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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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