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The Negotiation Society magazine: The global trade issue

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ISSUE 8<br />

<strong>The</strong> <strong>Negotiation</strong> <strong>Society</strong><br />

BRINGING THE ART AND SCIENCE OF NEGOTIATION TO LIFE<br />

THE EFFECT OF COVID-19 <br />

ON GLOBAL TRADE<br />

SUSTAINABILITY<br />

SPECIAL<br />

BREAKING<br />

BACK<br />

LEARNINGS FROM<br />

ENTREPRENEURS<br />

QUESTION<br />

TIME<br />

Negotiating to secure<br />

our future<br />

<strong>The</strong> Australian Open's<br />

ace response to Covid<br />

Category disruptors<br />

share their stories<br />

Pandemic panic for<br />

<strong>global</strong> <strong>trade</strong> negotiators?


INSIDE THIS ISSUE<br />

06 12<br />

Shipping and<br />

Shopping<br />

A <strong>global</strong> and regional<br />

review of the havoc<br />

wrought on supply<br />

chains across the world.<br />

Sustainability<br />

Special<br />

Commercial and personal<br />

approaches to sustainability<br />

and the role for negotiation.<br />

WELCOME FROM GRAHAM<br />

21 24<br />

Breaking<br />

Back<br />

How tennis grand slam<br />

the Australian Open<br />

served up success in the<br />

face of uncertainty.<br />

Professionals working in<br />

high-stress environments<br />

relay how negotiation<br />

supports them.<br />

26 36<br />

Learnings from<br />

Entrepreneurs<br />

Two category-disrupting<br />

tycoons share their<br />

stories of innovation<br />

and deal-making.<br />

When the<br />

Stakes are High<br />

Question<br />

Time<br />

Our diverse panel of<br />

specialists give concise,<br />

expert advice to <strong>global</strong><br />

<strong>trade</strong> negotiators.<br />

As we start to take stock following the<br />

tsunami that was Covid-19, one of the less<br />

predictable consequences is the reversing trend<br />

of <strong>global</strong>ization. Following 70 years of increasing<br />

internationalization, we now see <strong>global</strong> markets<br />

under real pressure for the first time. In this eighth<br />

edition of <strong>The</strong> <strong>Negotiation</strong> <strong>Society</strong> <strong>magazine</strong><br />

we start to unpick the impact on <strong>global</strong> <strong>trade</strong>:<br />

escalating shipping costs, supply chain weakness,<br />

FX volatility, increasing foreign <strong>trade</strong> bureaucracy,<br />

and worker shortages are all changing the <strong>global</strong><br />

negotiation landscape. Is this seismic shift<br />

devastating, or rather a useful wakeup call?<br />

We ask a panel of experts.<br />

We also hear from two category-disrupting<br />

entrepreneurs about how negotiation influenced<br />

their personal success, we discuss how negotiation<br />

has helped both Tennis Australia and a hospital<br />

intensive care unit through the pandemic,<br />

and we examine the concept of fairness in<br />

negotiation when determining who gets access<br />

to a Covid-19 vaccination.<br />

And let me leave you with the thought that as<br />

the ink dries on the climate change commitments<br />

our world leaders agreed in Glasgow, how will<br />

our countries, our businesses and all our people<br />

implement the actions that will deliver on them?<br />

I believe that negotiation will be at the heart of the<br />

environmental sustainability agenda, and to that<br />

end we are starting that conversation in this edition.<br />

We’ll be talking about how you use negotiation to<br />

drive sustainability a lot more in the months and<br />

years to come!<br />

Graham Botwright<br />

CEO, <strong>The</strong> Gap Partnership<br />

2


THE NEGOTIATION SOCIETY<br />

OUR CONTRIBUTORS<br />

Matsepo Mabena<br />

As Procurement & Sustainability<br />

Director for Indirects and Capex<br />

for multinational drink and brewing<br />

company Anheuser-Busch InBev<br />

Africa, Matsepo manages and<br />

negotiates spend across eleven<br />

markets. She previously worked in<br />

the IT space for multiple service<br />

integration companies, building<br />

expertise in competitive analysis,<br />

modelling scenarios and pricing,<br />

and contract negotiation.<br />

Stephen Dumpleton<br />

A native Irishman now based<br />

in Sydney, Stephen is a negotiation<br />

expert at <strong>The</strong> Gap Partnership<br />

and leads the specialist practice<br />

for Australia and New Zealand.<br />

Prior to joining TGP in 2016,<br />

he spent his career working and<br />

negotiating across both the Irish<br />

and English retail industries.<br />

Catherine Oh<br />

Originally from Houston, Texas,<br />

Catherine moved to Hong Kong<br />

in 2018 to pursue a <strong>global</strong> career.<br />

She joined <strong>The</strong> Gap Partnership<br />

as an associate consultant in<br />

2021, bringing in three years of<br />

management consulting experience.<br />

She had worked on projects<br />

spanning APAC in various<br />

industries including FMCG,<br />

pharma, and professional services.<br />

Hrvoje Zaric<br />

Hrvoje has over 20 years' experience<br />

in consulting, strategy development,<br />

and business transformation<br />

in the travel, transport, and<br />

telecommunications sectors.<br />

He held commercial responsibility<br />

for multilateral and international<br />

negotiations and also delivered<br />

executive coaching and team<br />

development in various industries.<br />

Hrvoje joined <strong>The</strong> Gap Partnership<br />

in 2019.<br />

Emma Moss<br />

Originating from the UK, Emma<br />

has worked in procurement for<br />

the past 25 years and has always<br />

championed projects that can<br />

deliver a positive environmental<br />

impact. Now based out of Bonn,<br />

Germany, Emma leads the<br />

Global Supplier Management &<br />

Sustainability Programs team at<br />

Deutsche Post DHL Group.<br />

Dan Anderson<br />

Dan is a negotiation consultant<br />

based in the UK at <strong>The</strong> Gap<br />

Partnership, and also manages<br />

the sustainability strategy for the<br />

business. Dan has worked in sales,<br />

marketing, and finance roles for<br />

several leading consumer goods<br />

brands, and has also led sales<br />

efforts for an award-winning<br />

sustainability start-up.<br />

3


INSIDE<br />

MY HEAD<br />

LINDA LIU<br />

ASSOCIATE GLOBAL ECOMMERCE DIRECTOR AT UNILEVER, SPILLS THE<br />

BEANS ON HOW SHE BUILT HER CAREER, THE ROLE THAT NEGOTIATION<br />

PLAYS, AND HER ADVICE TO THOSE WHO SEEK TO EMULATE HER SUCCESS.<br />

How did you make it to where<br />

you are today?<br />

My purpose is to make the world<br />

better through lighting the way for<br />

the ones in need. This purpose led<br />

me to always be thinking about how<br />

to better serve our consumer and<br />

customer. My career started as a<br />

marketer, developing innovation and<br />

crafting communications to bridge<br />

brands and consumers, and it then<br />

evolved to a customer lead, taking<br />

lead of <strong>global</strong> strategic partnership.<br />

What’s the best thing about<br />

your role?<br />

<strong>The</strong> best thing in my role is learning<br />

every day, as you can see how fast<br />

the <strong>global</strong> digital commerce world<br />

is changing. I feel excited about<br />

it. Every newly-learned piece of<br />

knowledge makes me feel passionate<br />

and energetic.<br />

How do you deal with challenge?<br />

I embrace it, because challenge means<br />

opportunity. What I try to do is<br />

maximize the resources available to<br />

me, and make myself ready for any<br />

challenge. Most importantly, I explore<br />

the opportunities that go hand-inhand<br />

with challenge. My advice?<br />

Be open-minded, fearless, and<br />

well-prepared!<br />

How important is the skill of<br />

negotiation in your career?<br />

Super critical. In terms of internal<br />

stakeholders, good negotiation skills<br />

will help to unlock the resources to<br />

achieve business goals and maintain<br />

great relationship with colleagues.<br />

For customer management, better<br />

negotiation skills will help Unilever<br />

maximize a great relationship and<br />

dial up our long-term partnership.<br />

And what about negotiating<br />

outside of work?<br />

It’s also very important as negotiation<br />

is needed every day, everywhere. For<br />

example, when you would like to buy<br />

something, good negotiation skills will<br />

help you achieve the best outcome. Or<br />

if you own your business, negotiation<br />

skills can help to secure more interests.<br />

Any negotiation disasters?<br />

No disasters, but maybe some<br />

challenges. <strong>The</strong> way to deal with<br />

challenges is always to proactively<br />

explore creative solutions and identify<br />

ways to unlock joint value creation.<br />

What’s the most important lesson<br />

you’ve learned as a negotiator?<br />

Listening to counterparts will help<br />

you understand their needs and craft<br />

your negotiation plans accordingly.<br />

Offering the things your counterparts<br />

value will help you achieve trust.<br />

How has negotiation changed<br />

since Covid?<br />

Top of mind, negotiation has shifted<br />

from physical to virtual due to Covid.<br />

<strong>The</strong> physical and mental distance<br />

between people is increasing, and<br />

health and wellness has become a<br />

top priority for everyone. Keeping<br />

connected and building trust are<br />

becoming immensely important.<br />

You have been very successful.<br />

What advice would you give to other<br />

women with similar aspirations?<br />

I will quote what Steve Jobs said:<br />

“Stay hungry. Stay foolish.” My advice<br />

is to explore your purpose and never<br />

set boundaries for yourself. TNS<br />

4


THE NEGOTIATION SOCIETY<br />

Tricks of my Trade<br />

Consultant Glin Bayley reveals how a challenging year led to<br />

an epiphany that inspired a move into commercial coaching,<br />

entrepreneurship, and negotiation consultancy.<br />

<strong>The</strong> <strong>Negotiation</strong> <strong>Society</strong>: Glin, tell us about your career<br />

before <strong>The</strong> Gap Partnership.<br />

Glin: I started out as a graduate management accountant at<br />

EDS (later Hewlett Packard), then Coca-Cola in the UK.<br />

I worked my way up to middle management, had a stint<br />

at General Electric in mortgages and financial services,<br />

before joining Associated British Foods (ABF).<br />

TNS: That’s quite a mix of corporate experience. What next?<br />

Glin: I spent ten years moving around the ABF businesses –<br />

Allied Bakeries, Silver Spoon, Twinings – where I was<br />

working with the group CEO and CFO to evaluate <strong>global</strong><br />

business performance, building relationships, and supporting<br />

managers. I loved the people aspect – working in a team to<br />

make things happen. In 2015 I relocated to Australia to head<br />

up the finance function for Pataks ANZ.<br />

TNS: <strong>The</strong> people aspect is interesting…but first, what<br />

prompted the move to Australia?<br />

Glin: I’d had an extremely tough year. I’d suffered a miscarriage<br />

and then my marriage ended. I entered a period of soulsearching,<br />

questioning what I wanted out of life. Moving to<br />

the other side of the world was a way to find new perspective.<br />

TNS: Did it work?<br />

Glin: Yes and no. I had a nightmare boss who was supportive<br />

one minute, then the next power hungry. He uttered these<br />

soul-destroying words: “I don’t need you to be a copilot,<br />

I just need the numbers.”<br />

TNS: Ouch. Not quite what you were looking for?<br />

Glin: Well no, but as I’ve discovered the toughest life<br />

experiences can deliver the greatest moments of learning<br />

and clarity.<br />

TNS: Okay, tell us more.<br />

Glin: Well, I resolved to never work for a poor leader again.<br />

I was ready to explore more about myself, so I joined<br />

a professional speaking program. My final assignment<br />

was to deliver a TED-style talk that shared my story,<br />

was meaningful and included teachable elements.<br />

TNS: Sounds challenging! How did you get on?<br />

Glin: At first I was completely stuck! <strong>The</strong>n a friend suggested<br />

I write a question on a Post-it note for the universe to answer.<br />

I wrote, “What shall I speak about?” <strong>The</strong>n I looked around the<br />

room and saw hearts everywhere – as decorations, as bullet<br />

points on a whiteboard…even my scarf had hearts. It became<br />

instantly clear to me that hearts were a key part of my story.<br />

TNS: Ah, an epiphany. What did you do with the<br />

heart symbolism?<br />

Glin: I created an acronym that became the cornerstone of my<br />

coaching method and philosophy: H for hope, E for energy,<br />

A for action, R for resilience, and T for trust. I left my 17-<br />

year corporate finance career and started a leadership and<br />

executive coaching business. I’ve also written two books,<br />

hosted numerous podcasts, and become an expert in social<br />

media marketing!<br />

TNS: Amazing! And so we are at the people part of your<br />

journey now. Did that segue into joining <strong>The</strong> Gap Partnership?<br />

Glin: Very much so. I was consulting with a retailer when I heard<br />

about a business looking for a “unicorn” with workshop and<br />

facilitating experience. It immediately felt like a good fit.<br />

Within a few weeks I was a TGP consultant.<br />

TNS: Great. How’s that going?<br />

Glin: It’s been awesome! <strong>The</strong> synergies between successful<br />

negotiation and a successful life are incredible. For example,<br />

people value things which are hard to obtain. Women in<br />

particular give away their time so freely it devalues it,<br />

then we wonder why people don’t appreciate us.<br />

TNS: Indeed. What’s the most powerful<br />

negotiation principle, do you think?<br />

Glin: <strong>The</strong>y are all interlinked, but<br />

one of my favorites is that when<br />

you want to say yes, try saying no.<br />

At the end of a negotiation when<br />

time is running out there is a very<br />

human propensity to agree to a<br />

proposal. It often means you lose<br />

out – in a negotiation, you lose<br />

value, and in life, it could<br />

be your wellbeing. <strong>The</strong>re<br />

are few more powerful<br />

realizations. It’s so<br />

fulfilling for me that<br />

I help people discover<br />

and adopt this behavior<br />

for themselves. TNS 5


6


THE NEGOTIATION SOCIETY<br />

<strong>The</strong> pandemic has had a significant disruptive impact<br />

on <strong>global</strong> <strong>trade</strong>, with strained supply chains, soaring<br />

shipping costs, and a general downward trend.<br />

<strong>Negotiation</strong> experts from TGP share both <strong>global</strong><br />

and local insight into how this has played out.<br />

THE GLOBAL SUPPLY<br />

DRAIN OF TRADE<br />

by Hain MacKay-Cruise<br />

S<br />

eptember 2021 was supposed to<br />

have been the moment; everything<br />

back to normal across the US and<br />

Europe as people returned from summer<br />

breaks, children went back to school and<br />

offices reopened.<br />

Well, that’s not going to<br />

happen easily.<br />

<strong>The</strong> <strong>global</strong> impact of Covid-19<br />

created a raft of <strong>issue</strong>s and threw most<br />

<strong>global</strong> supply chain networks into<br />

complete disarray. <strong>The</strong>n came signs<br />

of recovery and businesses started to<br />

work out how to manage the “catch-up<br />

phase”. So, I’d wager that if I’d written<br />

this article a mere three months earlier<br />

in the summer of 2021, the story would<br />

have signs of an ending. But now it’s<br />

leaving us wondering, “What next?”<br />

Everyone is feeling the impact of the<br />

change in <strong>trade</strong> and with that comes<br />

an imbalance of power, perceived<br />

and real. Who gets the priority on<br />

production and who decides which<br />

markets (let alone which clients) get<br />

the early shipments?<br />

But that’s only part of the challenge.<br />

<strong>The</strong> geopolitical landscape is shifting,<br />

and with it the balance of power on<br />

<strong>trade</strong>. <strong>The</strong> continual posturing between<br />

some of the world’s largest economies<br />

isn’t helping to support local businesses<br />

looking to increase foreign <strong>trade</strong>. In<br />

parts of Asia the rise of nationalistic<br />

sentiment often impedes companies<br />

through active targeting campaigns<br />

accusing them of not being loyal<br />

enough or selling to foreign markets<br />

in preference. Much of this is rhetoric,<br />

but it certainly doesn’t help anyone<br />

trying to negotiate a deal!<br />

“So what?” I hear you ask. Well, let’s<br />

take the humble bicycle; bike frames<br />

are almost a year behind planned<br />

production with high-end carbon<br />

models being sold out well in advance,<br />

and many not expected to deliver<br />

until spring 2022 in the US. Recently<br />

the website of a well-known direct to<br />

consumer bike brand showed that over<br />

50% of its stock was sold out with next<br />

delivery dates into spring of 2022. Think<br />

of the competition taking place between<br />

some of the world’s leading bike brands<br />

from a small handful of frame builders<br />

(most of which are in Taiwan by the<br />

way). Who holds the balance of power?<br />

We can look further; processors for<br />

everything electronic are as precious<br />

as gold and companies are scrambling<br />

to meet demand. Raw materials for<br />

building are scarce and commodity<br />

prices are erratic, if not inflated.<br />

So, the next time Amazon takes a few<br />

extra days to ship the faux-fur slippers<br />

in peach that will complement your new<br />

working-from-home office attire, take a<br />

moment and think about the items that<br />

we all take for granted, but simply can’t<br />

get. Trade just isn’t easy anymore!<br />

7


RUSSIA<br />

RUSSIA<br />

by Pyotr Sviridov<br />

In the wake of Covid-19, coupled with everchanging<br />

local <strong>trade</strong> regulations, some of the<br />

more agile FMCG suppliers took advantage of<br />

the situation and managed, with expert help from<br />

their <strong>The</strong> Gap Partnership team, to renegotiate<br />

their current <strong>trade</strong> terms with top retailers.<br />

This was despite some of the contracts not<br />

having expired, to mutual advantage.<br />

<strong>The</strong> Covid-19 aftermath and ongoing<br />

impact were used to precondition retailers<br />

about imminent price increases, and the<br />

consequent necessity to review existing <strong>trade</strong><br />

terms. Reference to local <strong>trade</strong> law ensured fully<br />

conditional investments instead of universally<br />

practiced “double or triple net prices” from<br />

most suppliers in favor of top retailers. With<br />

thorough preconditioning across all hierarchy<br />

within suppliers, and internal alignment, select<br />

suppliers managed to improve P4P of both oninvoice<br />

and off-invoice, or retro, investments in a<br />

market where over 95% of local and international<br />

suppliers accepted unconditional on-invoice<br />

discounts and off-invoice investments in favor<br />

of retailers.<br />

At the same time, suppliers used international<br />

commercial agreements, or their equivalent,<br />

to incorporate <strong>trade</strong> investments. <strong>The</strong>se were<br />

usually paid to the European headquarters of<br />

international retailers, then into their local P&L in<br />

Russia, thus limiting in the case of food suppliers<br />

their overall <strong>trade</strong> investment by 5% of turnover<br />

as retro-bonuses paid under Russian <strong>trade</strong> law to<br />

retailers. By contrast, some suppliers continue to<br />

pay said investment on top of local investments.<br />

As examples of such FMCG suppliers<br />

shows, having a clear strategy and using existing<br />

circumstances to their advantage will yield positive<br />

results in any environment. This becomes even<br />

more important across Europe, where some<br />

retailer buying alliances request, unconditionally,<br />

“triple net prices” from major suppliers. This can<br />

be dealt with by due preparation.<br />

ASIA<br />

by Catherine Oh<br />

Since the declaration of Covid-19 as a <strong>global</strong><br />

pandemic by the World Health Organization in<br />

March 2020, the commercial negotiation landscape<br />

has been defined by a building cost conundrum.<br />

Manufacturers, suppliers, and retailers tussle<br />

in price wars as they bump elbows to protect<br />

their eroding margins from rising costs across<br />

all sectors. Commodities have reached historic<br />

highs, impacting the manufacturer’s ability to<br />

meet demand stirred up by consumers’ disasterinduced<br />

panic buying and stockpiling. Suppliers<br />

struggle with rising costs of shipment, as container<br />

prices soar during border closures, lockdowns, and<br />

logistic chaos at country ports. <strong>The</strong> escalating price<br />

of shipment goods internationally is pushed from<br />

supplier to retailer, who has no choice but to raise<br />

consumer prices. For the first time in years, it is<br />

the consumer who ultimately bears the weight<br />

of increasing costs due to the surging price of<br />

raw materials, production, and transit.<br />

This is especially pronounced in the dizzying<br />

costs of shipping a container by sea freight.<br />

Historically, Asia’s ports have led port performance<br />

<strong>global</strong>ly, as the region’s manufacturing centers meet<br />

much of the world’s commercial demand. As of<br />

September 2021, the cost of a 40-foot container<br />

has increased over 100% YoY for all eight major<br />

east-west <strong>trade</strong> routes. Especially shocking are the<br />

costs of westward-bound transatlantic routes, with<br />

the Shanghai to Rotterdam route facing a 564%<br />

increase and the Shanghai to Genoa route facing<br />

a 511% increase YoY.<br />

In addition to rising costs, inactive containership<br />

capacity (the number of inactive vessels) has hit<br />

its highest peak since the 2016 Hanjin bankruptcy<br />

that crippled economies across Asia. Country<br />

lockdown policies throughout the region do not<br />

mitigate these difficulties, as Asia has the strictest<br />

Covid quarantine policies <strong>global</strong>ly. Authorities<br />

mandate a 14 to 21-day quarantine for crew<br />

arriving in vessels from high-risk countries, limited<br />

port personnel, and high customs restrictions on<br />

all but essential cargo such as pharmaceuticals<br />

and PPE. Businesses have no choice but to adapt<br />

in this climate, and negotiations have come<br />

to sit front and center for a company that has<br />

successfully weathered the storm to this point.<br />

8


THE NEGOTIATION SOCIETY<br />

by Luis Soto<br />

LATAM<br />

March 13, 2020 will stand as one of the most<br />

historic moments of our lifetime and one that not<br />

only brought a major pandemic and unfortunate<br />

deaths, but also catastrophic economic problems<br />

from factory, businesses, and countries completely<br />

shutting down. As a result of the pandemic,<br />

repercussions have been felt in <strong>trade</strong> and<br />

negotiation agreements across Latin America.<br />

As it pertains to <strong>trade</strong>, one of the major <strong>issue</strong>s<br />

the region is currently encountering is the scarcity<br />

of ship containers and the uptick in prices of<br />

fleet and logistics. According to analysts, there<br />

have been reports of fleet costs doubling or even<br />

tripling in some countries and that have blocked<br />

containers from returning back with goods to their<br />

original origin, meaning many ship containers<br />

are currently stacked in different ports across<br />

LATAM, Europe, and the US.<br />

Another major factor causing the decline of<br />

<strong>trade</strong> and increase in prices in Latin America is<br />

the interruption of maritime transportation. On<br />

one side, the typhoon season in Asia has blocked<br />

major shipments companies and caused them<br />

to halt their operations, as well as contributing<br />

to major Chinese ports, already impacted by the<br />

pandemic, closing. It is important to highlight that<br />

China has 8 of the 10 major ports in the world.<br />

<strong>The</strong>se ports are operating at a 50% capacity due<br />

to the pandemic and as result a major bottleneck<br />

has been created leading to major delays and an<br />

increase in prices.<br />

Every time a <strong>trade</strong> tariff is imposed on a<br />

country like China, India and Bangladesh due to<br />

the pandemic and the rise in contamination, major<br />

factories in such countries are now producing less<br />

and charging far more for products. <strong>The</strong> demand<br />

in Latin America continues to increase and as a<br />

result it poses major challenges when it relates to<br />

negotiating pricing structures, logistical challenges,<br />

product fulfillment, and payment terms.<br />

To put this in perspective, and according to<br />

the IMF, an entire container filled from China<br />

to Latin America before the pandemic cost<br />

on average $2,000 USD, compared to the same<br />

container in 2021 for over $8,000 USD. 85% of<br />

the goods consumed in the US and Latin America<br />

are transported by a ship container. <strong>The</strong> constraints<br />

on negotiation are significant, and more so on<br />

small to medium-sized business that have less<br />

capacity and power to negotiate when compared<br />

to major multinationals.<br />

As a conclusion, Professor Willy Shih from<br />

Harvard Business School has said that someone<br />

is going to have to pay for the major <strong>trade</strong><br />

challenges the pandemic has brought upon us,<br />

and that will most likely be the final consumer.<br />

In addition, many companies won’t be able to<br />

survive the current conflict the region encounters<br />

with <strong>trade</strong> and ongoing negotiations. <strong>The</strong> ongoing<br />

dependency in Asia is now even more prevalent,<br />

and governments and companies must find ways<br />

to counteract this notion. <strong>The</strong>y must accelerate<br />

the digital transformation to allow businesses and<br />

consumers to adapt to a new normal and leverage<br />

pandemic recovery to create stronger economies.<br />

<strong>The</strong>y must also tackle long-standing barriers<br />

to adopting digital technologies and bridging<br />

digital divides.<br />

9


UNITED<br />

KINGDOM<br />

by Donna Selway<br />

Many of you will have seen recent dramatic<br />

news headlines featuring e-tailer fashion<br />

businesses, such as ASOS CEO resigns as<br />

it warns over supply chain problems and<br />

Missguided seeks emergency funding as supply<br />

chain crisis hits finances. <strong>The</strong>se are attentiongrabbing<br />

statements, but beneath the headlines<br />

are very real macro factors affecting every<br />

single retailer.<br />

Brexit red tape and Covid have together<br />

created a perfect storm of rising costs to import<br />

goods through labor shortages, escalating oil<br />

and fuel costs, surging packaging costs, and an<br />

imbalance of supply and demand pushing the<br />

costs of bringing goods into the UK through the<br />

roof. This has been steadily building for months,<br />

and as we approach the peak trading period of<br />

Christmas, that pressure and strain is about to<br />

reach boiling point.<br />

So, what can retailers do to help themselves<br />

negotiate their way out of this perfect storm?<br />

In times of crisis when there are greater pressures<br />

on supply chain, infrastructure, and resource,<br />

coupled with rising costs, you might assume<br />

that a negotiation consultant would recommend<br />

a hard bargaining approach: toughen up, be<br />

firmer; we live in a capitalist society where the<br />

strong survive and the weak perish. That would<br />

surely be the most effective approach, correct?<br />

Incorrect. Now is not the time for<br />

competition. Instead, cooperation and<br />

collaboration is a more appropriate mindset to<br />

get into, to enable retailers to navigate through<br />

these choppy waters. And so their focus should<br />

be on relationship building, joint problem solving<br />

and creative thinking.<br />

Nurturing and strengthening relationships<br />

throughout their supply chains will help retailers<br />

navigate through this current crisis and beyond.<br />

<strong>The</strong>y must work in partnership and fully<br />

understand each party’s situation and challenges,<br />

finding out what is important to both parties and<br />

truly getting inside each other’s head. Only then<br />

may they be able to find solutions.<br />

<strong>The</strong>y will then be able to joint problem solve<br />

through effective questioning, building trust by<br />

the act of sharing both information and their<br />

expertise and unique insight to fully understand<br />

the situation from the perspective of the other<br />

party. An adoption of a “help me to help you”<br />

mindset will unlock opportunities.<br />

And finally, retailers must proactively embrace<br />

creative thinking – thinking outside the box –<br />

approaching their challenges in a new way and<br />

devising new ways to solve their problems using<br />

effective tools and techniques to provide focus<br />

and structure.<br />

But this strategy is not just appropriate<br />

for retailers to adopt with their supply chain.<br />

Retailers could also look to adopt it with their<br />

fellow retailers and leaders in their industry,<br />

to share best practice and truly work together<br />

to enable the survival of the high street and<br />

online fashion businesses – again, more<br />

cooperation versus competition.<br />

In summary, now is the time for retailers<br />

to be creative, collaborative, and flexible,<br />

grabbing the tiller together to negotiate<br />

their way out of this perfect storm and into<br />

calmer and more prosperous waters.<br />

10


THE NEGOTIATION SOCIETY<br />

NORTH<br />

by Scott Chepow<br />

AMERICA<br />

I woke up yesterday morning and saw the<br />

headline photo of cargo ships backed up in the<br />

port of Los Angeles with a caption that noted<br />

the supply challenges being caused by that very<br />

port likely will not be eased until the early spring<br />

of 2022, well after the holiday shopping season.<br />

I promptly informed my beloved bride that<br />

whatever expensive gift imported from abroad<br />

she was planning on purchasing for me for the<br />

holidays, she had better buy soon before it’s sold<br />

through. This is the new reality for those of us<br />

that live in the United States.<br />

I can’t remember ever in my lifetime being<br />

faced with shortages prior to the onset of Covid,<br />

and these shortages are increasingly visible in our<br />

retailers. This past weekend I went to the local<br />

grocery with a mission to buy my favorite kind<br />

of cookie. You might say I am an aficionado of<br />

the brand. Much to my dismay the shelves were<br />

nearly bare as I snatched up the last couple of<br />

family size packs for my personal consumption.<br />

<strong>The</strong> past eighteen months have seen a surge<br />

in home consumption coupled with sporadic<br />

panic buying that continue to challenge the<br />

local and <strong>global</strong> supply chains. While one<br />

would be challenged to find domestic brands<br />

on the shelves, finding <strong>global</strong> brands is even<br />

more difficult as the flow of goods from abroad<br />

continues to face additional pressures in<br />

transportation across borders.<br />

One facet of the struggle is the inability to<br />

replenish buffer stock at manufacturers, while<br />

another is the prospect of SKU rationalization.<br />

Manufacturers are focusing on producing their<br />

core products as opposed to differentiated and<br />

evolutionary items. Quite frankly, consumers<br />

demand that supply and would generally prefer<br />

the core versus the breadth of the product line.<br />

So, how do you ensure that the right product<br />

mix is on the shelves? Honest, open dialogue<br />

about supporting the overall category growth<br />

is necessary. By having that conversation, both<br />

sides of the equation can maximize their onshelf<br />

efficiency better and drive towards mutual<br />

growth in step. This is the goal and epitome<br />

of joint business planning – mutual managed<br />

growth. <strong>The</strong> accomplishment of this feat in<br />

current times is challenging. Too often, the<br />

conversation derails on “red herring” topics.<br />

If both parties understand one another’s<br />

priorities and are willing to help solve the<br />

other’s challenges, we can create value.<br />

Selfishly, I hope these companies begin<br />

working together and quickly. <strong>The</strong>re is a greater<br />

need for post-negotiation involvement than ever<br />

before with continued dialogue on supply. <strong>The</strong><br />

challenge is that there is a tendency to blame and<br />

argue rather than support. For the United States<br />

to overcome the current supply <strong>issue</strong>s, it is going<br />

to take collaboration at all levels, and we need to<br />

be willing to engage in that conversation. TNS<br />

11


SUSTAINABILITY SPECIAL<br />

Sustainability is the megatrend of our time; a challenge<br />

that can leave us feeling powerless to bring about<br />

meaningful change. In this special feature, we explore<br />

the role that negotiation can play in effecting change,<br />

and spotlight a plastic recycling initiative that is<br />

driven by collaboration and creativity.<br />

WHY<br />

EFFECTIVE<br />

NEGOTIATION<br />

IS CRITICAL TO OUR FUTURE<br />

by Dan Anderson<br />

S<br />

even years and 273 days. According to<br />

the highly publicized Climate Clock<br />

Project, that is how long we have left<br />

(at the time of writing) to transition the<br />

entire world from carbon-based energy<br />

sources to 100% clean, renewable energy.<br />

If we fail to hit this target, then warming<br />

will exceed 1.5 degrees Celsius above preindustrial<br />

levels and the worst effects of<br />

climate change will become irreversible,<br />

with devastating consequences felt<br />

by every single person on Earth for<br />

generations to come.<br />

In addition to making this rapid<br />

transition to reduce our <strong>global</strong> carbon<br />

emissions, we need to concurrently take<br />

action on other areas of sustainability,<br />

such as increasing the number of rewilding<br />

projects to reduce biodiversity loss, and<br />

accelerating operations to clean up our<br />

polluted oceans. <strong>The</strong>se actions are key<br />

factors in reducing climate change by<br />

creating healthy and balanced ecosystems<br />

and are required to preserve natural<br />

resources for future generations.<br />

When you take a moment to sit back<br />

and reflect on the sheer enormity of the<br />

challenge we face, it can at times be simply<br />

overwhelming. This is especially true when<br />

you consider just how little time we have<br />

left to reengineer huge parts of the <strong>global</strong><br />

infrastructure that support our current<br />

way of life, not to mention the incredible<br />

number of cultural and geopolitical barriers<br />

that actively stand in the way of nations,<br />

businesses, and people working together<br />

to find sustainable solutions to currently<br />

unsustainable practices.<br />

12


THE NEGOTIATION SOCIETY<br />

HOW CAN EFFECTIVE NEGOTIATION HELP US BUILD<br />

A MORE SUSTAINABLE GLOBAL ECONOMY?<br />

Compared with headline-grabbing news<br />

concerning new international sustainability<br />

targets, or the rollout of innovative new<br />

technologies, a focus on negotiation may<br />

not appear to be much of a priority versus<br />

the many other initiatives in place which aim<br />

to build a more sustainable <strong>global</strong> economy.<br />

However, let us consider the process that<br />

all these sustainability initiatives and projects<br />

will need to undergo for them to move from<br />

concept to reality. Each will require people<br />

to sit down and negotiate an agreement<br />

(or indeed several agreements), many of<br />

whom will have very different opinions<br />

and underlying interests to contend with.<br />

Much focus and discussion is rightly<br />

given to why we need to change current<br />

unsustainable practices, in addition to what<br />

changes are required, and when they need to<br />

be implemented. However, the exact details of<br />

how we implement the changes required can<br />

sometimes be overlooked, with the negotiation<br />

process forming a key part of this element.<br />

Some negotiations will be <strong>global</strong>ly<br />

significant in terms of their scale and impact<br />

and will feature a high degree of complexity<br />

and multiple different stakeholders.<br />

A good example would be the Paris Climate<br />

Agreement from 2015, which was eventually<br />

signed by a grand total of 175 different<br />

nations. At the other end of the scale there<br />

will be negotiations which are comparatively<br />

small and simple in nature, concerned with<br />

making a specific local practice or process<br />

more sustainable.<br />

In terms of the driving forces to get<br />

all parties to the negotiating table, some<br />

negotiations will be brought on by mandated<br />

change resulting from new government<br />

or state legislation, whereas others will be<br />

business-driven change largely resulting from<br />

increasing consumer or customer pressures.<br />

Regardless of the scale of these negotiations<br />

or the reasons behind them, all will come with<br />

their individual challenges. One common<br />

factor depending on the specific circumstances<br />

surrounding each negotiation, will be that<br />

the discussions will either be competitive<br />

or collaborative in their nature, as are all<br />

negotiations, broadly speaking.<br />

COMPETITIVE VS.<br />

COLLABORATIVE NEGOTIATION<br />

COMPETITIVE NEGOTIATIONS<br />

• “Win-lose”, e.g. haggling and hard bargaining<br />

• Transactional in nature<br />

• Largely concerned with distributing a finite,<br />

known amount of value between counterparties<br />

• Have few variables<br />

• Often tough and confrontational<br />

COLLABORATIVE NEGOTIATIONS<br />

• Offer opportunity to create incremental,<br />

mutual value for “win-win”<br />

• More complex<br />

• Higher dependency between the parties<br />

• Present an opportunity for flexibility<br />

and creativity on variables<br />

• Based on trust between parties<br />

At <strong>The</strong> Gap Partnership our belief is that<br />

neither type of negotiation is right or wrong.<br />

<strong>The</strong> type of negotiation you face into is<br />

determined by the unique circumstances<br />

surrounding the deal, in addition to where<br />

the perceived balance of power lies between<br />

the negotiation parties. It is incumbent on the<br />

negotiator to make an objective assessment on<br />

both factors ahead of the negotiation, so that<br />

they can adopt the appropriate behavioral<br />

strategy and mindset to optimize value.<br />

However, when considering which type<br />

of approach would be most effective for these<br />

high-stakes negotiations focused around<br />

sustainability, only collaborative negotiation<br />

offers the opportunity to create incremental<br />

value in an agreement for both parties when<br />

dependency between parties is high. Given the<br />

number of barriers to change facing governments<br />

and businesses alike, there is strong evidence to<br />

suggest that extracting more value from current<br />

agreements will be necessary to suitably appease<br />

all stakeholders who will be affected by changing<br />

a particular process or industry practice.<br />

13


CASE STUDY – COP24<br />

In 2018 governments from<br />

around the world met in Katowice<br />

for COP24. <strong>The</strong> key objective was<br />

to agree on the specific guidelines<br />

that would allow the previously<br />

agreed Paris agreement to be<br />

implemented. One of the key<br />

areas that required alignment was<br />

‘Article 6’, which concerned the<br />

development of a centralized and<br />

standardized framework for the<br />

purchase, trading, and reporting<br />

of carbon units by nations.<br />

Initially the talks made good<br />

progress and alignment was found<br />

in many important areas as parties<br />

worked together to try to come<br />

to an agreement. However<br />

Article 6 remained a sticking<br />

point, and as the conference<br />

progressed the <strong>issue</strong> became<br />

increasingly isolated from the<br />

other points of discussion. As it<br />

became clear just how contentious<br />

it was for many nations, it was<br />

eventually decided that it would<br />

be discussed as a separate<br />

<strong>issue</strong>. This separation of<br />

Article 6 from the main<br />

agenda has been regarded<br />

as one of the key factors<br />

in the conference finishing<br />

without agreement. COP25<br />

in Madrid also followed<br />

a similar pattern and has<br />

subsequently been viewed<br />

as a failure by many, given<br />

how important Article 6<br />

is for implementing the<br />

wider agreement.<br />

Complex negotiations<br />

often require us to think more<br />

collaboratively and broadly about<br />

the deal rather than just haggling<br />

over variables in isolation. By<br />

linking <strong>issue</strong>s together, trading<br />

variables conditionally and<br />

repackaging proposals we increase<br />

the opportunity for more creative,<br />

value enhancing agreements and<br />

reduce the risk of a potential<br />

deadlock scenario.<br />

Did negotiators take a different<br />

approach in COP26 in September<br />

2021? <strong>The</strong> jury is out. Although<br />

arguably the geopolitical<br />

landscape was less favourable<br />

for reaching agreement than it<br />

was in 2018, the passing of time<br />

means the pressure on the deal<br />

that was struck is even higher.<br />

During the past ten to fifteen years there<br />

has been much talk around “green growth”.<br />

<strong>The</strong> concept is simple: we can adopt sustainable<br />

strategies and practices to preserve the<br />

natural assets on which our current and future<br />

wellbeing relies, while also maintaining the<br />

strong economic growth and <strong>global</strong>ization that<br />

traditional (carbon-based) market development<br />

methods have yielded during the last century.<br />

This idea epitomizes a win-win outcome;<br />

good for us, good for the planet. And there<br />

are plenty of examples of the fruits that have<br />

resulted from this way of thinking, such as the<br />

rapid growth of ecotourism or the development<br />

of the circular economy to name but a few.<br />

Some of these win-win opportunities are<br />

significantly harder to realize than others and<br />

require highly complex and creative solutions,<br />

but in all cases a suitable agreement will only<br />

be found if both parties adopt the appropriate<br />

behavioral strategy to engender trust.<br />

CASE STUDY – WORLD TRADE ORGANIZATION<br />

<strong>The</strong>re is widespread<br />

recognition that the health of<br />

our oceans has rapidly declined<br />

during recent decades, due<br />

largely in part to unsustainable<br />

fishing practices and increasing<br />

pollution. <strong>The</strong> former is currently<br />

a highly contentious <strong>issue</strong> for<br />

many governments, as drastically<br />

reduced catches are resulting in<br />

a heavy dependence by fishing<br />

communities on government<br />

subsidies to maintain jobs.<br />

Unfortunately, these subsidies<br />

maintain a destructive and<br />

unsustainable cycle, which<br />

will inevitably end with both<br />

the collapse of entire marine<br />

ecosystems and subsequently<br />

the fishing communities who<br />

depend on them.<br />

<strong>The</strong> World Trade Organisation,<br />

(WTO) is now trying to<br />

introduce new rules concerning<br />

subsidies to shift this investment<br />

to support fishing communities<br />

in other ways, so that heavily<br />

depleted fish stocks have time<br />

to recover and can be fished<br />

sustainably. Previously the WTO<br />

has successfully negotiated <strong>global</strong><br />

rules which limit government<br />

subsidies to industry and farming<br />

by adopting a collaborative<br />

approach between stakeholders.<br />

This gives hope to many that if<br />

these new rules can be agreed<br />

on, the health of our oceans<br />

will start to improve.<br />

Understandably however,<br />

there is scepticism from these<br />

fishing communities around<br />

suggested changes to the<br />

subsidies as the stakes could<br />

not be higher; their entire<br />

livelihood currently depends<br />

upon on this funding.<br />

14


THE NEGOTIATION SOCIETY<br />

This therefore means<br />

that if a deal is to be done,<br />

trust will be critical. If these<br />

communities are not able to<br />

realize alternative revenue then<br />

they will suffer dearly, and<br />

may even disappear altogether.<br />

Given this, if parties were to<br />

adopt a competitive mindset<br />

and behavioral strategy for<br />

these types of negotiations<br />

it would clearly result in<br />

failure, as there won’t be the<br />

appropriate climate of trust<br />

to come to an agreement.<br />

So, if a collaborative approach appears more<br />

likely to result in a better outcome for these types<br />

of negotiations, what specific things can you do to<br />

optimize the potential value from your collaborative<br />

agreements and reduce the risk of deadlock?<br />

HERE ARE FIVE THINGS WE SHOULD CONSIDER WHEN<br />

NEGOTIATING SUSTAINABLE AGREEMENTS:<br />

IMAGE: CATASTROPHE_OL/SHUTTERSTOCK.COM<br />

IMAGE: BEATA ZAWRZEL/​NURPHOTO/​SHUTTERSTOCK.COM<br />

1. HOW ARE YOU FRAMING YOUR NEGOTIATIONS?<br />

A 2012 report by William Moomaw and<br />

Mihaela Papa suggested that one of the<br />

primary reasons climate negotiations have had<br />

limited success in the past is because climate<br />

change is viewed as a pollution problem,<br />

rather than recognizing that emissions are<br />

really the symptom of an underlying pattern<br />

of unsustainable development.<br />

2. THINK CREATIVELY AND REMAIN<br />

OPEN-MINDED TO NEW IDEAS<br />

Thinking “outside the box” is often where<br />

the biggest source of value can be found in<br />

negotiations! Are there potential synergies<br />

that could realize incremental value for both<br />

parties which also increasing the sustainability<br />

of a particular practice or process?<br />

3. STAKEHOLDER ALIGNMENT<br />

High-stakes negotiations often feature a huge<br />

number of stakeholders. If all decision-makers<br />

in your party are not aligned to the strategy<br />

ahead of the negotiation this will significantly<br />

increase the risk of not reaching an agreement,<br />

so ensure that this features as part of your<br />

planning process.<br />

Seven years and 242 days. This article is<br />

close to publication. And the clock has carried<br />

on ticking. For any one of us concerned about<br />

its steady, unstoppable march and who may<br />

feel compelled to act, in whatever context or<br />

capacity, then consider the skill of negotiation<br />

as one of the most critical weapons in<br />

your arsenal. TNS<br />

4. EMPATHIZE WITH THEIR POSITION<br />

TO ENGENDER TRUST<br />

When the stakes are high, it can lead to<br />

emotional reactions. Actively listening<br />

to the position of your counterparties and<br />

subsequently demonstrating empathy to their<br />

situation is a great way to build the appropriate<br />

climate for the negotiation, mitigate the risk<br />

of potential emotional reactions and quickly<br />

engender trust between stakeholders.<br />

5. UNDERSTAND THEIR PRIORITIES BY ASKING<br />

QUESTIONS AND SHARING INFORMATION<br />

In collaborative negotiation, we create value<br />

by assessing the relative cost and value of<br />

individual variables for each party so that we<br />

can then <strong>trade</strong> effectively for the mutual gain<br />

of both parties. Data concerning emissions<br />

or waste for businesses or governments could<br />

be considered sensitive and/or confidential<br />

and may therefore be held back, but to make<br />

existing processes more sustainable it is often<br />

in the interests of parties to share this data<br />

with each other so they can make informed<br />

decisions on the best alternative or solution.<br />

<strong>The</strong> Gap Partnership is the world’s leading<br />

management consultancy specializing in<br />

negotiation. Please get in touch if you would<br />

like to discuss how changing attitudes and<br />

policies concerning environmental sustainability<br />

are affecting the key negotiations facing<br />

your organization.<br />

15


SUSTAINABILITY SPECIAL<br />

NEGOTIATING A BETTER<br />

SUSTAINABILITY OUTCOME<br />

A blend of personal and professional negotiations<br />

can deliver a more sustainable future.<br />

by Eelco Modderman<br />

W<br />

e live in a new world, with new ways of<br />

working and living. Change has been the<br />

one constant these past eighteen plus<br />

months. And it continues. Both in our personal<br />

lives, as well as around us in the natural world.<br />

Change is happening there too, frighteningly fast,<br />

which the recent IPCC report on climate change<br />

made abundantly clear.<br />

My thoughts here are not so much concerned<br />

with what we do with change, but what we do<br />

about it. Are you in charge of your own life and<br />

the impact of the ongoing situation on what<br />

you want to achieve? Given so much change<br />

is happening, wouldn’t it be incredible if you<br />

could harness it to benefit both your life goals<br />

and the greater good at the same time?<br />

This is where your negotiation skills come in.<br />

In your negotiations it would be a wise choice<br />

to be in charge, regardless of the circumstances.<br />

And by that I mean, in charge of the process as<br />

well as yourself.<br />

How can we apply that same skill in our daily<br />

life? A better world begins by looking in the<br />

mirror and asking some hard questions. What is<br />

my carbon footprint? How much packaging do<br />

I use? Is the fish on my plate from a sustainable<br />

source? Do I really need to drive to the office every<br />

day? Or fly to all those meetings? As consumers<br />

there is so much we can do, simply by effectively<br />

and consciously negotiating our daily life and<br />

being more in charge of the choices we make.<br />

In essence, negotiating is nothing more than<br />

agreeing who gets how much out of a deal. If you<br />

plow my field, I give you a goat. If you also take<br />

care of my crops, then I give you milk for the year.<br />

Or maybe something similar involving that thing<br />

called money...like producing something in your<br />

factory in return for dollars. But because people<br />

tend to mostly associate negotiation with this<br />

bargaining element, we often miss the deeper<br />

opportunity: Can I do something for you that<br />

helps you with a problem you have, and can<br />

you do something to help me in return?<br />

That is what we are talking about here.<br />

We cannot save the world on our own.<br />

“A better world begins by<br />

looking in the mirror and<br />

asking some hard questions.<br />

We have a collective responsibility, which requires<br />

trust and openness about what you are struggling<br />

with, and for someone to go first. That in turn<br />

offers opportunity to create value for both parties.<br />

And a better life for both parties along the way.<br />

Or is there a third party? How often would it<br />

be possible to create value in the supply chain<br />

while also benefiting the environment? Could you<br />

reduce waste from your factory if your logistics<br />

partner agrees to bring back the packaging so you<br />

can reuse it? Or think about the raw materials you<br />

are demanding your suppliers to use; in this time<br />

of raw material price increases, how could you<br />

turn that around and view it as a problem<br />

that creates an opportunity?<br />

What I am saying is this: we all have<br />

a role to play, on our own journey<br />

and in the one for our children<br />

and our children’s children.<br />

It’s simple. Negotiate<br />

for a better outcome<br />

and a better<br />

world at the<br />

same time. TNS<br />

16


SUSTAINABILITY SPECIAL<br />

THE NEGOTIATION SOCIETY<br />

SUSTAINABILITY CASE STUDY<br />

An initiative from a consortium of plastics companies<br />

uses digitalization to power plastics recycling.<br />

P<br />

lastic is often seen as the epitome<br />

of environmental pollution.<br />

Those involved in its production<br />

may point to the benefits it delivers<br />

to food safety, hygiene, and medical<br />

care, but they also recognize that this<br />

doesn’t get around a fundamental<br />

<strong>issue</strong>: plastic is not recycled enough,<br />

or to a high enough standard.<br />

For high-quality recycling, two<br />

enablers are essential: fully recyclable<br />

packaging and sophisticated recycling<br />

processes. <strong>The</strong> first exists, but the<br />

second is hampered by presentday<br />

waste streams, with even fully<br />

recyclable packaging often not<br />

separated precisely enough to achieve<br />

high-quality recycling. In Germany<br />

for example, only about 6% of plastic<br />

from domestic waste is recycled to<br />

equivalent new products.<br />

A new initiative, R-Cycle, tackles<br />

this <strong>issue</strong> of precise waste sorting by<br />

providing a digital product passport<br />

which automatically records all<br />

recycling-related properties during<br />

production. Precise information is<br />

passed along the value chain and<br />

made retrievable via an appropriate<br />

marker such as a digital watermark or<br />

QR code on the packaging. By using<br />

this information, waste-sorting lines<br />

can identify recyclable packaging.<br />

R-Cycle is being developed by<br />

a cross-industry consortium of<br />

technology and plastic packaging<br />

companies who are designing<br />

an open and <strong>global</strong>ly applicable<br />

tracing standard to permit seamless<br />

documentation stored on a common<br />

data platform. It’s accessible to any<br />

production equipment, processing,<br />

printing, and filling machines, and<br />

waste sorting and recycling lines.<br />

In addition to improving waste<br />

sorting capability, manufacturers<br />

and processors of plastic packaging<br />

benefit in terms of process efficiency,<br />

quality, and complying with legal<br />

information requirements. Machines<br />

that are networked with the R-Cycle<br />

data platform obtain precise<br />

information about the primary<br />

products contained and add their<br />

own data accordingly. Converting<br />

or filling lines for packaging can<br />

configure themselves automatically,<br />

increasing efficiency and product<br />

quality in the production process<br />

and reducing production waste.<br />

To develop a <strong>global</strong> standard,<br />

partnerships brokered through<br />

collaborative negotiation are essential.<br />

<strong>The</strong> R-Cycle consortium’s thirteen<br />

different organizations include the<br />

Reifenhäuser Group. CEO Bernd<br />

Reifenhäuser says, “Sustainability<br />

is not a threat, but an opportunity<br />

to do things better. In this context,<br />

it is very important not to tackle<br />

big challenges alone. You have<br />

to find the right partners and<br />

act as a team.” TNS<br />

www.r-cycle.org<br />

R-CYCLE STORES RECYCLING-RELEVANT DATA BY PROVIDING A DIGITAL PRODUCT<br />

PASSPORT TO ENABLE PRECISE WASTE SORTING FOR HIGH-QUALITY RECYCLING.<br />

17


AHEAD OF<br />

THE GAME<br />

Tim Green meets Tom Hilgeman to find out his approach<br />

to cracking problems and complex industry sectors,<br />

as well as how passion and purpose underpin it all.<br />

18


THE NEGOTIATION SOCIETY<br />

Algorithms. We all think we know about<br />

them; they are, after all, everywhere.<br />

But what are they exactly? At their most<br />

general, algorithms are a process to be followed in<br />

problem-solving operations, from arithmetic, to a<br />

cake recipe, or the functionality of a search engine.<br />

But their potential scope and application<br />

goes far further than these relatively simplistic<br />

examples, something that human rights attorney<br />

Flynn Coleman considered in her book,<br />

A Human Algorithm. In it, she argues that<br />

to ensure<br />

this power<br />

shift from<br />

humans to<br />

"I consider all the things<br />

that could happen, and the<br />

moves that could be made.<br />

increasingly<br />

advanced<br />

artificial<br />

intelligence<br />

is successful,<br />

it will be<br />

necessary<br />

to instill<br />

in them values, ethics and morals; to give them,<br />

in emotive language, a heart as well as a brain.<br />

Why am I talking about human algorithms?<br />

Well, because my subject for this profile feature,<br />

Tom Hilgeman, might just embody a blend of<br />

humanity and logical process that future-facing<br />

algorithm designers will look to create.<br />

But before we dive into algorithmic metaphors,<br />

let’s start with some scene-setting. As a leader<br />

in <strong>The</strong> Gap Partnership's US team, Tom comes<br />

with years of commercial leadership experience<br />

gained in some of the world’s biggest businesses.<br />

I ask him what prompted his move, back<br />

in 2019, into a management consultancy<br />

specializing in negotiation. He explains,<br />

“<strong>The</strong> Gap Partnership was something different;<br />

a business with the biggest, quickest tangible<br />

return of all the consultancies I worked with<br />

when I was in industry. <strong>The</strong> flagship training<br />

program, <strong>The</strong> Complete Skilled Negotiator,<br />

gave my teams more confidence than<br />

anything else they undertook, be it advisory or<br />

developmental, making them more successful<br />

and effective in both external and internal<br />

negotiations. <strong>The</strong>y told me, ‘You have to<br />

experience it for yourself ’ – but I saw first-hand<br />

the results and the difference it made to their<br />

performance, and that of the business.”<br />

Tom juggles a busy schedule running his<br />

team, managing clients, and delivering negotiation<br />

consultancy and training. With such a multifaceted<br />

role, I’m curious to know what gets him<br />

out of bed in the morning and whether there’s<br />

an aspect of his job he enjoys the most. He tells<br />

me, “It has to be the end-to-end journey we go<br />

on with clients – working together as a team<br />

to design the best solution for their challenges,<br />

whether that’s a consulting intervention,<br />

a training program, or quite often a bespoke<br />

mix of the two. <strong>The</strong> process itself is fascinating;<br />

starting with what’s effectively a blank sheet of<br />

paper we’re able to facilitate aha moments. And<br />

from there we deliver solutions that help people<br />

think differently about their business and the role<br />

that negotiation plays in achieving its objectives.<br />

That to me is the definition of problem-solving<br />

– creatively but logically moving from <strong>issue</strong>, to<br />

solution, to delivery. It’s hugely satisfying.”<br />

It’s evident that Tom is a critical thinker<br />

par excellence, adept at analyzing information,<br />

testing scenarios and exploring options. What<br />

exactly goes on in his head when he approaches<br />

a problem? “<strong>The</strong> short answer is a lot! I consider<br />

all the things that could happen, and the moves<br />

that could be made.”<br />

It’s at this point in our chat that I venture<br />

that this sounds almost algorithmic in nature,<br />

and Tom (luckily) agrees, “Yes, I would go so far<br />

as to say I do think algorithmically. I ask questions<br />

like, what is the best solution? Where are the<br />

risks? Where are the rewards? Can we take on<br />

the risks? I play all the moves as much as I can<br />

before trying to find a final answer. But it’s not<br />

a solo endeavor. I gather input from my team,<br />

and our client, so we cocreate the best possible<br />

end solution.”<br />

Thinking algorithmically is such a wonderfully<br />

rich concept, it makes me wonder whether<br />

Tom literally thinks numerically in 1s and 0s,<br />

or whether he also conjures mental images<br />

that help inform his rationale? His answer is<br />

beautifully visual: “Think of them as thought<br />

trees, with branches that reflect what happens<br />

if we go off in one direction or another.<br />

<strong>The</strong>se branch off until I’ve possibly figured<br />

out everything I can. Once I’ve played enough<br />

moves to be fully informed, I bring others into<br />

the mix, because you don’t know what you<br />

don’t know.”<br />

19


<strong>The</strong> picture of Tom that is building in my<br />

head as we talk, is that he is not only precise,<br />

thoughtful and deliberate (algorithmic,<br />

indeed), but also questioning and creative.<br />

As a further proof point of this mix of traits,<br />

he tells me he’s characterized on the Myers<br />

Briggs personality inventory as the “Architect”<br />

or “Strategist”, someone who is equal parts<br />

inventive to analytical.<br />

I want to know how this plays out for real,<br />

and Tom shares his experience of advising<br />

clients in the US healthcare sector, arguably<br />

one of the most complicated routes to market<br />

in the world, and “one in which initially<br />

I had limited experience.” He’s candid<br />

about the challenge it presented, admitting,<br />

“Yes, it’s complex – for example, six layers<br />

of stakeholder to get to the end user. But<br />

I was excited to learn something new. So,<br />

logic and preparation kicked in. I started<br />

with what I knew: how to break down a<br />

business, how to understand competition,<br />

profit and loss, balance sheets. I studied<br />

analyst reports, and in the end assimilated<br />

all of the disparate information.”<br />

So far, so analytical, but what Tom says next<br />

reveals a humanity that can be missing in our<br />

automated, increasingly computerized modern<br />

world to which I have (perhaps unflatteringly)<br />

been comparing him. Because what he says is,<br />

“I am the subject matter expert on negotiation,<br />

and I need to find connections between my<br />

client’s industry, their problems, and our<br />

solutions. Listening is key. But ultimately<br />

one of the most important goals I have is<br />

to gain empathy for my clients’ situations.”<br />

Empathy? Not a word you’d necessarily associate<br />

with a computer program. But it’s one that comes<br />

up repeatedly when Tom speaks. He expands the<br />

point: “When a new business talks to us they’ve<br />

recognized there’s a problem and have asked for<br />

our help. <strong>The</strong> last thing we should do is present<br />

with an egotistical attitude, as though we know<br />

everything and they should just step aside. You’re<br />

a person helping another person, so you need<br />

to have empathy and build trust – not only to<br />

attain the business, but so they’ll share enough<br />

information to help us figure out what they need.”<br />

And what role does Tom see empathy playing<br />

at <strong>The</strong> Gap Partnership? He puts it simply – “This<br />

business has a heart. We’re doing something bigger<br />

than just business, and I’d tell anyone joining today<br />

not to view it through solely a commercial lens,<br />

but to appreciate that what we do is operate as<br />

a trusted adviser. In fact, I feel we’re on something<br />

of a mission to apply this incredibly powerful<br />

skill of negotiation for the greater good of the<br />

individuals we work with, the businesses they<br />

work for, and even all of our lives outside of work.”<br />

Of course I agree wholeheartedly with this<br />

statement; <strong>The</strong> Gap Partnership is in one sense<br />

a highly specialized, technical consultancy, but<br />

equally what we do has a powerful and broad<br />

capacity to change relationships, situations and,<br />

yes, lives, for the better. And that is perhaps also<br />

what an evolved, creative and empathetic algorithm<br />

of the future could deliver to humankind. But<br />

until that day, we have Tom Hilgeman: analytical,<br />

rational and über-prepared, yes. But also humane,<br />

compassionate and caring.<br />

Algorithms, eat your yet-to-be-programmed<br />

hearts out. TNS<br />

A2<br />

20


THE NEGOTIATION SOCIETY<br />

Stephen Dumpleton finds out how the negotiations that<br />

underpin the Australian Open have intriguing parallels<br />

with the sport itself, especially in times of challenge.<br />

J<br />

anuary 2020. Australia was<br />

experiencing some of the<br />

worst bush fires on record<br />

and Melbourne, home of tennis<br />

grand slam the Australian Open<br />

(AO), was in the middle of a<br />

national emergency. With this<br />

environmental crisis as backdrop<br />

(and Covid barely registering as<br />

the <strong>global</strong> pandemic it became),<br />

Tennis Australia’s chief revenue<br />

and experiential officer, Ben<br />

Slack, was in reflective<br />

mood after the delivery of<br />

another successful and recordbreaking<br />

tournament.<br />

<strong>The</strong> show had rolled on<br />

without too much disruption,<br />

and Ben and his team were<br />

already looking ahead to next<br />

season’s opening tennis slam,<br />

cautiously optimistic that they<br />

had been through the very worst<br />

of it. Of course, if they’d been<br />

gifted a crystal ball at that point,<br />

it’s unlikely that optimism –<br />

even cautious – would have<br />

been the prevailing emotion.<br />

Professional tennis players<br />

understand more than most<br />

the value in preparation.<br />

Many spend their entire lives<br />

preparing, practicing and finetuning<br />

their game to ready<br />

themselves for their one shot<br />

at glory. To be the best, they<br />

must obsess over every detail.<br />

From their diet to their sleep<br />

routine, to the preparation of<br />

their tennis bag on game day,<br />

no element is overlooked.<br />

Ask Novak Djokovic, the<br />

current AO men’s champion<br />

– a record-breaking ninth<br />

time he’s held the title – who<br />

puts his overall haul of twenty<br />

grand slam wins down to 85%<br />

preparation, 10% talent and 5%<br />

luck. Or Emma Raducanu, who<br />

spent five months working on<br />

a slight but critical adjustment<br />

to the position of her elbow on<br />

her forehand, one of multiple<br />

hard-won marginal gains in her<br />

game that helped her sweep to<br />

a phenomenal record-breaking<br />

victory at the US Open in<br />

September 2021.<br />

But as another iconic tennis<br />

star, Serena Williams, said,<br />

“If Plan A isn't working, I have<br />

Plan B, Plan C, and even Plan<br />

D” – and indeed, so often in<br />

sport what is anticipated and<br />

expected doesn’t eventuate.<br />

In these moments, athletes are<br />

required to think on their feet<br />

(quite literally), adjust and adapt<br />

to the situation in front of them.<br />

Those that have contingency<br />

plans in place and are able<br />

to draw on them quickly<br />

and instinctively are often<br />

the most rewarded.<br />

This was the situation that<br />

Ben and team experienced<br />

during the following Australian<br />

Open of 2021. As he recalls,<br />

“During 2020 we prepared<br />

for scenario after scenario<br />

to ensure we were ready,<br />

but of course, what we had<br />

not anticipated was a fiveday<br />

snap lockdown right in<br />

the middle of the tournament!<br />

That was a curveball for sure,<br />

something which didn’t fall into<br />

one of our scenarios.”<br />

To provide a little context,<br />

the Australian Open kicks off<br />

the international tennis season<br />

each January, the first of the<br />

four Grand Slam events. This<br />

scheduling provided Tennis<br />

Australia plenty of time during<br />

2020, as Covid rampaged<br />

through the world, to plan and<br />

prepare for the 2021 event.<br />

But with so much uncertainty<br />

there was much outside of their<br />

control. Ben explains how this<br />

made the need for agile thinking<br />

even more important: “As much<br />

as you plan, your ability to<br />

problem-solve and deal with<br />

21


<strong>The</strong> Australian Open is both a player and fan favorite<br />

slam – hence its nickname " <strong>The</strong> Happy Slam".<br />

what’s in front of you is just<br />

as important as your preparation.<br />

<strong>The</strong> team's negotiation training with<br />

<strong>The</strong> Gap Partnership back in 2019<br />

enabled a very positive outcome, and<br />

I believe we would not have managed<br />

as well without that training.”<br />

He goes on to acknowledge the<br />

similarities between high-stakes sport<br />

and high-stakes negotiation, saying,<br />

“It’s about being prepared enough<br />

that you can still be flexible in your<br />

approach when needed, and manage<br />

your way through each<br />

new challenge.”<br />

<strong>The</strong> tournament organizers<br />

were not the only ones who<br />

had to adapt to the changing<br />

circumstances. Historically, players<br />

get the opportunity to play lead-in<br />

tournaments prior to the Australian<br />

Open to help them warm up and<br />

acclimatize, but this year was<br />

different. Players had to think of<br />

more creative ways to get match-fit<br />

and ensure they were best prepared,<br />

many posting amusing social media<br />

clips of innovative training methods<br />

from hotel quarantine. (Think<br />

forehand smashes into mattresses<br />

propped against bedroom walls,<br />

and fitness drills around tennis<br />

balls placed in strategic formation<br />

on the floor.)<br />

Ben has been with Tennis<br />

Australia for close to a decade<br />

and currently works with over<br />

60 brand and media partners,<br />

forming highly collaborative<br />

and mutually beneficial<br />

relationships. He explains<br />

the key role of a partner:<br />

“We massively rely on them<br />

to help contribute to the<br />

experience, as they help<br />

amplify the event and take<br />

it to the consumer and fans.<br />

It’s always been a priority for<br />

our team to take a long-term<br />

view on how we approach the<br />

negotiation with each partner.<br />

We are very aware that each<br />

organization has its own<br />

unique set of challenges. For<br />

example, partners from travelimpacted<br />

industries such as<br />

aviation and accommodation<br />

were clearly in a very different<br />

situation during the height<br />

of Covid to that of partners<br />

from, say, the technology or<br />

automotive sectors.”<br />

Ben is clear that his team’s<br />

negotiation skills were sorely tested<br />

working up to the event. “We were<br />

essentially negotiating entirely new<br />

terms and conditions with each<br />

partner based upon the change to<br />

their and our circumstances. Once<br />

each negotiation had concluded,<br />

the goalposts shifted, and at times<br />

we had to start all over again.”<br />

“If Plan A isn't working,<br />

I have Plan B, Plan C,<br />

and even Plan D.<br />

Serena Williams<br />

I suggest that there must have<br />

been some difficult conversations<br />

between sponsor and the team with<br />

so much change. Ben makes a careful<br />

clarification, saying they had<br />

to “take difficult decisions”,<br />

rather than “have difficult<br />

conversations.” He goes on,<br />

“<strong>The</strong> relationships we had and<br />

still have with our partners come<br />

first, which paves the way for<br />

more favorable and collaborative<br />

negotiation. Constant, clear, and<br />

direct communication has been<br />

vital in ensuring<br />

our partners were aware of our<br />

plans. As we prepare for next year’s<br />

event, we will continue to focus<br />

on communication with hopefully<br />

a little less uncertainty.”<br />

Long-term thinking is one of<br />

the most important criteria when<br />

it comes to achieving success at the<br />

negotiation table; skilled negotiators<br />

are all too aware that quick deals<br />

aren’t always the best deals, and<br />

a long-term view can ultimately<br />

be the most rewarding. This is also<br />

true in sport. Elite athletes recognize<br />

their careers must be treated like<br />

a marathon rather than a sprint if<br />

they are to extend their time at the<br />

top. In fact, the average career of<br />

a tennis professional has increased<br />

steadily over the past decade, with<br />

some players reaching their peak<br />

performance later in life. Flavia<br />

Pennetta famously won her first<br />

Grand Slam at the age of 33 in<br />

2015, following Li Na who won<br />

the Australian Open and her<br />

second Grand Slam at 32 years<br />

old in 2014: both are proof that<br />

long-term thinking can breed<br />

longer-term results.<br />

Looking towards the future<br />

I am eager to know how planning<br />

is going for 2022, especially (at<br />

the time of writing) with most of<br />

Australia currently under ongoing<br />

lockdown measures<br />

and restrictions.<br />

Ben is, dare I say it,<br />

cautiously optimistic.<br />

“This year we believe<br />

we have more clarity<br />

around what to<br />

expect regarding<br />

spectators and travel<br />

restrictions from<br />

our early discussions<br />

with the Department of Health,<br />

but we do have several scenarios<br />

for which we will be prepared for.<br />

After last year’s event we made sure<br />

22<br />

Ben Slack, Tennis Australia’s chief<br />

revenue and experiential officer.


THE NEGOTIATION SOCIETY<br />

everyone had some additional time<br />

off in recognition for their incredible<br />

work over the year, but we have<br />

regrouped and have already started<br />

to plan for 2022 and beyond.”<br />

So what can we expect? Ben paints<br />

a compelling picture. “Last year we<br />

learned a lot about our team and our<br />

tournament which will help us deliver<br />

an even better experience in 2022,<br />

and I’m incredibly excited about that.<br />

In 2021 we accelerated the launch of<br />

our new digital and virtual experience<br />

for our offsite fans, and you’ll see a lot<br />

more of that in the future. We have<br />

planned some excellent collaborations<br />

with our commercial sponsors and<br />

partners for onsite too.”<br />

I’m not surprised to hear this.<br />

Since the Australian Open moved<br />

to its home at Melbourne Park<br />

(previously named Flinders Park) in<br />

1988, the number of onsite spectators<br />

has grown exponentially nearly every<br />

year. It has proven to be not only a<br />

fan favorite but a player favorite too,<br />

with Novak Djokovic and many other<br />

players claiming a love affair with<br />

the AO, or it being their favorite<br />

slam – hence its nickname,<br />

"<strong>The</strong> Happy Slam".<br />

But the tie to the sporting world is<br />

deeper than first thought with Tennis<br />

Australia. Like all good<br />

professional athletes,<br />

they are constantly<br />

looking to improve,<br />

year-in, year-out. In<br />

the same way that elite<br />

athletes rely heavily on<br />

their backroom teams<br />

for support, guidance<br />

and inspiration, Tennis<br />

Australia view <strong>The</strong> Gap<br />

Partnership as a key part<br />

of their backroom team.<br />

<strong>The</strong> current world number<br />

one, Australia’s own Ash Barty, talks<br />

openly about her ambition to become<br />

the complete tennis player, making<br />

small improvements every day, and it<br />

seems the Australian Open organizers<br />

are equally ambitious and determined.<br />

Ben, who was recently named in<br />

the class of 2021 for the Leaders<br />

Under 40 Sports Awards, took<br />

inspiration during last year’s lockdown<br />

from Bob Iger’s classic business<br />

book, <strong>The</strong> Ride of a Lifetime. Like its<br />

author, Ben is also responsible for<br />

delivering first-class experiences to a<br />

large audience, and not surprisingly<br />

drew inspiration from and related<br />

to much of his philosophy. “As the<br />

CEO of Disney, Bob looked for<br />

creative ways to problem-solve and<br />

push boundaries, and this made me<br />

question some of my ways of thinking.<br />

He was committed to challenging<br />

the status quo, for example by<br />

championing female and black actors,<br />

and I have huge admiration for how<br />

he overcame roadblocks to do that.<br />

For our business, I realized that<br />

we should also be bolder and more<br />

“Once each negotiation had<br />

concluded, the goalposts<br />

shifted, and at times we had<br />

to start all over again.<br />

creative, and sometimes that meant<br />

taking more risk in our negotiations.”<br />

Reflecting on this sentiment,<br />

I predict that if all things go to plan,<br />

we will with any luck get to see some<br />

of that creativity and innovation<br />

during 2022’s Australian Open.<br />

But back to our intriguing parallel<br />

between the corporate and sporting<br />

worlds; for Ben the similarities<br />

between elite sport and negotiation<br />

are real. Whether it’s running one<br />

of the greatest sporting tournaments<br />

in the world, winning a tennis grand<br />

slam or achieving success through<br />

negotiation, he believes there are some<br />

defining principles which support<br />

success in all fields. “You need to be<br />

prepared but ready to execute what<br />

is in front of you. Remember, longerterm<br />

thinking can deliver longer<br />

term results and drive a team or an<br />

individual to get better and make<br />

improvements every day.”<br />

So what is Ben’s honest assessment<br />

of next year year’s Grand Slam opener.<br />

What can the spectators expect? Are<br />

we out of the Covid woods, or is it<br />

simply too early to say?<br />

He is a considered mix<br />

of optimism and realism.<br />

He recalls only too<br />

clearly a day in February<br />

2021 when he stood<br />

in the center of Grand<br />

Slam Oval on the middle<br />

Saturday, alone on<br />

what should have been<br />

the busiest day of the<br />

tournament. As someone<br />

who knows Ben as a sociable<br />

bon viveur who loves the<br />

company of people and finds the buzz<br />

of a crowd thrilling, I find this image<br />

poignant – and an all too recent<br />

reminder of the impact the pandemic<br />

has had across all aspects of life.<br />

When the Australian Open does<br />

finally come back to town, there is not<br />

an iota of doubt in my mind that Ben<br />

and his team will relish and make the<br />

most of every minute they’re back in<br />

the thick of it.<br />

What I’m also sure of is that<br />

their rigorous planning, painstaking<br />

preparation and finely honed<br />

negotiation skills will together<br />

deliver a world-class result. TNS<br />

23


WHEN<br />

THE STAKES<br />

ARE HIGH<br />

<strong>Negotiation</strong> skills are essential for most modern-day<br />

corporate roles. But what can they contribute to other<br />

jobs, particularly those where decisions can mean the<br />

difference between life and death? We spoke to a doctor<br />

and a fighter jet navigator to find out.<br />

OSCAR GROOT<br />

Head of Intensive Care, Meander<br />

Medical Center Amersfoort, Netherlands<br />

A<br />

s head of the intensive care unit<br />

(ICU) at a top clinical hospital<br />

in the Netherlands, Oscar was in<br />

the eye of the Covid storm from the<br />

beginning. He recalls that as the world<br />

woke up to the threat in early 2020,<br />

there was, unsurprisingly, a scarcity of<br />

information: “We had few facts and<br />

little data. But as the situation in Italy<br />

deteriorated, so we learned more. <strong>The</strong><br />

European <strong>Society</strong> of Intensive Care<br />

Medicine had an Italian chair and<br />

Dutch co-chair and became a valuable<br />

resource for those of us at the coalface.”<br />

This collaboration and informationsharing<br />

echoes principles that<br />

commercial negotiators apply,<br />

although albeit for them the stakes<br />

aren't generally life-and-death. It<br />

was replicated in highly effective<br />

inter-country communication too, as<br />

Oscar explains. “Every hospital in the<br />

Netherlands communicated twice daily<br />

with each other; how many beds we<br />

had, and what capacity we needed, or<br />

could offer. <strong>The</strong> transparency of the<br />

system worked well and resulted in<br />

a lot of movement between hospitals<br />

to accommodate patients. Plus, getting<br />

to know each other helped a lot.”<br />

Oscar’s own hospital responded<br />

quickly to the increased demand,<br />

doubling intensive care beds from 14<br />

to 28 by taking over half of the adjacent<br />

operating theaters – “<strong>The</strong> peak for us<br />

was April 2020, with every bed taken.”<br />

<strong>Negotiation</strong> played a critical role in<br />

team engagement given that,<br />

“<strong>The</strong> ICU nurses not only had to<br />

work with people from other units<br />

that lacked their qualifications, they<br />

also had to care for more patients,<br />

work longer hours, and change the<br />

way they worked.”<br />

How did they manage this with<br />

the nursing team? “We were clear we<br />

shared a common goal and had to face<br />

the pandemic with a common effort.<br />

This clarity of objective was crucial<br />

in keeping the team motivated and<br />

24


THE NEGOTIATION SOCIETY<br />

cooperative. Another element was<br />

recognizing that, unlike in normal<br />

times, perfection was not the goal;<br />

the new goal was as many people<br />

surviving as possible.”<br />

Clarity around objectives and<br />

pragmatism about what good likes<br />

like is another familiar theme from<br />

commercial negotiation. A key<br />

difference is the public appreciation<br />

that Oscar and his team received<br />

in those early days – “It was really<br />

special; people were clapping for<br />

healthcare workers” – which proved<br />

hugely valuable to morale, given that,<br />

“We did 12-hour shifts every day.”<br />

To “sweeten the deal” for the team,<br />

the hospital management took some<br />

positive steps; “You have to take care of<br />

the personal stuff. We listened to staff<br />

and made sure they were taken care of;<br />

for example they had all of their meals<br />

delivered and paid for. And, to ensure<br />

they had enough rest after a night<br />

shift, with kids at home during the<br />

lockdown a complicating factor,<br />

we offered staff a hotel to sleep in<br />

during the day.”<br />

This “give and take” approach was<br />

harder to facilitate with surgeons who<br />

had patients needing operations – a<br />

particular backlog was in orthopaedics.<br />

Oscar explains, “To manage treatment<br />

prioritization, the management team<br />

set up a committee of surgeons,<br />

pulmonary specialists, hospital leaders<br />

and so on, meeting twice a week to<br />

discuss and agree priorities. <strong>The</strong>se<br />

discussions could be intense and we<br />

made some difficult decisions. But<br />

again, the shared goal was critical in<br />

ensuring a decision could be reached.”<br />

<strong>The</strong>se ongoing and life-changing<br />

negotiations are one reason why<br />

those in medicine have been on<br />

a steep Covid learning curves.<br />

Oscar’s assessment of the response<br />

he has been part of is thoughtful<br />

and positive. He sums up, “<strong>The</strong><br />

Dutch way of negotiation is quite<br />

straightforward, and in a crisis it’s<br />

helpful to say exactly what you need.<br />

I learned as I went; I’d only had one<br />

or two days of negotiation training.<br />

My advice? Be straightforward<br />

and trustworthy. Do what you say.<br />

Be as transparent as is possible.<br />

And, collaboration is vital.”<br />

DAVID COOPER<br />

Executive General Manager,<br />

Nova Systems and former<br />

Commanding Officer, Royal Air Force<br />

D<br />

avid’s illustrious decades-long<br />

career in the Royal Air Force<br />

(RAF) included leading the<br />

famous Dambusters squadron and<br />

commanding a frontline station of<br />

over three thousand people. He also<br />

logged over 1,500 hours flying the<br />

iconic Panavia Tornado aircraft. In<br />

2020, David left the RAF and joined<br />

a leading aerospace, systems and<br />

advisory company, Nova Systems,<br />

where negotiation is a central part<br />

of his role.<br />

Drawing parallels between the<br />

behaviors of an effective negotiator<br />

and those of frontline aircrew<br />

might appear at first glance a tricky<br />

exercise. But David’s military career<br />

required core competencies and<br />

skills that will sound familiar to<br />

commercial negotiators: stakes were<br />

high, risk was ever-present, mistakes<br />

could result in serious consequences,<br />

and the margin of error was small.<br />

But let’s start with where it all<br />

begins, whether that’s a military<br />

operation or a commercial<br />

negotiation: planning. Effective<br />

planning skills were crucial<br />

requirements for David’s RAF<br />

roles, whether he was mapping out<br />

reconnaissance missions, preparing<br />

for discussions with foreign<br />

counterparts, or conducting strategic<br />

reviews of airspace: all needed<br />

thorough and aligned plans in<br />

order to be successful.<br />

However, even the best-laid plans<br />

face challenge when circumstances<br />

change, or key intelligence or<br />

assumptions prove incorrect.<br />

As David says, “Time in planning<br />

is rarely wasted, but there’s a famous<br />

saying that, ‘Plans are worthless, but<br />

planning is invaluable’. You can have<br />

a plan written down, but you may<br />

not stick to it. But by following a<br />

planning process you have ‘bricks’<br />

or constituent parts, and you<br />

can rebuild them in a different<br />

way depending on how the<br />

situation develops.”<br />

That’s where contingency<br />

planning comes in, which David<br />

says he and his teams spent<br />

a “phenomenal” amount of time<br />

doing, to mitigate against identified<br />

risk and facilitate quick reactions<br />

when time is at a premium.<br />

However, he concedes it can only<br />

take you so far when dealing with<br />

highly complex situations, or when<br />

large numbers of stakeholders<br />

are involved in decision-making.<br />

“<strong>The</strong> bigger and better the plan gets,<br />

the more you rely on stakeholders<br />

outside your sphere of influence.<br />

That’s where contingency planning<br />

falls down – it takes too long or<br />

relies on too many people to agree.”<br />

So what do you do if presented<br />

with a problem that your plans<br />

do not adequately account for?<br />

How do you ensure you remain<br />

in charge and stay in control?<br />

David emphasizes the importance<br />

of taking “time-outs” in highpressure<br />

moments, to give yourself<br />

time to think clearly – also highly<br />

appropriate in a negotiation.<br />

Within a military context<br />

however, situations often require<br />

rapid decision-making with no time<br />

to pause and reflect. David recounts<br />

a time he was leading a large<br />

international formation of aircraft<br />

and became aware he could lose<br />

control of proceedings, presenting<br />

a huge risk to the mission. He<br />

needed to fix the situation quickly,<br />

and the quality that became vital<br />

was humility: “<strong>The</strong> first thing you<br />

need to do is recognize something<br />

has gone wrong. <strong>The</strong>n you need<br />

to stand up and communicate the<br />

<strong>issue</strong> to your peers and superiors.”<br />

While this can feel deeply<br />

uncomfortable, David is a passionate<br />

believer in the importance of<br />

humility within leadership – a view<br />

that is very much of the zeitgeist in<br />

the commercial world, and another<br />

example of the synergies between<br />

leading squadrons and leading<br />

negotiation teams. TNS<br />

25


LEARNINGS<br />

FROM<br />

ENTREPRENEURS<br />

<strong>The</strong>y are seen as an exotic commercial breed:<br />

quick-thinking visionaries who take risks and<br />

blaze trails. But how do they assess the<br />

story of their success, and the role that<br />

negotiation has played? We spoke to<br />

three entrepreneurs to find out.<br />

DOMINIC SMALES<br />

Founder of Gleam Futures and <strong>The</strong> Glow Project<br />

26<br />

I<br />

t wouldn’t be hyperbolic<br />

to describe Dominic<br />

as an influencer<br />

industry pioneer. He set<br />

up talent management and<br />

influencer marketing agency,<br />

Gleam Futures, at a time when<br />

influencing was not even a<br />

twinkle in the big corporates’<br />

eyes. Now they are in every<br />

consumer brand marketer’s<br />

toolkit, and the savvy consumer’s<br />

best friend.<br />

Where did Dominic get<br />

his crystal ball? He recalls not<br />

knowing what he wanted to do<br />

after leaving school, so got a<br />

degree, sold ad space for local<br />

rag the Bucks Examiner, and<br />

had a stint at his stepdad’s media<br />

agency. Dominic describes these<br />

as, “amazing years that inspired<br />

my epiphany moment; I noticed<br />

the amount of attention garnered<br />

online for people entertaining<br />

through organic social channels.”<br />

He continues, “I then went to<br />

a small production company<br />

which had an agenting side;<br />

my first foray into talent.”<br />

What happened next is what<br />

Dominic calls “a jolt” – he was<br />

diagnosed with the brain disorder<br />

hydrocephalus. This life-changing<br />

event led to a life-changing<br />

decision to go it alone. And so,<br />

Gleam Futures was born.<br />

Every business needs a<br />

founding category, and Gleam’s<br />

was beauty, with clients including<br />

Chanel and TRESemmé<br />

owners Alberto-Culva. In 2010,<br />

Dominic asked YouTubers, Sam<br />

and Nic Chapman – makeup<br />

artists Pixiwoo – to review<br />

Chanel’s traceable tattoos. He<br />

instantly spotted their potential:<br />

“<strong>The</strong>y were engaging, fun and<br />

charismatic. We struck up a<br />

relationship and I pivoted my<br />

business from media to talent<br />

management agency.” From<br />

those early days a community<br />

was born, and Gleam onboarded<br />

a stable of super-influencers<br />

including Zoella, Tanya Burr<br />

and Jim Chapman.<br />

Success was not without its<br />

naysayers. Dominic remembers<br />

pushback manifesting as<br />

a “knocking of heads between<br />

paid content creators, and the<br />

new ‘digital first’ talent. But<br />

like or loathe them, influencers<br />

had, and still have, access to an<br />

engaged audience who are getting<br />

increasingly hard to reach.”<br />

<strong>The</strong>re are some familiar<br />

entrepreneurial traits in play here:<br />

resilience, tenacity, a relentless<br />

work ethic, and unwavering<br />

vision in the face of scepticism.<br />

As Dominic says, “From the very<br />

beginning I had absolute blind<br />

faith in my career.” He also says<br />

his attitude to risk is on the gung<br />

ho side, attributing this in part<br />

to his mild dyslexia and ADHD;<br />

a neurodiverse way of seeing<br />

the world. He’s clear that luck –<br />

meeting the right vloggers at<br />

the right time – also featured.<br />

What of negotiation? “It’s<br />

an incredible tool to progress<br />

in life. It’s about communication<br />

and relationships; if you apply<br />

those organic skills to a good<br />

framework then you’re set up<br />

to succeed.” What are his top<br />

tips? “<strong>The</strong> biggest misconception


THE NEGOTIATION SOCIETY<br />

about negotiation is that it’s<br />

about winning and losing. I tell<br />

people it’s win-win or no deal,<br />

so think about what the other<br />

person wants and needs. It’s been<br />

a huge part of my professional<br />

life, from buying stationery to<br />

selling my business to a big<br />

media company.”<br />

Which brings us to 2017 and<br />

a multimillion buyout of Gleam<br />

by Japanese ad giant Dentsu,<br />

proving the cynics from the early<br />

days definitively wrong. (Dentsu<br />

are no fools: the industry is a<br />

multibillion dollar one and enjoys<br />

80% a year growth.) Dominic<br />

sees the future filled with<br />

influencer-owned brands, “done<br />

in a super-authentic way”, citing<br />

Sam and Nic Chapman endorsed<br />

make up brush brand, Real<br />

Techniques, and Zoella Beauty,<br />

as examples of getting it right. He<br />

expects similar success for Grace<br />

Beverley’s sustainable leisurewear,<br />

Tala, and Tanya Burr’s premium<br />

makeup, Authored. He’s now on<br />

the lookout for the next crop of<br />

direct-to-consumer mega brands.<br />

As for his own next chapter,<br />

he’s excited about new ventures,<br />

one of which, <strong>The</strong> Glo Project,<br />

focuses on the commercial<br />

opportunity in paid-for content<br />

on subscription platforms. It<br />

seems likely he will be described<br />

as a pioneer of talent in that area<br />

in the future, too.<br />

THYME SULLIVAN<br />

Co-Founder and CEO, TOP <strong>The</strong> Organic Project<br />

A<br />

self-confessed “grocery geek”,<br />

Thyme spent close to three<br />

decades as a high-flying<br />

sales executive at consumer giants<br />

including PepsiCo, Coca-Cola and<br />

Nestlé before going it alone. She<br />

says this relatively late entry to<br />

entrepreneurship was because,<br />

“It just wasn’t a thing when<br />

I left college. Saying you were<br />

an entrepreneur was code for<br />

you were jobless and sleeping<br />

in your parents’ basement.”<br />

So Thyme graduated, got<br />

a job at Frito-Lay – “I drove a<br />

truck but was terrible at it so got<br />

promoted” – and went on to climb<br />

the corporate ladder. However, an<br />

entrepreneurial spirit was everpresent:<br />

“<strong>The</strong> roles I loved most<br />

were those where we were building<br />

our own businesses and had room<br />

to be creative and take risks. It was<br />

a respite from everyday corporate<br />

culture which rewards staying in<br />

line and doing as you’re told.”<br />

Thyme acknowledges that<br />

without a shock redundancy,<br />

leaving her “devastated”, she would<br />

never have left the security of<br />

her career – and indeed, her first<br />

response was to apply for other<br />

big corporate roles. <strong>The</strong>n an old<br />

boss suggested that now could be<br />

the time to think differently and<br />

redesign her life. And there was<br />

certainly an incentive: “Corporate<br />

America isn’t built around moms.<br />

I hadn’t been there to raise my<br />

kids, I missed Halloween and<br />

the first and last day of school,<br />

I worked all weekend and came<br />

home tired and cranky. I accepted<br />

it, but losing my job was the<br />

universe giving me a nudge.”<br />

Fortuitously Thyme’s cousin,<br />

Denielle – a senior executive in<br />

fashion retail – was at a similar<br />

crossroads. She left her job and<br />

together they identified a gap<br />

in the feminine care market.<br />

“As moms of daughters, we knew<br />

there was no innovation in period<br />

products. 80% of women use what<br />

their mom bought them their<br />

first time.” That insight combined<br />

with their own values – “We were<br />

raised by hippies and organic was<br />

a big thing in our houses” – and<br />

TOP the organic project was<br />

born: a category-disrupting brand<br />

producing organic cotton, plantbased,<br />

hypoallergenic products,<br />

complete with a mission to<br />

normalize the conversation around<br />

periods, raise awareness around<br />

period poverty, and give back.<br />

Since then, they’ve experienced,<br />

“major mountains and valleys<br />

on our journey. We were the<br />

breadwinners, so it was a huge<br />

risk.” So to the first lesson: have<br />

courage. <strong>The</strong>ir lead investor told<br />

them they were “badasses.” It’s an<br />

apt descriptor; it takes bravery to<br />

leave a successful career in a world<br />

that had taught them “not to quit<br />

and to have grit. But staying in<br />

a job or relationship that’s not<br />

right isn’t grit, it’s insanity.”<br />

A rejection<br />

of negativity also<br />

plays out in Thyme’s<br />

recollection that in her<br />

old roles, she felt that,<br />

“I was fighting all day long.<br />

But in our business now, we’re<br />

building relationships and<br />

learning. We have curated a<br />

powerful group of cheerleaders<br />

and thought leaders around us.<br />

That’s important because there’s<br />

no way you can know everything<br />

as an entrepreneur. And that’s<br />

another quality – you can say,<br />

‘I don’t know how to do this.’”<br />

Thyme also credits success<br />

to what she learned about<br />

negotiation from <strong>The</strong> Gap<br />

Partnership, recalling, “<strong>The</strong><br />

negotiation workshop was a<br />

game-changer...I remember all<br />

the concepts. Being silent was<br />

a challenge because I’m a talker!<br />

But it’s true, the first one to break<br />

can give away value.”<br />

And then there’s empathy,<br />

a trait that’s vital in negotiation<br />

but perhaps one not traditionally<br />

ascribed to entrepreneurs. But for<br />

Thyme it’s a superpower:<br />

“Understanding what your<br />

counterparty needs is so<br />

important. It’s a gift to be able to<br />

look at a situation from someone<br />

else’s perspective. After all,<br />

everything in entrepreneurship,<br />

parenting and life is<br />

a negotiation.” TNS<br />

27


and renegotiate<br />

by Jessie Lancaster<br />

and Richard Woodward<br />

Renegotiations are an unavoidable<br />

fact of commercial life right now.<br />

Instead of giving into fear, face into<br />

them with confidence by first knowing<br />

yourself, and then refreshing on some<br />

key negotiation principles.<br />

You don’t need us to tell you the<br />

world is changing. <strong>The</strong> <strong>global</strong> pandemic<br />

that’s been rumbling on for the best<br />

part of two years is serving up change,<br />

and its close relative uncertainty, in<br />

spades. It’s easy to see how with this<br />

as our new reality, our response to<br />

commercial challenges may default<br />

to a basic, combative “you versus me”.<br />

Issues become adversarial, barriers go<br />

up, and our unconscious reaction is<br />

to batten down the hatches.<br />

But while understandable, that<br />

will neither yield optimum value, nor<br />

result in the most fruitful and creative<br />

long-term partnerships. <strong>The</strong>re is a<br />

pressing need, now more than ever,<br />

to get collaborative and renegotiate.<br />

And so the question we are posing to<br />

our clients is, how do you shift from<br />

this mindset of “you versus me”, to<br />

“you and me versus the problem”?<br />

<strong>The</strong> immediate answer is to be aware<br />

of the <strong>issue</strong>. Only then, when we are<br />

(in <strong>The</strong> Gap Partnership parlance)<br />

“consciously competent”, can we<br />

look to transition our behaviors and<br />

approach to a more constructive,<br />

mutually beneficial place.<br />

But where to start?<br />

<strong>The</strong> first step is to identify your<br />

inherent negotiation archetype –<br />

your persona, if you will, that shapes<br />

your own, unique approach and style.<br />

We have identified three negotiation archetypes:<br />

<strong>The</strong> Architect, <strong>The</strong> Diplomat and <strong>The</strong> Deal Maker<br />

<strong>The</strong> Architect<br />

<strong>The</strong> Architect solves problems by<br />

changing the shape of the deal,<br />

reframing and approaching it from<br />

a different angle. Expressing your<br />

Architect persona means understanding<br />

the priorities and analytically<br />

evaluating “worth” for both sides of<br />

the table. Architects use creativity<br />

and mathematical logic to construct<br />

sequenced proposals that either build<br />

value, or <strong>trade</strong> long-term, less tangible<br />

value with short-term distributive<br />

variables to overcome deadlock.<br />

Pitfalls to watch out for…<br />

a strong Architect can:<br />

• Be anal, or over-prepared<br />

• Get trapped in dead ends<br />

on specific <strong>issue</strong>s<br />

• Underestimate the importance<br />

of the relationship<br />

• Become isolated from the team<br />

• Overcomplicate the deal<br />

28


THE NEGOTIATION SOCIETY<br />

<strong>The</strong> Diplomat<br />

<strong>The</strong> Diplomat manages the human at<br />

the other side of the table. <strong>The</strong>y have<br />

high levels of emotional intelligence<br />

and perceptiveness, and good instincts.<br />

<strong>The</strong>y stroke egos and provide the<br />

symbols of success by offering large<br />

amounts of satisfaction to gain<br />

agreement. <strong>The</strong> Diplomat is sensitive<br />

to the climate and maintains warmth<br />

without being disingenuous. <strong>The</strong>y<br />

have a gift for oiling the wheels of the<br />

negotiation, and through sophisticated<br />

open questioning they <strong>trade</strong><br />

information seamlessly. <strong>The</strong>y fluidly use<br />

reciprocity to the point where<br />

the other side is unaware they<br />

are in a negotiation.<br />

Pitfalls to watch out for…<br />

a strong Diplomat can:<br />

• Be too fair<br />

• Give away too much information and<br />

and therefore power<br />

• Want to be liked rather than respected<br />

• Go “native” and get embedded in the<br />

other side’s perspective<br />

• Be driven by consensus<br />

<strong>The</strong> Deal Maker<br />

<strong>The</strong> Deal Maker is assertive and<br />

tenacious, in control of their thinking<br />

and focused on the deal potential.<br />

<strong>The</strong>y are the master craftsman, an<br />

artisan who understands the effect of<br />

anchoring proactively, takes the analytical<br />

recipes developed during planning, and<br />

articulates proposals which motivate the<br />

other side toward acceptance through<br />

listening and questioning for priorities.<br />

<strong>The</strong>y are relentless in seeking agreement<br />

and will have many proposals<br />

pre-prepared to find a way through<br />

lethargy, confusion, and deadlock.<br />

Pitfalls to watch out for…<br />

a strong Deal Maker can:<br />

• Say too much<br />

• Close too soon<br />

• Be perceived as manipulative<br />

and competitive<br />

• Have an unhelpfully large ego<br />

• Be driven by a need to win<br />

Once you have identified which<br />

archetype – or blend of archetypes –<br />

best represents your negotiation style,<br />

and you are aware of the pitfalls as well<br />

as the strengths, then you are ready to<br />

tackle the commercial, pandemic-driven<br />

imperative of renegotiation.<br />

Successful renegotiations make use<br />

of five principles. <strong>The</strong> first of these is<br />

proactivity – which means thinking<br />

ahead, planning and adapting behavior<br />

accordingly. Look for any precedents<br />

that might have been set. How did you<br />

behave when there was a shift in your<br />

favor, and how might that influence<br />

your counterparty to respond when the<br />

shoe is on the other foot? Make like a<br />

Diplomat and think about the behaviors<br />

you want to exhibit considering the law<br />

of reciprocity – and don't be surprised<br />

if your prior approach when the balance<br />

of power was in your favor is precisely<br />

how your counterparty behaves when<br />

the tables turn.<br />

Second, you need to find the<br />

confidence to renegotiate. This is related<br />

to power; when we perceive ourselves to<br />

have power, our confidence peaks. Since<br />

power can be borne from information,<br />

the more you know about your<br />

counterparty, your contract, your market<br />

and the economy, the more powerful<br />

a negotiator you will be. Channel your<br />

inner Architect and use research to<br />

build tenacity and confidence ahead<br />

of a renegotiation through gathering<br />

information about the circumstances<br />

and key stakeholders involved.<br />

<strong>The</strong> third principle is around your<br />

approach to risk. You cannot prepare for<br />

every eventuality but, like a seasoned<br />

Deal Maker, you can build a deal that<br />

strikes the appropriate balance between<br />

security and flexibility. Think carefully<br />

about the risks that lie within the deal<br />

structure and assess if this served its<br />

purpose. What would you do differently<br />

if you could have predicted your current<br />

circumstances? Consider challenging<br />

everything: the norms, process, levels<br />

of approval, and variables considered.<br />

Understand that everything is up for<br />

renegotiation, even if the contract was<br />

signed three months ago.<br />

Number four in our list of principles<br />

is positioning, a critical negotiation skill<br />

that sets an appropriate tone with your<br />

counterparty before you even get in the<br />

room. Renegotiations have a tendency<br />

to get competitive, and positioning<br />

is a way to mitigate against this –<br />

for example by signposting intent to<br />

collaborate and introducing the other<br />

party to problems or <strong>issue</strong>s early to<br />

give them time to process them,<br />

reducing the possibility of an<br />

emotionally-driven reaction.<br />

Last but not least is the fifth<br />

principle that should underpin any<br />

renegotiation: total value. In truth, you<br />

will likely be back at the table because<br />

of one or maybe two variables at most,<br />

but the reality is that all variables<br />

have the potential to be back in play.<br />

<strong>The</strong> answer to your renegotiation may<br />

therefore reside in a separate area of the<br />

value proposition, perhaps something<br />

that wasn’t even in the original deal.<br />

This is where the Architect can shine,<br />

by going back to the drawing board<br />

and introducing new value opportunities<br />

if appropriate.<br />

So, when it comes to the<br />

inevitability of renegotiations, resist<br />

the urge to retreat and rescind or evade<br />

and entrench. Instead, get wise to your<br />

negotiation archetype. <strong>The</strong>n use it to<br />

your advantage – or at least be alert<br />

to it becoming a disadvantage – and<br />

follow our simple five-principle guide<br />

to renegotiating for success.<br />

Change and uncertainty?<br />

Bring them on. We’re ready. TNS<br />

29


Practice<br />

makes<br />

perfect<br />

If all the world’s a stage, then are all the boardrooms too?<br />

Hrvoje Zaric explains why preparing for your negotiation<br />

delivery as if it’s a performance is a no-brainer.<br />

I<br />

t’s no secret that the best<br />

negotiators are those who are<br />

best prepared. Before they<br />

are even close to taking a seat at the<br />

negotiation table, they’ve thought<br />

their strategy through, got their<br />

proposals ready, and planned<br />

their moves.<br />

But one significant task<br />

remains: to deliver that plan<br />

in a live negotiation setting.<br />

No matter how many analyses<br />

you have done or offerings<br />

you have calculated, you still<br />

need to perform. This should<br />

not be revelatory. But what<br />

may be surprising is the fact<br />

that just like every other aspect<br />

of a negotiation, this performance<br />

element can (and should) be<br />

practiced beforehand.<br />

Preparing for<br />

a performance<br />

For every live negotiation there<br />

is both an abstract and practical<br />

element to prepare for. <strong>The</strong> former<br />

includes the “why?” and “what?” of<br />

negotiation: objectives, involved<br />

parties, interests, negotiation<br />

variables, proposals. It also includes<br />

the “how?”, because deciding on<br />

negotiation approaches, exploring<br />

alternative routes to success,<br />

defining moves, and planning<br />

“Practice makes perfect.<br />

After a long time of practicing,<br />

our work will become natural,<br />

skilful, swift, and steady.<br />

Bruce Lee<br />

concessions are all part of describing<br />

the process of negotiation. Once<br />

you are prepared in terms of content<br />

and process, your preparation is<br />

done – theoretically at least.<br />

But what about<br />

practically?<br />

One way to prepare for a<br />

meeting is to script it in advance,<br />

which prepares you and your team<br />

to deliver the right messages at<br />

the right time in the right way.<br />

When we use “meeting scripting”<br />

in our consulting practice, we go<br />

through the scheduled time span<br />

of the meeting and meticulously<br />

write down every aspect of how<br />

the meeting<br />

will unfold.<br />

This covers<br />

questions<br />

such as, who<br />

is going to<br />

deliver the<br />

opening<br />

remarks?<br />

And word<br />

for word,<br />

what will they be? What is the next<br />

agenda point? How long will it last?<br />

What are the talking points we<br />

want to raise? How will we deliver<br />

them? What are our questions to<br />

the counterparty? What will their<br />

questions be? How will we respond?<br />

When do we take a time-out? What<br />

comes next? How do we want the<br />

conversation to end? What are our<br />

closing remarks? What will be the<br />

next steps?<br />

30


THE NEGOTIATION SOCIETY<br />

And this is<br />

not exhaustive!<br />

While this type of preparation<br />

can be invaluable, it cannot replicate<br />

the electricity in the negotiation<br />

room. <strong>The</strong> decisive difference<br />

between a negotiator who will<br />

excel in the critical moment of<br />

the negotiation and one who will<br />

struggle or even fail, is practice.<br />

Skilled negotiators train themselves<br />

to be mentally ready for the<br />

live performance.<br />

Getting comfortable<br />

with being<br />

uncomfortable<br />

When we are faced with an<br />

unusual situation, our minds<br />

interpret it as something potentially<br />

dangerous. This automatic fight-orflight<br />

response has been going on<br />

for thousands of years and proved<br />

very useful when the saber-toothed<br />

tiger was still around: adrenalin<br />

rushed through our bodies, our<br />

pupils widened, and we were<br />

primed for coping with the threat,<br />

increasing our chances of survival.<br />

<strong>The</strong>se same visceral responses are<br />

triggered in more modern times<br />

of psychological stress, such as when<br />

conducting a negotiation. Pounding<br />

hearts and sweaty palms are signs<br />

that you are outside of your comfort<br />

zone. Since you cannot change the<br />

nature of negotiation, which<br />

is inherently fraught with distress,<br />

you need to become comfortable<br />

being uncomfortable.<br />

While a certain alertness is<br />

tremendously useful, the history<br />

of failed negotiations is paved<br />

with examples where emotions<br />

got in the way of a better deal:<br />

anxiety and anger frequently lead<br />

to poorer outcomes, and even a<br />

positive emotion like excitement<br />

can endanger the negotiation if<br />

it tempts you into making rash<br />

decisions or your gloating alienates<br />

the other party.<br />

<strong>The</strong> trick is not to rid yourself of<br />

all emotions, but to recognize how<br />

they affect your behavior and then<br />

decide to what extent you want to<br />

cloak or emphasize an expression<br />

of emotion: you must act in a<br />

"consciously competent" manner.<br />

Rehearse it,<br />

role-play it<br />

<strong>The</strong> good news is you can train<br />

for that. Consider a contentious<br />

message you have to convey to the<br />

other party. You may have aligned<br />

on what this message needs to be.<br />

You may even subscribe to it on<br />

a cognitive level. Yet the phrasing<br />

still feels awkward to you.<br />

<strong>The</strong> answer? Rehearse it! Say<br />

the words out loud. Do this until<br />

it starts feeling natural. If you<br />

have the chance to prepare with a<br />

team, two or more people can act<br />

out roles. Pay attention to your<br />

emotions and discuss the effects<br />

of your respective behaviors on<br />

each other. By exploring specific<br />

negotiation scenarios and analyzing<br />

various perspectives you are “getting<br />

inside your counterparty’s head,”<br />

anticipating how they are likely<br />

to respond.<br />

<strong>The</strong> beauty of role-play is you<br />

can try out different responses<br />

to certain stimuli. Imagine you<br />

anticipate a provocation by the<br />

other party. Your natural reaction<br />

might be anxiety. Wallow in this<br />

state and get a good sense of what<br />

it feels like, then “rewind” the tape<br />

and respond with anger instead.<br />

Could it help you strike a better<br />

deal? Or would it damage trust<br />

and goodwill and make an impasse<br />

more likely?<br />

On the flipside, if your<br />

counterpart is easily agitated,<br />

perhaps you can defuse their anger<br />

without giving ground on terms.<br />

Try it out. Pause and say nothing to<br />

see how that feels. Or, role-play the<br />

effect of providing a summary in<br />

the middle of the discussion.<br />

Your goal is to become aware of<br />

what you are feeling, recognize your<br />

behavioral tendencies and patterns,<br />

and express emotions in a measured,<br />

deliberate way, when doing so may<br />

be advantageous.<br />

A stretch goal is to learn how<br />

to manage not only your own,<br />

but your counterpart's emotions<br />

as well. Do a reverse role-play where<br />

you act as your counterpart and<br />

negotiate on their behalf. <strong>The</strong> more<br />

familiar you get with the multiple<br />

layers of emotion that are brought<br />

into the negotiation, the easier it<br />

will be for you to make accurate<br />

observations in the live situation.<br />

And by repeatedly practicing<br />

the negotiation in simulations<br />

and exercises, you become more<br />

comfortable with the experience.<br />

Train, practice, rehearse, and keep<br />

honing your negotiation skills.<br />

Learn to love<br />

(well-intentioned)<br />

feedback<br />

<strong>The</strong> mere exercise of roleplaying<br />

will reveal some of your<br />

"hot buttons" – circumstantial<br />

or attitudinal triggers that send<br />

you into autopilot, throw you<br />

off-balance and prevent you<br />

from thinking straight. During a<br />

negotiation, it is important to “stay<br />

in charge” by mentally detaching<br />

yourself from your natural impulses.<br />

You may not be aware of these<br />

parts of your demeanor – what<br />

psychologists call behavioral "blind<br />

spots”, but others will notice them.<br />

In a role-play scenario one of our<br />

clients resisted the urge to react to a<br />

scathing remark and gave his anger<br />

time to dissipate. He was convinced<br />

he’d handled the situation<br />

marvellously and was sceptical<br />

of feedback from colleagues that<br />

he was feverishly clicking his pen<br />

and bouncing his foot. But a video<br />

recording provided visual evidence,<br />

and his “blind spot” was revealed.<br />

<strong>The</strong> moral of this story? If you<br />

don't get feedback, ask for it. <strong>The</strong>n,<br />

cherish and work with it.<br />

Visualize it<br />

Whether it’s a lawyer preparing<br />

to address the jury, a politician<br />

getting ready for a public speech,<br />

or a negotiator setting himself<br />

up for a difficult negotiation,<br />

visualization is a powerful practice<br />

to prime yourself for success. <strong>The</strong><br />

human brain consists of billions<br />

31


of neurons – nerve cells that,<br />

when strung together, form neural<br />

pathways. By visualizing yourself<br />

doing the desired action you are<br />

developing mental models and<br />

activating neural pathways.<br />

During their mental preparation<br />

ahead of a race, downhill skislalom<br />

racers will often close their<br />

eyes and take the slalom course in<br />

their heads, rocking to either side<br />

and using visualization as a tool<br />

to enhance their performance. <strong>The</strong><br />

next time you have a big negotiation<br />

challenge coming up, close your<br />

eyes and imagine yourself doing<br />

well under duress. Envision the<br />

situation as vividly as you can.<br />

Focus on the details. <strong>The</strong> more<br />

visceral the elements you include<br />

in your visualization, the better.<br />

<strong>The</strong>n imagine yourself negotiating<br />

flawlessly. Visualize it, feel it.<br />

By playing out your negotiation<br />

in your head and executing it<br />

perfectly, you are poised to go live.<br />

Negotiating is a skill<br />

Rehearsing, role-playing, or<br />

visualizing an upcoming negotiation<br />

will greatly improve your<br />

performance. You will be better<br />

equipped to maintain your<br />

emotional balance because you’ve<br />

tested your psychological hot<br />

buttons in advance. At the same<br />

time, you can stay mentally alert,<br />

listen carefully to the other party<br />

and pay close attention to their<br />

emotional state. Never<br />

underestimate how feelings – yours<br />

and theirs – can influence the way<br />

people behave in resolving conflict.<br />

To be a better dealmaker, once you<br />

have concluded your strategic<br />

and tactical planning, you should<br />

invest effort in preparing your<br />

mental, emotional, and behavioral<br />

approach. This will improve your<br />

skill in dealing with the other<br />

party, reaching agreements, and<br />

creating value. TNS<br />

Role-playing negotiations:<br />

a commercial leader’s story<br />

Ilya Shirkoff, Commercial Capability<br />

Development Modern Trade,<br />

Coca-Cola HBC Russia<br />

We have instilled a role play culture<br />

across various processes in our company,<br />

for example in the hiring key account<br />

managers, assessment, learning, and<br />

negotiations. We use it to prepare for live<br />

negotiations at the proposal stage and<br />

in commercial policy discussions in the<br />

preconditioning phase.<br />

It’s important to make simulated<br />

negotiations as close as possible to the<br />

real thing; understanding the customer’s<br />

strategy and operational model, mapping<br />

data, understanding personal profiles based<br />

on our team's experience with the person<br />

at the other side of the negotiation table<br />

and stakeholders’ needs, as well as all value<br />

drivers and restrictions on both sides.<br />

To role-play one meeting can take<br />

two hours including feedback, shadowing,<br />

a coaching session, and up to a full day<br />

if we are rehearsing several upcoming<br />

meetings in two-hour blocks each. We<br />

see great benefits, including increased<br />

confidence, reduced stress and lower<br />

levels of uncertainty.<br />

Most importantly, the role-play<br />

results in changed behavior. And in a live<br />

negotiation, it’s ultimately behavior that<br />

drives results. My top tips? Simplicity and<br />

confidence conveyed with fewer but more<br />

precise words will have a more credible<br />

impact than complex language or elaborate<br />

speeches: less is more!<br />

32


THE NEGOTIATION SOCIETY<br />

FAIR ENOUGH<br />

VACCINE ACCESS IN<br />

A PANDEMIC ENVIRONMENT<br />

By Darci Horne<br />

W<br />

e live in a new world, with<br />

new ways of working and<br />

living. Change has been the<br />

one constant these past eighteen plus<br />

months. And it continues. Both in our<br />

personal lives, as well as around us in<br />

the natural world. Change is happening there too,<br />

frighteningly fast, which the recent IPCC report on<br />

climate change made abundantly clear.<br />

<strong>The</strong> devastating impact of the Covid-19<br />

pandemic on the economic, social, and health<br />

status of the <strong>global</strong> population is undisputed.<br />

Experts generally agree the severity and timeline<br />

of the lingering impacts will neither directly<br />

nor imminently be mitigated unless there is a<br />

coordinated <strong>global</strong> approach to address vaccine<br />

inequity in developing economies and in the lowest<br />

income countries of the world. Without such, apart<br />

from the ongoing risk of new variants of the virus,<br />

the <strong>global</strong> economic losses will increase by trillions<br />

of dollars and the economic recovery in even the<br />

world’s wealthiest countries and largest economies<br />

will be further delayed.<br />

How then do we agree as a <strong>global</strong> community<br />

on a coordinated approach when we represent<br />

such diverse populations, cultural norms,<br />

government structures, and vastly disparate<br />

economic circumstances?<br />

<strong>The</strong> answer may be more complicated than<br />

it seems on the surface.<br />

We are reminded often in daily life that the<br />

world is not fair. Individually we experience “fair”<br />

and “unfair” in unique and myriad ways. Lest we<br />

forget, fairness is subjective. <strong>The</strong> definition of “fair”<br />

or “unfair” is influenced by and built upon one’s<br />

personal perspectives, experiences, biases, beliefs,<br />

and values. <strong>The</strong>refore, what I consider fair likely<br />

differs from what someone else considers fair when<br />

each of us looks at the same situation through<br />

our distinct lenses.<br />

So then, whose definition of fair do we use<br />

when considering access to Covid-19 vaccines –<br />

who gets it, when do they get it, and at what price?<br />

Do we apply principles where fair means equal?<br />

Do we define fair relative to economic or value<br />

contribution? Or is fair based on need?<br />

It depends on the context and perspective<br />

of the one answering the question.<br />

Wealthy countries felt the devastating effects<br />

of the pandemic first, with high rates of infection<br />

and death, and broad-reaching economic impacts<br />

of lockdowns and quarantine. <strong>The</strong>se countries<br />

“Do we define fair relative<br />

to economic or value<br />

contribution? Or is fair<br />

based on need?<br />

jumped into action without regard to cost to fund<br />

the scientific and medical research innovation to<br />

quickly develop novel vaccines. Pharmaceutical<br />

companies and drug manufacturers assumed<br />

inordinate financial risk as they pushed to expedite<br />

development, testing, clinical trials, and preparation<br />

of facilities able to mass-produce vaccines.<br />

As health and socioeconomic impacts of the<br />

pandemic spread across the world, the race to<br />

develop effective vaccines led to unexpected<br />

challenges, setbacks, and delays – limited availability<br />

of raw materials, vaccine transport and storage<br />

logistics, and insufficient <strong>global</strong> production capacity<br />

to name a few. <strong>The</strong> countries largely responsible<br />

33


for the promising vaccine development initiatives<br />

felt increasing pressure to secure access to sufficient<br />

doses to inoculate their full population as soon<br />

as possible, and they were able to do just that.<br />

Restricted by tight healthcare budgets, lower<br />

income countries and developing nations are unable<br />

to respond to the pressures on the economy and<br />

healthcare system in the same way. <strong>The</strong>ir annual per<br />

capita budget for healthcare will struggle to absorb<br />

the added cost of Covid-19 vaccines. Given they<br />

are almost solely dependent on imports for vaccines<br />

and have little to no production capacity locally<br />

or regionally, <strong>trade</strong> restrictions further exacerbate<br />

inaccessibility to vaccines. For these countries,<br />

their options are limited even as the societal and<br />

economic implications loom large.<br />

<strong>The</strong> <strong>global</strong> community will continue to bear the<br />

burden of Covid-19 and its impacts for years to<br />

come. But the burdens will be different, their weight<br />

will be different, and the approach to managing<br />

them will be different. Some will decide whether<br />

to reallocate funds for standard clinical services<br />

or established immunization programs to bring<br />

Covid-19 vaccines to vulnerable populations.<br />

Some will donate millions of vaccine doses to<br />

protect vulnerable populations. Some will make<br />

massive investments to boost vaccine production<br />

and accelerate availability in areas with low<br />

immunization rates. Some will continue to<br />

adjust to the personal and professional changes<br />

the pandemic brought while awaiting vaccine<br />

booster shots.<br />

And the question of whether access<br />

to Covid-19 vaccines has been “fair” or<br />

“unfair” will be answered in countless different<br />

ways as it is filtered through the unique lens<br />

of personal experiences, perspectives, beliefs,<br />

and values. TNS<br />

ASK ALISTAIR<br />

<strong>Negotiation</strong> expert Alistair White tackles questions<br />

on <strong>global</strong> supply chain and volatile currency rates.<br />

Q: I manage the <strong>global</strong> supply<br />

chain for a large, international<br />

consumer brand. As everyone<br />

knows, Covid has wreaked havoc<br />

with distribution and I feel I have<br />

a Hobson’s choice between soaring<br />

shipping costs, versus the cost of<br />

losing customers to small, more agile<br />

businesses who have been able to get<br />

goods to market on lower volumes.<br />

How can I negotiate from any position<br />

of power with the shipping companies<br />

when I feel like they know they have<br />

me over a barrel?<br />

A: <strong>The</strong> current<br />

pandemic has disrupted<br />

every business in the<br />

world – including shipping<br />

companies by the way – but<br />

sometimes, because a lot of<br />

things have changed, we feel<br />

that everything has changed.<br />

In many cases, this simply isn’t<br />

true. You say you work for a “large,<br />

international consumer brand”. You<br />

are still a large, international consumer<br />

brand. That hasn’t changed and your<br />

customers know that; they know<br />

that their consumers still want to<br />

buy your brand, and they also know<br />

that their consumers will potentially<br />

go somewhere else if they don’t have<br />

your brand on their shelves. And the<br />

shipping companies know that too.<br />

Shipping costs will stabilize at some<br />

point in the future, but just because you<br />

feel you have less power doesn’t mean<br />

you are completely powerless. Because<br />

of the volumes you need to transport,<br />

you are still an attractive proposition<br />

for any shipping company. With that<br />

in mind, there are a few things you<br />

could try to improve your negotiation<br />

position. For example, you could offer<br />

more attractive contractual terms, either<br />

by consolidating business among fewer<br />

shipping companies, or by making<br />

longer contractual commitments<br />

in return for lower or more stable<br />

prices. If you feel under threat from<br />

smaller, more agile businesses, surely<br />

there are smaller, more agile shipping<br />

companies who would be keen to steal<br />

market share from some of their larger<br />

competitors in return for a commitment<br />

from a large international brand?<br />

And, if agility is key, can you break<br />

your volumes down and ship smaller<br />

volumes at more frequent intervals?<br />

Conversely, could you form an ad<br />

hoc type of buying group where you<br />

consolidate your demand with other<br />

companies, perhaps competitors,<br />

or perhaps completely unrelated<br />

businesses, to create greater, more<br />

attractive volume and use this to<br />

negotiate more competitive rates?<br />

34


THE NEGOTIATION SOCIETY<br />

Q: <strong>The</strong> wildly fluctuating <strong>global</strong><br />

currency situation due to Covid has<br />

impacted our commodity prices to<br />

the point where we are having to<br />

renegotiate when our goods are midocean.<br />

How can we approach such a<br />

difficult situation and ensure that our<br />

negotiations are not totally one-sided?<br />

A: <strong>The</strong> word “fluctuation” implies<br />

that currencies are moving in both<br />

directions so, presumably, your<br />

providers are suffering from the same<br />

market dynamics. One idea would be to<br />

take a “advantages and disadvantages”<br />

approach where you both acknowledge<br />

the volatility of the situation and<br />

agree in advance that you will operate<br />

within a “tolerance<br />

level”. That is where<br />

you set an exchange<br />

rate benchmark<br />

and, as long as that<br />

benchmark does not<br />

move more than 5 or<br />

10% (or whatever level<br />

you prefer) up or down<br />

from that pre-agreed<br />

rate, you agree that you<br />

will not renegotiate in<br />

the expectation that<br />

you will gain as much<br />

as you lose.<br />

Q: <strong>The</strong> pandemic has necessitated<br />

that we negotiate with many new<br />

suppliers to try and unblock our<br />

supply chain, many of whom are in<br />

countries that we have no experience<br />

in, with very different cultures and<br />

ways of working. How can we learn<br />

quickly the cross-cultural nuances<br />

and ensure we aren’t jeopardizing our<br />

deals by being culturally insensitive<br />

or naïve?<br />

A: At the risk of sounding cynical<br />

or even insensitive, the impact of<br />

cross-cultural difference is often overestimated<br />

in negotiation. Consider<br />

first how much you have in common<br />

with your potential new suppliers – you<br />

both work for commercial enterprises<br />

and you will share common business<br />

aspirations, you will be measured in<br />

very similar ways by your respective<br />

bosses and shareholders and they will<br />

almost certainly have already dealt with<br />

companies very similar to yours. It’s not<br />

as if your new suppliers come from an<br />

entirely different planet.<br />

Having said that, it would be wise,<br />

and an act of common courtesy, to be<br />

mindful of cultural difference during<br />

negotiations. <strong>The</strong>re is no single answer<br />

to this question but I would offer<br />

three pieces of generic advice.<br />

First, conduct a bit of desk research<br />

in advance about the national or<br />

regional culture in question.<br />

Second, make a blanket statement<br />

at the outset about how this is the first<br />

time you have dealt with a company<br />

from country x, and, if at any time,<br />

you do or say something that they<br />

consider unusual or even inappropriate,<br />

then they should understand that<br />

this is done out of ignorance rather<br />

than malice. And third, periodically<br />

“Just because you feel you<br />

have less power doesn't mean<br />

you are completely powerless.<br />

ask a question such as, “This is how we<br />

normally do this sort of deal/conduct<br />

this kind of conversation; does it<br />

coincide with your view?”<br />

One final word of warning from<br />

an old cynic. Don’t allow yourself to<br />

be persuaded into making concessions<br />

simply because, “that is the way<br />

we do things in our country”. You<br />

wouldn’t be the first to be lured into<br />

that trap; your job is still to get the<br />

best deal you can for your business,<br />

not to accommodate every wish of<br />

your supplier just because they are<br />

new and different.<br />

Q: I find it very difficult to adjust<br />

to online negotiations compared<br />

to the face-to-face meetings we<br />

conducted pre-pandemic.<br />

What advice can you offer?<br />

A: This is a very common complaint.<br />

Negotiating “remotely” means exactly<br />

that; we are more remote, or removed,<br />

from our negotiations. Removed in<br />

the sense that we are physically more<br />

distant, emotionally more detached and<br />

intellectually less engaged. That is just<br />

the nature of remote negotiations, and<br />

the pandemic has simply brought that<br />

into sharper focus. It is bad enough<br />

on a video conference call, but this<br />

“remoteness” is even more pronounced<br />

if you are negotiating by telephone<br />

or by email.<br />

To counteract this, I would make<br />

the following practical suggestions.<br />

Attention spans are shorter so set a<br />

start and end time for your meeting.<br />

You don’t necessarily have to conclude<br />

your negotiation in one conversation –<br />

you can adjourn to another date<br />

and time.<br />

Position yourself in a space where<br />

there are as few distractions as<br />

possible. Optimize your video setup.<br />

<strong>The</strong>re are some simple<br />

lessons you can learn<br />

about lighting, sound,<br />

backgrounds, and other<br />

basics which are widely<br />

available on the internet.<br />

Turn your camera<br />

on – and ensure as<br />

far as possible that<br />

your counterpart does<br />

the same. A camera<br />

turned off always gives<br />

rise to the suspicion<br />

that they, or you, have<br />

something to hide which isn’t a good<br />

starting point for many negotiations.<br />

In face-to-face settings, we<br />

understand and interpret what people<br />

say to us through many stimuli – body<br />

language for example – that we cannot<br />

observe as well in remote negotiations.<br />

It is therefore much more important<br />

to listen to their voice – tone, pace,<br />

emphasis – and watch their face.<br />

<strong>The</strong> voice and the face lend extra<br />

meaning to the words and often<br />

reveal more about their true state<br />

of mind than the words they say.<br />

Choose your words with extra care<br />

and make sure that you express yourself<br />

as precisely and concisely as possible.<br />

<strong>The</strong> potential for misinterpretation and<br />

misunderstanding is all the greater in<br />

remote negotiations.<br />

Avoid the temptation to interrupt.<br />

It is the single biggest complaint<br />

about remote negotiations. Perhaps<br />

agree a protocol that you will each<br />

indicate when you have finished<br />

speaking and will invite the other<br />

to contribute or make use of the<br />

“raised hand” function that is<br />

available on most video<br />

conferencing platforms. TNS<br />

35


QUESTION<br />

TIME<br />

We asked a panel of experts for their<br />

rapid-fire response to the statement,<br />

“<strong>The</strong> pandemic has provided a much needed<br />

wake-up call to <strong>global</strong> <strong>trade</strong> negotiators.”<br />

Emma Moss<br />

Global Supplier Management &<br />

Sustainability Programs, Deutsche Post<br />

AG, Corporate Procurement<br />

<strong>The</strong> entire world has felt the effect<br />

of the pandemic. It has shone a light<br />

on the vulnerability of supply chains<br />

to sudden shocks and widened the<br />

wealth gap, leaving an increasing<br />

number of workers exposed to human<br />

rights abuse.<br />

<strong>The</strong> most important action we can<br />

take from this is to join forces with<br />

critical suppliers to build resilient and<br />

sustainable supply chains. Consistently<br />

having unplanned and changing<br />

demand or always placing orders as<br />

rush orders not only impacts your<br />

relationship with the supplier, but,<br />

inadvertently, exacerbates human<br />

rights abuse in the supply chain as<br />

workers work longer hours to meet<br />

your demands.<br />

Negotiators who are fully aware of<br />

their company’s strategy, the potential<br />

points of supply failure and the impact<br />

on human rights across the value<br />

chain when building their negotiation<br />

strategies can protect the reputation<br />

and resilience of their company and<br />

create competitive advantage.<br />

36


THE NEGOTIATION SOCIETY<br />

Sven Mermans<br />

<strong>Negotiation</strong> Expert,<br />

<strong>The</strong> Gap Partnership<br />

Yes it has, but many haven’t<br />

woken up…yet.<br />

<strong>The</strong> pandemic has caused rapidly<br />

changing economic parameters<br />

and <strong>global</strong> shortages of goods and<br />

services, forcing many companies<br />

and governments to renegotiate<br />

with their <strong>trade</strong> partners.<br />

<strong>The</strong>se negotiations often present<br />

<strong>global</strong> <strong>trade</strong> negotiators with an<br />

opportunity to create long-term and<br />

sustainable value. Unfortunately, many<br />

have instinctively gone into fight or<br />

flight mode, self-preservation and<br />

protectionist negotiation behaviors.<br />

We have witnessed governments<br />

taking short-term protectionist<br />

measures and bargaining over vaccine<br />

supplies, and of companies squeezing<br />

customers, suppliers and employees,<br />

all resulting in damaged trust<br />

and relationships.<br />

Value creation is always possible<br />

though when some dependency exists<br />

between <strong>trade</strong> partners, when there<br />

is a level of trust and respect for the<br />

relationship and when negotiators<br />

take a long-term view.<br />

So let’s hope <strong>global</strong> <strong>trade</strong> negotiators<br />

will wake up soon, start looking beyond<br />

the short-term and start leveraging<br />

trust and relationships to create<br />

mutual value!<br />

Dr. Meenal Shrivastava<br />

Professor, Political Economy & Global<br />

Studies, Centre for Social Sciences,<br />

Athabasca University<br />

In 2020-21, <strong>trade</strong> in goods<br />

declined by 5.1%, while severely hit<br />

by Covid restrictions, <strong>trade</strong> in services<br />

declined by 20%. <strong>The</strong> relatively robust<br />

recovery of <strong>trade</strong> in goods was driven<br />

by the surge in demand for durable<br />

goods and fewer factory shutdowns,<br />

especially in China. Ironically, the<br />

strength in manufacturing and the<br />

recent commodities boom has led<br />

to the current disruptions in supply<br />

chains, shortage of containers, and<br />

a nearly 350% rise in shipping costs.<br />

To prevent this unprecedented<br />

<strong>global</strong> health crisis from becoming<br />

a spiralling economic crisis, and to<br />

boost confidence in international<br />

<strong>trade</strong> in this era of <strong>global</strong> crisis and<br />

uncertainty, state negotiators need<br />

to improve transparency around<br />

<strong>trade</strong>-related policies and their<br />

implementation. Most importantly,<br />

they will need to ensure that <strong>trade</strong><br />

policies are designed to serve the<br />

public interest. By continuing to serve<br />

short-term vested interests, <strong>trade</strong><br />

negotiators not only risk creating<br />

future market distortions, but will also<br />

miss the opportunity to work toward<br />

a sustainable and just recovery of<br />

international <strong>trade</strong> and economy.<br />

Wai Lau<br />

<strong>Negotiation</strong> Expert,<br />

<strong>The</strong> Gap Partnership<br />

<strong>The</strong>re’s a quote, apocryphal or<br />

otherwise, attributed to Warren Buffet<br />

that goes something like this: “Only<br />

when the tide goes out do you discover<br />

who’s been swimming naked.”<br />

Well, folks, the beach is looking<br />

awfully dry, and all the talk of prepandemic<br />

win-win is being put<br />

to the test. Those who invested in<br />

building trust and mutuality into their<br />

commercial relationships pre-Covid<br />

are reaping the benefits, whereas those<br />

who chose to exploit relationship-inlip<br />

service-only are feeling the pain<br />

(see: stories of $20K fees to move<br />

a container across the Pacific).<br />

So, what now? Supply chains<br />

are still a mess, macro headwinds<br />

continue to blow, and the Grinch may<br />

very well steal Christmas. Perhaps this<br />

is a blessing in disguise, an opportunity<br />

to renegotiate, if you will. Revisit<br />

those legacy contract terms,<br />

relationships, and other dusty cobwebs<br />

in your commercial arrangements and<br />

come out the other side of this better<br />

than ever.<br />

37


Matsepo Mabena<br />

Procurement & Sustainability Director:<br />

ZBB & Capex, AB InBev<br />

It has been close to two years<br />

since the <strong>global</strong> pandemic began and<br />

impacted our daily lives. It has also<br />

provided a wake-up call to <strong>global</strong><br />

companies in the way we negotiate<br />

with our suppliers.<br />

<strong>The</strong> biggest challenge has been with<br />

small and local suppliers who provide<br />

critical services to our businesses.<br />

We have seen some of these suppliers<br />

liquidated and going under business<br />

rescue, and this means that we had<br />

to step in to support them financially<br />

by relaxing payment terms and<br />

providing upfront payment to deliver<br />

some services.<br />

It has now become essential to look<br />

at supplier diversity when sourcing for<br />

services instead of only looking at how<br />

much we can save from that supplier.<br />

This is also important as governments<br />

have been hit hard and the economies<br />

have been struggling, and now some<br />

are starting to recover we need to play<br />

our part to support them. TNS<br />

Iturned 50 this summer. Friends told me not to<br />

worry. This puzzled me. I wasn’t worried in the<br />

slightest about being an extra day older, I was<br />

pleased our unwelcome viral interloper hadn’t<br />

cut my time short! I’d also decided to stop worrying<br />

so much in general, especially about what other<br />

people think of me. In other words, as I edged closer<br />

to retirement, I vowed to retire my ego – or at least<br />

send it on long sabbaticals.<br />

One benefit of being ancient was getting my<br />

Covid vaccinations quickly. Shortly after, the subject<br />

of ego came to light again. A news story caught my<br />

eye about a woman hospitalized with Covid who had<br />

nearly died, despite her sister having been recently<br />

hospitalized for the same reason. Both had chosen<br />

not to get vaccinated.<br />

Now, I’m not interested in debating the rights and<br />

wrongs of that choice. <strong>The</strong> aspect to this story which<br />

interests<br />

me<br />

“Ego is dangerous.<br />

It can blind you to facts<br />

and creative thinking.<br />

Tim Green<br />

Go, ego, go<br />

concerns<br />

ego: the<br />

second<br />

ill sister’s<br />

personal<br />

belief<br />

system<br />

being<br />

such that<br />

even in the face of family precedent – a sibling close<br />

to death, attributed to non-vaccination – she did not<br />

retreat from her view and get the jab.<br />

Ego is dangerous. It can blind you to facts and<br />

creative thinking. It can inhibit personal growth<br />

and even, in the case of the poorly sisters, affect<br />

your health. In business, ego-driven outcomes in<br />

commercial negotiation can be financially and<br />

reputationally damaging, often resulting from<br />

a desire to beat your negotiation opponent.<br />

Maybe there is no virus, the vaccinations are<br />

sugar water and the sisters are right. But I’d rather<br />

be around to find out and laugh at myself for being<br />

gullible, than six feet under.<br />

In short, park your ego to get more from life<br />

and your negotiations. TNS<br />

38


THE NEGOTIATION SOCIETY<br />

CROSSWORD<br />

Our fiendishly challenging British-style crossword returns.<br />

ILLUSTRATION: CARTOONRESOURSE/CARTOOMSTOCK<br />

1 2 3 4 5 6 7 8<br />

9 10<br />

11 12<br />

13 14 15<br />

21 22<br />

18 19 20<br />

23 24 25<br />

26 27<br />

28 29<br />

ACROSS<br />

1 Debate illustrates I got<br />

Etonian agitated (11)<br />

7 Starts to refill Oktoberfest<br />

beer mug (3)<br />

9 See 21 Down<br />

10 New or 4D vessel (9)<br />

11 Silent rodents move around<br />

reserve stealthily at first (9)<br />

12 Revolution from Cortez,<br />

a man to surprise (5)<br />

13 Journey – it comes after one<br />

leaves carriages (7)<br />

16 17<br />

15 Raw materials, sea transport finally<br />

organized producing strike (4)<br />

18 Champion of Cherokees (4)<br />

20 Irish fool to search<br />

for swimmers (7)<br />

"GIVE ME YOUR HAND, I RAN OUT OF CONES"<br />

23 Joker from the beginning<br />

of lockdown accepted expression<br />

of disgust (5)<br />

24 Alteration of pandemic quarantine,<br />

at last had trip to get bargain (4,5)<br />

26 Eat outside one area involving<br />

a couple in 1A (9)<br />

27 <strong>The</strong> beginnings of American<br />

manufacturers' award to incentivize<br />

violin makers (5)<br />

28 Margins of legitimacy around<br />

advanced deposit (3)<br />

29 Crazy fling, Anne's close to<br />

Robert Browning (4-7)<br />

DOWN<br />

1 Delivery of national movement<br />

without Conservative (8)<br />

2 Weight revealed by artist given<br />

little supplement to block wind (8)<br />

3 Subject of article by setter (5)<br />

4 Congress that is organization<br />

of nature lovers out-dated (7)<br />

5 Corporation is essentially covering<br />

up charges (7)<br />

6 City like a region found in former<br />

African country (9)<br />

7 Worried Northern retailers ignoring<br />

unfortunate rise in housing costs (6)<br />

8 Edge in lodger's broadcast (6)<br />

14 Animal companions in shorthand<br />

record by that woman’s detective (9)<br />

16 Intellectuals reportedly refuse<br />

a note (8)<br />

17 Taking on board trendy prince<br />

is entertained by serenade (8)<br />

19 Police provide long-standing<br />

charges (3,4)<br />

20 Gosh! Rector gets therapy, right? (7)<br />

21/9 International business getting round<br />

rejection of craft from French (6,5)<br />

22/25 Production and distribution<br />

logistics of banks of commodities<br />

unhappily redistributed (6,5)<br />

For solutions email<br />

hello@thenegotiationsociety.com<br />

39


© <strong>The</strong> Gap Partnership, 2021. All rights reserved.

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