it transacts inside Britain. So for us
diversification has been a clear route
to flexibility and choice. It enables
businesses and people to adapt and
react swiftly whilst feeling in control of
their own destiny, which is absolutely
crucial in a fast-moving negotiation
where many factors are outside of
our control. Political and economic
instability should not have come as a
surprise to anyone. Like an electrical
storm, the rumblings have been audible
long before the eye of the storm hit the
UK on June 23rd.
Businesses may leave the UK, or
they may not, but the key learning
from Brexit is that bemoaning the
situation will get you nowhere. In any
negotiation, the successful party will
detach themselves from the emotion
of the situation and find solutions that
are beneficial for both sides. Because
ultimately, it doesn’t have to be a zero
sum game.
James Lowe
CLOUD AND ANALYTICS LEADER UK
AND IRELAND, IBM
Given the formal Brexit negotiations
began in June 2017, I wonder how
much we can have learned so far.
That said, there have been some
significant events that offer substance
for debate and comment.
The UK general election back
in May was intended to create
a significant majority for the
Conservatives and result in a clear
political position on the desired
outcomes of Brexit for the UK. But in
reality the election result only served
to provide a more confused political
backdrop to the negotiations and
create a perceived weakness in the
UK’s negotiating position with the EU.
Additionally the changes in the
UK negotiating team, with the loss of
key figures such as James Chapman
and David Jones, has served to
further compromise the UK position.
Irrespective of your view of these
individuals’ capability, continuity of
personnel throughout negotiation is
vitally important. Both of these factors
– the election result and changes in the
UK team – are vital elements that will
impact the success, or otherwise, of the
negotiations for the UK.
But a final observation is around
the lack of clarity of the UK’s “walk
away” position. No one has been able
to clearly articulate what will happen in
the event of a “no deal” outcome. Some
commentators speculate that Britain
could operate under the World Trade
Organization framework. However,
the devil is in the detail and how
that would play out in reality is little
understood. What this means is that
no one can truly map out the respective
impacts of accepting the other parties’
position, versus standing firm and
risking a “no deal” scenario. In the
short term, the UK’s position is further
undermined. The longer term risk is
that trivial points will be argued over
for hours, whilst conversely those that
require a firm stance from the UK may
be agreed far too easily.
29

JAMES DONOVAN
THE WORLD’S BEST NEGOTIATOR?
Chris Webber analyses an intelligent
Hollywood thriller and considers the wisdom
it contains for today’s commercial negotiators.
James Donovan, an American lawyer, was born
in 1916. He rose to become General Counsel
for the OSS (predecessor to the CIA) and an
international diplomatic negotiator. He became
famous for two pieces of
brilliant negotiation diplomacy.
He negotiated the release of
American pilot Gary Powers in
exchange for Soviet spy Rudolf
Abel, and he also negotiated the
release of prisoners from Cuba
after the Bay of Pigs invasion.
The release of Powers was
the subject of the 2015 Oscar
winning film “Bridge of Spies”,
starring Tom Hanks and
Mark Rylance.
In the film Donovan
demonstrates a number of traits
of successful negotiators. He is
able to disassociate himself from
the events. He does not accept
the populist view of what to
do and he flatly refuses to conform to expectations.
He instead focuses on what he believes is in the best
interests of his client. At the time, 1950s and 60s USA,
the country was a hotbed of suspicion. Anti-communist
feelings were strong as The Cold War escalated. In that
atmosphere the capture of a Soviet spy by the Americans
resulted in a frenzy, cursing him to a cruel fate.
Donovan saw it differently. When he was instructed
to represent Abel during the trial he chose not to
conform to pressure and deliver a show trial, but to
defend his client to the best of his ability. Ultimately he
escalated the case to the Supreme Court, losing only
narrowly on a point of law regarding the rights of
foreign nationals and the US constitution.
These actions demonstrated that Donovan was able
to separate his feelings from behavior, instead focusing
solely on the outcome.
It also underlined his position
as a man of integrity who took
action not for selfish gains, but
for the
bigger
picture. This is critical
to his position as a diplomatic
negotiator. Later in his career this
reputation no doubt enabled his
proposals to be taken seriously at
a time when trust could not have
been lower between nations on
the verge of war.
The story also beautifully
illustrates some other important
fundamentals of negotiation:
Strategic thinking – the
capacity to consider the long term
implications of decisions made
that affect two parties likely to
be required to negotiate again.
Power and influence –
understanding dynamics in
multi-party negotiations to create leverage through
knowledge of what is important to each party.
Focus on the other party’s breakpoint – not setting
targets based upon requirements, but considering how
much the other party might be prepared to give.
Once convicted the fate of Abel was clear in the
mind of the judiciary and the majority of Americans.
The death penalty. However, again Donovan took an
alternative view that put him at the heart of further
controversy. He predicted that in the future an
American would be in a similar situation and that the
US would require both a bargaining chip and a moral
position against the mistreatment of captured citizens.
He was proved right. An American pilot was shot
down by the Soviets, captured and convicted of spying.
30

THE NEGOTIATION SOCIETY
Tom Hanks plays James Donovan in
Hollywood blockbuster ‘Bridge of Spies’.
Inset: James B. Donovan in 1962
PHOTOGRAPHY ABOVE: JAAP BUITENDIJK/©WALT DISNEY STUDIOS MOTION PICTURES
COURTESY EVERETT COLLECTION/MARY EVANS. INSET LEFT: GETTY IMAGES
The US were determined to secure his release and unable
to open official channels engaged Donovan as an indirect
liaison. They had one clear goal in mind – the pilot, and they
were prepared to trade Abel for him. They were also under
tremendous time pressure and feared that given time the
Soviets could extract enough information from Powers that a
trade would be irrelevant as all the secrets would be lost.
Donovan was sent to East Berlin to secure the
agreement. The complicating factor was the detainment of an
American student, Pryor, by the newly formed East German
government. It created an added dynamic, an additional person
to be released and the complication of another government.
The US were prepared to sacrifice the student and focus
on Powers. Donovan was not. He focused not on his own
goals, but what the other party were prepared to give,
specifically both prisoners in return for Abel.
The challenge he then faced was possibly his most
significant. The Soviets were going to receive their man back
in return for the release of Powers to the Americans. What
were the East Germans getting? The way that Donovan solved
this dilemma was patience and creativity. He did not rush
the agreement. He took his time to meet and understand
the situation, caught in various power games by the East
Germans in a tense and dangerous post separated Berlin.
He understood that intangible variables carry huge value
in negotiation, something that cannot be easily measured
like reputation, association or collaboration. He also carefully
assessed where influence lay across the three parties – the US,
the Soviets and the brand new East Germany.
On face value the East Germans held the power. They
had something Donovan wanted and he had little to trade.
Their demands were recognition by the US for their role,
and recognition of their government. Neither of these were
acceptable to the US. Donovan saw that an association with
the Soviets was much more valuable to the East Germans
in the long term. He used his bargaining position to force
the Soviets to pressure the East Germans. He refused to
co-operate with them unless they secured the release of the
student and released Powers.
He made one concession, a separate exchange point.
The East Germans handed over Pryor at Checkpoint Charlie
rather than the official exchange on the bridge, a concession
that gave some satisfaction to the East Germans.
“A man of integrity who took
action not from selfish gains,
but for the bigger picture.
Throughout Donovan demonstrated a sophisticated
understanding of power, influence, value and strategy.
Critically though it was his personal style, traits and discipline
that made a difference. He remained detached, patient, tough
on issues, prepared to leverage demands and ambitious.
But perhaps what is even more remarkable about
Donovan is his success in 1962 of negotiating with Cuba for
the release of prisoners. Relations between the two countries
were at a low following the failed invasion by the US at
The Bay of Pigs, and the Americans wanted the release of
1,113 prisoners. Donovan went to Cuba with his son and
met Castro, who was moved to remark on the courage of
Donovan bringing his son. Donovan
saw that Cuba was is dire need of medicines and food and
set about raising over $50 million from private companies.
He used the money to buy drugs and food and traded them
for the release of prisoners. He left Cuba not with the 1,113
prisoners he was challenged to secure - but with 9,703. TNS
31

Think before you readily
agree to something your
counterparty wants or
needs. Remember,
“People value the things
that are hard to obtain”.
STRESS OFTEN LEADS TO
UNNECESSARY TALKING,
AND EVERY TIME YOU SPEAK
YOU COULD BE GIVING AWAY
VALUABLE INFORMATION.
REMEMBER, “NEGOTIATION
IS SILENCE”.
Do you let your
competitive spirit
and desire to succeed
cloud your judgement?
Remember, “If you
want to win you will
pay for it”.
DO YOU REALLY LISTEN TO
WHAT YOUR COUNTERPARTY
IS SAYING? INFORMATION IS
POWER, SO “LISTEN FOR
THE MEANING BEHIND
THE WORDS”.
Negotiation is a
stressful activity. Don’t concede
too quickly to alleviate your
anxiety and stress. Remember,
“Negotiation is uncomfortable.
Learn to be more comfortable
with being uncomfortable”.
A WORD
DO YOU EASILY FALL
INTO THE PITFALL OF ASSUMING
THE OTHER PARTY IS IN A BETTER
POSITION THAN YOU? GETTING
INSIDE THEIR HEAD MAY REVEAL
THE PROBLEMS AND PRESSURES
THAT THEY ARE FACING.
REMEMBER, “YOU ARE OFTEN
MORE EQUAL THAN YOU THINK”.
PEARLS OF NEGOTIATION WISDOM TO KEEP TOP OF MIND
32

THE NEGOTIATION SOCIETY
GOING
FOR
City of Liverpool
PENNY
LANE L18
When the King of Pop
went after The Fab Four’s back
catalog, records were bound to be
broken. Sib Law takes us inside the
negotiation that shook the music industry.
A SONG
WIn 2016, Sony announced that it would pay $750
million for the Michael Jackson estate’s stake in
Sony/ATV. This is the company that controls large
parts of the Beatles catalog. But even with such
a price tag, how the singer came to control one of the most
iconic collections in the history of music is a much more
interesting story. Furthermore, it illuminates one of the basic
truths about negotiation: when something has a low cost to
one party and a high value to the other, it can make all the
difference in sealing the deal.
A month after the deal was complete, in 1985, the L.A.
Times ran an exposé on how Jackson made the acquisition.
In the article, staff writer Robert Hilburn describes a decade
long journey taken by a number of Beatles songs during the
1960s. That journey began inside a tax-shelter-holdingcompany
set up by John Lennon and Paul McCartney.
However, the songs had many stops before they became part
of ATV Music Ltd., owned by Robert Holmes a Court.
In a 2010 four-part retrospective on Michael Jackson,
The Wrap – a Hollywood industry publication – added more
details to the story. In the article by Johnnie L. Roberts, he
describes super lawyer John Branca’s guile and chutzpah as
the main reason behind the successful acquisition. The first
offer from the Jackson camp came in at $46 million.
Both The Wrap and the L.A. Times refer to a story in
Fortune Magazine, where Holmes a Court compares
his own negotiation style to that of the Viet
Cong. As seems typical of large deals these days,
negotiations were on and off. In fact, things got
so bad that in May 1985 the Jackson team broke
off negotiations for a month.
Another offer emerged during the period that
Jackson was out of the running. This one came
from the team of Martin Bandier (currently
the CEO of Sony/ATV) and Charles
Koppleman (a longtime entertainment
executive and investor).
Their number was $50 million. Branca discovered that the
opposing offer was financially backed by MCA Music, which
was headed by Irving Azoff. Branca and Azoff were old
acquaintances, having worked together prior to
these negotiations.
Both parties were on the same plane to London to
meet with Holmes a Court. Both parties believed they
were traveling to seal the deal to secure the Beatles songs.
Roberts describes an interaction between the two parties
where Bandier and Koppelman asked Branca “What brings
you to London?”, to which he responded, “Just business.”
What they did not know was that Branca had convinced
Azoff to pull the MCA Music backing and that he had
sweetened Jackson’s offer.
Jackson’s successful proposal was $47.5 million, which
according to the 1985 L.A. Times article, was the most ever
paid by an individual for a music catalog. Even so, this was
still $2.5 million less than an offer Holmes a Court had inhand;
the same man who compared his own negotiation style
to the Viet Cong.
Working to ensure his offer would be accepted, Branca
threw in a number of intangibles. In addition to the money
changing hands, Branca included a Michael Jackson
benefit concert for Holmes a Court’s favorite charity. But,
what may have finally sealed the deal was a lifetime of
income from the Beatles classic, “Penny Lane”, for
Holmes a Court’s daughter Catherine. The measurable
personal costs of either of these negotiating variables
would have been very low for Jackson while clearly
representing a high value for Holmes a Court.
Many negotiation competencies were at play as
Branca maneuvered to acquire the catalog that
contained the Beatles songs in 1985. But, the
use of low-cost/high-value intangibles made it
possible to sweeten the deal to the other party
without having to match the price offered
by the competition. TNS
33

CROSSWORD
British in style, a fiendish cryptic crossword. Some of the clues and some
of the answers have a negotiation theme.
ACROSS
1 In this, you do what you do - I ain’t
got one prepared (11)
7 A proposal at first after good
opening (3)
9 Telephone after end of Brexit
producing irritation (5)
10 Cleansers perhaps deployed round
about spots (9)
11 New lab blocks changes in x, y
and z? (9)
12 Appreciate that EU can get
rejected (5)
13 Stratagems from feline repelled
blood suckers reportedly (7)
15 The Complete Skilled Negotiator
finally arranged plant (4)
18 See 27
20 Tone down a painting technique (7)
23 Middle Eastern artist and queen in
one-to-one gathering (5)
24 Formulated bananas are
dumped (7, 2)
26 Mowers’ ROI potentially
disturbing (9)
27/18 Notice busy café shows time
dependent display (5,4)
28 The Russian Front ultimately
produced trap (3)
29 Immigrant possibly believed
broadcast by tradesman (5,6)
DOWN
1 Four-to-one in smart beginning? (8)
2 Improve prospects as good bank’s
productive (4,4)
3 Country featured in Charleston
Gazette (5)
4 Everyone starts to examine large
elongated structures for alternative
forms of genes (7)
5 One cutting American company’s
operational research (7)
6 ‘Rising Maiden’, the French former
president’s wife’s name for tree (6,3)
7 Ordinary interruption of righteous
is significant (6)
8 Advertisement showing primarily
partnerships, our strategy, trust,
excellence, relationships (6)
14 Apple publication maybe popular in
German reckoning (9)
16 One moved by turning the key that
occurs when 1A breaks down (8)
17 Lighting device said to be
welcomed by fish (3,5)
19 Profilers’ limits? (7)
20 Most outstanding person from
ancient city given time (3,4)
21 Repeatedly contract group in
situation where everyone benefits
(3-3)
22 Secretary to go off without right
copy (6)
25 Expression of triumph after MCA
played tough (5)
For solutions email
alumni@thegappartnership.com
Do you find yourself giving things
away which are of value to your
counterparty? Remember,
“Don’t give things away, trade them”.
IF YOU HAVE SOMETHING YOUR
COUNTERPARTY NEEDS THINK ABOUT
HOW YOU CAN MAXIMIZE VALUE FROM
THIS. REMEMBER, “IF IT COSTS YOU
NOTHING, TRADE IT FOR SOMETHING OF
EQUAL OR GREATER VALUE”.
34

THE NEGOTIATION SOCIETY
TCSN ACRONYM BRAIN TEASER
If you’ve been on The Complete Skilled Negotiator
workshop, you’ll remember that we use a lot of carefully
formulated phrases to encapsulate and embed key
points of learning. But how many can you identify from the
following acronyms? The first one is complete to start you off.
1 NISNIL Negotiation Is Silence, Negotiation Is Listening
CLUE
2 GEG
Think before you speak
CLUE
The more you give, the more they’ll take
3 TMYSTMYGA
CLUE
4 NPFFIN
CLUE
5 CBBCB
CLUE
6 IIDGO
CLUE
7 NIAUEIA
CLUE
8 IYTW
CLUE
9 TAYN
CLUE
10 NSTD
Idle talk costs money
Leave your values at the negotiation room door
Fight and you will be fought
Appropriate exit
All to play for
Propose to start
Get your figure out
HIS FACE EXUDED CALM,
BUT HIS TAIL BETRAYED HIM
DO YOU BECOME TOTALLY
FOCUSED ON YOUR
PERSONAL AND COMPANY
OBJECTIVES WHEN
NEGOTIATING? - THIS COULD
SUB-OPTIMIZE WHAT IS
POSSIBLE. REMEMBER,
“NEGOTIATION IS NOT WHAT
YOU WANT, IT’S WHAT THEY
CAN GIVE YOU”.
CLUE
11 GCWBU
Fair warning
CLUE
12 OE
CLUE
Awkwardness is ok
Bold beginning
13 TBWTBAPITMAP
CLUE
14 WTPPTP
CLUE
15 NHITH
Optimum response to an offer
Politeness means progress
Do you find yourself
getting frustrated by
entrenched positions
and disagreements?
Remember, “Don’t say
what you can’t do, say
what you can do”.
CLUE
The location of the deal
For solutions email alumni@thegappartnership.com
35

© The Gap Partnership, 2017. All rights reserved.