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ISSUE 9<br />

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

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

A RISING<br />

TIDE<br />

Japan’s new normal<br />

as price increases bite<br />

IN FRONT OF<br />

THE DRAGONS<br />

Candid tales from<br />

TV’s Dragons’ Den<br />

SIMPLY<br />

THE BEST<br />

How to deliver exceptional<br />

client service<br />

MINORITY<br />

REPORT<br />

<strong>Negotiation</strong> from a<br />

position of difference<br />

GREAT EXPECTATIONS<br />

Senior partner Lance Ward<br />

is living up to a legacy


INSIDE THIS ISSUE<br />

07 10<br />

A Rising<br />

Tide<br />

How Japan is facing into<br />

price increases after years<br />

of deflation.<br />

In Front Of<br />

<strong>The</strong> Dragons<br />

Entrepreneurs who’ve<br />

braved Dragons’ Den reveal<br />

how they kept their cool.<br />

WELCOME FROM GRAHAM<br />

14 20<br />

Simply<br />

<strong>The</strong> Best<br />

A client relationship guru’s<br />

top tips for how to excel at<br />

customer service.<br />

<strong>The</strong> head of our US<br />

business on what drives<br />

him to succeed.<br />

26 36<br />

Minority<br />

Report<br />

Three professionals share<br />

personal perspectives on<br />

negotiating from a place<br />

of difference.<br />

Great<br />

Expectations<br />

Question<br />

Time<br />

Our diverse panel of<br />

experts’ concise advice<br />

on how to negotiate<br />

transformation.<br />

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

magazine has themes of transformation,<br />

partnership, and client-centricity running through<br />

it. Just when we felt some normality returning<br />

post-pandemic, the economic impact of it globally<br />

has once again demonstrated the only consistent<br />

factor in today’s commercial arena is inconsistency.<br />

<strong>The</strong> need for change, collaboration, and empathy is<br />

stronger than ever.<br />

At <strong>The</strong> Gap Partnership, we’re transforming<br />

our operating model, structure, and processes and<br />

systems, in order to remain relevant to our clients<br />

in this new world. We’ve overhauled the way we<br />

listen to them, engage with them, and innovate<br />

solutions for them. In short, we’re transforming<br />

to become truly client-centric.<br />

Many of our clients are doing the same.<br />

Rob Schipperen details how big businesses are<br />

putting their customers front and center, while<br />

Keilee Sperinck explains how she does it in her<br />

role. As part of our own internal transformation,<br />

senior partner (and cover star!) Lance Ward has<br />

taken on the mantle of building our business<br />

across the Americas. He gives a very open insight<br />

into what has formed him and his character.<br />

From the personal to the macroeconomic,<br />

Taichiro Matsuhashi uses the Japanese economy<br />

as a case study of the impact of rising inflation,<br />

and how to ensure you’re equipped to deal with<br />

the new reality of dramatic price increases.<br />

My challenge to you as you peruse the following<br />

pages: in a world of uncertainty, is it possible to<br />

predict the future? I believe it is. Being anticipatory<br />

requires thorough analysis of both hard (factual)<br />

and soft (intuitive) trends. If you aren’t strategically<br />

planning with anticipative analysis, it is unlikely<br />

you will transform to succeed in this new world.<br />

Graham Botwright<br />

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

2


THE NEGOTIATION SOCIETY<br />

OUR CONTRIBUTORS<br />

Maxim Van Meeteren<br />

Maxim is a negotiation consultant<br />

based in the Netherlands at<br />

<strong>The</strong> Gap Partnership. Prior to<br />

joining TGP in 2021, he worked<br />

in the oil and gas sector, FMCG,<br />

and set up three ventures of his<br />

own. Maxim has led international<br />

negotiations for both B2B and<br />

B2C suppliers and customers,<br />

across multiple lines<br />

of business.<br />

Kristi Means<br />

Kristi has over 25 years’ experience<br />

in clinical social work, sales,<br />

consulting and organizational,<br />

learning and executive development<br />

in non-profits, pharma, government,<br />

and the fashion industry. Kristi’s<br />

diverse and global experience offers<br />

her the privilege to serve as<br />

a thought partner to mid-level,<br />

senior and c-suite leaders as an<br />

executive coach.<br />

Muhannad Alghanmi<br />

Muhannad’s background is in<br />

developing talent and successors<br />

for multinational and local<br />

companies in retail, FMCG and<br />

real estate, and building sales<br />

capabilities and being a champion<br />

of mega change projects impacting<br />

organizational development. Now<br />

based in Riyadh, Muhannad heads<br />

talent development and employee<br />

experience at ROSHN Real<br />

Estate, owned by the Saudi Public<br />

Investment Fund.<br />

Keilee Sperinck<br />

UK-based Keilee has specialized<br />

in account management for 20+<br />

years, with 18 of these at <strong>The</strong> Gap<br />

Partnership. During her time with<br />

TGP, Keilee has been responsible<br />

for developing and managing highvalue<br />

partnerships with our global<br />

clients. Before joining the business,<br />

Keilee led a global team in the<br />

recruitment IT sector.<br />

Taichiro Matsuhashi<br />

With over two decades of sales<br />

and key account management<br />

experience, Taichiro has negotiated<br />

with clients including global,<br />

regional and local manufacturers,<br />

and retailers in Japan and<br />

Singapore. Since joining <strong>The</strong> Gap<br />

Partnership as a senior negotiation<br />

consultant in 2021, Taichiro has<br />

led the Japan business, delivering<br />

negotiation consultancy and<br />

capability workshops.<br />

Bruna Lautert<br />

A native Brazilian now based in<br />

Miami, Bruna joined <strong>The</strong> Gap<br />

Partnership in 2017. Prior to<br />

joining TGP, Bruna experienced<br />

both sides of the negotiation table,<br />

with over a decade working with<br />

international sales strategy and<br />

marketing for consumer goods<br />

companies and several years on<br />

global sourcing.<br />

3


INSIDE<br />

MY HEAD<br />

NATHALIE PFAFF<br />

IS GENERAL MANAGER OF DANONE IN BELGIUM AND LUXEMBOURG.<br />

SHE GIVES US THE LOWDOWN ON THE QUALITIES THAT HELPED HER<br />

CLIMB THE LADDER, HOW NEGOTIATION HAS ALWAYS BEEN A STRENGTH,<br />

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

How did you make it to where<br />

you are today?<br />

Growing up in France on the border<br />

with Germany, it was evident to me<br />

that there was a big, exciting world<br />

out there! I’ve always had a daring<br />

streak and so I grabbed opportunities<br />

to travel and stretch myself. I’ve also<br />

been fortunate to have bosses who saw<br />

me in bigger shoes than I saw myself.<br />

Now, with a husband who also has<br />

a big job, and 7-year-old twins, I have<br />

a firm belief that a dual career family<br />

is possible.<br />

What’s the best thing about<br />

your role?<br />

I love the ability to connect the<br />

dots of the business because of my<br />

helicopter view. <strong>The</strong> other amazing<br />

opportunity is that Danone is across<br />

so many categories with different<br />

business models from FMCG to<br />

pharma. I also enjoy having an<br />

impact and shaping my role into<br />

what I want it to be.<br />

How important is it to be customer<br />

centric in your role?<br />

Super important; I spend 95% of my<br />

time understanding our customers.<br />

<strong>The</strong>y aren’t just the consumer of our<br />

products, they are also part of our<br />

value chain, like the retailers or the<br />

governmental bodies we partner<br />

with to better serve both consumers<br />

and societal needs…in fact, any<br />

stakeholder in what we do.<br />

How important is the skill<br />

of negotiation in your career?<br />

I always had a knack for it. I grew up<br />

in a family as one of four daughters<br />

and remember one of my sisters being<br />

very frustrated as I was able to get<br />

more stuff than her from my parents!<br />

Since having P&L responsibility and<br />

interacting with retailers, it’s taken a<br />

new spin. One thing I know is that<br />

you never stop learning when it comes<br />

to negotiation, and when I speak with<br />

consultants at <strong>The</strong> Gap Partnership,<br />

I learn a lot.<br />

Any negotiation disasters?<br />

I was on a leadership program in<br />

which we were given role plays.<br />

I was doing a talk with a customer,<br />

and it was the most difficult<br />

experience I’ve ever had. I froze and<br />

felt like a prisoner, my posture fell<br />

apart – all of which was filmed and<br />

shown in a debrief! When I saw it,<br />

I said – oh no…postures, body<br />

language, everything was not ok!<br />

Now, every time I go back to a job,<br />

I always remember what not to do.<br />

And what about negotiating<br />

outside of work?<br />

With my twins, it’s always, “He’s got<br />

three strawberries more than me!”.<br />

With my husband, a negotiation on<br />

career choices is more a conversation<br />

sitting around a table.<br />

What’s the most important lesson<br />

you’ve learned as a negotiator?<br />

<strong>The</strong> one thing we believe we always<br />

do but I realize it’s never enough,<br />

is to really know, understand and<br />

get under the skin of the other side.<br />

I believe we can always do this better.<br />

You have been very successful.<br />

What advice would you give to other<br />

people with similar aspirations?<br />

Trust yourself. At the end of the day,<br />

you’re the only one who knows what’s<br />

best for you. Also, be hungry, stay<br />

curious and keep learning. I hope<br />

that when I’m 90 years old, I’ll still<br />

be learning. TNS<br />

4


THE NEGOTIATION SOCIETY<br />

Just like any relationship, commercial<br />

partnerships can go wrong. But how can<br />

you tell if the rot has set in for good, or it's<br />

a temporary blip? Adam Frampton reports.<br />

P<br />

artnership can be a buzz word that is thrown around all too often.<br />

Almost on a weekly basis, I have clients, friends, and even family<br />

who tell me they are in a strong partnership, be it personal or<br />

business. However, of those partnerships, I ask the question, is it onesided?<br />

Are you committing the age-old mistake of being in a one-sided<br />

alliance? And there is no more revealing time for this to be shown than<br />

during our recent pandemic.<br />

A partnership should be the same through the good times and<br />

through the bad. As IATA executive Giovanni Bisignani said, “If one<br />

of the partners in partnership is losing his shirt while the other is<br />

counting his money, it is no longer a partnership.” While this revealing<br />

truth can be worrisome, if it prompts time for reflection, then that is<br />

a good thing. In a commercial setting we should periodically evaluate<br />

our relationships with our business partners to understand if it is still<br />

a healthy partnership.<br />

What can you do to evaluate your business relationships, to either<br />

continue to grow them, or maybe even exit them? <strong>The</strong>re are a few<br />

variables to consider here, with examples from the public eye that<br />

can help us to see the impact of these factors on partnerships.<br />

5


TIME OUT<br />

I’d hazard a guess that a high percentage of the<br />

readers of this article have Facebook. If you are among<br />

them, maybe you use it very frequently, or maybe just<br />

occasionally. But even if you’re not a Facebook user,<br />

you may well recognize the name of at least one of the<br />

two founders, Eduardo Saverin and Mark Zuckerberg<br />

– the latter still at the helm to this day, and the one<br />

I predict most people will have heard of.<br />

What you may not know is that Saverin’s original<br />

34% ownership was later cut to an extremely small<br />

amount. But why did this happen? Well, there are<br />

many issues behind the story, but one of the areas to<br />

highlight is that Saverin was allegedly absent from a<br />

lot of the early work of launching Facebook in Silicon<br />

Valley. In those early days, it was Zuckerberg who<br />

was putting in the time, while Saverin took away the<br />

spoils. Of course, unless you were part of the team<br />

at that time, we can’t really know what the actual<br />

“If the values of the<br />

two companies do not<br />

remain aligned then it’s<br />

likely the partnership<br />

will reach its conclusion.<br />

situation was; this is just one side of the story. But<br />

the point is that in a partnership, time is an important<br />

measurement of effort, for example when invested to<br />

learn about each other’s needs. So quantifying that<br />

time can be a black and white sign of whether you<br />

are in a good partnership or not.<br />

In the case of Facebook, Zuckerberg may have seen<br />

that Saverin wasn’t investing the time and so sought<br />

to break up the partnership. <strong>The</strong> moral of the story?<br />

Ask yourself, are you demonstrating the relevant<br />

amount of time investment, and are your partners<br />

demonstrating this to you?<br />

A TRUST OVERDRAFT<br />

When we look at a partnership, do we see a<br />

50/50 split, those romantic “win-wins”? <strong>The</strong> truth<br />

is that it’s almost impossible for this to be the case,<br />

simply because so many different factors influence<br />

partnerships above and beyond that of the dollar<br />

number at the end. But it’s important that both<br />

parties can continue the partnership with a sense<br />

of achievement and profit from it, whether it is<br />

tangible or intangible gain.<br />

What I have seen in a number of examples recently<br />

is that one side of the partnership professes for this to<br />

be the case, even advocates it, but the reality transpires<br />

to be much more on the side of, Give me everything<br />

and I’ll give you nothing, expressed in the sentiment,<br />

“You’re just lucky you’re in the room with me”. <strong>The</strong>se<br />

desperate times can call for desperate measures and<br />

we can often be lured in by the story behind the<br />

requests, because requests can be built by trust.<br />

For example, trusting that if you do this now, then<br />

perhaps later down the line you’ll reap the rewards.<br />

However, as the famous adage reminds us, trust is<br />

like a bank: the more you deposit into the bank of<br />

trust, the more you can withdraw. If you end up<br />

withdrawing more than you’ve deposited, well then,<br />

you’ve run out. That is where partnerships fracture.<br />

Time for another question: Are you in a partnership<br />

where your counterpart has continuously made<br />

withdrawals and not made any deposits? If that’s<br />

the case then perhaps it’s time to seek a new partner.<br />

SHARED VALUES<br />

When we get into a long-standing relationship, it<br />

may well be because our values align. We see the same<br />

future and have a common approach in reaching for it.<br />

But with long term partnership, these values change.<br />

We often see it in personal relationships – what one<br />

person sees as morally right completely conflicts with<br />

another person’s view. That’s why partnerships can be<br />

so difficult to maintain; no one side may be right in<br />

their thinking. It’s just different.<br />

When it comes to commercial partnerships, a lot<br />

of the greatest recent partnerships exist due to this<br />

mutual vision and goals. But what happens when this<br />

isn’t maintained is that some lengthy partnerships<br />

have an end date. Consider the partnership between<br />

Shell and LEGO. Prior to the dissolution of their<br />

partnership in 2011 they’d enjoyed a successful<br />

partnership for 50 years. <strong>The</strong> event that led to this<br />

fracture was the infamous YouTube video released<br />

from Greenpeace that showed LEGO figurines<br />

engulfed in oil, echoing Greenpeace’s stance that a<br />

toy company shouldn’t align itself with a company<br />

supporting questionable environmental practices.<br />

After public outcry from loyal LEGO customers,<br />

the partnership ended, showing that if the values of<br />

the two companies do not remain aligned then it’s<br />

likely the partnership will reach its conclusion. Again,<br />

ask yourself: Are you seeing this in your partnership?<br />

Did a long-standing relationship built upon similar<br />

values change, and are you stuck in this partnership,<br />

or can you (should you) seek to end it?<br />

We can look at a partnership as a pact between<br />

two parties to do something jointly, thereby benefiting<br />

both. <strong>The</strong> resulting outcome could not be achieved<br />

without the other, making it mutually valuable. If we<br />

are entering into, existing within, or even have exited<br />

and are considering the next partnership, we need to<br />

consider the major factors that influence an effective<br />

partnership: time, values, support, people, and profit.<br />

Have both parties invested sufficient time? Are both<br />

parties’ values aligned? Is one party supporting the<br />

other outside of the norm (and vice versa)? Are both<br />

parties profiting from the partnership? And, are the<br />

people involved willing to commit to the partnership<br />

for the long term?<br />

It’s up to you to explore each of these to assess<br />

whether you are in a true partnership, or if perhaps<br />

it’s more one-sided than you first thought. TNS<br />

6


THE NEGOTIATION SOCIETY<br />

After years of sluggish inflation and even deflation,<br />

some Japanese businesses are starting to raise<br />

their prices. Taichiro Matsuhashi charts the<br />

impact, and how to negotiate this new normal.<br />

I<br />

n recent years, the price of energy<br />

such as gas, gasoline, kerosene, and<br />

electricity, as well as commodities<br />

such as wheat and other grains, have<br />

soared worldwide. Alongside this,<br />

logistics prices have also risen. As a<br />

result, the Japanese market has been<br />

impacted and there continues to be<br />

a rush of price hikes across various<br />

industries, products, and services.<br />

It’s no longer unusual to see a price<br />

hike every time you open a newspaper,<br />

read a menu in a restaurant, or set<br />

foot in a supermarket.<br />

<strong>The</strong> problem for many Japanese<br />

consumers is that while prices are<br />

rising, salaries are not. People used<br />

to being considered the middle class<br />

are now facing a situation in which<br />

their salaries are not rising, or worse,<br />

their income is actually declining. <strong>The</strong><br />

government has put in some measures<br />

to try and ensure that price increases<br />

are accompanied by salary increases.<br />

For example, they provided a certain<br />

amount of tax credit to companies<br />

who had increased salaries to their<br />

employees by a given amount compared<br />

to the previous year. However, this has<br />

not happened yet in many industries.<br />

7


<strong>The</strong> Japanese economy has been described in various ways<br />

over the last few decades, but probably the most accurate<br />

description would be “A lost two decades in Japan” –<br />

although some would make it even three or four decades.<br />

As we can see from the inflation consumer price index, the<br />

growth rate has been negative or very low during the period:<br />

3.50<br />

Inflation: Consumer Price (annual%)<br />

3.00<br />

2.50<br />

2.00<br />

1.50<br />

1.00<br />

0.50<br />

0<br />

-.50<br />

2000 2005 2010 2015 2020<br />

-1.00<br />

CHINA<br />

EUROPEAN UNION<br />

FRANCE<br />

N O R T H A M E R I C A J A P A N<br />

Source: International Monetary Fund<br />

Back in 2011, when I was in<br />

my previous role, I told one of<br />

my clients that we were going<br />

to increase the price of services<br />

provided to them at the time of<br />

our annual contract renewal. <strong>The</strong>y<br />

responded, "At our company, we<br />

cut down on many things and<br />

make as much effort as we can to<br />

avoid raising prices. Why do you<br />

come to me and talk about raising<br />

prices?" I fully understood what he<br />

meant, because to that client, and<br />

potentially most companies, raising<br />

prices means they are not making<br />

enough effort and not putting the<br />

consumer first, and those are not<br />

good things to discuss. In fact, even<br />

mentioning price increases meant<br />

they thought we were not making<br />

the right effort in our business<br />

relationship with them.<br />

Whether as a result of this<br />

way of thinking or not, prices<br />

in Japan did not rise in many<br />

industries unlike other countries,<br />

and consumer product and service<br />

prices were relatively low by<br />

comparison. One positive aspect<br />

of the situation was that, in part<br />

due to the lower price, the number<br />

of international visitors to Japan<br />

jumped from 8.6 million in 2010<br />

to 31.1 million in 2018. Visitors<br />

to Japan go sightseeing and then<br />

stop by the store to buy consumer<br />

“If you can negotiate another<br />

variable at the same time,<br />

the negotiation presents an<br />

opportunity to increase total<br />

value to both parties.<br />

IMAGE CREDIT: SHUTTERSTOCK.COM/G/PIO3<br />

8


THE NEGOTIATION SOCIETY<br />

products. This phenomenon was<br />

named bakugai, meaning an<br />

explosion of shopping. One regional<br />

electric retailer reported their sales<br />

going up 2.7 times in one year due<br />

to these sales.<br />

But this trend has now ended,<br />

since there have been price hikes<br />

in Japan in recent years and<br />

negotiations are underway to raise<br />

prices. Because price hikes have not<br />

been as frequent in Japan as they are<br />

today, companies may face resource<br />

and capability related problems,<br />

with teams uncomfortable with<br />

such negotiations, having little<br />

experience with them.<br />

<strong>The</strong>re will always be the potential<br />

to cancel or delist products as<br />

a result, but importantly, we<br />

must be aware that this is also<br />

an opportunity to build a bigger<br />

business, strengthen relationships,<br />

and increase total value for both<br />

parties from the negotiation.<br />

Here are some considerations when negotiating a price increase:<br />

1. THE LEADER (DECISION MAKER) EXPLAINS THE<br />

RATIONALE FOR THE PRICE INCREASE, AND WHAT<br />

WE WANT TO ACHIEVE FROM THE NEGOTIATION<br />

Clarify their position on why they are raising<br />

prices, and make it known what you aim to<br />

accomplish as a result of it. <strong>The</strong> team should have<br />

a good understanding of the background and refer<br />

back to it when they face difficult negotiations.<br />

2. AGREE ON A RANGE OF POSSIBLE PROPOSALS<br />

Consider what could be negotiated with the price<br />

increase. If you can negotiate another variable<br />

at the same time, the negotiation presents an<br />

opportunity to increase total value to both parties.<br />

Once identified, agree with the team what they<br />

can propose and what they cannot, and how far.<br />

thinks, “Other companies are raising their prices<br />

too, so they should be fine with our proposal”,<br />

or “I know them very well!”, or “My contact<br />

point said it is okay”. You always need to prepare<br />

the next proposal when your assumption does<br />

not happen.<br />

5. UNDERSTAND THE OTHER PARTY’S DECISION-<br />

MAKING AUTHORITY AND OTHER STAKEHOLDERS<br />

Does the other party with whom you are<br />

negotiating have the final say? If not, they will<br />

escalate to the appropriate person who will make<br />

the final decision. You should consider who you<br />

should talk to in the negotiation, and who you<br />

should take with you from your organization<br />

when you meet.<br />

3. THE PERSON IN CHARGE SHOULD ONLY<br />

PROPOSE WITHIN THE DEFINED RANGE OF<br />

POSSIBLE PROPOSALS<br />

Do not treat as “my client is special”, but strictly<br />

follow the guidelines provided.<br />

4. DO NOT BE OVERCONFIDENT, BUT BE<br />

PREPARED FOR ANY COUNTER PROPOSAL<br />

It is most likely your first proposal will be rejected.<br />

But this would only surprise the person who<br />

6. UNDERSTAND THE NEED FOR PREPARATION<br />

Those in charge of negotiation who are busy<br />

with their day-to-day work might prepare later<br />

than they should – perhaps even too late. Leaders<br />

must make them aware of the importance<br />

of preparation.<br />

7. SET A REALISTIC TIMESCALE<br />

To complete the above, the work should start<br />

at least six months in advance of the negotiation.<br />

In Japan, if it is your first time<br />

negotiating a price increase, it may<br />

also be the first time negotiating<br />

a price increase for the other party.<br />

<strong>The</strong> market is changing every day,<br />

so in order to avoid unexpected<br />

occurrences, it’s necessary to<br />

prepare the plan for a variety<br />

of items and situations and then<br />

proceed with the negotiations<br />

within assumptions, so you<br />

can deal with whatever<br />

counter proposal might<br />

come your way. TNS<br />

9


Few business scenarios are more stressful than pitching to<br />

investors. Add in an audience of millions and the potential<br />

for emotional meltdown escalates. Dragons’ Den alumni<br />

Maxim Van Meeteren shares his own Den experience and<br />

that of other successful entrepreneurs, and the role that<br />

negotiation best practice played.<br />

N<br />

egotiation is stressful and<br />

uncomfortable, always. But<br />

there is one place where<br />

emotions are fired up to absolute<br />

boiling point. It’s a place where every<br />

move is magnified under the watchful<br />

eyes of millions of viewers, and only<br />

the best negotiators will keep their<br />

nerves under control. Of course, I am<br />

referring to what might arguably be,<br />

apart from politics, the most<br />

public negotiation stage: Dragons’<br />

Den – the reality TV show in which<br />

budding entrepreneurs pitch for<br />

investment to a panel of multimillionaire<br />

investors.<br />

It's here I should declare my dual<br />

interest in this TV and negotiation<br />

phenomenon. In 2020 I went on the<br />

Dutch Dragons’ Den, successfully<br />

secured investment for my business,<br />

quit my corporate job, and then found<br />

an exciting new one as a negotiation<br />

consultant. Now I enjoy a stimulating<br />

two-lane career: working at <strong>The</strong> Gap<br />

Partnership to support our corporate<br />

clients in building a high-performing<br />

negotiation culture in their businesses,<br />

while building my own business on<br />

the side.<br />

Wearing these two hats gives me<br />

an understanding of and fascination<br />

with the emotional journey that the<br />

brave entrepreneurs who enter the<br />

Den undertake, and the negotiation<br />

principles and learnings at play<br />

throughout. I wanted to explore<br />

that further by talking to two other<br />

entrepreneurs who successfully<br />

raised money on the show about the<br />

emotional journeys they underwent<br />

during their pitches and what they<br />

did to manage them. I also spoke<br />

to my own investor, international<br />

hospitality tycoon Won Yip, who<br />

gave me an exclusive sneak peek<br />

into the other side of the negotiation<br />

table and the minds of the Dragons.<br />

“IMAGE: FREEPIK.COM”. THIS COVER HAS BEEN<br />

DESIGNED USING IMAGES FROM FREEPIK.COM.<br />

10


THE NEGOTIATION SOCIETY<br />

Chika pitching her business to the Dragons.<br />

Preparation is key<br />

“For me, preparation was really<br />

important”, Julianne Ponan, CEO<br />

at Creative Nature, says. “I prepped<br />

for every scenario, remembered<br />

all our numbers by heart and<br />

composed an answer to every<br />

possible question.” She adds,<br />

“I even profiled each Dragon on<br />

what they would ask, what answers<br />

they would enjoy hearing and how<br />

to lead them to a next question for<br />

which I already knew the answer.”<br />

At <strong>The</strong> Gap Partnership we<br />

teach people how to get inside<br />

the other party’s head before and<br />

during negotiations. Everybody<br />

needs to invest time in prospecting<br />

and prediction beforehand on how<br />

the negotiation will unfold to fully<br />

prepare for what’s coming. After<br />

all, negotiation is 90% preparation.<br />

Julianne recalls how this “uberpreparedness”<br />

was crucial to her<br />

time in the Den: “Initially my<br />

partner was very laissez-faire,<br />

but once we were standing on<br />

the spot and he forgot his words<br />

due to the stress, it was the muscle<br />

memory that I created through<br />

practice that got us through the<br />

more overwhelming parts of the<br />

pitch.” Just like Julianne and any<br />

professional athlete, negotiators<br />

should visualize and prepare for<br />

whatever may come or whatever<br />

they plan to do.<br />

I vividly recall my own physical<br />

response to the stress I experienced<br />

when in the Den. I remember<br />

feeling like my heart was in my<br />

throat when I saw the green light,<br />

which was my sign to enter<br />

the Den. I hadn’t told my boss<br />

at my corporate job that I was<br />

doing this and I was about to<br />

put my face on TV, feeling like<br />

it was all or nothing. But I had<br />

a few things on my side to help<br />

me cope: experience in public<br />

speaking and the careful<br />

preparation and planning I had<br />

done upfront helped the anxiety<br />

to quickly fade away. I was also<br />

very aware that I had to stand<br />

out and come up with something<br />

that would impress them.<br />

My moment of theatre, carefully<br />

planned, was when I went down<br />

on one knee during my pitch to<br />

propose to one of the Dragons<br />

– purely for demonstration, of<br />

course. Spontaneous smiles and<br />

looks were sent across the room.<br />

My strategy was working: I wanted<br />

them to sympathize with me and<br />

my product first, to open their<br />

mind for investment. After all,<br />

who would invest in a product or a<br />

person if they don’t even like them?<br />

Pitching with confidence<br />

But it is not only preparation<br />

that can get you the big bucks on<br />

the Dragons’ Den show. Chika<br />

Russell, CEO of Chika’s Foods,<br />

had zero time to prepare. “My<br />

audition was two weeks before the<br />

recording and I do not pitch that<br />

often. But I know my brand and I<br />

am very social, so that is why I was<br />

able to come across confidently.”<br />

Skilled negotiators need to be<br />

in control of the negotiation. And<br />

although you might not feel like<br />

that from the inside, you need to<br />

be in control of your emotions too.<br />

“Not getting an investment did<br />

not cross my mind. I didn’t plan to<br />

not get an offer.” Being confident<br />

brought the result she wanted;<br />

Chika got an impressive (and rare)<br />

five offers, one from each Dragon.<br />

Chika’s absolute self-belief<br />

resonates with my own experience.<br />

I also, somehow, knew that I would<br />

get an offer. I was determined to<br />

enjoy the whole experience, and<br />

I knew what I was going to do<br />

and say. If you know your business<br />

inside out, you can deliver with<br />

confidence, and the likelihood of<br />

a deal increases to its full potential.<br />

Delivery is important, whether you<br />

are hard bargaining or working<br />

out a mutual partnership. Being<br />

intentional in your proposals and<br />

deliberate about your emotions,<br />

you can steer many negotiations<br />

in your favor.<br />

Looking back, Julianne regrets<br />

certain parts of her pitch too.<br />

“Normally I do much better in<br />

negotiations. In a negotiation you<br />

don’t want the other party to know<br />

that you are in doubt. In my case,<br />

I even said that I didn’t know<br />

what to do out loud!” You can<br />

try to get inside the head of the<br />

other party, but you should equally<br />

try and prevent them doing the<br />

same thing to you. Are you aware<br />

of your body language when you<br />

make an offer? And are you a good<br />

listener, someone who carefully<br />

listens to how your counterpart<br />

presents their proposals? When<br />

you are sitting across from a skilled<br />

negotiator, your verbal<br />

Above left: Maxim demonstrating how his product works by proposing to a Dragon.<br />

11


and nonverbal communication<br />

can give away your position and<br />

enormous amounts of value.<br />

A pair of trained eyes and ears can<br />

deduce your opponent’s position<br />

and increase the outcome of any<br />

given negotiation. “If I could do it<br />

all again, I would definitely try to<br />

be more relaxed”, says Julianne.<br />

Shift in the balance<br />

of power<br />

On the TV screen it seems<br />

clear, but in a negotiation one of<br />

the hardest things is to keep all<br />

senses open so you can read the<br />

room and spot when the balance<br />

of power is shifting in your favor.<br />

When did this moment happen<br />

for Chika and Julianne? I asked<br />

them to share the exact moment<br />

they started feeling in control of<br />

the negotiations.<br />

Chika recalls, “After my pitch,<br />

Touker [Souleyman] was smiling,<br />

and so was Deborah [Meaden].<br />

Right then and there I knew<br />

I had them. Immediately after,<br />

I received my first offer and the<br />

others followed shortly. I was in<br />

the Den for almost three hours,<br />

but since I received offers from<br />

all five of them, the rest of the<br />

time it was me who was asking<br />

all the questions.” Gathering<br />

information by asking questions<br />

is a great way<br />

to influence the<br />

balance of power.<br />

“I was genuinely<br />

seeing who could compete with<br />

who, but of course I also raised<br />

competition among them”, Chika<br />

tells me to our shared amusement.<br />

Julianne’s experience in part<br />

mirrors Chika’s, although she’s not<br />

quite so convinced that the balance<br />

of power had wholly moved in<br />

her favor, as she explains: “When<br />

you enter the Den you are mainly<br />

focused on your own pitch. You<br />

are entirely inside your own head.<br />

When the conversation opens up,<br />

you can finally try to get inside<br />

their heads. To me the balance of<br />

power shifted when I received an<br />

offer from Deborah. But I would<br />

say we were still on a par as of<br />

that moment, at best, and it never<br />

leaned completely towards me.”<br />

Having alternatives, or in this<br />

case multiple offers from different<br />

Dragons, influences one’s position<br />

heavily; not only the dependence<br />

on the other party, but of course<br />

also in confidence. In negotiations<br />

you must be careful, however, in<br />

pretending to have alternatives.<br />

Being too specific about your<br />

fake alternative may kill the<br />

deal or raise questions as to why<br />

you are still even sitting at the<br />

negotiation table. Failing to<br />

answer swiftly will punch the<br />

balance of power to the other<br />

side when your counterpart<br />

calls out your bluff.<br />

Saying “no”<br />

and “the nibble”<br />

My experience in the Den taught<br />

me a valuable lesson about the<br />

power of that small word, “no”, and<br />

not giving in to the easy option of<br />

saying “yes” straightaway. When I<br />

finished my pitch, the smiles of the<br />

Dragons gave me positive<br />

“My experience in the Den<br />

taught me a valuable lesson<br />

about the power of that small<br />

word, “no”, and not giving in<br />

to the easy option of saying<br />

“yes” immediately.<br />

signals and I could read their<br />

excitement; some of them were<br />

fiddling with their pens and<br />

moving in their chairs. But I<br />

wouldn’t say the balance of power<br />

had shifted yet. When I got my<br />

offer, I was naturally relieved and<br />

felt I was slowly building more<br />

bargaining power. But still I wanted<br />

to make the best deal possible and<br />

was very conscious that I had to<br />

keep my head cool, even in such<br />

an emotionally charged moment.<br />

So, once I’d received an offer,<br />

I asked for a moment to call my<br />

business partner. On that call<br />

we agreed we would go for the<br />

cheeky challenge – or “nibble” as<br />

we call it at <strong>The</strong> Gap Partnership –<br />

by asking for a lower percentage<br />

of equity share. Our wouldbe<br />

investor (and seasoned<br />

businessperson) Won Yip wouldn’t<br />

budge and kept his price and offer<br />

as it was initially. That was the most<br />

nerve-wracking moment because<br />

we didn’t want to upset him and<br />

put a bomb under the whole deal.<br />

But I have no regrets: we owed<br />

it to ourselves to at least try.<br />

Preparation, confidence, and<br />

a quick-thinking mind got Chika,<br />

Julianne and myself a deal on one<br />

of the most popular TV shows in<br />

the world. But for any negotiation,<br />

one cannot optimize a deal without<br />

a solid preparation (what to do,<br />

what to say, and when), delivered<br />

in a confident manner, with your<br />

senses alert to read and analyze<br />

what is happening in the room.<br />

Because even without those<br />

cameras with millions of<br />

viewers and five multi-millionpound<br />

worth individuals, any<br />

negotiation will be stressful,<br />

so you have to be comfortable<br />

being uncomfortable. TNS<br />

12<br />

One of Julianne's products from her allergen-free baking range.


THE NEGOTIATION SOCIETY<br />

<strong>The</strong> Dragon’s perspective<br />

One of the Dutch Dragons in<br />

the Netherlands is Won Yip,<br />

former owner of Sushi Samba<br />

and international hospitality<br />

tycoon with businesses in Europe,<br />

the US and Asia. He invested in<br />

my company, Remember Ringbox,<br />

a ring box with a camera and<br />

microphone to record the<br />

marriage proposal. I asked him<br />

to share the thought process<br />

of a Dragon investor.<br />

What goes through your mind<br />

before every pitch?<br />

Every pitch each Dragon starts<br />

with an open mind. We do<br />

not know anything upfront,<br />

so it requires focus. This can<br />

be challenging since we have<br />

around ten pitches every day<br />

and the recording days are long.<br />

What is it that sets a pitch and an<br />

entrepreneur apart from all the<br />

other pitches?<br />

<strong>The</strong> first impression is crucial, the<br />

storytelling is very important, and<br />

of course the answers to some of<br />

the more critical questions.<br />

Are there any moments when<br />

doubt crawls in? Which moments<br />

are these?<br />

Insecurity and doubt on our end<br />

come when the entrepreneur’s<br />

answers are vague, and the<br />

valuation is extortionate. Most<br />

often when the valuation is too<br />

high, without any foundation<br />

for it, you already have a false<br />

start and there is little you can<br />

do to correct it.<br />

At the start of the pitch the balance<br />

of power mainly lies with the<br />

Dragons. Has there ever been a<br />

moment where the balance of power<br />

shifted towards the entrepreneur?<br />

When the entrepreneur conveys a<br />

great story pitch and a reasonable<br />

valuation, the Dragons will enter<br />

into a bidding game and start to<br />

bid against one another.<br />

Have you ever caught yourself<br />

selling yourself to the entrepreneur,<br />

trying to convince them to pick you,<br />

instead of you picking them?<br />

Apart from sharing how I can<br />

bring value to the table, I haven’t<br />

experienced it. But what you see<br />

is what you get with me. Moreover,<br />

as a businessman I stopped doing<br />

“auditions”. After all, I already<br />

have the name and fame.<br />

How do you feel when another<br />

Dragon makes an offer to the<br />

same entrepreneur?<br />

Every Dragon is free to make<br />

an offer as they please, I am<br />

not emotionally impacted by<br />

it. Most entrepreneurs already<br />

have a specific Dragon in<br />

mind, which then predicts<br />

their choice unconsciously.<br />

Are the Dragons competitive<br />

with each other?<br />

Definitely! When the pitch<br />

is good and the valuation is<br />

alright, I will stop asking<br />

questions and make my offer.<br />

More information will only<br />

increase other Dragons’ interests.<br />

Julianne Ponan is the owner and CEO of Creative Nature<br />

Superfoods, a company specializing in allergen-free baking mixes,<br />

snack bars and a range of superfoods, available in major UK retailers<br />

as well as exporting to over 14 countries worldwide. Julianne has<br />

won multiple awards for her entrepreneurship, including being<br />

listed in Forbes 30 under 30, the youngest winner of the National<br />

Natwest Everywoman Artemis Award for Women Entrepreneurs,<br />

Young Director of the year in the IOD Awards, and <strong>The</strong> Guardian’s<br />

Leader of the Year.<br />

Chika Russell is an international entrepreneur, mentor, and<br />

speaker. After a career in finance and banking, she launched<br />

CHIKA’S Foods, a range of African-inspired, boldly-flavored<br />

snacks that are now listed in 3,000 retail stockists in the UK<br />

and internationally, including airlines and hotels. In July 2015,<br />

Chika launched her snacks for change program to help send<br />

more girls to school and has since formalized a partnership<br />

with World Vision with the aim of supporting 38,000 girls<br />

through their education by 2025.<br />

13


As a veteran of client management, Keilee Sperinck<br />

knows a thing or two about how to do it brilliantly.<br />

Here she reveals the strategies and tactics she uses<br />

to build exceptional and productive relationships.<br />

Ihave been at <strong>The</strong> Gap Partnership for nearly 19 years, always in a clientfacing<br />

role, and predominantly looking after our international clients.<br />

<strong>The</strong>se are important, high-value clients, but this isn’t the only reason they<br />

deserve the best white glove service. It’s also because our brand and proposition<br />

are premium and best-in-class, as is the product we provide. <strong>The</strong>refore it’s<br />

essential that this optimum quality extends to our account management.<br />

I spend a lot of my time thinking about how to ensure that, as a strategic<br />

account manager, this is what I deliver. Account management allows us the<br />

opportunity to work with individuals and improve their businesses every<br />

single day, being a part of their journey toward success. In this article I wanted<br />

to explore some of the characteristics and behaviors that I think make an<br />

excellent account manager, and how you can implement them into your role.<br />

Put the client first<br />

Client service is given in<br />

all areas of life, from<br />

grocery shopping to<br />

having a meal in a<br />

restaurant or visiting<br />

the local cinema.<br />

I love excellent service<br />

and when I don’t receive it,<br />

I’m not afraid to give feedback.<br />

That’s one of the reasons why I’m<br />

so passionate about being client centric<br />

in my job, and this concept of client<br />

centricity truly sits at the heart of what<br />

<strong>The</strong> Gap Partnership does. It’s so<br />

important to our business that we truly<br />

partner with our clients, adding value<br />

to their business. My mission is to<br />

create a fantastic customer experience<br />

for my clients, supporting them so<br />

they can achieve even more success.<br />

I nurture my relationships with them<br />

and love to see them flourish and<br />

grow, both individually and as part<br />

of their business.<br />

Make connections<br />

I am a high connector. I like to know<br />

about my clients personally, such as<br />

information on their family, where they<br />

are going for their summer holidays,<br />

what they did at the weekend, and so<br />

on. Of course I read the room and some<br />

people prefer not to share this with me,<br />

but for most of the clients I work with<br />

this has formed the start of a fantastic<br />

partnership. Never underestimate how<br />

important this is.<br />

Get inside their head<br />

Excellent account management is<br />

working together in partnership with<br />

your client. Get inside their head, and<br />

ask yourself, how would I like to be<br />

treated if I was them? Understand how<br />

they wish to work and make it easy for<br />

them to work with you. One example is<br />

to mirror your clients’ business regions.<br />

Another is, if they want one person to<br />

work with, provide them with that.<br />

Be a good listener<br />

Listen to your clients, even if what they<br />

think might not always be the right<br />

solution. Never be complacent, keep<br />

thinking of new ideas to bring to the<br />

table. Create a plan together with<br />

your client, agreeing the objectives<br />

14


THE NEGOTIATION SOCIETY<br />

you both want to achieve. Have a<br />

weekly meeting and share documents<br />

that you can both access.<br />

Work collaboratively<br />

Agree ways of working together,<br />

from designing an operations process<br />

to communicating to senior leaders<br />

within their business. Work on<br />

something you are both comfortable<br />

with, and review every quarter. Also<br />

remember to let your internal client<br />

team know, so you are all on the same<br />

page. Keep your client informed if you<br />

are working on a project together, with<br />

regular updates on timescales and<br />

development – and be honest about<br />

“Do what you say you are<br />

going to do and when you<br />

say you are going to do it.<br />

any bumps in the road. Make sure<br />

the client understands the roles and<br />

responsibilities of everyone in the<br />

team; organize a call and introduce<br />

the team. Work together and<br />

understand each other’s values, never<br />

compromising them and holding each<br />

other accountable for their actions.<br />

Build trust<br />

Do what you say you are going<br />

to do and when you say you are<br />

going to do it. My personal mantra<br />

is to go back to your client within<br />

12 hours. If something goes wrong<br />

and it’s your fault, own up and fix it.<br />

However tempting, don’t cover it up,<br />

it will only come back and bite you.<br />

Be responsible for your actions,<br />

and accountable.<br />

Communicate brilliantly<br />

This is one of the key skills in<br />

successful account management,<br />

and sometimes I think underplayed.<br />

I always ask<br />

myself who<br />

else needs to<br />

know this<br />

information,<br />

whether it’s<br />

someone internal<br />

in my business,<br />

or external within<br />

a client. I work<br />

with many global<br />

teams and they are not always aware<br />

of conversations we might be having<br />

with their local markets, so create<br />

a client contact report. One top tip:<br />

over-communicate; send the message<br />

via multiple channels, whether<br />

that’s email, Workplace, Teams,<br />

Slack, etc.<br />

Understand their business<br />

Are you reading your clients’ financial<br />

reports? Many will be readily available<br />

and are essential reading, as they will<br />

give you great insight into the health<br />

of your clients and allow you to<br />

understand their pressures, as well<br />

as potential opportunities to support<br />

them. Get an understanding of where<br />

your client is heading. What is their<br />

vision? How can you help them<br />

achieve their goals?<br />

Always look for more<br />

Keep striving for more. Be an explorer;<br />

never be satisfied with what is in front<br />

of you, always looking to find the next<br />

unexplored geography, business unit or<br />

hierarchy. I regularly use a stakeholder<br />

matrix to understand who I know, and<br />

as importantly, who I need to know.<br />

Make lists your friend<br />

Everyone who knows me knows I have<br />

lists for every corner of my life. As far<br />

as I’m concerned, effective account<br />

management runs on lists. Write<br />

everything down – get it out of your head<br />

and into a notepad. Set lots of reminders;<br />

my calendar is brimming with these,<br />

but they help me not to forget. And, as<br />

every good negotiator knows, planning<br />

and preparation are essential. Another<br />

tip – check out the Stephen Covey<br />

time management matrix. TNS<br />

What the clients say<br />

Lara Vanden Eynden,<br />

Learning Director for Customer<br />

Development, Unilever<br />

I like to think of gold standard customer<br />

service as aligning around Unilever’s values.<br />

Integrity means an authentic and trusting<br />

relationship and building the best decisions<br />

together; respect helps the markets grow<br />

and build capability; mutual responsibility<br />

means putting what is best for the learner<br />

first; and lastly, pioneering, which necessitates<br />

a co-creation mindset. <strong>The</strong> Gap Partnership and<br />

Unilever are held together by these values, which<br />

enables a very human, engaging, collaborative,<br />

and fun relationship which grows capability<br />

and business through a powerful collaboration.<br />

Helen Butterworth, Learning and<br />

Development Manager and Global<br />

HRBP for Procurement, Unilever<br />

Keilee delivers the execution of our<br />

programs flawlessly and is highly dependable.<br />

She can craft a plan together with me, from<br />

bouncing around initial ideas of what we<br />

want to achieve, to making it happen on<br />

a large scale, and often short timeframe!<br />

She is also able to bring together the different<br />

experts across TGP to take a project to the<br />

next level – marketing to help us craft the<br />

communication, technical to help us track the<br />

results we want to measure, consultants to help<br />

us understand what product will meet our needs.<br />

And, Keilee is a great communicator, keeping<br />

us informed and working closely with people<br />

across the Unilever network.<br />

15


SIX COMPANIES WHO<br />

HAVE DEMONSTRATED<br />

UBER<br />

CLIENT-CENTRICITY<br />

By Rob Schipperen<br />

Learning to see things from another’s<br />

perspective is a critical commercial<br />

skill. How have some of the world’s<br />

most successful companies done it?<br />

Client-centric is a buzzword very much<br />

of today’s zeitgeist. What sometimes happens<br />

with such “of the moment” phrases is that<br />

their meaning can get lost or misconstrued<br />

because of overuse. But in the case of<br />

client-centric, the definition is pretty simple:<br />

a business that puts their customer at the<br />

center of their philosophy, operations or<br />

ideas. Doing so ensures the business remains<br />

relevant, appealing and distinctive to its<br />

desired target audience.<br />

<strong>The</strong>re are parallels here with negotiation.<br />

At <strong>The</strong> Gap Partnership we regularly speak<br />

about getting inside the other party’s head<br />

– which is another, more prosaic way of saying<br />

you are client or customer centric. Why is this<br />

important? Because understanding the people<br />

you negotiate with – what motivates them,<br />

what pressures they are under, what they<br />

truly value, what they aren’t so concerned<br />

with – helps you craft trades that are low<br />

cost to you but high value to them, resulting<br />

in a better deal.<br />

For some famous examples of how this<br />

works in practice, look no further than six<br />

of the most successful consumer-facing<br />

companies in the world.<br />

IMAGE CREDIT: SHUTTERSTOCK.COM<br />

16


HILTON<br />

Price sensitivity has always been<br />

a major part of the hospitality<br />

industry. Worldwide hotel chain<br />

Hilton announced a change to their<br />

pricing policy at the end of 2018.<br />

Rather than offering best available<br />

rates, all available pricing was made<br />

100% refundable until two or three<br />

days in advance, or sometimes even<br />

up to the day of arrival. This was<br />

commercially viable because of<br />

a small increase in pricing to give<br />

a higher average daily rate across<br />

their hotels, while also increasing<br />

revenue per available room. Having<br />

this flexibility for customers<br />

reduced cancellations and increased<br />

guest appreciation scores.<br />

IKEA<br />

At the offices of IKEA all furniture<br />

comes directly from their own<br />

portfolio. Employees in the many<br />

offices worldwide work at an IKEA<br />

desk and drink out of an IKEA cup.<br />

Not only does this lead to lower<br />

cost of purchasing products but also<br />

ensures all staff use and become<br />

ambassadors for their own products.<br />

Problems and improvements are<br />

quickly noticed and can be resolved.<br />

This leads to better products for<br />

customers in store, while requiring<br />

minimum investment as a company.<br />

JETBLUE<br />

Who doesn’t like free stuff? JetBlue<br />

is famous for giving out free snacks<br />

during flights. In general, flying is<br />

not most people’s favorite activity.<br />

<strong>The</strong> airline’s research showed<br />

that people find multiple things<br />

impact their flight experience.<br />

Food appeared as one of these.<br />

By handing out free snacks to<br />

the people who fly with them<br />

they meet this important flight<br />

experience head on. <strong>The</strong> results?<br />

Higher client loyalty<br />

and satisfaction,<br />

and customers<br />

willing to pay<br />

extra to fly<br />

with them.<br />

STARBUCKS<br />

In 2012 one of the<br />

most well-known<br />

coffee chains around<br />

the world started<br />

writing the names of<br />

customers on cups: a simple and<br />

cheap change to the process of<br />

getting your coffee. <strong>The</strong> action<br />

created a first name relationship<br />

with their customers, improved<br />

efficiency and increased brand<br />

awareness. Clients loved to post<br />

pictures of their (misspelled) names<br />

on social media, providing free<br />

publicity – all by providing a simple<br />

black marker to their shops.<br />

COSTCO<br />

Since 1985 you can get<br />

a hotdog and soda at Costco for just<br />

US$1.50. This price has not changed<br />

and is kept intentionally low. With<br />

more then 100 million hot dogs sold<br />

each year, it’s one of the retailer’s bestselling<br />

products. <strong>The</strong> hot dog and soda<br />

is a loss leader, but it helps to attract<br />

many customers to stores who go on to<br />

buy other products. <strong>The</strong>refore it results<br />

in profits on those products sold, and<br />

as an extra bonus it gives the customer<br />

positive closure at the end of the<br />

shopping trip.<br />

DISNEY<br />

Under the name of Magic Moments,<br />

employees in any Disney amusement<br />

park worldwide can give guests a<br />

special memory they will never forget.<br />

Cast members, Disney's name for<br />

their parks’ employees, are encouraged<br />

to partake in these moments. This<br />

could be an upgrade to a better room,<br />

a free ice cream, a front of line ticket,<br />

or a sticker celebrating a special guest<br />

moment, and so on. <strong>The</strong>se small<br />

gestures are designed to show that the<br />

guest is valued. While many of these<br />

small attentions from cast members<br />

are at a low cost to the company,<br />

guests are shown to appreciate these<br />

special moments highly.<br />

Examples like these show that thinking from your client’s perspectives,<br />

considering their needs and how much value something brings to them, can give<br />

you a (negotiation) advantage. So remember, during a negotiation don’t only think<br />

about your own position. Giving away something that’s low value to you and high<br />

value to the other party will help negotiations move forward. Something that the<br />

biggest businesses of today understand only too well. TNS<br />

17


Major league baseball had a delayed season start<br />

as its hard hitters hammered out an agreement.<br />

Avid fan and negotiation expert, John McDermott<br />

analyzes the negotiation principles at play.<br />

m<br />

arch 2022, and baseball fans could finally<br />

breathe a sigh of relief. After months of<br />

contentious negotiations, Major League<br />

Baseball (MLB) and the Major League Baseball<br />

Players Association (MLBPA) agreed a tentative<br />

collective bargaining agreement that allowed<br />

the lockout to end, and spring training to begin.<br />

This agreement and the process to reach it had<br />

contained no shortage of drama, and there had<br />

been many moments where fans had every right<br />

and reason to be frustrated with either side of the<br />

table. But ultimately, the two sides were able to<br />

work in the best interest of everyone involved to<br />

ensure baseball would play a full season in 2022.<br />

Let’s look at how this agreement was reached,<br />

and steps that both sides could take moving<br />

forward to avoid a situation like this in the future.<br />

We’ll start at the beginning. In November of<br />

2021, the Atlanta Braves won their first World<br />

Series title since 1995, upsetting the Houston<br />

Astros. <strong>The</strong> average baseball fan’s mind turned<br />

to football, basketball, and hockey to get them<br />

through the winter. But everyone knew something<br />

was brewing that would keep baseball in the<br />

headlines well beyond the final out in Houston.<br />

<strong>The</strong> collective bargaining agreement between<br />

MLB and the MLBPA that allows baseball<br />

to operate was set to expire on December 2nd,<br />

and there was very little faith that a deal would<br />

be struck in time to avoid a lockout. Given the<br />

environment that baseball and every other business<br />

had been navigating the past two years with the<br />

Covid-19 pandemic, these collective bargaining<br />

negotiations were bound to be long and drawn<br />

out. <strong>The</strong> initial offers proved that to be true,<br />

with both sides tens of millions of dollars<br />

apart on almost every issue.<br />

One of the first things that comes to mind<br />

when looking at this negotiation is the balance<br />

of power. In most commercial negotiations, the<br />

problem with power is that everybody believes the<br />

other party has it, and that they themselves don’t<br />

– this is what leads to unnecessary concessions,<br />

and suboptimized agreements. That, however, was<br />

never the case with this negotiation. Both parties<br />

understood the power they had: the owners had<br />

the power to lock the players out, understanding<br />

that this left players without a job. <strong>The</strong> players<br />

had the power to hold out as long as they needed<br />

to in order to gain a favorable deal, knowing that<br />

losing out on games ultimately meant losing out<br />

on revenue for the owners.<br />

18


THE NEGOTIATION SOCIETY<br />

This became a problem when both sides were<br />

willing to flex that power. <strong>The</strong>y were both<br />

displaying a behavior called “super competitiveness”.<br />

This shouldn’t come as a surprise when you<br />

consider that this negotiation surrounded a sport.<br />

But this type of behavior, had it continued, would<br />

have only led to deadlock because both sides<br />

were only focused on winning, not on creating<br />

meaningful value that would last over the<br />

term of this collective bargaining agreement.<br />

Unsurprisingly, when you get millionaires<br />

and billionaires in a room together<br />

to negotiate, there’s going to be ego<br />

involved. When you add the media<br />

attention that this process garnered,<br />

and the fact that everyone involved<br />

was either a high-profile owner of<br />

a baseball organization, or a higherprofile<br />

baseball player, it’s surprising<br />

they found a room large enough<br />

in Jupiter, Florida to contain the<br />

personalities alone. This was evident<br />

in the early stages of this negotiation,<br />

and it was not helpful in progressing<br />

the conversation.<br />

Ego will only hurt you in a negotiation;<br />

especially one where you should be focused on<br />

joint partnership and relationship building for<br />

the future. Lesson learned for the next inevitable<br />

collective bargaining agreement negotiation – do<br />

not focus on your own objectives and stresses;<br />

rather, focus on the other party. Understand what’s<br />

valuable to them and draw your own conclusions<br />

about how you can create value for them without<br />

eroding your own position.<br />

Now, how can you create that value for the other<br />

party without trading away valuable (and expensive)<br />

positions? You must think creatively! <strong>The</strong>re were so<br />

many variables in this negotiation that ultimately<br />

helped get it over the line but weren’t introduced<br />

to the conversation until the late stages. I’m not<br />

talking about the luxury tax, league-minimum<br />

salaries, or arbitration framework – those<br />

are frankly issues that are well above my<br />

paygrade as a mere New York Mets fan…<br />

I’m referring to things like expanding<br />

the amount of playoff teams, larger<br />

bases, banning defensive shifts, and<br />

the addition of a universal designated<br />

hitter. Ideas like these may upset the<br />

diehard traditionalist baseball fan, and<br />

it’s understandable that MLB felt they<br />

were in no position to do something<br />

that could result in lower viewership<br />

in stadiums and at home, but there’s<br />

another side to that coin: expanded<br />

playoffs create more revenue for both<br />

the league and the players over the<br />

course of the season, and the rest of<br />

these new policies are designed to<br />

create more excitement around the<br />

game among a younger fan base<br />

– something the league has been longing<br />

for since the steroid era of the late 1990s. <strong>The</strong>y<br />

are two variables that both sides were able to easily<br />

agree to that would help grow the game. And what’s<br />

best about variables like these? <strong>The</strong>y cost nothing<br />

to either side! It was impressive to see how both<br />

sides were able to use these variables to deliver value<br />

to the other party and get something valuable back<br />

in return.<br />

Perhaps what was most surprising in this process<br />

is that after only three weeks of semi-consistent<br />

“Ego will only hurt you in a negotiation;<br />

especially one where you should be<br />

focused on joint partnership and<br />

relationship building for the future.<br />

meetings, the league made a “best and final” offer<br />

to the player’s union. Pro tip: this is only a good<br />

idea if it’s actually your best and final offer, or if you<br />

genuinely believe that your counterparty will accept.<br />

Neither of these things could have been considered<br />

true when you look at the perceived gaps between<br />

proposals at that time, and the MLBPA was wise to<br />

push back on that and continue negotiating. While<br />

this tactic by the league may have been misguided,<br />

their use of multiple deadlines was effective in<br />

creating urgency among players to get a deal done.<br />

I referenced it while discussing the balance of<br />

power in this negotiation, but there was ultimately<br />

too much to lose for all parties involved – the<br />

League, the players, and the fans, to not reach<br />

an agreement. A year-long deadlock was never<br />

an option, and we’re all<br />

fortunate that both sides<br />

realized this in time to<br />

play a full 162 game<br />

campaign. Spring<br />

training officially<br />

began, and MLB and<br />

the players can look<br />

forward to a new, more<br />

profitable, and more<br />

enjoyable era.<br />

And this Mets fan<br />

is thrilled about that,<br />

because this year is<br />

definitely our year.<br />

It has to be, right? TNS<br />

19


20


THE NEGOTIATION SOCIETY<br />

Our Senior Partner for the Americas, Lance Ward,<br />

talks to Alistair White about living up to a legacy,<br />

owning responsibility, and the case for diversity.<br />

Expectations were high in our house when<br />

I was growing up”, says Lance, early in<br />

our hour-long interview. As he says it,<br />

I get the sense that this is a familiar line,<br />

a pre-formatted, even rehearsed, sentence that<br />

he has used before to articulate to others, and<br />

to himself, who he is and why he is that person.<br />

To understand the nature of these expectations,<br />

you need to understand the household in which<br />

Lance and his brother were raised. His father,<br />

having been born as one of five children into<br />

relative poverty in a humble two-room dwelling<br />

in Michigan, drew on a potent mix of ability<br />

and determination to forge a career that led<br />

to him becoming one of the first black CEOs<br />

of an American Fortune 500 company.<br />

<strong>The</strong> first black CEO of a Fortune 500 company.<br />

Think about it.<br />

<strong>The</strong> achievements of his father and<br />

the expectation<br />

levels placed on<br />

him at home<br />

could have acted<br />

as a suffocating<br />

burden.<br />

Is that the way<br />

he recalls it?<br />

“No, not at all,”<br />

responds Lance,<br />

emphatically.<br />

“It was always expressed as encouragement<br />

of effort and never disappointment at failure.<br />

As long as I was putting in the effort at school,<br />

or in sports, or in any other pursuit, I was<br />

rewarded with praise. ‘Dare to dream’ is<br />

something my father always taught us.”<br />

And then, with a steely, eyeball-to-eyeball<br />

gaze and a firm set to his jaw, Lance adds,<br />

“Anyway, the expectations of others were never<br />

a burden because they were never anywhere near<br />

the expectations I had of myself.” A moment’s<br />

pause and then a wry smile, “But it did take me<br />

until my mid-twenties to stop comparing myself<br />

to my father and start to take satisfaction in my<br />

achievements in their own right. In recent years<br />

it has become less about comparison and more<br />

about understanding my own drivers.”<br />

I ask the next logical question: Is he<br />

a competitive person? “Yes, very. Off the chart.<br />

Competition is my way of measuring myself.<br />

Am I getting better? Am I able to do things<br />

others cannot? We all know that competitiveness<br />

in negotiation can be a very destructive force.<br />

But without the drive to achieve something,<br />

there is an absence of ambition. Competitiveness,<br />

if it is managed in a self-disciplined way, can<br />

be a very positive force in life and in a career.”<br />

“Self-disciplined” strikes me as an interesting<br />

choice of word. Is that a quality that he tries to<br />

foster in himself? “Absolutely. I was always told<br />

that, as a black person, I have to be twice as good<br />

as a white person to get the same opportunity<br />

and, in every aspect of life, I make a real effort<br />

to manage my behavior so as not to give other<br />

people a pretext to find fault with me.”<br />

Is that still<br />

the case in<br />

modern-day<br />

America?<br />

Lance hesitates<br />

and, drawing<br />

on the selfdiscipline<br />

he referred<br />

to, chooses<br />

his words<br />

with care. “I think so, yes. <strong>The</strong> vast majority of<br />

American people are not racist, but I do think<br />

that there is an unconscious bias that persists,<br />

and one of the challenges facing American<br />

society and American business is to call this<br />

out and thereby eliminate it. We need to make<br />

people conscious of their unconscious bias.<br />

“I remember one situation at school, in<br />

maybe the fourth or fifth grade, when I was<br />

getting physically bullied by a bunch of white<br />

classmates solely because of my race. I was<br />

with a white friend of mine and I kind of<br />

expected him to stick up for me, but he didn’t.<br />

He just did nothing. That has stuck with me.<br />

He made a choice – to do nothing. But bad<br />

things happen when good people do nothing.”<br />

“<strong>The</strong> expectations of others were<br />

never a burden because they<br />

were never anywhere near the<br />

expectations I had of myself.<br />

21


I sit for a moment and wonder what shades<br />

of bias might lurk beneath the surface of my own<br />

consciousness, and how I would feel if I thought<br />

that others were biased towards me. I ask<br />

Lance if that makes him angry.<br />

“I don’t think that getting angry fixes the<br />

problem. As a younger man, I occasionally<br />

found myself in situations, sometimes with<br />

law enforcement officers, where I felt I was<br />

pre-judged because of my race. But I make a<br />

point of not allowing my emotions to override<br />

my sense of rationale and I realized that getting<br />

angry would only make the situation worse.<br />

My priority was to extricate myself from that<br />

situation and losing my temper would not<br />

have achieved that.<br />

“To your wider point, given the upbringing<br />

I had and the privileges and opportunities that<br />

I enjoyed, it would be ridiculous for me to<br />

claim that I feel angry about the way I have been<br />

treated. But there are plenty of black Americans<br />

who have not had those opportunities and, while<br />

anger may be too strong a word, I do feel a sense<br />

of injustice on their behalf. <strong>The</strong>re are many people<br />

in this country whose lives have been blighted by<br />

bias, whether conscious or unconscious.”<br />

I suggest to Lance that his wider family has<br />

escaped the poverty trap that ensnares so many<br />

black people in America; he doesn’t respond, but<br />

he nods his assent. Does that make him feel like<br />

he hovers between two communities, fitting<br />

neither the white and affluent nor the black<br />

and underprivileged stereotypes?<br />

“No, not that exactly. But I do feel<br />

a responsibility to the wider black community.<br />

Very often, especially in a work context, I find<br />

myself being the only black person in the room<br />

and I am very, very conscious of my behavior<br />

and my performance.<br />

“I feel that I am representing my race and<br />

any judgment people make of me, positive or<br />

negative, could be a judgment on black people<br />

as a whole. I know that doesn’t make rational<br />

sense but it is how I feel.” It is the first and only<br />

time during our conversation that Lance admits<br />

– even tacitly – to entertaining a thought process<br />

that might not make complete<br />

rational sense, but I let it pass.<br />

I remark that Lance has just<br />

been promoted to a position<br />

in which he heads up all of<br />

<strong>The</strong> Gap Partnership’s business<br />

across the Americas. Does he<br />

see himself as a standard-bearer<br />

for black professionals? “No, my<br />

priority is to further my own<br />

career, to achieve what I think<br />

I can be capable of, to be a good<br />

father to my two girls. If, as<br />

a result of that, some people’s<br />

views about black professionals<br />

are changed for the better, then<br />

I would be proud of that, but it<br />

isn’t my primary objective.”<br />

I look down at my notepad,<br />

pondering which of my preprepared<br />

questions to ask next,<br />

but I needn’t have bothered as<br />

Lance is warming to his theme.<br />

“<strong>The</strong>re is a lot of talk about<br />

increased diversity and how companies need<br />

to ensure that they have a diverse workforce.<br />

It is still viewed in some quarters as a boxticking<br />

exercise that we need to complete to<br />

demonstrate that we are keeping up with the<br />

times, but it is more than that. Increasingly<br />

our clients are requesting, even demanding,<br />

that we send them a consulting team that<br />

is diverse in terms of ethnicity, gender,<br />

demographics – you name it.<br />

“<strong>The</strong>y recognize that when you are paying<br />

people for their opinion, their experience and<br />

their expertise, as they do with <strong>The</strong> Gap<br />

Partnership, you get a better outcome when<br />

22


THE NEGOTIATION SOCIETY<br />

you have as broad a range of perspective and<br />

experience as possible. Otherwise you just get<br />

a bunch of similar people giving you similar<br />

opinions to the ones you already hold. What<br />

is the point of that?”<br />

Confession time…you may have already<br />

guessed that I am a white, middle-class, middleaged<br />

male. I reflect on the fact that, despite my<br />

experience, I don’t think I have ever heard the<br />

argument for increased diversity in the workforce<br />

put so succinctly, or phrased in such a way that<br />

presents it as a commercial imperative and<br />

a potential source of competitive advantage.<br />

Our time together is drawing to a close and<br />

I scan my notes, reflecting on the course of our<br />

conversation. I recall Lance’s opening remarks<br />

and the influence his remarkable father has<br />

clearly had on his career and outlook. Has his<br />

father’s influence extended to the way in which<br />

he interacts with his two teenage daughters?<br />

“In some ways, yes, but not necessarily in<br />

the ways you might expect. My dad worked<br />

really hard to build his career and that inevitably<br />

involved trade-offs and sacrifices. If it weren’t<br />

for him and the opportunities that he and my<br />

mom provided for us, my brother and I wouldn’t<br />

be where we are now. I try to make fewer tradeoffs<br />

in terms of the impact of my career<br />

on my family, but I am grateful to my dad<br />

that he helped put me in a position where<br />

I have the freedom to make those choices.”<br />

Are his girls<br />

as competitive as<br />

“You get a better outcome<br />

when you have as broad<br />

a range of perspective and<br />

experience as possible.<br />

he is? Lance laughs.<br />

“<strong>The</strong> elder one<br />

definitely is. We make<br />

a competition out of<br />

everything – even if<br />

we are just sitting<br />

watching TV, we’ll<br />

have a competition<br />

about who can land the<br />

most empty candy wrappers in the waste<br />

basket. <strong>The</strong> younger one just rolls her eyes<br />

and goes to her room.”<br />

And does he ever let her win any of these<br />

contests? “No way! She has to win on merit.<br />

No one is going to just let her win later in<br />

life, so why in the world would I create the<br />

expectation that life is easy by letting her win<br />

at home?”<br />

You get the sense that the world should brace<br />

itself for yet another generation of Wards with<br />

great expectations of themselves. TNS 23


DOES YOUR COMPANY HAVE<br />

CORPORATE AMNESIA?<br />

Bruna Fell Lautert explains why recordkeeping<br />

in negotiation is a practice that<br />

companies overlook at their peril.<br />

efore I was a negotiation consultant<br />

I held different roles, mostly in sales,<br />

and I want to take this opportunity to<br />

share you with you one of the most<br />

interesting transitions that I experienced when<br />

I moved from the world of confectionery to<br />

that of footwear.<br />

From sweets to fashion, my new role was to<br />

develop 15 existing clients, a mix of key accounts<br />

and distributors. After going through induction<br />

and all the systems training, I started learning<br />

about each client. To my surprise, each client<br />

had a specific folder containing all the details<br />

of previous negotiations, including internal<br />

alignment meetings, autonomy thresholds,<br />

stakeholder matrix, power perception,<br />

preconditioning pieces, opening positions,<br />

movements, timings, escalation (why they<br />

happened and when), negotiators profilers and<br />

preferences, and a detailed review after each<br />

negotiation about what worked well and what<br />

they could have done better. I just couldn’t believe<br />

it, what else could I ask for? Not only had a lot<br />

of the heavy lifting already been done for me,<br />

but I was also able to notice patterns that my<br />

counterparties had been following, making it<br />

possible to preview how my negotiations would<br />

unfold before they had even started. All that<br />

knowledge would provide me with strategic<br />

and tactical advantage to maximize my next<br />

deals. What an exciting start – I couldn’t wait<br />

to start negotiating!<br />

<strong>The</strong>n I woke up...<br />

Yes, it was a dream, of course. And if you have<br />

changed roles in the past, you know exactly what<br />

I am talking about. You get into the new role,<br />

and sometimes the person who was in your new<br />

position is completely gone, and with them the<br />

information they had on the clients. You will<br />

inherit emails and data from systems, but nothing<br />

even close to what I described above.<br />

Or perhaps you are one of the lucky ones,<br />

and the person previously in your role is still<br />

within the company and will now download some<br />

of the information they have. Why some? Well,<br />

if there wasn’t a systematic way to record specific<br />

information from previous negotiations, then<br />

it’s likely they will have forgotten some aspects<br />

of it. Some studies suggest that humans forget<br />

approximately 50% of new information within<br />

an hour, and that goes up to an average of 70%<br />

within 24 hours. With that in mind, if you have<br />

been in the same position for several years<br />

and are not in the habit of recording your<br />

negotiation information, then you are also<br />

a victim of forgetting!<br />

Companies invest considerable money<br />

in systems but seem to fail in building<br />

negotiation memory. Information is power<br />

in negotiation, and the more you know<br />

your counterparty, the better you will be<br />

able to leverage your position. Lately<br />

when I’m having conversations with<br />

clients, I hear this is a struggle they<br />

face, especially companies with a high<br />

turnover in the last couple of months.<br />

24


THE NEGOTIATION SOCIETY<br />

Whether you are the lead negotiator or involved<br />

somehow in negotiations, this is something to<br />

think about, and most importantly, address.<br />

Let’s say you are the lead negotiator: from<br />

a selfish lens, building negotiation memory will<br />

put you in a better position for your upcoming<br />

negotiations; and now from a selfless lens – as<br />

you progress in your career, the next person in<br />

your seat will start negotiating from a much<br />

stronger position.<br />

<strong>The</strong> what – recording information – seems<br />

quite simple, but the how and where might not<br />

be. Those who want to run successful organizations<br />

should deliberately invest in company memory,<br />

giving their teams the tools and the time that they<br />

need to do the extra work. Amnesia is a real threat<br />

for those looking to improve their bottom-line<br />

year on year, and who isn’t looking for that?<br />

Will company memory solve all your<br />

commercial problems? <strong>The</strong> short answer is no.<br />

Retaining information alone won’t bring you<br />

results, because negotiation is both an art and<br />

a science. <strong>The</strong> “art” piece needs skills, behavior<br />

and discipline. <strong>The</strong> “science” piece can be mastered<br />

with the appropriate tools and processes so that<br />

the negotiator can employ objective thinking<br />

and structured planning.<br />

So, try and remember...what are you doing<br />

to avoid company amnesia? TNS<br />

“Information is power<br />

in negotiation.<br />

25


As the corporate world increasingly<br />

prioritizes recruiting, retaining<br />

and promoting diverse talent, what’s<br />

it like to live and breathe the<br />

reality of being in the minority?<br />

Three professional negotiators<br />

share their perspective.<br />

Kristi Means explains why both race<br />

and gender should be acknowledged<br />

and neutralized within any negotiation<br />

relationship in order to create the best deal.<br />

A<br />

s a minority woman, sometimes it’s<br />

not the other person who is projecting<br />

bias, it’s you wondering how the other<br />

person is going to receive you. That thought<br />

alone can make you hesitant to engage directly<br />

or be as assertive as your instincts dictate you<br />

should be. You worry you may be perceived as<br />

too aggressive or off-putting in some way, often<br />

resulting in not asking for the value you know<br />

you deserve. <strong>The</strong>se past experiences of feeling<br />

limited by your gender and or race/ethnicity<br />

often serve to color your preset opportunities.<br />

If you don’t know what the baseline truly is<br />

because you’ve been lowballed in the past,<br />

you might think it’s a great idea to come in<br />

at a certain number when you really should<br />

have come in at another.<br />

However, there is a reality of negotiations<br />

as a minority female that cannot be ignored,<br />

and nor should it. I have experienced not being<br />

taken seriously up front and it’s taken longer to<br />

build a business rapport to get the individuals to<br />

recognize that I am a force to be reckoned with.<br />

When I was growing up, I felt judged, but<br />

I never could understand why. I just thought<br />

it was my nature. When I entered corporate<br />

26


THE NEGOTIATION SOCIETY<br />

America and began negotiating with internal<br />

and external parties, I was judged, but then<br />

I had the evidence to support the racism,<br />

sexism and the intersectionality of both.<br />

In many instances, particularly in vendor<br />

negotiations, the vendor tended to prefer dealing<br />

with a male colleague or did not recognize me<br />

as the decision maker. With that comes a level<br />

of hesitation or withholding of information that<br />

would allow me to make an informed decision<br />

or create the most impactful win-win. Many<br />

times, I would only receive the full picture when<br />

a male colleague was in the room. I would end<br />

up feeling like the ‘junior’ person in the room<br />

and had to fight to get my leverage back as the<br />

subject matter expert and decision maker.<br />

At times, this miscalculation, whether<br />

conscious or unconscious, makes the other party<br />

underestimate you and allows you to gain the<br />

upper hand unexpectedly. For instance, I was in<br />

negotiations with a leadership content provider,<br />

who directed all their conversation to my male<br />

subordinate, despite his repeated redirection to<br />

me. I quickly took control of the negotiation,<br />

letting her know I was the final decision maker<br />

and would authorize the contract. Additionally,<br />

having done my due diligence of previous<br />

services provided by the organization, I was<br />

able to negotiate other concessions from the<br />

vendor to obtain an even better deal than<br />

prior contracts. What was interesting about<br />

this particular situation was that it was a<br />

white female who refused to acknowledge my<br />

authority. This does not mean that gender gets<br />

sidelined as a bias, and it could shed light on<br />

women’s own bias towards female authority.<br />

I’m hopeful that there will be a time when<br />

race and gender are not factors in anything,<br />

be it negotiations, hiring, or any other area of<br />

life. <strong>The</strong> reality is that humans are wired to be<br />

attracted to what looks like them. What we can<br />

do is continue to be aware of our own biases and<br />

check in with ourselves as to what’s driving our<br />

decisions and reactions. When deciding during<br />

a negotiation, we (women and men, regardless<br />

of race) should ask ourselves, “Is bias playing<br />

any role in this negotiation?” Whether your<br />

bias is for or against the other party, it should<br />

be acknowledged and neutralized. To help<br />

neutralize the bias, we should ask ourselves,<br />

“Am I getting the best value out of this<br />

negotiation? Will I feel good about this<br />

deal in the long term?”<br />

Additionally, those in positions of power<br />

need to widen the gate for others to ascend.<br />

With increased diversity of decision makers,<br />

exception then becomes the rule, thereby<br />

helping to minimize the unconscious bias.<br />

If we see women and women of color in<br />

positions of power and influence more<br />

frequently, our first instinct will not be<br />

to defer to the man.<br />

THE ADVICE I WOULD GIVE TO<br />

WOMEN (OF ALL RACES) WHEN<br />

ENTERING A NEGOTIATION:<br />

1 Be overprepared. Understand their<br />

business as much as you understand<br />

your product/business.<br />

2 Know your value and your worth.<br />

<strong>The</strong> product might be the same,<br />

but the value might be in you.<br />

3 No one wants to overpay for anything,<br />

so ask yourself where can I create added<br />

value? If you can’t match, beat or receive<br />

a better price, where can you provide or<br />

gain something that’s an added value.<br />

According to <strong>The</strong> Gap Partnership’s<br />

gender and negotiation research, we know<br />

that only 9% of women with no negotiation<br />

training rated their confidence above 75 out<br />

of 100. But with training, 34% of women<br />

rated their confidence high. And for men,<br />

this went from 25% without training to<br />

44% when they’ve received training.<br />

While the correlation between training<br />

and negotiation confidence is great to see,<br />

lived experience says that both numbers<br />

would be negatively impacted when<br />

broken out by race. Perhaps the next phase<br />

of the research needed is to look at the<br />

intersectionality of race and gender in<br />

negotiation confidence.<br />

27


Victoria Karelina considers her position as a<br />

female negotiator operating in a man’s world,<br />

and gives some useful insight into how she has<br />

overcome potential obstacles and flourished.<br />

W<br />

hen I was commissioned to write about<br />

what it’s like to negotiate as a woman<br />

in a male-dominated environment,<br />

I realized I’d never given it much thought.<br />

Having worked for 13 years in the maledominated<br />

oil and gas industry, I didn’t question<br />

the established state of affairs, and nor was I<br />

driven by an ambition to change it. I accepted<br />

the situation as an axiom and performed my<br />

tasks accordingly.<br />

“I was often the only woman<br />

in a meeting room – or at<br />

best there would be only one<br />

woman on each side.<br />

Perhaps that helped me cope: rather than<br />

questioning why there were always more men<br />

when I entered a meeting room, while<br />

I represented the minority and therefore<br />

might be underestimated or not taken seriously,<br />

I simply took the situation ‘as-is’ and focused<br />

on my task.<br />

According to joint research of the World<br />

Petroleum Council and Boston Consulting<br />

Group , five years ago women represented 22%<br />

of the workforce in the energy sector worldwide.<br />

As of December 2021, that statistic remains<br />

unchanged. Within the oil and gas sector,<br />

gender diversity varies from one function to<br />

another: for example, there are more women in<br />

office-based corporate and support roles, such<br />

as legal, compliance, HR, finance – which is not<br />

dissimilar in other sectors. On the other hand,<br />

operations, supply chain, and technical positions,<br />

particularly offshore where tough physical<br />

labor is required, are mostly filled by men.<br />

Yet there is a whole array of other jobs also<br />

dominated by men, regardless of the country<br />

or region – be it Europe, Africa, Middle East<br />

or Asia. <strong>The</strong>se are not roles that require manual<br />

labor, but ones in which there is interaction<br />

with clients, for example in sales, investment<br />

relationship or business development.<br />

<strong>The</strong>se roles may require building customer<br />

relationships, securing new projects,<br />

client research, agreeing on commercial terms,<br />

negotiation with counterparties in general,<br />

and representation of the employer’s interests.<br />

And despite recent, increasing efforts to<br />

encourage women’s growth and promotion,<br />

the bias that women are, let’s call it, “less<br />

suitable” for these types of roles still prevails<br />

in the energy sector.<br />

This might seem frustrating and<br />

demotivating, but from the inside it does<br />

not look that scary. I started as a lawyer and<br />

continued as a contract advisor, and have<br />

always been involved in contract negotiations.<br />

I was often the only woman in a meeting<br />

room – or at best there would be only one<br />

woman on each side.<br />

However, notwithstanding such a significant<br />

disproportion coupled with the specific cultures<br />

of the Middle East countries I used to travel<br />

to, I’m not able to recall a situation when I felt<br />

negatively judged, left out, disrespected or even<br />

a hint of harassment because of my gender.<br />

Yes, negotiating and closing a deal, especially<br />

when you are a fresh graduate, was and is still<br />

not easy. I had long working hours and<br />

sometimes sleepless nights, and hours of online<br />

research – because law school doesn’t teach you<br />

how to apply your theoretical knowledge to<br />

a real transaction, nor does it teach you an<br />

essential skill a lawyer must have – the art<br />

of negotiation.<br />

I learned some articles and contract<br />

provisions by heart, went through pre-meeting<br />

self-doubt and post-meeting self-analysis<br />

sessions, and undertook weeks of preparation<br />

followed by weeks or months of negotiations.<br />

But who doesn’t do all this? It’s an indispensable<br />

part of the natural process of learning and<br />

getting professional experience. I have never<br />

justified any unfavorable outcome as a result<br />

of unfair treatment due to my gender. For if<br />

I did, even if it was true, my focus would have<br />

shifted. Instead I always explain to myself<br />

that I did not take enough effort and time<br />

to achieve the desired result.<br />

When you negotiate as a minority, it<br />

is important how you convey your mood:<br />

if you feel insecure and find the ambiance<br />

intimidating, it will intimidate you, and the<br />

other party will talk to you from a position<br />

of power. But if you find it empowering,<br />

28


THE NEGOTIATION SOCIETY<br />

it will be easier for you to control the agenda.<br />

Besides, some men get confused when they<br />

have to negotiate with a woman, and will take<br />

time to “study” you, and this time can be used<br />

in your favor.<br />

OF COURSE YOU WILL NEED TO USE<br />

NEGOTIATION TECHNIQUES AVAILABLE<br />

IN YOUR ARSENAL, AND I WOULD LIKE<br />

TO SHARE THE KEY LEARNING POINTS<br />

THAT HAVE ALWAYS HELPED ME:<br />

• Know the subject . A universal one. If you<br />

negotiate as a lawyer or commercial or<br />

technical specialist, try to have the full picture<br />

and understanding of the deal, not only the<br />

piece you are responsible for.<br />

• Prepare for each negotiation session. Even if<br />

you have read that contract a hundred times,<br />

there might be a tiny detail that has slipped<br />

from your memory and requires a refresh.<br />

• Be self-confident. In negotiations you have<br />

the same power as a man.<br />

• Be insistent. Develop your persuasive skills<br />

and use them determinedly.<br />

• Stay emotionally uninvolved. Use your<br />

emotional intelligence but don’t get emotional.<br />

• Follow strict dress code. This should go<br />

without saying: be respectful of the culture<br />

you are in, and always look professional.<br />

• Take each negotiation as your personal<br />

challenge. My favorite: first of all do it<br />

for yourself, and then for your employer.<br />

In the end, you will always be judged by your<br />

look or age or gender or, in my case and in the<br />

light of current events, nationality, and you will<br />

have to prove that you are not a “giraffe”. But<br />

you will have to do it anyway in any other<br />

industry, in any other job. And the first person<br />

you will have to prove it to is yourself. Once you<br />

realize that, gender and anything else become<br />

absolutely irrelevant.<br />

Amy Van Hoveln reflects on the incongruity of male<br />

dominated teams making decisions about how best to<br />

create, market and sell products to a female consumer,<br />

but also reports encouraging signs of progress.<br />

I<br />

n the consumer packaged goods (CPG)<br />

industry, retailers and manufacturers<br />

spend an inordinate amount of time<br />

negotiating everything from physical and digital<br />

shelf space to promotions to displays…and the<br />

list goes on. Both sides spend time planning<br />

the details of each negotiation, as learned in<br />

<strong>The</strong> Gap Partnership’s <strong>The</strong> Complete Skilled<br />

Negotiator workshop. Should we open extreme?<br />

Will they open extreme? At which position on<br />

the Clockface will we conduct our negotiation?<br />

Which position will they take? What is our<br />

breakpoint? What is their breakpoint? Who<br />

will play each role in the negotiation for us<br />

and them? What’s important but easy for each<br />

party to give?<br />

While retailers and manufacturers negotiate<br />

frequently, they certainly agree on one thing:<br />

the desire to put consumers at the heart of<br />

everything they do. <strong>The</strong> pandemic has forever<br />

changed shopping patterns. Consumers have<br />

consolidated trips and narrowed the number<br />

of brick-and-mortar retailers they visit. <strong>The</strong>y<br />

shop in-store, online, and on their phones,and<br />

spend more each trip. Consumers want to shop<br />

however, wherever, and whenever they want<br />

and expect their brands to be in stock. <strong>The</strong>y<br />

are much less retailer-loyal than they used to<br />

29


e given the rise of the digital economy, where<br />

shoppers can – with the touch of a few clicks<br />

on their phone – know the price and availability<br />

of an item from a nearby store or an ecommerce<br />

pure play retailer. Knowing these evolving<br />

consumer dynamics, retailers and manufacturers<br />

must fight even harder to win the hearts and<br />

minds of shoppers.<br />

Did you know that women make up more<br />

than half of the US population and control<br />

or influence 85% of consumer spending?<br />

(Forbes 2019). It’s particularly interesting<br />

to consider that within the CPG industry<br />

the target consumer is regularly female, but<br />

the teams responsible for developing, testing,<br />

producing, marketing, and selling products<br />

to her tend to be disproportionately male,<br />

especially at the leadership level. This is<br />

true also for the negotiation teams.<br />

“Because each gender brings<br />

specific strengths to the table,<br />

building gender diverse negotiation<br />

teams should be a no-brainer for<br />

both manufacturers and retailers.<br />

One negotiation best practice is “getting<br />

inside the other party’s head” by actively<br />

listening with empathy to understand the<br />

position of the counterparty and position the<br />

deal in a way they can agree to it. Another<br />

best practice is “beginning with the end in<br />

mind,” continually focusing on what outcome<br />

will create the most impact vs. “winning” the<br />

negotiation. If manufacturers and retailers’<br />

top priority is capturing consumers, and<br />

women control or influence 85% of consumer<br />

spending, wouldn’t it make sense to ensure<br />

women are part of their negotiation teams?<br />

<strong>The</strong> Gap Partnership’s gender and<br />

negotiation research found multiple<br />

significant gender differences in both<br />

approach to and implementation of<br />

negotiations, which means having little to<br />

no gender diversity within negotiation teams<br />

is not optimal. Because each gender brings<br />

specific strengths to the table, building gender<br />

diverse negotiation teams should be a nobrainer<br />

for both manufacturers and retailers.<br />

I have been a part of numerous negotiation<br />

teams throughout my career. <strong>The</strong> most<br />

successful negotiations have happened when<br />

both negotiation teams were gender (and other)<br />

diverse, allowing for diversity of thought and<br />

style in both the planning and execution of the<br />

negotiation. One negotiation was particularly<br />

memorable because we started the negotiation<br />

with a small, all-male team. <strong>The</strong> retailer’s<br />

negotiation team was primarily<br />

female with one male included.<br />

<strong>The</strong> negotiation leads had such<br />

different styles that the negotiation<br />

came to a standstill. At that point,<br />

we brought in two females to join<br />

our negotiation team; doing so<br />

helped facilitate progress in the<br />

negotiation. It wasn’t that the<br />

females were better negotiators,<br />

but they were better equipped<br />

to get in the heads of the lead<br />

negotiators on the other side as well as<br />

adapt their style to be more relatable to<br />

the other side as well.<br />

Gender (and other) diversity is firmly<br />

on the agenda of global business leaders.<br />

While there are encouraging signs of progress<br />

and support, there is still a lot of work to do.<br />

As leaders in the CPG industry, we need<br />

to ensure our teams represent not only our<br />

customers (retailers), but also our consumers.<br />

<strong>The</strong> time to act is now as it’s never been<br />

more difficult to win and keep<br />

consumers loyal. TNS<br />

30


THE NEGOTIATION SOCIETY<br />

NEGOTIATING A PATH<br />

TO COMMERCIAL SUCCESS<br />

Chris Atkins explains why creating and implementing<br />

a high-performing negotiation culture can help a business<br />

deliver its business strategy.<br />

58%<br />

do not often plan beyond<br />

objectives for negotiations<br />

15%<br />

say objectives are often changed<br />

during a negotiation causing<br />

problems in the negotiation<br />

83%<br />

do not get the chance to role<br />

play negotiations internally<br />

before they happen<br />

20%<br />

21%<br />

do not seek to understand<br />

the balance of power<br />

before starting a negotiation<br />

tell us leadership will<br />

go beyond agreed<br />

breakpoints at the<br />

end of a negotiation<br />

<strong>Negotiation</strong> Culture Index Feb 2021.<br />

M<br />

ention the desire to change your company’s<br />

culture and you will swiftly find yourself facing<br />

some resistance. <strong>The</strong>re will be many who have<br />

grown up, and grown successful, within the existing<br />

culture, and the forces for maintaining the status quo<br />

will be as strong, if not stronger, than those that see<br />

the benefit in change.<br />

Add to that the suggestion that the new culture<br />

should be anchored in a skill that may be considered<br />

to be merely a commercial necessity and eyebrows<br />

will understandingly begin to rise.<br />

But consider this...<br />

Every day, every team in your company negotiates<br />

internally and externally to get their job done. Only<br />

through negotiations can they achieve their goals.<br />

Only through their negotiations can you realize<br />

your company’s goals. So, when we talk about<br />

implementing a negotiation culture we are talking<br />

about developing a culture that directly enables<br />

31


your team’s ability to implement your business strategy.<br />

So, let’s examine each of the elements of negotiation<br />

culture and try to unpick the “Why?”<br />

I’ll start by considering and correcting some<br />

common misconceptions.<br />

MISCONCEPTION #1: NEGOTIATION IS A WIN-LOSE GAME<br />

One of the challenges of being a negotiation<br />

consultant is that people expect and assume that you<br />

specialize in being tough, argumentative, and insistent<br />

on driving a hard bargain. And when negotiation is<br />

considered to be an aggressive activity of last resort,<br />

then driving this into organizational culture could be<br />

considered a negative, even retrograde step, creating<br />

an unpleasant place to work for all but the toughest,<br />

most Machiavellian individuals.<br />

But this is a narrow and misleading definition of<br />

negotiation. <strong>The</strong> much more interesting and complex<br />

truth is that in its most complete form, negotiation<br />

is a subtle, combined art of listening, understanding,<br />

and creative problem-solving.<br />

When we work with our clients in negotiation,<br />

regardless of the intervention, we consistently<br />

concentrate on supporting the desired behaviors<br />

of a successful negotiation team, who:<br />

1. Know what they’re doing, their responsibilities,<br />

and their level of empowerment.<br />

2. Plan efficiently and completely.<br />

3. Objectively evaluate and mitigate risk.<br />

4. Take control of their situation.<br />

5. Understand and select options effectively.<br />

6. Know their counterparty.<br />

7. Develop strategies and understand the<br />

“How?” as well as the “What?”.<br />

8. Value elements and priorities from their<br />

point of view and their counterparty’s.<br />

9. Ensure all parties are aligned throughout<br />

the process.<br />

10. Ensure their plans and activities align<br />

with the overarching strategy.<br />

11. Communicate effectively – internally<br />

and externally.<br />

12. Have a replicable process and tools that<br />

maximize the chance of success.<br />

Viewing these principles through a different<br />

lens, I suggest they are also the principles of sound<br />

commercial management which, when firmly<br />

embedded within a cultural framework that rewards<br />

these principles, will lead to better decisions being<br />

made, understood, and implemented effectively.<br />

In our experience these principles, while appearing<br />

obvious when they are written down, are not<br />

commonly, consistently or completely practiced in<br />

many business environments. Sometimes it’s because<br />

we don’t have time to plan properly. Sometimes it’s<br />

because objective evaluation is not rewarded. And<br />

sometimes it just feels more heroic to fight fires than<br />

to stop them from igniting in the first place.<br />

Whatever the reason, introducing and encouraging<br />

the habitual adoption of negotiation principles will<br />

start moving the needle toward a more commercially<br />

aware and astute approach. This will in turn start<br />

moving the profitability dial.<br />

MISCONCEPTION #2: NEGOTIATION IS LIMITED<br />

TO CERTAIN SPECIALIST TEAMS<br />

<strong>The</strong> sales team – they do the negotiating, right?<br />

Oh, and Procurement, of course. And while we are<br />

thinking about it, Supply Chain negotiates all the<br />

time. Hang on, what about Employee Relations,<br />

and their negotiations with unions or prospective<br />

hires? And Legal, well of course they negotiate<br />

contracts too. Marketing – don’t they negotiate<br />

with agencies? IT have ongoing negotiations with<br />

contractors and service providers. As do Facilities.<br />

I could go on.<br />

Every team negotiates with someone daily, be it<br />

internal or external, because negotiation is the act<br />

of two or more parties coming together to reach an<br />

agreement. And in today’s world multiple stakeholders<br />

have an impact on the trajectory of negotiations that<br />

would have previously been conducted in a onedepartment<br />

“bubble”.<br />

Here’s an example. We recently supported<br />

a multibillion-dollar RFP process for a significant<br />

portfolio of raw material commodities. Because<br />

this raw material sat at the core of our client’s end<br />

product, the award decision needed to consider many<br />

dimensions: environmental sustainability, contractual<br />

requirements, supply chain resilience, innovation,<br />

technical support, customer service, productivity,<br />

quality and, of course, cost. In total, more than 30<br />

different factors were assessed, and all stakeholders<br />

needed to be satisfied. It is this ecosystem of factors<br />

that needs to be considered in any negotiation,<br />

all of which require suitable planning, alignment,<br />

and communication if a negotiation is to be<br />

successful in today’s environment.<br />

MISCONCEPTION #3: NEGOTIATION HAPPENS AT<br />

THE END OF THE BUSINESS PLANNING PROCESS<br />

No. <strong>Negotiation</strong> is the means by which an<br />

organization delivers its business strategy. At <strong>The</strong> Gap<br />

Partnership we’ve built a reputation as negotiation<br />

specialists – and we’re proud of that. But increasingly<br />

it’s clear that we’re also specialists in the execution of<br />

business strategy, in realizing the goals set within that<br />

strategy, and maximizing the chances of success.<br />

32


THE NEGOTIATION SOCIETY<br />

We often encounter critical failure points in our<br />

negotiation support activities:<br />

1. Specific negotiation goals are mismatched<br />

to individual KPIs.<br />

2. Individual KPIs are mismatched<br />

to departmental objectives.<br />

3. Departmental objectives are mismatched<br />

to business strategy.<br />

<strong>The</strong> magnifying effect of this layering of mismatches<br />

results in a negotiated outcome that fails to deliver<br />

the business strategy, and in many cases has<br />

“Introducing and encouraging<br />

the habitual adoption of<br />

negotiation principles will start<br />

moving the needle toward a<br />

more commercially aware and<br />

astute approach.<br />

a directly contradictory outcome. So, the overarching<br />

business strategy is bound to fail in its execution.<br />

Consequently, our first task is recreating the<br />

connections between specific negotiation goals<br />

and business strategy.<br />

<strong>The</strong> connection between<br />

organizational strategy and<br />

its execution – its negotiation – is inextricable,<br />

so it’s critical to consider the end-to-end process<br />

with all its many facets as the strategy is developed.<br />

BRINGING IT ALL TOGETHER<br />

What is negotiation culture, at its most<br />

fundamental? A great place to start is with the<br />

meaning of the words themselves. Both have their<br />

roots in Latin:<br />

<strong>Negotiation</strong> is from the Latin negotiari, meaning<br />

to carry out business. Cultureis from the Latin cultus,<br />

meaning foster or cultivate.<br />

So, negotiation culture is, literally, Fostering<br />

a [new/better] way of carrying out business.<br />

To implement a successful negotiation culture<br />

requires us to understand and address shortcomings<br />

in three key areas:<br />

<strong>The</strong> people that we hire, the methods by which<br />

we develop their capability, and the ways in which<br />

we encourage their behaviors.<br />

<strong>The</strong> replicable process and methodology<br />

which provides a more consistent chance of success<br />

in multiple scenarios, and the tools provided to<br />

support those processes with the thinking that<br />

underpins them.<br />

<strong>The</strong> organizational structures that we put in place<br />

to provide governance, guidance, and empowerment.<br />

<strong>The</strong> cultural reinforcement which develops habits,<br />

facilitates communication, and creates a safe learning<br />

environment and a corporate memory which reduces<br />

reliance on the knowledge of few individuals.<br />

Let’s return to our original questions: “Why do<br />

I need to change the culture of my organization<br />

and why would I choose a negotiation culture?”<br />

Here’s why…<br />

Because an organization with a strong negotiation<br />

culture has everything in place to execute and deliver<br />

its commercial business strategy. Because the<br />

commercial world is changing, and the<br />

speed of change will continue to accelerate.<br />

Because it is imperative to keep pace with<br />

change today: the competitor you’ve never<br />

heard of is doing it already.<br />

I rest my case. TNS<br />

This is an edited extract from <strong>Negotiation</strong> culture:<br />

A manifesto for commercial success. If you<br />

would like to read it in full, email us at<br />

negotiationculture@thegappartnership.com<br />

33


Tricks of my Trade<br />

Consulting project manager Catherine Oh reveals how a varied<br />

first role in a Big 5 consultancy firm led to a career at TGP and<br />

the igniting of a passion for negotiation.<br />

<strong>The</strong> <strong>Negotiation</strong> <strong>Society</strong>: Cat, tell us about life before<br />

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

Cat: I grew up in Houston and moved to Austin<br />

to study finance at <strong>The</strong> University of Texas. It gave me<br />

a good foundation in business, and I became interested<br />

in management consulting. In my senior year,<br />

PricewaterhouseCoopers reached out and asked<br />

if I was interested in working in Hong Kong. In<br />

September 2018 I made the move, just me and two<br />

suitcases. When I arrived, I didn’t know anyone!<br />

TNS: Wow, that was brave. How was it?<br />

Cat: I was constantly on the move, traveling to Korea,<br />

Malaysia, and cities in China, working on lots of<br />

different projects.<br />

TNS: What kind of projects?<br />

Cat: Retail organizational design, pharma supply chain,<br />

and digital transformation. I led an escape room activity<br />

for a change management training exercise. I locked senior<br />

partners in a conference room and left them clues to figure<br />

out how to use the new system. It was chaos! Another<br />

project was an audit for private wealth management clients,<br />

analyzing their private banking<br />

portfolios, discovering how<br />

millionaires made their<br />

money. I also got to<br />

analyze a major pharma’s<br />

distribution network<br />

at the height of Covid.<br />

TNS: How did you go from<br />

PWC to TGP, and how’s<br />

it been so far?<br />

Cat: I was headhunted.<br />

From day one, I loved<br />

the friendly and<br />

helpful vibe, plus<br />

I’ve always been<br />

interested in<br />

the behavioral<br />

aspects of<br />

negotiation.<br />

I’ve never had<br />

so much fun<br />

at work as<br />

when I did<br />

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

it was truly empowering.<br />

TNS: What is it about negotiation that feels so exciting?<br />

Cat: I’ve learned that every conversation, personal and<br />

professional, can be a negotiation; an opportunity to create<br />

better outcomes for everyone involved. <strong>The</strong> projects I’ve<br />

worked on at TGP have been incredibly relevant to today’s<br />

macroeconomic events, and I’m extremely interested in how<br />

businesses manage these challenges and come out stronger<br />

using the power of negotiation.<br />

TNS: Have your negotiation skills been put to the test<br />

outside of work?<br />

Cat: Yes! My landlord wanted me to sign a long-term contract,<br />

so I renegotiated with him and cut it back to four months.<br />

I was so proud of myself!<br />

TNS: Brilliant! Any spare time for passions outside<br />

of negotiation?<br />

Cat: I went to India for a month and became a yoga instructor.<br />

During lockdown, I was teaching classes from my terrace.<br />

It’s been super fun and a great work-life balance.<br />

TNS: What’s next for you at TGP?<br />

Cat: I’m working on consulting projects with clients from<br />

various industries, planning and executing commercial<br />

negotiations with their counterparties. I’m about to move<br />

to London to be part of the EMEA team, partnering with<br />

principals and partners on client engagements.<br />

TNS: Sounds great. What’s prompted the move?<br />

Cat: It’s important to me to have a global career, and after<br />

a few years in Hong Kong, London seemed like the natural<br />

step. I’ve been to the UK before and loved it; I felt like a real<br />

Londoner, taking the tube and running each morning along<br />

the river.<br />

TNS: How do you see your journey mapping out over<br />

the longer term?<br />

Cat: I love project delivery; everything is so relevant and every<br />

day I am learning more about what’s going on in the world<br />

and how it impacts businesses. <strong>The</strong>re’s never a dull moment<br />

and always something new to learn. TNS<br />

34


THE NEGOTIATION SOCIETY<br />

Tim Green<br />

A work in<br />

progress<br />

March 2020<br />

Employee: ‘I want to be able to work from<br />

home instead of the office.’<br />

Employer: ‘No. Office-based means just that.’<br />

March 2022<br />

Employer: ‘We need everyone to come back<br />

and work from the office.’<br />

Employee: ‘No. Home-based has worked just<br />

fine and you can’t force me to return.’<br />

Before Covid, many office workers were largely<br />

powerless in negotiations with their company<br />

to be allowed to work from home, even for part<br />

of their working week. It just wasn’t how things<br />

were done. Now, as many companies try to get people<br />

back to the office, has the impact of our enforced remote<br />

working shifted the balance of power in favor of the<br />

individual? Or is the situation more nuanced?<br />

“With the return to work<br />

conundrum, the balance of<br />

power could be estimated by<br />

both parties to be in their favour.<br />

As with all negotiations, the ideal is both parties show<br />

flexibility and arrive at a mutually agreeable solution.<br />

However, with the return to work conundrum, the<br />

balance of power could be estimated by both parties<br />

to be in their favor.<br />

On the one hand, workers may perceive a shift in<br />

power to themselves because precedent has been set<br />

that working from home works, and use this as<br />

a blunt instrument by refusing to go back to the office,<br />

especially if they can’t legally be compelled to. Conversely,<br />

employers may perceive that a return to normality sought<br />

by governments and industry bodies has given them<br />

power to be able to force people back to the office.<br />

While the two parties’ respective self-assessment of<br />

the power balance could negatively impact the progress<br />

of negotiations,<br />

resulting in deadlock,<br />

the flipside of a more<br />

equitable power balance is<br />

that it could facilitate more creative<br />

and collaborative approaches in finding<br />

optimal working practices.<br />

<strong>The</strong> power of the company in part lies in the<br />

objectives their employees must deliver against to<br />

fulfill their contractual obligations. Companies could<br />

look to underline the need to hit these objectives but<br />

give responsibility to the individual to prove they can<br />

do so in a more flexible working pattern.<br />

<strong>The</strong> employee also has power, partly because the<br />

global working culture has changed to make working<br />

from home more acceptable, but also because the<br />

employer will need to ensure that if they offer the option<br />

of all or part of a working week from home, that they<br />

provide the necessary infrastructure to facilitate this.<br />

To reach a mutually acceptable solution, creative<br />

thinking is essential. How can employers make it more<br />

appealing to come back to the office? For sectors where<br />

flexible or remote working poses less challenge to a role’s<br />

performance, ideas such as flexible office hours, uncapped<br />

holiday, or a minimum number of office-based days per<br />

week, are all being used to show flexibility, while putting<br />

responsibility for their output on the individual.<br />

In the same breath, how can employees demonstrate<br />

an equal or greater productivity and loyalty to the<br />

business if given flexible working arrangements?<br />

And could this show a saving in the costs of running<br />

the business? Well, the proof of the pudding is in the<br />

eating: by producing the goods, whether metaphorically<br />

or literally, employees can prove that flexible working<br />

benefits their business as well as themselves – whether<br />

through a more desirable employer brand that attracts<br />

millennial talent, or bottom-line results.<br />

As in any successful collaborative negotiation, the key<br />

to reaching a mutually agreeable solution is creativity,<br />

conditionality, flexibility, and trust. Covid led to a change<br />

almost overnight in how we work and communicate,<br />

together with an accelerated evolution or uptake of tools<br />

and tech to facilitate this. <strong>The</strong>re has never been a better<br />

time to find a way to work smarter. TNS<br />

35


QUESTION<br />

TIME<br />

We asked our panel of experts for their pithy<br />

yet considered response to the statement,<br />

“An organization lacking in negotiation<br />

capability will never be able to<br />

successfully transform.”<br />

Rachel Montañez<br />

Holistic Career Coach,<br />

Career and Burnout Keynote Speaker<br />

In offices across the globe, burnout<br />

is a big threat. <strong>The</strong>re’s a tug-of-war<br />

between employers and employees.<br />

One side pulls for more productivity<br />

while trying to maintain equity and<br />

the other side pulls for career success<br />

while trying to sustain well-being.<br />

But what if, in our attempts to<br />

prevent and manage burnout, we’ve<br />

failed to consider what we can learn<br />

from the discipline of collaborative<br />

negotiation? Both require emotional<br />

intelligence, problem-solving, planning,<br />

and communication.<br />

Seeing as each employee makes up<br />

the organization and self-preservation<br />

is the first law of nature, let’s replace<br />

“organization” with “employee”. <strong>The</strong>re<br />

is no customer-centricity or business<br />

transformation when an employee is<br />

not fully functioning.<br />

If you are in danger of heading<br />

toward burnout, there’s an organizational<br />

root cause and perhaps life and career<br />

skills to sharpen and execute. You need<br />

to enter into a win-win solution with<br />

your colleagues and boss to protect<br />

yourself – and ultimately help end<br />

the tug-of-war.<br />

36


THE NEGOTIATION SOCIETY<br />

Marc Wehrum Muhannad Alghanmi Mel Anders<br />

Managing Partner EMEA,<br />

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

Associate Director Of Talent Development,<br />

ROSHN<br />

Senior <strong>Negotiation</strong> Consultant,<br />

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

Ever heard of VUCA? It stands<br />

for volatility, uncertainty, complexity,<br />

and ambiguity, describing a world in<br />

which conditions change constantly<br />

and drastically, creating an imperative<br />

for organizations to transform.<br />

To do this successfully, companies<br />

must reassess the way they negotiate.<br />

In the past, three or five-year contracts<br />

could be agreed, assuming relative<br />

stability during that time period. But<br />

now negotiators need to be clearer<br />

upfront on the primary objective,<br />

whether that’s price, supply chain<br />

security, or knowledge transfer, and<br />

build in flexibility for situations that<br />

may change.<br />

<strong>The</strong>y will also need to manage the<br />

what-ifs, focusing on the long-term<br />

objective but also considering short<br />

term “losses”. This makes deal-making<br />

more complex as it will be harder to<br />

evaluate the potential value or cost of<br />

hypothetical scenarios. But the most<br />

successful organizations will be those<br />

that can protect their business from<br />

as many what-ifs as possible.<br />

Volatility, complexity, ambiguity,<br />

and uncertainty are going to<br />

continue to rise, so you had<br />

better come prepared.<br />

Organization transformation<br />

is a business strategy for change<br />

management that aims to shift<br />

your organization from its current<br />

condition to a desired future state,<br />

and all change necessitates negotiation,<br />

and successful negotiation necessitates<br />

effective negotiation.<br />

<strong>The</strong> majority of change management<br />

models’ failure to apply essential<br />

negotiation principles leads to<br />

missed opportunities and disgruntled<br />

stakeholders. Change negotiations<br />

have to take place at all levels of the<br />

organization. Managers and leaders<br />

should meet on a regular basis<br />

to discuss issues and address<br />

problems, ideas, and solutions<br />

in the process mapping.<br />

<strong>Negotiation</strong> is fundamental in<br />

anchoring change at all levels, from<br />

top management to employees, as they<br />

all can benefit from open conversations<br />

that foster a sense of belonging. From<br />

both an individual and organizational<br />

standpoint, negotiating change<br />

ensures quality and well-supported<br />

decisions. Goals, effectiveness, working<br />

techniques, and leadership can all<br />

be discussed as part of the reflective<br />

practice. Although negotiating<br />

change is rarely a quick fix, anchoring<br />

change at all levels is critical for<br />

long-term success.<br />

We find ourselves in the early years<br />

of <strong>The</strong> Fourth Industrial Revolution.<br />

To survive, businesses are compelled<br />

to transform to keep up with<br />

disruption driven by emerging<br />

technologies. Traditionally<br />

transformation occurred through<br />

the lens of productivity – better,<br />

faster, cheaper. Technology businesses<br />

like Siemens and Amazon are now<br />

focused on agility, utilizing strategic<br />

partnerships, and alliances to grow<br />

their revenues to suit the pace of<br />

change within the new environment.<br />

With the failure rate of partnerships<br />

typically high, realizing potential<br />

from collaborations requires effective<br />

negotiation. Businesses must<br />

consciously enter partnerships with<br />

a mindset of positivity, transparency,<br />

and with an intent to create greater<br />

value for both sides front and center.<br />

Only an organization with strong<br />

negotiation capability will be well<br />

equipped to approach, execute and<br />

maintain sustainable partnership<br />

arrangements, thus ensuring they<br />

remain on the correct path and<br />

avoid competitiveness and that<br />

(all too easy) unconscious swing<br />

from value creation (win-win)<br />

to value distribution (win-lose). TNS<br />

37


DEAR DIANA<br />

<strong>Negotiation</strong> expert Diana Jusepeitis tackles the<br />

ultimate negotiation conundrum of our times.<br />

Q: Whether it’s a pandemic,<br />

war, or ongoing political<br />

instability, it seems the world<br />

is lurching from one crisis to<br />

another. At the same time,<br />

we are expected to create<br />

and execute commercial and<br />

negotiation plans as though<br />

there is certainty for the<br />

future. But how do you plan<br />

in such volatile times, when it<br />

seems as if the planning should<br />

have taken place yesterday?<br />

D: Planning is one of my favorite<br />

words, because I love it when a plan<br />

comes together. In negotiation,<br />

nothing should happen by accident,<br />

but rather through structured planning<br />

and controlled execution. That’s<br />

easier said than done, especially in a<br />

crisis when structured planning may<br />

falter because time, circumstances,<br />

and parameters have changed. But<br />

problems must be solved<br />

and difficult decisions<br />

made quickly that may<br />

mean the difference<br />

between survival today<br />

or success tomorrow.<br />

But even when making<br />

such time-pressured<br />

decisions, I believe there<br />

is value in working<br />

methodologically.<br />

So let’s anchor this<br />

in some methodology.<br />

When we speak about negotiation<br />

culture at <strong>The</strong> Gap Partnership, we<br />

mean that you need to ensure you have<br />

the people, process, and organization<br />

to enable your teams to succeed. When<br />

a crisis hits, considering these three<br />

pillars will help you to maneuver your<br />

business through troubled waters.<br />

Let’s do the internal view first.<br />

Take action by being proactive. Start<br />

by scenario planning, analyzing the<br />

risks and their impact. This doesn’t<br />

have to be time consuming but will<br />

allow you to prioritize and build<br />

contingency plans.<br />

Next, seek support and alignment,<br />

and manage expectations. Any new<br />

decisions or change of direction may<br />

mean that goals and performance<br />

“Crisis means change, and<br />

change can be an opportunity<br />

to do new things.<br />

measurement have changed. Make sure<br />

you share these new goals with all of<br />

your stakeholders so they buy in to your<br />

new plan and don’t derail it. Be specific<br />

about who does what and prepare an<br />

escalation path.<br />

This leads me to something really<br />

fundamental in crisis management –<br />

don’t forget the people! Emotions and<br />

anxieties may be running high. As a<br />

professional negotiator, I’ve learned how<br />

important it is to separate emotions<br />

from behavior. Naturally it’s<br />

difficult to be in charge of your<br />

emotions when facing into<br />

stressful circumstances. But<br />

as a leader, you must stop and<br />

consider how your reactions<br />

affect other people. Lead your<br />

internal negotiation team<br />

with empathy, focus on safety<br />

and health, and remember the<br />

importance of appearing calm.<br />

Understand the circumstances<br />

of the people in your team first<br />

so you can work on finding coping<br />

mechanisms for them.<br />

Talking of people, what about<br />

“the other side”, the counterparty?<br />

Take time to explore their emotions<br />

as well. Get inside their head. How<br />

have their circumstances changed?<br />

And do they have to be seen as the<br />

other side? Crisis means change, and<br />

change can be an opportunity to do<br />

new things. Working<br />

side by side and<br />

developing a true<br />

partnership could<br />

overcome unforeseen<br />

challenges and secure<br />

value creation for both<br />

long-term. Of course it<br />

takes time to build trust.<br />

But a crisis and your<br />

action or inaction in<br />

such times can catalyze<br />

the level of trust in one<br />

or other direction.<br />

Finally, let’s move on to the crisis<br />

passing, or at least dissipating. Make<br />

sure you learn from the experience.<br />

Reflect on where you may have<br />

struggled, and why. What have you<br />

learned? <strong>The</strong>n include this information<br />

for future contracts and processes to<br />

prevent the same challenges recurring<br />

(as far as possible), and to be prepared<br />

for the next crisis.<br />

Stay healthy and safe! TNS<br />

38


THE NEGOTIATION SOCIETY<br />

CROSSWORD<br />

Our fiendishly challenging British-style crossword returns.<br />

ILLUSTRATION: CARTOONRESOURCE/CARTOONSTOCK<br />

1 2 3 4 5 6 7 8<br />

9 10<br />

11 12<br />

16 17<br />

18<br />

14 15<br />

21 22 23<br />

24<br />

25 26<br />

27 28<br />

ACROSS<br />

1 Engineers half-heartedly<br />

swore being unable to present<br />

their case (7)<br />

5 Son running for 14 (7)<br />

9 Repeatedly note describing<br />

a US city (5)<br />

10 Supporting the party over<br />

chaos season (2-7)<br />

"We worry more about deflation"<br />

13<br />

19 20<br />

11 Targeting of messages that's heard<br />

by those with acute perception (3,7)<br />

12 Parliamentary food? (4)<br />

14 North and South in bridge<br />

contract (11)<br />

18 Reform, let dropouts show<br />

emphatic disagreement (4,7)<br />

21 Trace Greek character (4)<br />

22 Resolve our violent mutiny (10)<br />

25 Way to categorize miners’<br />

association by the sea (9)<br />

26 Push in grim PE lesson (5)<br />

27 Give attention to advert<br />

for water barrier (7)<br />

28 See 17 Down<br />

DOWN<br />

1 Disheartened, ready to<br />

collect setter for repair (6)<br />

2 Suspend during church<br />

transformation (6)<br />

3 One that gives comfort<br />

has hippies dancing (6,4)<br />

4 Doctor’s surgeries<br />

providing sweets (5)<br />

5 Celeb’s man remodeled<br />

outward appearance (9)<br />

6 Part of church beginning to accept<br />

protestant services eagerly (4)<br />

7 One evening hosting a flyweight,<br />

initially participating at a bout (2,1,5)<br />

8 Large animal found in gloomy<br />

band reportedly (5,3)<br />

13 Transactions for female<br />

in wealth projection (10)<br />

15 Cook Nigel almost prone<br />

to starting again (9)<br />

16 14 revealing everyone in Council<br />

of Europe includes American (8)<br />

17/28 Surprisingly cut corners etc, I'm<br />

inclined to listen to clients (8-7)<br />

19 Child shows leg raises before<br />

exercises with runs (6)<br />

20 All together, state how neck<br />

positioned in French 22 (2,4)<br />

23 Soldiers (English and an<br />

American) caught applying<br />

to a wild gathering (5)<br />

24 Eye up for dance (4)<br />

For solutions email<br />

hello@thenegotiationsociety.com<br />

39


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