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
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