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ISSUE <strong>10</strong><br />
<strong>The</strong> <strong>Negotiation</strong> <strong>Society</strong><br />
BRINGING THE ART AND SCIENCE OF NEGOTIATION TO LIFE<br />
THE CONFIDENCE<br />
CONUNDRUM<br />
Gender and power’s<br />
impact on performance<br />
PSYCHOLOGICAL<br />
SAFETY<br />
Creating a safe and<br />
effective culture<br />
A BALANCING<br />
ACT<br />
<strong>The</strong> truth behind<br />
having it all<br />
SHOP TILL<br />
YOU DROP<br />
<strong>The</strong> products that<br />
defy recession<br />
DEFINITELY MAYBE<br />
Meet Ann Marie. A perfect paradox.
INSIDE THIS ISSUE<br />
05<br />
14<br />
<strong>The</strong> confidence<br />
conundrum<br />
How insecurity can<br />
risk the outcome of<br />
a negotiation.<br />
16 24<br />
Definitely<br />
maybe<br />
Our Chief Strategy<br />
Officer discusses her<br />
quest for excellence.<br />
28 30<br />
Culture in<br />
negotiation<br />
A Dutchman in APAC<br />
explores facets of culture<br />
and negotiation.<br />
A balancing<br />
act<br />
High achiever LaWanda<br />
Burns talks candidly<br />
about life.<br />
Psychological<br />
safety<br />
<strong>The</strong> importance of<br />
feeling supported<br />
as a negotiator.<br />
Shop till<br />
you drop<br />
What we buy when<br />
times are tough,<br />
and why.<br />
WELCOME FROM GRAHAM<br />
This edition of <strong>The</strong> <strong>Negotiation</strong> <strong>Society</strong> <strong>magazine</strong><br />
has two themes: the impact of the economic downturn,<br />
and how psychology influences commercial outcomes.<br />
We often state that negotiation is a science and an art,<br />
so here we give coverage to both perspectives.<br />
<strong>The</strong> Gap Partnership’s strategy underpins<br />
everything we do to add value to our clients. Inevitably,<br />
we shifted direction during the pandemic. Now, we<br />
are crystal clear on where we are going. To keep us<br />
honest in that goal we have a Chief Strategy Officer,<br />
Ann Marie Costelloe, who graces this <strong>issue</strong>’s cover.<br />
A pragmatic perfectionist with an eclectic background<br />
that will surprise many, even those who know her,<br />
Ann Marie’s achievements are broad, and now she’s<br />
helping our business take the next steps in our evolution.<br />
Other highlights include PepsiCo’s Dr. LaWanda<br />
Burns opening up about how she negotiates the<br />
pressures of leading in business and being a parent of<br />
four. Kelly Harborne explores why some consumer<br />
brands ride a recession better than others. And Maxim<br />
van Meeteren and Robert Geijsel discuss how<br />
negotiation training helps overcome social expectations<br />
of how men and women behave.<br />
A final thought: How is your business dealing with<br />
the volatility and uncertainty all around us today?<br />
Does your commercial capability cope sufficiently in<br />
such a confused and ambiguous world? If not, now is<br />
the time to take action to address this. <strong>The</strong> headwinds<br />
we can all feel in our faces just keep getting stronger.<br />
Graham Botwright<br />
CEO, <strong>The</strong> Gap Partnership<br />
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2
THE NEGOTIATION SOCIETY<br />
OUR CONTRIBUTORS<br />
Judy Hendrick<br />
Judy Hendrick is Chief Financial<br />
Officer of travel management<br />
company CWT. She has 20<br />
years’ hospitality and banking<br />
experience including roles at<br />
Aimbridge Hospitality, Wyndham<br />
International, Chase Manhattan<br />
Bank and First Republic Bank. Judy<br />
holds a Bachelor of Science degree<br />
from Kansas State University and<br />
an MBA from the University of<br />
Texas at Dallas.<br />
Michael Padro<br />
Michael Padro began his career<br />
at Univision and then spent<br />
eight years in tech at companies<br />
including Yelp and Justworks.<br />
Michael is now a consultant at<br />
<strong>The</strong> Gap Partnership where he<br />
partners with clients to solve<br />
their negotiation challenges.<br />
Michael holds a Bachelor<br />
of Business Management<br />
and an Associate of Science<br />
in Business Administration<br />
degrees from Iona University.<br />
LaWanda Burns<br />
Dr. LaWanda Burns is PepsiCo’s<br />
Global Sales Learning and<br />
Development Manager, creating<br />
and delivering curriculum for the<br />
global sales team. She has 15 years<br />
of director-level retail and supply<br />
chain experience at companies<br />
including Aldi and Save-A-Lot.<br />
LaWanda holds a Bachelor’s<br />
in Communication, a Master’s<br />
in Education and became a<br />
Doctor of Education in 2019.<br />
Eelco Modderman<br />
A Dutchman who has lived in Asia<br />
for over fifteen years, Eelco brings<br />
together the best of East and West.<br />
Initially Hong Kong-based, he now<br />
heads up <strong>The</strong> Gap Partnership’s<br />
Asia-Pacific region from Tokyo.<br />
Eelco believes passionately that<br />
creating impact for clients goes<br />
hand in hand with the personal<br />
growth of everyone in the team.<br />
Ashley Barrett<br />
Ashley is a Tampa-based<br />
negotiation consultant who joined<br />
<strong>The</strong> Gap Partnership in 2022. She<br />
has international retail experience as<br />
both a vendor and supplier within<br />
the furniture and apparel industries.<br />
Ashley led negotiations across B2B<br />
and B2C suppliers specializing<br />
in creative solutions that drove<br />
long-lasting partnerships and<br />
category growth.<br />
Brian Denning<br />
Brian is a lifelong learner with 20+<br />
years in sales, marketing, strategy<br />
and management. He founded<br />
two startups and worked for large,<br />
billion-dollar corporations. His<br />
work on board leadership has been<br />
cited by 5000+ authors. Brian is<br />
based in Chattanooga, Tennessee,<br />
and as a consultant at <strong>The</strong> Gap<br />
Partnership he is passionate about<br />
helping clients maximize their<br />
negotiation skills.<br />
3
MY HEAD<br />
LAWANDA BURNS<br />
SENIOR GLOBAL LEARNING MANAGER AT PEPSICO, TALKS FRANKLY<br />
ABOUT HER CAREER, NEGOTIATION LEARNINGS AND THE SECRETS<br />
BEHIND HER TWENTY-YEAR SUCCESS STORY.<br />
How did you make it to where<br />
you are today?<br />
I grew up in a town with a population<br />
of less than three thousand. Not many<br />
people went to college. I was the<br />
product of a single-parent household<br />
and became a first-generation college<br />
student. I had the benefit of a loving<br />
and supportive family, and then I made<br />
amazing friends in the industry who I<br />
could have candid conversations with,<br />
which helped support my career.<br />
What’s the best thing about your role?<br />
Being able to impact teams from a<br />
developmental aspect: building critical<br />
competencies and skills in this dynamic<br />
market. <strong>The</strong> pandemic changed the<br />
marketplace and I’m able to give people<br />
the tools to do their jobs effectively.<br />
It’s incredibly rewarding.<br />
What role does psychology play?<br />
It’s critically important to understand<br />
what learners need and what motivates<br />
people. Having a sales background<br />
helps me understand the psychology<br />
of sales learners, and the implications<br />
of their role.<br />
Is negotiation important in<br />
your career?<br />
Yes. I’ve learned you have to give to get<br />
something. I’ve often been the only<br />
African American woman in the room,<br />
and as I climbed the career ladder some<br />
of my tactics were to take on extra<br />
projects to get to the next level. After<br />
twenty years, I am still negotiating<br />
growing up the ladder, trying to bring<br />
my authentic self to work – I’m still<br />
not <strong>10</strong>0% there.<br />
What is PepsiCo’s approach to<br />
supporting their peoples’<br />
learning journey?<br />
We are very forward-thinking about<br />
the capability our people need in the<br />
ever-changing markets, because how<br />
we sell today is different to how we<br />
sold two to three years ago before<br />
the pandemic. We are constantly<br />
re-evaluating skills and offering<br />
solutions so that people have the<br />
tools to be successful.<br />
Any negotiation disasters<br />
along the way?<br />
That I am willing to share..?! Early in<br />
my career I was working on a contract<br />
negotiation where price was critically<br />
important. <strong>The</strong> negotiation got very<br />
contentious. I got the contract price<br />
that I was looking for, but I gave up a<br />
good working relationship for it that<br />
would have helped in the future. I<br />
learned it’s important to have good<br />
working relationships whenever you<br />
are negotiating.<br />
How about when you negotiate<br />
outside of work?<br />
I’ve been married for almost twentyfive<br />
years and have four kids, so there’s<br />
lots of negotiation! Recently my son<br />
went off to college, and we had to<br />
negotiate with him to find a college<br />
where he could get a good education<br />
but also be able to manage financially<br />
– so not necessarily his first choice.<br />
My kids and I also wrote and signed a<br />
social media contract, with parameters<br />
over how much time, what platforms<br />
and how much access, as parents, we<br />
could have. <strong>The</strong> result was a mutually<br />
agreeable contract we could all<br />
work towards.<br />
Any negotiation tips that you would<br />
pass along to your four kids?<br />
To have a wide-eyed approach to what<br />
it is you are trying to get, and to be<br />
aware of what you may be giving away.<br />
Don’t always follow the status quo.<br />
What advice would you give your<br />
old self?<br />
Think of yourself as a lifelong learner<br />
and stay open to feedback and criticism.<br />
As a working mother, I am always<br />
juggling balls in the air. Work out what<br />
the glass balls are – family, mental<br />
health, physical health – understand<br />
them and don’t let them drop. TNS<br />
To hear LaWanda's interview<br />
in full, search <strong>The</strong> <strong>Negotiation</strong><br />
<strong>Society</strong> on your favorite<br />
podcast platform, or access via<br />
www.thenegotiationsociety.com<br />
4
THE NEGOTIATION SOCIETY<br />
THE<br />
CONFIDENCE<br />
CONUNDRUM<br />
Gender-aggregated data from our workshops adds<br />
compelling weight to a seemingly familiar story of<br />
insecurity, gender differences and the role of power<br />
in negotiation performance. <strong>The</strong> implications can<br />
be big, the solutions so simple. Maxim van Meeteren<br />
and Robert Geijsel report.<br />
You need to be more<br />
confident!” When hearing<br />
this, does the recipient<br />
instantly grow in selfassurance,<br />
shedding insecurities as<br />
though some firm words were all<br />
they needed? Of course not. But<br />
can lack of confidence impact the<br />
outcome of a negotiation?<br />
Yes, undoubtedly.<br />
At <strong>The</strong> Gap Partnership, we<br />
are obsessed with the question:<br />
what makes a great negotiator?<br />
As we spend much time facilitating<br />
negotiations through training and<br />
consultancy, we’re able to gather<br />
data that can help us answer it,<br />
through analysis of performance<br />
pre- and post-training, comparing<br />
distributive and collaborative<br />
negotiations and identifying<br />
differences between men<br />
and women.<br />
We have a rich data-generating<br />
session that takes place on the<br />
final day of <strong>The</strong> Complete Skilled<br />
Negotiator workshop in which<br />
delegates negotiate with each<br />
other and bond as a group. <strong>The</strong>y<br />
think of an adjective for their<br />
fellow delegates that describes<br />
them as negotiators. We use this<br />
to compare their actual negotiation<br />
performance (evidenced by results),<br />
with the perception of their<br />
performance from their peers.<br />
What we have found is the<br />
cliché – you never get a second<br />
chance for a first impression<br />
– carries some truth: there’s a<br />
correlation between negotiation<br />
outcomes and peer feedback on<br />
confidence levels. Confidence is<br />
an important asset for negotiators.<br />
When we feel insecure we may<br />
not put our proposals on the table<br />
firmly, potentially giving the<br />
other party a clue there is space<br />
to move, thus risking not achieving<br />
the optimum deal.<br />
A DEEP DIVE INTO<br />
OUR DATA<br />
We analyzed feedback and<br />
negotiation outcomes of 304<br />
delegates – 2<strong>10</strong> men and 94 women<br />
– from over 40 workshops, across<br />
608 negotiations. <strong>The</strong> two cases<br />
were distributive, with only a few<br />
variables, and involved haggling<br />
over price. Delegates enter case 1<br />
with less negotiation knowledge<br />
than when they enter case 2.<br />
We found a striking gender<br />
difference in outcome for case 1<br />
and 2. On average in case 1, men<br />
took 55% of the bargaining range,<br />
compared with women’s 45%.<br />
For case 2, men took on average<br />
52% and women 48% of the<br />
bargaining range. <strong>The</strong>se outcomes<br />
only include negotiations of a man<br />
versus a woman (140 delegates).<br />
<strong>The</strong> bargaining range (or zone of<br />
possible agreement – ZOPA – as<br />
Harvard likes to call it) is the price<br />
range within which the buyer and<br />
the seller are willing to conclude<br />
the deal. A buyer has a maximum<br />
amount they’re willing to pay and<br />
the seller a minimum amount they<br />
want to receive. In between those<br />
points is the bargaining range.<br />
THE FEAR OF BACKLASH<br />
In <strong>The</strong> <strong>Negotiation</strong> Journal of<br />
Harvard, Catherine Eckel et al.<br />
reported that women care more<br />
about others’ outcomes than men<br />
and are more generous, even in<br />
anonymous interactions. In the<br />
same journal, Muriel Niederle<br />
and Lise Vesterlund showed that<br />
women tend to back away from<br />
competition, particularly with men,<br />
whereas men are more likely to<br />
welcome it.<br />
5
In 2019, <strong>The</strong> Gap Partnership<br />
conducted research into gender<br />
and negotiation and found,<br />
similarly, that women are more<br />
motivated to find joint solutions,<br />
work together with others, and<br />
seek a win-win – not necessarily<br />
the optimum mindset for<br />
distributive cases.<br />
What’s behind these marked<br />
gender differences in negotiation<br />
approach and behavior?<br />
Niederle and Vesterlund suggest<br />
socialization may contribute: at<br />
an early age girls are taught to be<br />
agreeable and social, while boys<br />
are encouraged to be resolute. A<br />
related hypothesis is that women<br />
are deploying a self-protective<br />
strategy against “the fear of<br />
backlash.” Research from Emily<br />
Amanatullah and Michael Morris<br />
showed women are aware they<br />
“Both women and men perform<br />
significantly better after they<br />
have been trained, practiced,<br />
and told to be more firm.<br />
could be socially punished for<br />
negotiating assertively on their<br />
own behalf, while women who<br />
negotiated someone else’s salary<br />
were untroubled by such a fear –<br />
and men not at all. This fear is not<br />
unwarranted; research has shown<br />
men and women penalize female<br />
job candidates who initiated<br />
their own salary negotiations,<br />
while women who negotiated<br />
for themselves countered with<br />
a significantly lower offer than<br />
women who negotiated for a<br />
friend, due to the fear of backlash.<br />
<strong>The</strong>se findings challenge any<br />
theory that women are naturally<br />
less skilled or tough negotiators.<br />
Rather, women are aware of a real<br />
possibility of social punishment if<br />
they behave differently than the<br />
stereotypically expected behavior<br />
of their gender.<br />
This could also explain why<br />
when women in <strong>The</strong> Complete<br />
Skilled Negotiator workshop were<br />
told to negotiate more firmly, they<br />
were released from this fear of<br />
backlash. Given carte blanche<br />
to be tough, women had increased<br />
confidence and achieved a better<br />
result, taking on average as much<br />
of the bargaining range as the<br />
men do.<br />
CONFIDENCE AND<br />
FEEDBACK<br />
In the feedback sessions of<br />
<strong>The</strong> Complete Skilled Negotiator<br />
workshop, we noticed a<br />
remarkable amount of responses<br />
were about insecurity. Since<br />
behavior and appearance is one<br />
of the pillars of negotiation, and<br />
discussed during the workshop,<br />
this is to be expected. However,<br />
many delegates also give and<br />
receive feedback on other<br />
qualities and<br />
development<br />
areas. <strong>The</strong>y are<br />
entirely free<br />
to give any<br />
feedback<br />
they want.<br />
Of the 304<br />
delegates, 81<br />
people (26.6%<br />
of total)<br />
received literal<br />
or indirect feedback on their level<br />
of confidence. 43 were men<br />
(20.5% of all men) and 38 were<br />
women (40.4% of all women).<br />
This finding highlights that<br />
women are perceived as more<br />
insecure than men in negotiation<br />
situations. Linking that to the<br />
outcomes of their negotiations in<br />
case 1 and case 2, it’s impressive to<br />
see how insecure women and men<br />
improve their performance compared<br />
to their less insecure peers.<br />
Delegates that receive feedback<br />
they are insecure also achieved<br />
a lower outcome on average<br />
than not-insecure people, with<br />
insecure women and men scoring<br />
respectively 41% and 51% of the<br />
bargaining range. Both women<br />
and men perform significantly<br />
better after they have been<br />
trained, practiced and told to<br />
be more firm. Women get, on<br />
average, an astounding +8%<br />
better results in case 2, which<br />
in commercial business has<br />
huge potential!<br />
By improving confidence<br />
levels through training, practice<br />
and coaching, and increasing<br />
the awareness of the appropriate<br />
behavior given the set of<br />
circumstances (a distributive<br />
negotiation), thereby taking<br />
away the fear of backlash,<br />
women significantly improve<br />
their negotiation performance.<br />
In our own gender research,<br />
we asked respondents to rate their<br />
confidence in negotiation. Only<br />
29% of women rated themselves<br />
in the top quarter of a <strong>10</strong>0-point<br />
scale, compared to 42% of men.<br />
Women shared that they worry<br />
about coming across as too soft or<br />
emotional, and of receiving a “no,”<br />
and prefer to be more certain that<br />
their ask is reasonable. Reaching<br />
an agreement is great, but not<br />
getting what they wanted is often<br />
seen as a personal failure to them.<br />
In fact, 36% of women say they<br />
would negotiate more if they were<br />
more confident, compared to only<br />
20% of men. This leaves us with<br />
a chicken and egg situation, as we<br />
just discovered that practice makes<br />
them less insecure.<br />
THE ROLE OF POWER<br />
A complementary view<br />
comes from Margaret Neale, the<br />
Adams Distinguished Professor<br />
of Management, Emerita, at the<br />
OUTCOMES CASE 1 CASE 2<br />
INSECURE MEN 51% 52%<br />
INSECURE WOMEN 41% 49%<br />
NOT INSECURE MEN 56% 52%<br />
NOT INSECURE WOMEN 48% 47%<br />
6
THE NEGOTIATION SOCIETY<br />
Stanford Graduate School of<br />
Business, who posits that differing<br />
behavior and attitudes are a<br />
function of “power difference.”<br />
She found that, in general,<br />
negotiators with low power<br />
are more likely to listen and be<br />
collaborative. But when there are<br />
individuals with high power, they<br />
are more interested in claiming<br />
value. At <strong>The</strong> Gap Partnership, we<br />
say that power is the overarching<br />
factor that allows you to choose<br />
what type of negotiation you want<br />
to be in. “Power systematically<br />
affects how people negotiate,”<br />
says Neale. As we connect the<br />
dots here, we see that personal and<br />
external perception of having high<br />
power, and the confidence that<br />
comes with it, can support your<br />
goal of claiming value.<br />
Research from Amanatullah<br />
and Catherine Tinsley supports<br />
this, as they reported that a<br />
request for salary increase from<br />
a low-status woman was perceived<br />
as unwarranted, while, by contrast,<br />
participants evaluated a high-status<br />
woman’s request to be justifiable.<br />
This corroborates that high-power<br />
and high-status women do not<br />
experience the backlash suffered<br />
by low-status women.<br />
Research from Tilburg<br />
University, <strong>The</strong> Netherlands,<br />
adds that mere encouragement<br />
from a position of high-power<br />
can improve women’s outcomes<br />
in negotiations significantly. That<br />
leaves us with an easy task: either<br />
put women in a position of power<br />
or create the perception of it, to<br />
benefit women greatly.<br />
CONCLUSION<br />
Henry Ford said: “Whether<br />
you think you can or think you<br />
can’t, you are right.” Women<br />
can be tough negotiators, but to<br />
improve their performance we<br />
need to improve their mindset and<br />
confidence levels from the start.<br />
Whether that’s through training<br />
and practice, or encouraging them<br />
into a position of high power, it<br />
will remove the warranted fear<br />
of backlash and release them from<br />
unwritten gender norms that<br />
influence their behavior. <strong>The</strong> idea<br />
is simple: confidence generates<br />
results, and in time a position<br />
of power, which in turn creates<br />
better negotiators.<br />
Managers can support this<br />
learning curve with an awareness<br />
that women can be hampered<br />
by the fear of backlash, and by<br />
helping them improve their<br />
perception of power and<br />
confidence. <strong>The</strong>y should assess<br />
who needs coaching to be more<br />
firm, and who to hold back to<br />
minimize the risk of deadlock.<br />
With this approach and over time,<br />
the unhelpful directive – “You need<br />
to be more confident!” – should<br />
become a distant memory for<br />
female negotiators. TNS<br />
DEADLOCKS:<br />
AN IMPORTANT CAVEAT<br />
<strong>The</strong>re is an important caveat to improving<br />
confidence. When delegates were encouraged to be<br />
more firm in case 2, relatively ALL delegates became<br />
more confident. So on the other side of the spectrum,<br />
the not-so-insecure men also gained more confidence<br />
– but this resulted in more deadlocks!<br />
In total, 49 negotiations (15.4%), divided over case<br />
1 and case 2, ended up in a deadlock. Deadlocks are<br />
defined as not reaching an agreement within the given<br />
set of time. Where we experienced that in case 1, it is<br />
more an uncontrolled time management rather than<br />
competitive behavior that causes deadlocks. While for<br />
case 2, clearly a more competitive environment, set by<br />
both delegates, caused more negotiations to deadlock.<br />
TOTAL % CASE 1 % CASE 2 %<br />
MAN – WOMAN 22 15.4% 5 3.6% 17 12%<br />
MAN – MAN 24 16.3% 3 2.1% 21 15.3%<br />
WOMAN – WOMAN 3 <strong>10</strong>.3% 1 4.3% 2 8%<br />
TOTAL 49 9 40<br />
When you look at the data, it becomes apparent<br />
that whenever men were involved, whether it be<br />
against another man or a woman, more deadlocks<br />
would occur. <strong>The</strong> women that were given the<br />
feedback that they are insecure were also the women<br />
that drastically improved their outcome after being<br />
trained. And the men that were already not-insecure<br />
overdid it, holding on firmly and being unwilling<br />
to give anything away anymore. So, a warning:<br />
be careful who you encourage to be more firm.<br />
7
When negotiation expert turned novelist<br />
Sib Law met a war correspondent with<br />
a string of thrillers already under his<br />
belt, the conversation was bound to<br />
be learned, lively and surprisingly<br />
relevant to commercial negotiators.<br />
Humphrey Hawksley<br />
is an award-winning author<br />
and BBC foreign correspondent,<br />
who for decades has worked<br />
on the frontline of crises around the world. He has<br />
also been a guest lecturer at universities and think<br />
tanks such as the RAND Corporation, <strong>The</strong> Center<br />
for Strategic and International Studies and<br />
MENSA Cambridge.<br />
Sib Law,<br />
a negotiation professional<br />
for 20+ years, helps global<br />
companies improve their<br />
negotiation skills and strategies, leading innovation,<br />
quality and excellence in the Americas for <strong>The</strong> Gap<br />
Partnership. His plays have been featured on stages<br />
throughout America and he has helped debut<br />
hundreds of works by new playwrights.<br />
When I first met Humphrey at a convention<br />
for thriller writers, and we hit it off, I<br />
was struck by two things. <strong>The</strong> first and<br />
most immediate was how much I could learn<br />
from him, a successful published writer, as I look<br />
to have my first novel published. <strong>The</strong> second was<br />
more unexpected, and it was that his day-to-day<br />
life, much like mine, had been spent negotiating –<br />
although in his case, the negotiations took place in<br />
war-stricken countries in which his own personal<br />
survival was at stake.<br />
While these circumstances are far removed in<br />
many ways from the cut-and-dry of the negotiation<br />
table in the commercial world, I recognized that<br />
Humphrey’s experiences contained valuable<br />
learnings for commercial negotiators, as well as<br />
being a genuinely fascinating insight into a world<br />
of jeopardy.<br />
So, we sat down and discussed everything<br />
from negotiating with captors, to transferable<br />
negotiation skills, and finally what his latest<br />
book can teach us about negotiation.<br />
8
THE NEGOTIATION SOCIETY<br />
SL: You’ve faced many life and<br />
death situations working as a<br />
foreign correspondent. What<br />
critical circumstances have you<br />
been confronted with, and what<br />
does negotiation look like in<br />
these situations?<br />
HH: <strong>The</strong>re is no set pattern, but I<br />
commonly come across three types<br />
of confrontational situations.<br />
<strong>The</strong> first is at a roadblock, where<br />
you have little idea who is behind<br />
the weapons pointed at you, what<br />
they want, and what will trigger<br />
them to either fire at you or let you<br />
through. It’s usually best to stay<br />
quiet and let the local producer<br />
handle the situation calmly, with<br />
humor and probably some bribery,<br />
while everyone else remains a<br />
hundred percent situationally aware<br />
that in a nanosecond, things can<br />
change. <strong>The</strong> most dangerous point<br />
of conflict is at the beginning,<br />
where territorial hold is undefined,<br />
and the various sides have yet to<br />
gauge each other’s characteristics<br />
and strengths.<br />
<strong>The</strong> second is being detained<br />
by a hostile militia or government.<br />
Instructions for your release come<br />
from a higher authority. For simple<br />
things like food and comfort, it is<br />
far wiser to win over your captors<br />
than antagonize them. It is also<br />
worth asking if you could call<br />
someone. <strong>The</strong>y will probably say<br />
“no” but it opens a wider channel<br />
of communication and negotiation.<br />
<strong>The</strong> third is negotiating with<br />
yourself and your team, to establish<br />
and agree when to make a dash<br />
through danger to safety, or into<br />
danger to get a particular shot,<br />
story or interview. <strong>Negotiation</strong> with<br />
yourself may be the most important,<br />
to get right in your mind the risks<br />
you are taking and why.<br />
SL: What negotiation skills would<br />
you say have served you best in<br />
these situations?<br />
HH: Understanding the point of<br />
view of others and identifying<br />
shared strands of humanity, from<br />
trying to get inside the head of an<br />
insurgent leader who has massacred<br />
thousands, to that of an illiterate,<br />
hungry child at a roadblock holding<br />
a machine gun. Most people want<br />
to feel good about themselves<br />
and their achievements. You have<br />
nothing to lose by helping them<br />
identify those thoughts. It’s also<br />
useful to have an insight into<br />
sociopathic and psychopathic<br />
mental tendencies when dealing<br />
with people who get a kick out of<br />
cruelty and killing, as there is little<br />
maneuver here.<br />
SL: What transferable negotiation<br />
skills have you learned in the field<br />
that you’ve been able to use in<br />
business negotiations?<br />
HH: Understanding different<br />
cultures. For example, American<br />
business culture is based on the<br />
contract. You can state what you<br />
want and what you are willing to<br />
pay for it without things getting<br />
personal. Although business and<br />
trade are meant to be part of a winwin<br />
system, American narrative<br />
often prefers a win-lose narrative<br />
or, at least, the courageous fight<br />
like a Clint Eastwood movie or<br />
the Alamo legend. In the West,<br />
seeking contradiction and a sense<br />
of fight could be beneficial in<br />
getting more and winning respect.<br />
In Asia, I would go out of my<br />
way to seek common ground over<br />
contradiction. Chinese business<br />
is based on trust and “face” – the<br />
contract comes later because the<br />
judicial system is not independent.<br />
SL: On a trip to the Bering Strait,<br />
where Russia and the U.S. are<br />
separated by only 2.4 miles of<br />
water, you wrote your latest thriller<br />
novel, "Ice Islands," which features<br />
the character Rake Ozenna. What<br />
negotiations have you drawn on<br />
from personal experience and used<br />
in the book when your characters<br />
have had to negotiate?<br />
HH: In my new book, I examine<br />
thorny <strong>issue</strong>s that run through<br />
governments today, and how<br />
solutions are negotiated or, when<br />
all else fails (it’s a thriller after all!),<br />
the guns come out and things get<br />
settled that way. It begins on the<br />
Åland Islands in the Baltic Sea,<br />
which back in the 1920s were<br />
a flashpoint between Finland<br />
and Sweden. <strong>The</strong> Åland Islands<br />
have a predominantly Swedish<br />
population but are a Finnish<br />
sovereign territory. Sweden was<br />
threatening an insurgency but<br />
Britain brokered a peace deal. <strong>The</strong>re<br />
is now the Åland Peace Institute on<br />
the island which teaches negotiation<br />
and conflict resolution.<br />
"Ice Islands" also tells the story<br />
of unresolved tensions between<br />
Japan and Russia over the Kuril<br />
Islands which the Soviet Union<br />
captured from Japan at the end of<br />
the Pacific War in 1945. <strong>The</strong>re is<br />
a ceasefire, but no peace treaty, so<br />
Japan and Russia remain officially<br />
at war today.<br />
A third theme is an examination<br />
of the role that organized crime<br />
plays in modern democracies, as<br />
highlighted in a 2011 Obama<br />
administration Presidential<br />
Executive Order, which names the<br />
Japanese Yakuza as a threat to the<br />
American democracy and economy.<br />
<strong>The</strong> driving political narrative of<br />
"Ice Islands" is Japanese organized<br />
crime influencing the government<br />
to end its strategic alliance with the<br />
United States, thus throwing the<br />
world order into chaos and the<br />
hard pros and cons within the U.S.<br />
administration on Japan becoming<br />
a nuclear weapons power. Rake<br />
Ozenna is skilled at negotiating<br />
his way through competing U.S.<br />
agencies and bureaucracy, but when<br />
it come to the gangsters you don’t<br />
want Rake to be your enemy. TNS<br />
"Ice Islands" is available to buy<br />
now from all good booksellers.<br />
Sib’s debut thriller, "Hale Storm,"<br />
is currently doing the rounds of<br />
reputable publishers.<br />
9
What is the impact of pressure on our<br />
ability to express ourselves confidently<br />
and precisely? Michael Padro reports<br />
on the intriguing connections between<br />
language, stress and negotiation.<br />
I<br />
don’t mean to be rude, but...”<br />
After reading those words, what’s<br />
the first thing to come to mind?<br />
Something negative I imagine. Similar<br />
phrases such as, “I don’t mean to be the<br />
bearer of bad news, but…”, or, “I don’t<br />
mean to interrupt, but…” are often<br />
used in conversation when one party is<br />
about to say or do something the other<br />
may not like. <strong>The</strong> first few words are<br />
designed to forewarn, and so cushion,<br />
the negative impact of what follows.<br />
This begs the question: who is<br />
the beneficiary of these statements?<br />
You might think it is the individual<br />
receiving the message. But what if<br />
I told you it’s actually the person<br />
delivering the message who is<br />
benefiting from this cushioning? As the<br />
bearer of bad news, they’re likely to be<br />
stressed, so they use such phrases to try<br />
and reduce the shock the other party<br />
feels when the news is communicated,<br />
and in turn any adverse reaction it may<br />
elicit. It’s just one example of how we<br />
use language in an attempt to reduce<br />
or at least limit the stress we feel in<br />
a situation.<br />
So what else happens to language<br />
when we experience stress? It generally<br />
manifests itself in two ways – the things<br />
you do and the things you say. In times<br />
of conflict and stress people look for<br />
ways to cope in an attempt to buy back<br />
their comfort. So in the cushioning<br />
example, our news-bearer is expecting<br />
a negative response, which makes them<br />
uncomfortable. In an attempt to ease<br />
the tension, they say things they believe<br />
will make the situation easier.<br />
Researchers have looked more deeply<br />
into how language is affected when<br />
we’re under stress. A 2014 study by<br />
Saslow et al., which had subjects giving<br />
a speech in stressful circumstances,<br />
found evidence linking a positive<br />
emotional reaction to stress to higher<br />
levels of cognitive complexity. <strong>The</strong>y<br />
reported that, “the more participants<br />
responded to [giving] the stressful<br />
speech by feeling higher levels of<br />
positive emotions (“happy,” “interested,”<br />
“satisfied,” “pleased,” “content,” “glad”<br />
and “inspired”), the higher their levels<br />
of linguistic cognitive complexity.”<br />
And, vice versa – so, the more<br />
participants became distressed in<br />
response to the stressful event, the<br />
lower their cognitive complexity.<br />
In other words, the more stressed<br />
you are, the simpler your thoughts<br />
become. <strong>The</strong> impact of this in<br />
conversation – and negotiation – could<br />
be significant. Someone who is feeling<br />
confident will be able to articulate their<br />
thoughts more effectively than someone<br />
feeling more stress – who, as a result,<br />
may then say more than they intended.<br />
With talk of a looming recession, we<br />
are gearing up for intense rounds of<br />
negotiations with all parties looking to<br />
secure the best deal possible. We must<br />
not be tempted to buy back our comfort<br />
during these negotiations. So, we must<br />
say what we mean and mean what we<br />
say. It is critical that your language is<br />
firm and concise during such times.<br />
Because the reality is, if you speak<br />
with language that allows you to appear<br />
moveable, your counterpart will pounce<br />
on the opportunity and run with it.<br />
How do we ensure that we speak<br />
more firmly, more precisely and more<br />
concisely? This simple, four-point<br />
checklist should help:<br />
For starters, avoid thinking and<br />
speaking at the same time. By taking<br />
the time to stay silent and actively<br />
consider what you want to say next,<br />
you’ll allow yourself the opportunity to<br />
eliminate the moveable language from<br />
any statements or proposals you plan<br />
to make during the negotiation.<br />
Second, don’t attempt to sell<br />
your position – it’ll only serve to<br />
undermine it!<br />
Third: do the prep work. <strong>The</strong> more<br />
prepared you are for your negotiations,<br />
the more confident you will be.<br />
And finally, keep calm. <strong>Negotiation</strong>s<br />
are uncomfortable. No one will be able<br />
to change that. But you can control how<br />
you choose to manage that discomfort.<br />
<strong>The</strong> sooner you accept it, the better off<br />
you will be! TNS<br />
<strong>10</strong>
THE NEGOTIATION SOCIETY<br />
PROOF OF<br />
THE POWER OF<br />
PLANNING AND<br />
PREPARATION<br />
Bruna Fell Lautert shares insight from two clients on how<br />
they are negotiating in the current challenging climate,<br />
including how to defend against the increasingly common<br />
“crying wolf” tactic.<br />
O<br />
n my most recent round of travels, I had<br />
the opportunity to have conversations<br />
with two of my smartest clients, one based<br />
in Brazil and the other in Canada. It<br />
struck me that the insights they shared with me<br />
around how they are planning for their upcoming<br />
strategic negotiations during these uncertain<br />
times were relevant and useful to both other<br />
professionals in the same geographies,<br />
and elsewhere.<br />
I was particularly interested that the crying<br />
wolf strategy, an old tactic that has different<br />
translations around the world, came up. As<br />
another client told me, “Your counterparty will<br />
use the current unsettled situation to ask for<br />
something, even if they don’t need to.” We have<br />
seen a lot of this in the ever-evolving world of the<br />
pandemic, supply chain disruptions and inflation,<br />
to name just a few.<br />
Here then, in their own words, are pearls<br />
of wisdom and frank observations from two<br />
senior executives who are living and breathing<br />
the commercial reality of uncertainty every<br />
single day.<br />
11
Brenda Branco,<br />
Commercial Director,<br />
VEM conveniência<br />
“Preparation is everything when it<br />
comes to negotiation. We represent<br />
large corporations and being diligent<br />
when it comes to preparation, gathering<br />
background facts, data and numbers, is critical.<br />
This way, the negotiation is achieved with<br />
much more security and clarity, in addition to<br />
facilitating internal alignment on ranges, extreme<br />
opening, break points and so on. Preparation<br />
also helps us to try to decipher the counterparty's<br />
mind. What is value to them? Exercising scenarios<br />
and trying to understand how they will position<br />
themselves, and what our alternative paths are.<br />
<strong>The</strong> sense of fairness should not influence<br />
either the preparation or the negotiation table.<br />
With good preparation, we must behave<br />
appropriately, with an open position compatible<br />
with the point we want to reach and without<br />
giving in to unreasonable last-minute requests.<br />
Not letting the sense of fairness influence<br />
proceedings is something that will, at the end of<br />
the negotiation, avoid feelings of frustration and<br />
exploitation. I firmly believe that negotiations<br />
with good preparation and appropriate behavior<br />
lead to mature dialogues, good deals and longlasting<br />
relationships.”<br />
Milena Trentadue,<br />
Head of Commercial<br />
Deployment, Philip Morris<br />
International<br />
“A fundamental rule to remember<br />
in any negotiation is that it is never<br />
personal. While it may go without saying for<br />
some, it is a critical reminder during times of<br />
systemic economic pressures which may cause<br />
those involved in the negotiation to overly<br />
empathize, tempting us to be weary in winning.<br />
What may seem like a reasonable variable can be<br />
second guessed or conceded too soon. Advanced<br />
preparation for the negotiation process is<br />
always a crucial step to maintaining progressive<br />
movement and satisfaction in outcomes closest<br />
to expectation. <strong>The</strong>re are three pillars of focus<br />
that can be leveraged in creating an appropriate<br />
mindset before going in:<br />
Be attentive<br />
Every organization is under pressure to cut<br />
costs and make more. Each may be faced with<br />
their relative version of supply chain impact,<br />
for example, labor shortage or inflation. <strong>The</strong>se<br />
may appear to be the same problem areas on the<br />
surface, however, paying attention to the details<br />
below the surface may offer clues as to what the<br />
true priorities or weaknesses are. For example,<br />
have there been any organizational shifts within<br />
the stakeholder matrix which can influence<br />
outcomes indirectly? Is there someone who<br />
may have previous success that they can bring<br />
forward in this new role? If they are not a direct<br />
contact or unknown they may be overlooked,<br />
but could have influence over the long-term<br />
strategy. Look beyond the obvious and blueprint<br />
the surrounding relationships which can<br />
provide easier wins with broader reach, which is<br />
beneficial to the third pillar.<br />
Be bold<br />
<strong>The</strong>re may be a tendency to hold back or be<br />
cautious, not exerting too much force during<br />
a time when organizations seem sensitive<br />
or overwhelmed by underperforming areas.<br />
However, the concept of opening extreme must<br />
still apply, and being bold means to express a<br />
position early and firmly, remaining clear on deal<br />
breakers and setting an appropriate tone. This<br />
does not mean being rigid or insulting, but rather<br />
open and transparent in the interest of creating<br />
space for reciprocity.<br />
Be creative<br />
As an extension of the first point of being<br />
attentive, you must look outside of the obvious<br />
for variables. Simple cost savings in dollar and<br />
cents alone will not suffice in credible strategic<br />
partnerships. Satisfaction can come in many<br />
forms and there are potentially stakeholders<br />
who may have greater influence in the long term<br />
that should not be ignored today. Creating value<br />
propositions which can meet the demands of the<br />
broader organization demonstrates that there is<br />
a willingness to invest in the future, by widening<br />
the scope and bridging gaps of cost savings,<br />
i.e., labor savings, efficiency or shared resources<br />
with a focus on diversity and inclusion can have<br />
compounded benefits.<br />
No matter what the psychology of the times,<br />
my counsel is rooted in keeping the principals<br />
of strong negotiation practice in check. Not<br />
doing so may not only jeopardize the immediate<br />
situation but set unintended precedence for<br />
when circumstances improve or change further.<br />
Keep in mind the expression, “Ships sink not<br />
because of the water around them but because<br />
of the water that gets into them. Do not let<br />
external circumstances today be a distraction<br />
for tomorrow.”<br />
12
THE NEGOTIATION SOCIETY<br />
Benjamin Franklin said, “By failing<br />
to prepare, you are preparing to fail.”<br />
It seems to be a common agreement that<br />
preparation is key, and at <strong>The</strong> Gap Partnership<br />
we say ninety percent of negotiation is<br />
preparation and planning and ten percent<br />
of negotiation is execution. You may be an<br />
excellent negotiator, but if you haven’t planned<br />
appropriately, then you will most likely suboptimize<br />
the deal. Equally, you can undertake<br />
significant planning, but if you can’t execute in<br />
the room, you will also sub-optimize the deal.<br />
So, what’s the best way to prepare during<br />
uncertain times? Although there isn’t a<br />
one-size-fits-all solution, here are some things<br />
to take into consideration:<br />
“ Ninety percent of negotiation is<br />
preparation and planning and<br />
ten percent of negotiation<br />
is execution.<br />
Set priorities that work<br />
for your organization<br />
We are seeing a lot of companies with too<br />
many priorities so that nothing is a priority. <strong>The</strong><br />
dictionary definition is “<strong>The</strong> fact or condition<br />
of being regarded or treated as more important.”<br />
<strong>The</strong>refore, the number of initiatives regarded<br />
as priority must be limited, some would argue,<br />
to a maximum of three.<br />
Develop negotiation skills<br />
How can someone identify, prevent or<br />
respond to the crying wolf tactic, or any other<br />
negotiation strategy? Recognize it is a tactic,<br />
then ask questions to probe how close to truth<br />
it is. <strong>The</strong>n the options are to prevent it from<br />
happening, ignore it or to counteract, depending<br />
on your strategy and what are you trying to<br />
achieve. Behavioral competence, managing your<br />
counterparty and rational decision making are<br />
some of the critical skills essential to negotiators.<br />
Scenario plan<br />
What does great look like? What is our plan A?<br />
What are the constraints? Is there something we<br />
can do to prevent those? If plan A doesn’t work,<br />
what are our alternatives? What is going to make<br />
us switch plans?<br />
Ask the right questions<br />
What are the products, services and<br />
experiences that will deliver value? What is<br />
important to us? What is important to them?<br />
How should pricing be managed? What<br />
capabilities will increase the company’s resilience<br />
and control costs? How is the new labor<br />
environment affecting compensation, benefits<br />
and workplace norms? How can supply chain<br />
be strengthened? What are the risks? How can<br />
those be mitigated? If they can’t be mitigated,<br />
how are they going to be handled?<br />
<strong>The</strong> wise counsel of Brenda and Milena is<br />
relevant to everyone negotiating in the<br />
commercial world today. If there is one final<br />
thought that I would like to leave you with, it’s<br />
to echo what they both said without apology<br />
about the importance of making a plan.<br />
With so much to do and so little time<br />
in which to do it, having an established<br />
process to handle preparation, planning,<br />
execution and follow-through saves<br />
everyone’s time, provides confidence<br />
to all stakeholders, minimizes risk<br />
and delivers consistent results. TNS<br />
13
A<br />
BAL<br />
ANC<br />
ING<br />
ACT<br />
This <strong>issue</strong>’s “Inside my Head” subject,<br />
PepsiCo’s Dr. LaWanda Burns, shares<br />
lessons learned from a high-achieving<br />
life as mom-of-4, high-flying executive<br />
and grad student.<br />
I<br />
f I had a quarter for every time someone<br />
gazed at me in awe and asked me, a recently<br />
minted Doctoral graduate, full-time corporately<br />
employed, wife and mother of four, how I was<br />
able to “have it all,” I would be so well off I could<br />
be sitting on the beach sipping cocktails with<br />
never a care in the world. <strong>The</strong> idea of having it<br />
all has been a fleeting ideal of yesteryear, as it was<br />
a concept I admittedly subscribed to during the<br />
early start of my career. It would take me several<br />
years to painfully discover that trying to achieve<br />
it “all” left me unfulfilled and wanting.<br />
In those days, I worked tirelessly to manifest<br />
a robust family life and career, only to find myself<br />
exhausted and feeling like I had come up short<br />
on both ends. What I did not realize at the time<br />
is that life often does not allow you to achieve<br />
mass accumulation unchecked. To get something<br />
you must almost always have to give something,<br />
which is often a component of negotiation.<br />
I have now learned undoubtedly that the idea<br />
of “having it all” is as elusive as regaining my<br />
svelte physique after having four kids, and the<br />
mounting disappointment of trying to achieve it<br />
ended up becoming an excruciating, self-inflicted<br />
wound that re-opened with every attempt.<br />
In the 25 years I have spent working, married,<br />
mothering and educating myself, I have come<br />
to understand the importance of give and take in<br />
the negotiation of all my pursuits. It is with that<br />
lens that I am able to reframe and renegotiate the<br />
idea of having it all into a postulation of worklife<br />
synergy that brings a sense of appropriate<br />
managed expectations to my life and work. I<br />
think it is critically important when applying<br />
a negotiation mindset to work/life integration,<br />
to have a clear process of proactively collecting<br />
wins and losses when examining opportunities,<br />
to present a clear picture of the situation before<br />
decisions are concluded.<br />
14
THE NEGOTIATION SOCIETY<br />
A great example of this was an early career<br />
opportunity when I went for my first corporate<br />
director level role. Candidly, during that time I was<br />
so focused on getting the role that I didn’t take the<br />
time to process what the wins and losses may be.<br />
I was able to put a tally in the “gain” column in terms<br />
of my career path and trajectory, but realized very<br />
quickly that the position, with as much advancement<br />
that it gave me, caused me a “loss” in the column<br />
tally when it came to sheer time with my husband<br />
and kids. In retrospect, I cannot say I wouldn’t have<br />
taken the position once I had the complete picture.<br />
I do think however, that employing a negotiation<br />
mindset to obtain a clearer picture of the opportunity<br />
(as best as one can) would have certainly gone a long<br />
way to minimize disappointment and appropriately<br />
manage expectations after the fact. Looking back,<br />
if I had completed that process, it would have allowed<br />
me an opportunity to address and come to terms with<br />
all the implications so that I could proceed in a more<br />
effortless way. Additionally, nearly ten years later,<br />
I would find myself needing to provide a supportive<br />
role due to a family health crisis, where it was critical<br />
to be in a position where I needed a more flexible<br />
schedule. Naïve at the time, I thought I could<br />
balance my career and expanded caregiver role,<br />
only to discover that if I had followed the process<br />
of examining wins and losses, that taking a position<br />
of a lesser role, was truly a gain to the overall<br />
“ Life has taught me that if I can<br />
live with what I am letting go<br />
of in order to obtain something<br />
new, that scenario minimizes<br />
regret and painful retrospection.<br />
situation. In the end I did take a position of a<br />
lesser role, but had I done the wins and losses<br />
process early on it would have allowed me to<br />
see the bigger picture: that taking the lesser<br />
role was not a definitive step back, but instead<br />
an important tally in the “gain” column.<br />
Reflecting on both situations, they were great<br />
lessons on experiencing one of the important laws<br />
of the universe: to get something you must give<br />
something. You must know what you are giving up<br />
when you acquire something and pull for a solution<br />
that makes what you are giving away worth what<br />
you are getting. That is an important element of<br />
negotiation—to have enough foresight to understand<br />
what the implications are, to derive at a solution that<br />
may not be perfect but is a solve you can live with.<br />
One final example of this was a role I took early<br />
on in my career (are you starting to see the pattern?)<br />
in which I was keenly aware that I was the only<br />
African American, and one of two women on the<br />
team. <strong>The</strong> pressure to belong was immense,<br />
especially during that timeframe when the<br />
employer buzzwords were around finding<br />
employees that were deemed “a good fit” for a<br />
role within a department or company. In my effort to<br />
exhibit my “fit” for the role, I ended up diminishing<br />
some of the unique qualities that actually could have<br />
been a value add for that position. In retrospect,<br />
I deeply regret the personal trade-offs I made,<br />
instead of embracing my authentic self and<br />
experiences to enhance my contributions to<br />
the position. Now that I have acquired space<br />
and hindsight from that experience,<br />
I know that is something I will<br />
never negotiate on again.<br />
As I move within my life<br />
and work, I try to proactively<br />
discern situations through the<br />
lens of negotiation by following<br />
the process of tallying my<br />
anticipated wins and losses.<br />
Before I embark on an initiative,<br />
I work to really understand what<br />
it is I am trying to accomplish, what<br />
I want the outcome to be and what<br />
scenario I can live with. Life has taught<br />
me that if I can live with what I am letting<br />
go of in order to obtain something new, that<br />
scenario minimizes regret and painful retrospection.<br />
Today, I can say that I have fully let go of the<br />
idea of “having it all.” No way around it, there<br />
is a cost to be a working mom, but positioning<br />
myself to know those things I am willing to<br />
compromise on and where I won’t is key. It’s up<br />
to me to recognize what outcome I will take and<br />
delineate what outcome I will walk away from if<br />
the parameters don’t suffice. In essence,<br />
I have transitioned from an accumulation<br />
mindset to a more balanced approach and the<br />
process of negotiation has assisted with that.<br />
Every initiative I embark on, whether career<br />
or family, I set the tone for my expectations and<br />
outcomes. I carry out my due diligence to understand<br />
the implications of a situation and where I draw the<br />
line, and because of this I find myself less likely to<br />
chase elusive ideals and standards. I can attest<br />
that I am not perfect – I am a work in progress<br />
every day, but my goals are more focused,<br />
and my conscience is clear. That is<br />
an agreement I can<br />
live with. TNS<br />
15
DEFINITELY<br />
MAYBE<br />
16
THE NEGOTIATION SOCIETY<br />
Alistair White meets <strong>The</strong> Gap Partnership’s Chief Strategy Officer,<br />
Ann Marie Costelloe, and discovers that the paradoxical facets of<br />
her philosophy and mindset hold the key to her many successes.<br />
After 90 minutes in the company<br />
of Ann Marie Costelloe, <strong>The</strong> Gap<br />
Partnership’s new Chief Strategy Officer,<br />
my impression of her was that she is<br />
composed of an array of intriguing, yet also very<br />
human and even logical, contradictions. During<br />
our conversation I learnt that she is a profound<br />
introvert who was trained to be on stage, a<br />
confirmed optimist who starts each new challenge<br />
by first envisaging “the worst thing that could<br />
happen,” a self-confessed perfectionist who can<br />
also recognize that sometimes “good enough”<br />
is “good enough,” and a dyslexic with a highly<br />
developed sense of language. Perhaps the most<br />
surprising thing was that I didn’t need to expose<br />
or surreptitiously elicit these contradictions; Ann<br />
Marie herself is keenly aware of them.<br />
As I reflected on the conversation and read<br />
through my notes, something struck me. Let<br />
me explain with an analogy from my own world.<br />
My son puts up<br />
tents for a living:<br />
whopping big<br />
500m 2 marquees<br />
for hospitality<br />
and sporting<br />
events. He’s<br />
explained to me<br />
how it’s vitally<br />
important that<br />
the ropes and<br />
poles on opposing<br />
sides of the tent<br />
are rigged to the same degree of tension. <strong>The</strong>se<br />
competing tensions ensure the tent is stable and<br />
capable of withstanding the elements. If there is<br />
an imbalance, the mildest gust of wind could push<br />
the structure in one direction, and it could<br />
ultimately collapse.<br />
It seems to me that this concept of competing<br />
tensions explains how some of the contradictory<br />
elements of Ann Marie’s character actually work<br />
as elegant counterbalances to each other, enabling<br />
her to achieve things she might otherwise not<br />
accomplish. And make no mistake, Ann Marie is<br />
in possession of a very impressive CV – one that<br />
the most exacting of perfectionists would be proud<br />
of. In her eight years at TGP she has delivered a<br />
comprehensive global rebrand as well as innovated<br />
and produced half of our digital product portfolio<br />
– our global online community for negotiators,<br />
<strong>The</strong> <strong>Negotiation</strong> <strong>Society</strong>; <strong>The</strong> Negotiators,<br />
a pioneering digital negotiation competition; and<br />
N365, an automated email embedding program.<br />
And, in the six months since joining the executive<br />
leadership team, Ann Marie has co-led and<br />
delivered a global culture and values project and<br />
reengineered our client segmentation strategy,<br />
firmly cementing herself as one of the most<br />
respected leaders in the business.<br />
So where did it all begin? Ann Marie had an<br />
unusual education which she reveals to me early<br />
in our conversation, and which she identifies as<br />
a formative influence. In her childhood, she was<br />
a gifted dancer and, aged 12, was invited to join<br />
<strong>The</strong> Royal Ballet School. For those who don’t<br />
know, that’s a big deal; the school is a global<br />
center of excellence for ballet training. Students<br />
are selected after a rigorous audition process and<br />
then live in school accommodation for the whole<br />
academic year, as they not only train to be ballet<br />
dancers but<br />
also complete<br />
a standard<br />
“If I say I will deliver something,<br />
not delivering it, or delivering it<br />
poorly, are the worst outcomes<br />
I can imagine.<br />
education<br />
curriculum.<br />
“<strong>The</strong> pursuit<br />
of perfection<br />
was a constant<br />
in our lives,”<br />
reveals Ann<br />
Marie. “Every<br />
Easter our<br />
dancing would<br />
be assessed and we were then informed by letter<br />
whether we had qualified to return to the school<br />
the following year. This was, as you can imagine,<br />
quite intense. But I loved the school – it was<br />
my home and where my friends lived – and we<br />
were all motivated to work hard to make sure<br />
we weren’t in the bottom cut and could stay.” Of<br />
course, Ann Marie stayed there until she was 19.<br />
How does the legacy of this demanding<br />
environment live on in Ann Marie today? She<br />
is very clear on this, explaining, “<strong>The</strong> drive to<br />
succeed, and for perfection, has stayed with me<br />
ever since. If I say I will deliver something, not<br />
delivering it, or delivering it poorly, are the worst<br />
outcomes I can imagine.”<br />
But does this constant striving for excellence<br />
ever stop you getting things done, as you seek to<br />
avoid the potential for disappointment? “No,”<br />
17
eplies Ann Marie. “Just because you strive for<br />
excellence, it doesn’t mean you are a slave to it.<br />
In the commercial world it is important to deliver,<br />
but sometimes ‘good enough’ is just that. <strong>The</strong> key<br />
is trying to figure out what ‘good enough’ is.”<br />
I ask if she grew up in a competitive<br />
environment outside of school. “I have two older<br />
brothers,” she tells me, “and I wanted to match<br />
their achievements. Being younger, a girl, a dancer...<br />
that didn’t come into it. We played on an even<br />
playing field as far as I was concerned.” She goes on<br />
to tell a story<br />
“Just because you strive<br />
for excellence, it doesn’t<br />
mean you are a slave to it.<br />
It's important to deliver,<br />
but sometimes “good<br />
enough” is just that.<br />
that beautifully<br />
illustrates this<br />
point: “My<br />
brothers got<br />
top marks<br />
in their<br />
Geography<br />
course work at<br />
the age of 16,<br />
but only after<br />
they’d initially<br />
been scored<br />
slightly lower by their teacher and the examiners<br />
re-marked it. When it was my turn, I got top marks<br />
at the first pass.” So presumably, in a competitive<br />
family, she has never allowed her brothers to forget<br />
this? “I may occasionally remind them,” she admits,<br />
with a smile.<br />
Being as gifted academically as she was a<br />
dancer, Ann Marie won a place to study history at<br />
Cambridge University, one of the most prestigious<br />
universities in the world. As she tells it, the<br />
university took a gamble on giving her a place –<br />
on paper, because of her unconventional education,<br />
she wasn’t the typical Oxbridge type – partly<br />
because one of her ballet school contemporaries<br />
was already there and had demonstrated that<br />
discipline and focus was hardwired into alumni<br />
of the school. How did Cambridge pan out for<br />
Ann Marie? Well, if you’re following the storyline,<br />
you’ll have guessed correctly: by the end of her first<br />
year she had become a scholar, a title only given to<br />
those awarded a “first” in their summer exams.<br />
Post-university, the shiny world of advertising<br />
caught Ann Marie’s eye, and after a stint in a<br />
graduate role she applied for a job at global agency<br />
Bartle Bogle Hegarty – at that time in its heyday<br />
and responsible for iconic campaigns for brands<br />
like Levi’s and Audi (for those of a certain age,<br />
Nick Kamen’s Launderette ad for Levi’s is just one<br />
of many famous examples of BBH’s output). I ask<br />
how she got into such a sought-after business, and<br />
Ann Marie tells another wonderfully revealing<br />
anecdote about her recruitment into BBH. After<br />
multiple grueling rounds of interviews, she finally<br />
had an hour in front of the head of the account<br />
management department. At the end of the<br />
grilling, he asked how he could be sure she could<br />
cope in the uber high-pressure and competitive<br />
environment of the agency. Ann Marie’s response?<br />
“I guess you haven’t met many ballet dancers.”<br />
By this point in our interview, I hadn’t needed<br />
to channel Sherlock Holmes to identify a theme<br />
of Ann Marie thriving in environments in<br />
which excellence is revered. I wonder aloud how<br />
important external recognition is to her, as part<br />
of that package? Ann Marie leans forward to<br />
respond. “I’ve never been especially motivated by<br />
external praise. What has always been important<br />
to me is knowing I have done a good job. I know<br />
when I feel I’ve done something well, and that’s<br />
enough for me. I know it’s a cliché, but I am my<br />
own harshest critic. <strong>The</strong> important thing is to feel<br />
in control. If I can control how or when<br />
18
THE NEGOTIATION SOCIETY<br />
a project is delivered, then I am comfortable that<br />
I can commit to delivering a good result. It’s when<br />
things are outside of my control that I feel<br />
more uncomfortable.”<br />
So, I venture, you are, to resort to another<br />
cliché, a control freak? She hesitates. “No, that’s<br />
the wrong choice of words. Being in control of<br />
things is not the goal in itself, it’s a means to an<br />
end; it enables others to perform without having<br />
to worry about the logistics. Even at home, as a<br />
parent, if I can be on top of which of my three<br />
kids needs to be at which event at which time<br />
then that frees them up to achieve things.”<br />
Let’s go back to <strong>The</strong> Royal Ballet School for<br />
a moment. How does a self-confessed introvert<br />
embrace an education that involves performing<br />
on stage for all the world to see? “I was trained<br />
to be good at what I did and to do it in front of<br />
others. In some ways it suits my introverted nature<br />
because the audience didn’t see ‘me’, they saw a<br />
dancer, and I was comfortable with that.<br />
“It’s similar at work. If I present a business<br />
case or share a presentation, I don’t feel personally<br />
under scrutiny because I trust that whoever I am<br />
presenting to will judge the work, and not me.<br />
I am always happy to get into a robust debate<br />
about the intellectual merits of something,<br />
but I don’t like it if it feels personal.”<br />
Ann Marie enjoys a reputation within <strong>The</strong><br />
Gap Partnership as someone who delivers every<br />
project she embarks on to a high standard, within<br />
the deadline and on budget. Is it merited? “By<br />
definition, the word ‘reputation’ is something that<br />
others create, it’s not something that I ascribe<br />
to myself.” OK, but how do you think you have<br />
earned that reputation?<br />
“Delivering a concrete result has always been<br />
important to me. I start each project by imagining<br />
what the worst outcome would look like.” This<br />
startles me, and I repeat it back for clarification:<br />
You pride yourself on always delivering a result,<br />
yet you begin by imagining what failure would<br />
look like? How pessimistic is that?<br />
“It’s not pessimistic at all, it’s actually quite<br />
liberating. I am fundamentally an optimist, but<br />
by imagining the worst-case scenario and making<br />
peace with it, I can take fear out of the equation.<br />
If I’m clear that the worst outcome is not the end<br />
of the world, it frees me or my team up to use<br />
their energy to focus on how to deliver the project.<br />
Fear holds us back. Facing into it sets us free.<br />
“I imagine a project as a series of challenges and<br />
obstacles to overcome. I need that narrative, that<br />
sequence of events leading to a concrete outcome,<br />
to be clear in my mind before I can start work.<br />
I don’t like ambiguity or uncertainty.”<br />
Which brings us neatly to her new job, Chief<br />
Strategy Officer at <strong>The</strong> Gap Partnership. Why do<br />
we need a CSO anyway? Isn’t that the job of our<br />
CEO, Graham Botwright? Despite my attempts<br />
to goad her, Ann Marie doesn’t rise to the bait.<br />
“It’s not about being the sole author of the<br />
company strategy, that is the job of the leadership<br />
team collectively. It’s about ensuring that people<br />
across the business understand the strategic vision<br />
and are working in ways that are consistent with it.<br />
My job is to communicate the strategy, embed<br />
a common understanding, and help people execute<br />
in ways that will deliver the plan.”<br />
Our conversation draws to a close and<br />
I consider the contradictions, antitheses and<br />
incongruities that Ann Marie has revealed in our<br />
time together. I point this out, and Ann Marie<br />
concedes, “Yes, I can see there are tensions there.”<br />
It is the word “tensions” that reminds me of my<br />
son and the tents he puts up, and prompts a final<br />
question: Is it precisely these competing<br />
motivations and abilities that drive your<br />
achievements, both at work and at home? Her eyes<br />
drift towards the ceiling, as if seeking an answer<br />
there. “Maybe there’s something in that. Maybe<br />
it’s what makes me, me.” TNS<br />
19
NEGOTIATING<br />
WITH YOUR<br />
STRENGTHS:<br />
A CUSTOMIZED APPROACH<br />
“A leader needs to<br />
know their strengths as<br />
a carpenter knows their<br />
tools, or as a physician<br />
knows the instruments at<br />
their disposal. What great<br />
leaders have in common is<br />
that each truly knows his or<br />
her strengths – and can<br />
call on the right strength at<br />
the right time. This explains<br />
why there is no definitive<br />
list of characteristics that<br />
describes all leaders.”<br />
Dr. Donald O. Clifton,<br />
psychologist and inventor of<br />
the CliftonStrengths Finder.<br />
Analytics and advice<br />
business Gallup’s model<br />
of individual strengths can<br />
help negotiators optimize<br />
their performance.<br />
Think about your recent client interactions:<br />
somewhere in the process you engineered,<br />
convinced, connected, accomplished or<br />
negotiated things no one else could. And<br />
you may not have even realized how remarkable<br />
it was.<br />
That’s not unusual. Your most exceptional<br />
abilities are such an intrinsic part of you, you may<br />
not even notice them. But the innate patterns of<br />
thought, feeling and behavior that Gallup calls<br />
CliftonStrengths – categorized by four domains:<br />
Executing, Influencing, Relationship Building<br />
and Strategic Thinking – are the lens through<br />
which you see the world, the basis of your<br />
expectations and the source of your excellence,<br />
even as you negotiate.<br />
20
THE NEGOTIATION SOCIETY<br />
Your strengths<br />
differentiate you<br />
and can help you be<br />
your best self. In fact,<br />
the odds that you share the same<br />
CliftonStrengths in the same order as<br />
someone else are one in 33 million.<br />
That differentiation is crucial to succeeding<br />
in any highly-charged scenario. And you can<br />
leverage that difference by understanding your<br />
strengths within the four domains.<br />
To understand how you can fully use your<br />
strengths, it’s good to understand the domains.<br />
<strong>The</strong> four domains define how you show up<br />
in the world – your brand, your contribution<br />
and your unique value. <strong>The</strong>y explain what’s<br />
behind everything you do. To get the most out<br />
of it, ask yourself:<br />
• How do I build relationships with others?<br />
• How do I influence my audience?<br />
• How do I think strategically to advance<br />
the negotiation or sale?<br />
• How do I get things done to execute<br />
for others?<br />
Maybe you build relationships by creating<br />
trust or through a genuine connection. Perhaps<br />
you influence others by taking charge of the<br />
agenda or by developing advocates. Strategic<br />
thinking might show up as a drive to learn about<br />
someone else’s history or visualize their future.<br />
You might get things done through organizing<br />
chaos or by fixing what went wrong in a<br />
negotiation. Everybody pulls the levers of their<br />
strengths in their own way.<br />
Whatever your answers may be, they<br />
demonstrate that you don’t operate like anyone<br />
else. And if you tried, you wouldn’t get the same<br />
results. You succeed in your own way.<br />
That said, sometimes you have to apply your<br />
way differently to succeed.<br />
Managing weaknesses means depending on<br />
others. No one is great at every part of the sales<br />
process, and negotiating is no different. Everyone<br />
has weaknesses to manage. For example, in a<br />
sales negotiation, some people can’t stay focused<br />
on the close, others may get bored learning<br />
product specs, and some pay way too much<br />
attention to prospects’ purchase potential<br />
and not enough to their actual problems.<br />
Unfortunately, the things you’re not great<br />
at may be necessary for the sale.<br />
If you know who you are (and who you aren’t),<br />
you can position your strengths in ways you<br />
hadn’t thought about and better navigate the<br />
areas that need managing.<br />
Take, for instance, a sales rep who loses sight<br />
of the close. She can leverage her relationship<br />
with her manager to align her actions toward the<br />
goal better. Salespeople who dislike memorizing<br />
product specs need relatable, enthusiastic<br />
teachers. <strong>The</strong> salesperson who is over-focused on<br />
the buy can regulate himself by asking probing<br />
questions and conducting deeper inquiries.<br />
That’s the key to leveraging strengths:<br />
own where you offer something powerful and<br />
unique and manage around your weak points.<br />
By articulating what makes you different, you’ll<br />
know where to put your energy: where you’re at<br />
your best.<br />
So, how do you set better goals using<br />
your strengths?<br />
Negotiating is a vital skill, and to increase<br />
your effectiveness in it, you’ll need to decide<br />
which of your strengths will be the most helpful.<br />
For example:<br />
If Learner or Analytical are in your top five,<br />
you could use these strategic thinking themes as<br />
motivation to stay on the cutting edge of roleor<br />
industry-specific information that would help<br />
you negotiate better.<br />
If you have high Harmony or Empathy, you<br />
might consider capitalizing on your ability to<br />
detect others’ emotions by creating goals that<br />
help you reduce conflict.<br />
If you lead with Communication or<br />
Significance, it might be helpful to set goals that<br />
focus on influencing others because you have a<br />
natural ability to speak concisely about topics<br />
that are important to your audiences.<br />
And if you are strong in themes such as Focus<br />
or Achiever, consider goals that are a roadmap to<br />
your desired outcomes – ones that highlight your<br />
desire for productivity and results. TNS<br />
AS GALLUP’S REGIONAL BUSINESS DIRECTOR<br />
CLAIRE DE CARTERET, SUMMARIZES:<br />
“If you fully understand your own strengths and blind spots, then<br />
self-awareness, self-regulation and self-efficacy become part of each<br />
interaction that you have, from leading strategy and teams, to creating<br />
influence and building relationships. Knowing your strengths will<br />
allow you to show up in every interaction in an authentic way and<br />
harness your talents (whilst managing your blind spots) – and THAT<br />
is what will enable you to win and be the best version of yourself.”<br />
Visit www.gallup.com to find out more.<br />
21
HE<br />
RE<br />
LUCTANT<br />
NEGOTIATOR<br />
<strong>Negotiation</strong> may push someone out of their comfort<br />
zone so much that they refuse to engage with you.<br />
How can you coax an unwilling counterparty back<br />
into the fray? Adam Frampton explains.<br />
Y<br />
ou may be familiar with the 12th<br />
century proverb, “You can lead a<br />
horse to water, but you can’t make<br />
it drink.” In other words, you can<br />
give someone an opportunity, but you<br />
can’t make them take it.<br />
Now let’s imagine you’re trying<br />
to engage with a commercial partner<br />
in order to discuss a conflictual but<br />
opportunistic part of a deal, but you<br />
can’t get the engagement you need.<br />
<strong>The</strong> other party just won’t come to the<br />
table. This predicament is one that has<br />
come up a lot, particularly of late where<br />
I’ve heard many clients talking<br />
about cost price increases they are<br />
having to run due to rising costs.<br />
You can provide someone with<br />
an opportunity, but you can’t force<br />
them to do something they don’t<br />
want to do. Still, are there things<br />
we can do to encourage the<br />
engagement we desire to help to<br />
push through the deal that has<br />
importance to us?<br />
In a word, yes. <strong>The</strong>re are, broadly,<br />
four areas to consider: power, trust,<br />
risk vs rewards and stakeholders.<br />
22
THE NEGOTIATION SOCIETY<br />
POWER<br />
In negotiation, power<br />
governs the value of<br />
everything. It can turn<br />
a conversation into a<br />
demand, or a demand into<br />
a conversation. It has the<br />
ability to shift the course of<br />
any negotiation. But power<br />
is never static and while there<br />
are many examples of “real”<br />
power moving mountains, in<br />
negotiation it can come down<br />
to the counterparty’s perception<br />
of power. If they perceive that<br />
you are more desperate than<br />
them in the negotiation due<br />
to your behavior, then that will<br />
be how that deal concludes –<br />
with the other party driving<br />
the narrative on their terms.<br />
So how can we impact the<br />
perception of power? Well<br />
firstly, we have to believe it<br />
and live it. <strong>The</strong> first person you<br />
need to convince is yourself –<br />
that you are needed by your<br />
counterparty. From that point<br />
on you will start to try more<br />
challenging and value-creating<br />
conversations. You also need to<br />
act like it. I often say to clients,<br />
“Why do you think they feel<br />
that way? It’s as a result of your<br />
behavior.” So you see, how your<br />
counterpart perceives your<br />
behavior becomes their reality.<br />
TRUST<br />
In many ways trust is<br />
thought of as an intangible<br />
measure, so how can you<br />
quantify how much trust you<br />
have in your partnership?<br />
As we begin to examine our<br />
commercial relationships,<br />
we can think about the scale<br />
of trust being like walking<br />
a tightrope with balancing<br />
buckets either side. One bucket<br />
represents the amount of trust<br />
you invest and the other the<br />
amount you withdraw.<br />
When you examine the trust<br />
in your partnership, do you<br />
think that you invest highly in<br />
this trust bucket? Are you able<br />
to engender trust from your<br />
counterpart? Or are you lured to<br />
believe that trust simply exists<br />
because of the romantic nature<br />
of partnerships?<br />
If the trust paradigm exists<br />
as a tightrope, how do you<br />
maintain balance? <strong>The</strong>re needs<br />
to be a stability between using<br />
this trust and offering this<br />
trust. In terms of negotiation,<br />
this means that to keep the<br />
stability of trust we have to<br />
offer it outside of the times<br />
we need it, which means we<br />
don’t just demand the use of<br />
this partnership when we need<br />
to conclude<br />
a deal. So,<br />
think about<br />
how you can<br />
engender<br />
trust<br />
throughout<br />
the time<br />
of your<br />
partnership,<br />
for example<br />
by offering<br />
insights, commercial support<br />
and outside the line of work<br />
support. <strong>The</strong>re will be numerous<br />
ways in which a relationship can<br />
be built.<br />
RISK VS REWARDS<br />
This is always an interesting<br />
part of any partnership. In our<br />
contracts, do we put in the<br />
terms and conditions what is<br />
at risk if they don’t come to<br />
the table (conclude the deal),<br />
or what will the rewards be if<br />
they do? To begin to consider<br />
the appropriate action here we<br />
need to truly understand the<br />
person sitting opposite us. This<br />
means getting inside their head:<br />
what are their drivers, their<br />
motivators? Are they driven by<br />
the need to achieve or are they<br />
driven by the need to avoid<br />
loss? If we continually throttle<br />
a counterparty who doesn’t<br />
come to the table with risks, and<br />
they’re unmotivated by it, you’ll<br />
end up losing their interest.<br />
So ask yourself, if you are<br />
struggling to get someone to the<br />
negotiation table, do you think<br />
you know what motivates them?<br />
STAKEHOLDERS<br />
Mapping of stakeholders<br />
is an even more crucial part<br />
of negotiating in modern times<br />
due to the transient nature<br />
of business. Frequently your<br />
commercial contacts in one<br />
business may have moved on<br />
to another one. This affects<br />
a number of different parts<br />
of your relationship with the<br />
“ If the trust paradigm exists<br />
as a tightrope, how do you<br />
maintain balance?<br />
business in question, but in<br />
the area we are considering<br />
today, how could that impact<br />
your ability to negotiate with<br />
reluctant negotiators? Should we<br />
understand all the stakeholders<br />
in our counterparts – who sits<br />
where, who reports to whom?<br />
What falls under each person’s<br />
role and responsibilities? Should<br />
they move on and not have an<br />
immediate replacement, who<br />
would step in to pick up their<br />
workloads? <strong>The</strong> exercise of<br />
mapping stakeholders can be<br />
painstakingly long, but the<br />
value you can derive from it<br />
will support you in your strategy<br />
planning, particularly if your<br />
negotiations are timebound.<br />
In negotiation, there will be<br />
times where you have a reluctant<br />
party you need to work with.<br />
But there are steps that you can<br />
take and areas that you can<br />
consider that should help you<br />
to encourage the engagement<br />
you need. TNS<br />
23
PSYCHOLOGICAL<br />
SAFETY<br />
AND NEGOTIATION<br />
Freddy Burgess explains how creating a supportive<br />
environment in which negotiators feel backed will<br />
generate the most effective results.<br />
P<br />
sychological safety is a term I’ve come<br />
across a lot recently. It seems to have<br />
crossed over from the academic world<br />
of organizational psychology, to a more<br />
populist and mainstream audience who are<br />
interested in what’s currently occupying the<br />
business zeitgeist. I would hazard a prediction<br />
that it’s only a short matter of time before an<br />
even broader population begin to confidently<br />
use it when canvassing for their rights at work.<br />
But what does it mean and where did it originate?<br />
It’s widely agreed the term was coined by Edgar<br />
Schein and Warren Bennis in their paper Personal<br />
and Organizational Change Through Group<br />
Methods: <strong>The</strong> Laboratory Approach. In it, they<br />
defined psychological safety as a group’s effort<br />
to reduce interpersonal risk, while increasing the<br />
individual’s sense of self and belonging. Much<br />
research since has confirmed the benefit to morale,<br />
performance and creativity that psychological<br />
safety provides.<br />
So, with that in mind, what does it mean to be<br />
a negotiator with, or without, psychological safety?<br />
Every seasoned negotiator has felt it: that<br />
moment of indecision and uncertainty, and of<br />
wondering, what happens if I get this wrong?<br />
<strong>The</strong> reason that’s so common is because there<br />
are myriad scenarios that could bring this on:<br />
the negotiation may have taken an unexpected<br />
turn, the counterparty hasn’t responded in the<br />
way you expected, the total value of the deal is<br />
larger than you anticipated, or maybe you’ve<br />
received further information mid-way through<br />
the discussions. Any one of these scenarios can<br />
and do happen regularly when we’re negotiating,<br />
and that moment’s pause is arguably the sign of<br />
a responsible approach to negotiation.<br />
<strong>The</strong> critical consideration from a negotiator’s<br />
point of view is what happens next: what happens<br />
after the moment comes? Well, that depends on<br />
one’s own psychological baseline and resilience<br />
at the time. To put it bluntly, you are either<br />
consciously and subconsciously safe, or unsafe,<br />
regardless of the outcome.<br />
<strong>The</strong>re are two clear physiological and<br />
psychological paths that will be followed at this<br />
point. Firstly, let’s assume we are psychologically<br />
unsafe. In this scenario we are unplanned, we have<br />
24
THE NEGOTIATION SOCIETY<br />
DO YOUR NEGOTIATORS HAVE PSYCHOLOGICAL SAFETY?<br />
YES<br />
IF THEY CAN:<br />
• Ask for help and receive a positive<br />
proactive response.<br />
• Align with stakeholders early<br />
and without struggle.<br />
• Make and learn from mistakes, sharing<br />
those insights with the wider team.<br />
• Make decisions in the room.<br />
NO<br />
IF THEY CAN’T:<br />
• Learn by doing because asking for<br />
help is seen as a sign of weakness.<br />
• Squeeze preparation in where they can<br />
and fight for time with stakeholders.<br />
• Justify mistakes rather than owning the<br />
opportunity to learn.<br />
• Seek approval for all negotiation decisions.<br />
not aligned internally with stakeholders,<br />
we don’t feel empowered and we may even<br />
be worried about returning with a poor result<br />
and the ramifications that will follow. When<br />
this moment occurs it creates a threat response<br />
which is similar to that produced in response<br />
to external influences that could cause us harm.<br />
In these scenarios, our body reacts in a<br />
predictable manner. <strong>The</strong> threat response releases<br />
cortisol and adrenalin into our systems, with<br />
the adrenal glands reacting to our traditional<br />
impulse of fight or flight. Cortisol promotes<br />
the reinstatement of fear into our system, blood<br />
pumps faster, our amygdala increases in activity,<br />
and we are ready to fight, fly or freeze, depending<br />
on our psychological bent.<br />
None of this is particularly beneficial for a<br />
negotiator – an instinctive emotional reaction<br />
could manifest as competitiveness or argument,<br />
deadlock, the inability to make a decision, or<br />
maybe even capitulation to the easiest point of<br />
agreement just to get out of the room. So, clearly<br />
not ideal.<br />
But what about those that are psychologically<br />
safe? In this scenario, ample planning has gone<br />
into the negotiation. Not only that, the negotiators<br />
are secure in the knowledge they have the backing<br />
of their peers and organization, and that any<br />
mistakes will be embraced and learned from.<br />
A constructive review is part of the process and<br />
people are empowered to take responsible risks<br />
and encouraged to build creative, novel proposals.<br />
In this scenario, when that moment arrives and<br />
adrenaline is released, this time its accompanied<br />
by dopamine rather than cortisol. Dopamine<br />
enhances our recall and cognitive function and can<br />
improve focus, and even our willingness to make<br />
decisions. Rather than the instinctive emotional<br />
response, we have an instinctive cognitive one that<br />
allows us to manage that moment of uncertainty<br />
with calmness and thought, not emotion and panic.<br />
Negotiators today are dealing with<br />
unprecedented socio-economic upheaval. <strong>The</strong><br />
pressures they face are enormous, with resilience<br />
tested at every turn. Whether it is a buyer with<br />
mounting CPI requests, an account manager<br />
under pressure to manage prices while building<br />
sustainable products, or a procurement manager<br />
trying to mitigate energy costs, everyone is facing<br />
a challenging market. No matter the field or<br />
product, having a sense of psychological safety as<br />
a negotiator will not only foster a culture in which<br />
results are enhanced and negotiations are more<br />
efficient, it will also create a space that individuals<br />
want to be a part of during a period where<br />
employee satisfaction is hard to come by. And if<br />
you don’t have the luxury of such an environment?<br />
Without a sense of security when negotiating, you<br />
and your teams will be more hesitant, less creative<br />
and less likely to gain positive outcomes.<br />
<strong>The</strong> benefits of building an environment of<br />
psychological safety are clear, but in a time-poor,<br />
priority-heavy world, that’s easier said than done.<br />
But it’s easier to achieve with a shared purpose<br />
and culture of inclusivity and support, as well as<br />
an effective negotiation culture underpinned by<br />
trust with open dialogue, constructive feedback<br />
and prioritisation on preparation. This is exactly<br />
what <strong>The</strong> Gap Partnership helps to build with<br />
our partners.<br />
For me, as the leader of a negotiation team,<br />
psychological safety is simple. It comes down<br />
to the unequivocal knowledge that you are<br />
prepared and you are backed. If you want your<br />
negotiators to be more creative, more ambitious<br />
and more effective, give them the armor of<br />
psychological safety and embed it throughout<br />
your negotiation culture. TNS<br />
For more information on how <strong>The</strong> Gap Partnership<br />
can work with you and your teams to instill a<br />
psychologically safe and high-performing negotiation<br />
culture, please get in touch at<br />
www.thegappartnership.com<br />
25
THE ONLY WAY IS<br />
UP<br />
As inflation takes hold and potential global<br />
recession looms, so price increases have<br />
become an unavoidable part of commercial life.<br />
How can you face them with equanimity,<br />
whatever side of the negotiation table<br />
you are on? Brian Denning reports.<br />
26<br />
When you hear “upcoming price<br />
increase” before a commercial<br />
negotiation, what emotion does<br />
it evoke in you? If you’re on the purchasing<br />
side of the equation perhaps it’s dread,<br />
anger or fear of eroding margins impacting<br />
your bonus. If you’re a supplier maybe it’s<br />
guilt, rejection or you’re thinking, “Here<br />
we go again, more paperwork.”<br />
Inflationary pressures drive frequent and<br />
volatile price increases. Both suppliers and<br />
purchasers must prevent margin erosion.<br />
Emotions can run high with price increases,<br />
especially if the purchasing entity is unable<br />
to pass the increase on to their customers.<br />
And modern psychology’s understanding<br />
of the role of emotion in decision making<br />
is unequivocal, with a 2015 study led<br />
by Harvard professor Jennifer Lerner<br />
concluding that, “Put succinctly, emotion<br />
and decision making go hand in hand,”<br />
and, “Emotions are the dominant driver<br />
of most decisions.”<br />
But to counter this, a<br />
proactive price increase strategy,<br />
coupled with high levels of emotional<br />
intelligence, can reduce the inference<br />
of emotion and increase profitability.<br />
<strong>The</strong> benefits of EQ are articulated in<br />
Travis Bradberry and Jean Greaves' book<br />
“Emotional Intelligence 2.0.” <strong>The</strong>y point<br />
to evidence that shows that delaying<br />
emotion places new information in the<br />
logical frontal lobe in your brain, rather<br />
than triggering the ‘emotional’ limbic<br />
system of the brain, which can<br />
sub-optimize negotiations.<br />
Account managers and purchasing<br />
agents must be internally aligned to map<br />
out pricing strategy moves, before the<br />
dreaded ‘price increases’ words are uttered.<br />
Preconditioning is essential to increase<br />
acceptance. Suppliers typically have a<br />
formal process, consisting of a stern letter<br />
informing their purchasers of a price<br />
increase. In the past, suppliers provided<br />
sixty- to ninety-day notices. <strong>The</strong>se days,<br />
thirty-day or even immediate increases<br />
are commonplace, due to supply line<br />
constraints and price fluidity. Suppliers fear<br />
price increases because competitors might
THE NEGOTIATION SOCIETY<br />
not follow suit, reacting with a smaller increase,<br />
or using the pending increase to generate BATNA<br />
sales. Some suppliers proactively send a justification<br />
letter to precondition with the ‘social smell’ of<br />
current industry pressures.<br />
Purchasing agents typically use a ‘one to two<br />
punch’ – two quick requests in rapid succession – for<br />
a price increase. In the first instance, the response<br />
is an automatic ‘No!’, with a question around the<br />
justification for the increase, in the hope that the<br />
supplier will rescind their offer. As we know, ‘hope’ is<br />
never a strategy in business. <strong>The</strong> justification arrives,<br />
purchasers succumb to the social proof provided and<br />
revert to a higher authority, delaying compliance.<br />
Keep in mind, “<strong>The</strong> problem comes when we<br />
begin responding to social proof in a mindless and<br />
reflexive fashion – being fooled by partial or fake<br />
evidence.” (Cialdini, 2021, p.130) To counteract,<br />
delay tactics are used, and suppliers provide specific<br />
dates and larger percentage increases to offset<br />
implementation losses, ramping up emotional stress<br />
levels. Again, emotions can start to run high, and<br />
‘ripple effects’ in the market can be felt.<br />
Regardless of tactics used, a high level of trust<br />
must be maintained between long-term partners.<br />
To foster trust, personalize communications and<br />
speak frequently. Customize standard processes<br />
based on the level of your relationship, strength<br />
and length. A price increase process must include<br />
preconditioning; getting inside the other party’s<br />
head, mapping moves and frequent meetings to<br />
discuss the increase. In the formal letter, express<br />
the price percentage increase as a range to facilitate<br />
negotiation. A simple percentage increase in<br />
a standardized letter can back the supplier into<br />
a corner, erode relationships and be perceived as<br />
inflexible. Account managers might ‘leak’ price<br />
increase information to select customers prior to the<br />
formal legalistic letter to soften the negative impact<br />
and reduce emotions. Be aware that unsanctioned<br />
‘leaks’ lead to customers increasing purchases prior<br />
to the price increase.<br />
So, how can you improve your<br />
efficiency, effectiveness<br />
and speed<br />
when proposing or reacting to price increases?<br />
Implement a non-emotional proactive price<br />
negotiation process, get inside the other party’s<br />
head and remain vigilant during inflationary<br />
periods. You have much more power in your<br />
negotiations than you think! TNS<br />
PRICE INCREASE NEGOTIATION TIPS<br />
FOR SUPPLIERS<br />
• Precondition customers using market trends,<br />
economic factors and potential increases.<br />
• Plan regular price increases in a measured manner,<br />
regardless of market conditions.<br />
• Communicate ‘worst-case’ price increase range<br />
to customers. Negotiate to provide satisfaction.<br />
• Structure contracts linking price increases<br />
to economic and environmental events.<br />
• Increase in small, but credible increments. Do not<br />
try to recover multiple years of increases in a<br />
single, double-digit increase. Double-digit increases<br />
‘shock’ purchasers, increasing emotion, pushback<br />
and reducing compliance.<br />
• Create an internal and external price negotiation<br />
plan. Be proactive and creative.<br />
• Embed negotiation planning skills into your culture.<br />
PRICE INCREASE NEGOTIATION TIPS<br />
FOR PURCHASERS<br />
• Professionally flinch during the first face-to-face<br />
conversation about price. Communicate difficulty<br />
in implementing immediate increases. Request<br />
detailed justification.<br />
• Negotiate that if it’s the case that supplier inputs<br />
decrease, then a price decrease must also take place.<br />
Be specific.<br />
• Re-cost inputs (using all departments) to<br />
proactively implement a price increase to your<br />
customers. Create a virtual ‘war room’. This process<br />
minimizes margin erosion.<br />
• As for suppliers, Create an internal and external<br />
price negotiation plan. Be proactive and creative.<br />
Embed negotiation planning skills into your culture.<br />
27
Eelco Modderman, our managing partner of<br />
APAC, takes on the mantle of <strong>The</strong> Traveling<br />
Negotiator in the first of a series of articles<br />
that grapple with the fascinating topic of the<br />
role that culture plays (or not) in negotiation.<br />
Over the summer<br />
(European) months my<br />
family and I were lucky<br />
to spend a considerable<br />
amount of time back home. Covid<br />
restrictions meant we hadn’t seen<br />
family and old friends for almost three<br />
years, so this was a special time for us<br />
all. But when I say, “back home,” what<br />
does that mean?<br />
Let’s look at this through the eyes<br />
of my children. Both my kids, a <strong>10</strong><br />
and 7 year-old, were born and raised<br />
in Hong Kong. <strong>The</strong>y are Dutch<br />
passport holders. <strong>The</strong>y<br />
go to an Americansystem<br />
international<br />
school. <strong>The</strong>y are<br />
native Dutch and<br />
English speakers,<br />
with a smattering<br />
of Mandarin<br />
Chinese and<br />
Spanish. <strong>The</strong>y<br />
have never<br />
lived in the<br />
Netherlands or<br />
Europe apart from summer holidays<br />
(who else thinks that it never rains<br />
in the Netherlands?!), yet they have<br />
experienced much of the world. For<br />
instance, they spent six months with<br />
their travel-mad parents in Central<br />
America pre-Covid to study Spanish.<br />
To make matters worse (or better?)<br />
for them, this extended summer<br />
break was part of a detour for us<br />
relocating to Japan.<br />
And so it has come to pass that I<br />
am writing this article from the office<br />
of <strong>The</strong> Gap Partnership in Tokyo –<br />
another part of the world, again, for<br />
them and me. So back to the question,<br />
where’s home? It’s been fascinating<br />
over the years to watch my children<br />
operate in an alien environment<br />
with different rules of engagement.<br />
Despite their language skills, they<br />
occasionally do get lost in translation.<br />
Does the response, “Interesting,”<br />
really mean someone is loving your<br />
story? And to watch them choose<br />
the appropriate behavior in a new<br />
situation, like for example whether<br />
Culture<br />
in negotiation:<br />
Whose culture<br />
is it anyway?<br />
28
THE NEGOTIATION SOCIETY<br />
or not to unwrap a birthday present<br />
in front of someone right away, can<br />
become quite complicated. <strong>The</strong> fact is<br />
they may seem a bit odd at times in<br />
the eyes of their Dutch cousins, and<br />
also somewhat different to their new<br />
classmates in Tokyo. Yet they adapt,<br />
stay true to themselves, communicate<br />
openly and continue to have fun.<br />
This makes me wonder, how much<br />
do the surroundings we live and/or<br />
grow up in define how we behave in<br />
different circumstances? <strong>The</strong>se pintsized<br />
chameleons of mine can read<br />
their surroundings and adjust their<br />
behavior accordingly, thanks to their<br />
experiences. But what if you haven’t<br />
been exposed, like them, to all this<br />
native contextualization? How do<br />
you deal with situations that are<br />
foreign to you?<br />
“ How much do the surroundings<br />
we live and/or grow up in<br />
define how we behave in<br />
different circumstances?<br />
<strong>The</strong>re are many great books,<br />
articles, blogs and vlogs on the subject<br />
of communicating cross-culturally.<br />
<strong>The</strong> one I use as a benchmark is “<strong>The</strong><br />
Culture Map” by Erin Meyer. First<br />
published in 2015, this book has<br />
since become the baseline for many<br />
people when discussing, thinking<br />
and advising on this subject. I highly<br />
recommend you read it, especially<br />
if you are someone who regularly<br />
operates in an international<br />
business world.<br />
Because I often get this question:<br />
how does culture impact negotiations?<br />
And mostly my answer is a question<br />
back: culture does play a role, of<br />
course, but is it relevant to your<br />
situation? <strong>The</strong> basics of negotiation<br />
behavior are the same in every culture<br />
because they are universal human<br />
behaviors, and we are all human<br />
after all. Flinching to a proposal in<br />
a hard bargaining negotiation is as<br />
important in the Netherlands as it<br />
is in China. But it may well look<br />
different. Equally, someone from, say,<br />
Germany, who’s doing business in<br />
India for the first time, could interpret<br />
the head movement from their Indian<br />
counterparty very differently to how<br />
it is intended because they won’t<br />
have the native contextual experience<br />
to understand its meaning, unlike<br />
another Indian person, or even my<br />
globetrotting kids.<br />
What I aim to do in future articles<br />
on culture is talk less about my<br />
children and more about what culture<br />
means for negotiation. Or what it<br />
doesn’t mean! I aim to challenge<br />
ingrained thinking and encourage<br />
a reexamination of what should take<br />
priority. If our people do most (if not<br />
all) of their negotiations in their own<br />
language in their own cultural context,<br />
then it’s likely not in their best<br />
interest to have negotiation training<br />
in another language they are less<br />
comfortable in, and with people who<br />
behave in a way they don’t understand.<br />
Because in that scenario, training<br />
becomes a language and culture<br />
obstacle course instead of one focused<br />
on negotiation skills development.<br />
More on that to come. For now,<br />
I encourage you to think carefully<br />
about the negotiation behaviors you<br />
adopt that translate globally, and those<br />
that may be culturally specific to your<br />
own environment. Which serve<br />
you well, and which should you<br />
consider adapting? TNS<br />
29
S H O P T I L L Y O U<br />
Kelly Harborne explores the<br />
psychology of spending when<br />
times are tough and ponders how<br />
learnings in this field have relevance<br />
to negotiation.<br />
A<br />
s the world faces the significant financial<br />
impact of a global pandemic, war and<br />
seismic shifts in trading relations, many<br />
of us are already tightening our belts.<br />
Spending of all kinds, national and personal, is under scrutiny like never<br />
before. Judgments are being made about our leaders’ economic shrewdness and,<br />
if we’re honest, perhaps that of our neighbors too. <strong>The</strong> “But they can afford flat<br />
screen TVs and twenty cigarettes a day” trope is a familiar one, certainly in the UK’s<br />
national debate around who should get what financial assistance when resources<br />
become scarce. And sharing any scarce resource has a profound impact on the<br />
human psyche; many of us still have the battle scars from the pandemic-stricken<br />
supermarket aisles of 2020 to prove it. So what impact is the downturn likely to<br />
have on us as consumers, and as negotiators?<br />
30
THE NEGOTIATION SOCIETY<br />
NO SMOKE WITHOUT FIRE<br />
Full disclosure, I am a reformed smoker. I loved<br />
it. I miss it still. I smoked as a poor student, and<br />
as a fitness fanatic, and I’ve promised myself if<br />
I get to 85, when I don’t have the luxury of time,<br />
I’ll indulge in this guilty pleasure again. Of course,<br />
I bargained with myself for many years before<br />
I gave up. I told myself I’d stop when a pack of<br />
twenty cost £4, then £5 and £6, until I stopped<br />
thinking about the price at all.<br />
Finally, it was my first pregnancy when time<br />
became a far more valuable variable – because I<br />
recognized its scarcity – that I finally stubbed it<br />
out. And I didn’t think about the price of a pack<br />
for years, until a friend of mine asked me to pick<br />
up 40 at the airport on the way out to meet her<br />
in France and I repeated, “No, just two packs”<br />
three or four times to the cashier in response to<br />
the price, like I was already regularly setting off<br />
the fire alarm in my assisted living complex. I<br />
was gobsmacked – and this was two years ago! In<br />
2022, according to Statista, a pack of 20 filtered<br />
cigarettes averages £12.67... £12.67! Sorry, I’m<br />
doing it again.<br />
In wealthier markets around the world there<br />
is a downward trend in the percentage of smokers<br />
per capita, but within those markets it appears<br />
that if you earn less, you’re more likely to smoke<br />
and to smoke for longer, despite much research<br />
that indicates the less you earn the higher the<br />
price-elasticity of demand for cigarettes – i.e.,<br />
the more sensitive you are to price increases. So,<br />
as prices rise on almost everything we buy, what<br />
can this contradiction of factors tell us about the<br />
psychology behind the purchases we continue to<br />
make when times are tough?<br />
PLAYING TO TYPE<br />
In 2009, as we adjusted to the last economic<br />
crisis of this scale, John Quelch and Katherine E.<br />
Jocz of Harvard Business Review recommended<br />
that businesses disregard traditional demographic<br />
groups when trying to predict consumer<br />
behavior in favor of classifications based on a<br />
psychological response to the downturn. <strong>The</strong>y<br />
proposed four distinct groups: comfortably<br />
well-off, live-for-today, pained-but-patient and<br />
slam-on-the-brakes.<br />
It’s worth thinking of your negotiation<br />
counterparty in the same way. All businesses will<br />
be impacted in some way by cost inflation, but by<br />
how much and when? How healthy are their<br />
margins? Are you simply trading profit points –<br />
yours for theirs? What’s their appetite for longterm<br />
versus short-term gains? Will strengthening<br />
your partnership help you shore up your boats to<br />
weather the storm together? And which of your<br />
counterparties is looking less than seaworthy, and<br />
what risk does that represent for you? However<br />
you think about your counterparty, the vital thing<br />
is to understand that circumstances have changed,<br />
and in many cases so will the evaluation of how<br />
important/unimportant your products, service or<br />
custom are to the other party.<br />
31
“ Shopping has been proven to help<br />
us feel less sad, which is arguably<br />
why we’re prepared to overspend<br />
by as much as % to make those<br />
feelings go away.<br />
RETAIL THERAPY<br />
If shopping was an entirely rational process,<br />
my partner would have far fewer drills in the<br />
garage than he does (it’s like a compulsion!).<br />
In reality, the value of shopping is greater than<br />
the sum of the Amazon boxes piled up in your<br />
recycling bin. Psychologist Joyce Marter describes<br />
how the process of buying something “puts you<br />
back in the driver’s seat when something happens<br />
beyond your control,” and that shopping has been<br />
proven to help us feel less sad, which is arguably<br />
why we’re prepared to overspend by as much as<br />
30% to make those feelings go away... all of which<br />
could explain why there are so many more of those<br />
boxes now than pre-pandemic.<br />
This is supported by another psychologist<br />
specializing in consumer behavior, Catherine<br />
Jansson-Boyd, who writes in the Economic Times,<br />
“Shopping allows us to make choices – which<br />
shop to go to or whether we like an item. It can<br />
bring back a feeling of personal control and reduce<br />
distress.” Of course, this very human need for<br />
control in turbulent times can be used skilfully<br />
in any negotiation strategy. Creating a range of<br />
options/proposals for<br />
the other party to pick<br />
from is a simple way of<br />
remaining in control of<br />
the value on the table,<br />
while empowering the<br />
other party to decide.<br />
For many, the<br />
response to global<br />
inflation will be all too<br />
predictable and stark in<br />
its reality. Many families<br />
are already deciding<br />
whether to heat or eat, so basket size is likely<br />
to reduce in value and volume. Trades from<br />
fresh to frozen and tinned will feel necessary<br />
for many and those who had just got back in<br />
the habit of eating out again are likely to be<br />
back in front of those box sets, perhaps with<br />
a meal for two deal to punctuate the week.<br />
However, Quelch and Jocz’s categories describe<br />
a response which is not one-size-fits-all, and<br />
certainly helps us understand some surprising<br />
products that have proven to be contrary economic<br />
indicators in previous downturns. Leonard Lauder,<br />
the chair of Estée Lauder, first coined the phrase<br />
<strong>The</strong> Lipstick Effect after the 9/11 terrorist attacks<br />
in 2001, when the company saw a significant<br />
uplift in lipstick sales. <strong>The</strong> phrase is now<br />
synonymous with the concept that when times<br />
are tough certain products become the accessible<br />
pick-me-up, or attainable luxury that help us feel<br />
good. If you sell a product or service, reevaluating<br />
your range in this context may mean its value has<br />
changed for the consumer and perhaps so too<br />
has your bargaining power.<br />
32
THE NEGOTIATION SOCIETY<br />
AMBASSADOR, YOU ARE<br />
REALLY SPOILING US<br />
It’s less surprising that in times of need we<br />
also turn to comfort food. TIME Magazine<br />
reported an uplift of 25% in ice cream sales<br />
in 20<strong>10</strong> and again, those of us that developed<br />
an every 20-minutes grazing pattern during<br />
lockdowns will relate to the power of indulging in<br />
something (anything) for the luxury of distraction.<br />
But it seems there may be a deeper driver to us<br />
seeking out simpler flavor profiles like chocolate<br />
if we’re facing otherwise stressful circumstances.<br />
According to a study by Hildebrand, Rubin, Hadi<br />
& Kramer published in <strong>The</strong> Journal of Consumer<br />
Psychology, there is “a significant interaction of<br />
cognitive depletion and flavor complexity on<br />
enjoyment.” In other words, if I’m stressed, the last<br />
thing my brain needs is to exert the additional<br />
cognitive power required to process a complicated<br />
flavor. “Give me straightforward chocolate every<br />
day of the week!” it cries. And so, I do.<br />
Baiju Shah of Accenture, recently wrote about<br />
the 2022 consumer, “With external forces exerting<br />
more pressure, and a list of practical and ethical<br />
considerations that keeps getting longer, people<br />
are facing more complex and more frequent<br />
decisions than ever before.” And I believe this<br />
applies to commercial decision-makers too.<br />
Helping your partners cut through some of that<br />
complexity, be it in ways of working, by providing<br />
thought leadership or simply knowing your market<br />
better than anyone else, will be incredibly valuable<br />
and so very tradeable. You might ask yourself what<br />
your flavor profile is doing to their commercial<br />
cognitive function?<br />
LESS IS... LESS<br />
Perhaps what lies behind the resilience of<br />
spending on cigarettes in those that can least<br />
afford them is entirely connected to the fact that<br />
they have less. It seems that instant gratification<br />
is key. Shahram Heshmat Ph. D., in his article<br />
<strong>The</strong> Mindset of Scarcity says that increased<br />
feelings of being without makes you myopic, i.e.<br />
“we overvalue immediate benefits at the expense<br />
of future ones” – and this might explain why<br />
products that make us feel good in the short term<br />
tend to be resilient when consumers face financial<br />
difficulty. “When you can afford so little,” he<br />
continues, “so many things need to be resisted [it]<br />
depletes the willpower, which in turn makes them<br />
less capable of giving up, say, a smoking habit.” If<br />
we apply that psychology to the structure of the<br />
agreements we build, perhaps staged agreements<br />
that allow (conditionally, of course) our partners<br />
to recognize value earlier may provide the lasting<br />
temptation that solidifies a way forward. However,<br />
we also know that scarcity drives value. What I<br />
wouldn’t give for five minutes alone, as a working<br />
mother of two. So make sure whatever you’re<br />
trading, you’re always getting something of equal<br />
or greater value in return.<br />
As those that work in the retail and consumer<br />
goods sectors know well, there is much science<br />
behind why and how we buy what we buy, and<br />
context is key. Similarly, commercial negotiators<br />
would do well in the coming months to recognize<br />
that we are each multi-dimensional with a range<br />
of factors influencing our behavior. <strong>The</strong> impact of<br />
scarcity, our response to risk, our short-term vs<br />
long-term view will be governed by the<br />
circumstances in which we find ourselves. While<br />
a very human response might be to focus entirely<br />
on our needs, curiosity and enquiry remain the<br />
most critical skills that a negotiator (and a good<br />
neighbor) can nurture to thrive during the<br />
most challenging context many have faced<br />
for decades. TNS<br />
33
Tricks of my Trade<br />
Consultant Ashley Barrett takes the hot seat to talk furniture,<br />
hat wearing and how a knack for creativity led to a dramatic<br />
shift in her negotiation style when Covid hit.<br />
<strong>The</strong> <strong>Negotiation</strong> <strong>Society</strong>: Tell us about life before<br />
<strong>The</strong> Gap Partnership.<br />
Ashley: I started out as a national sales manager in clothing<br />
and accessories, working in a very small team. I was always on<br />
the road, doing more than thirty trade shows a year, as well<br />
as spending time in India planning for the following season’s<br />
collection, which meant I had the opportunity to wear a ton<br />
of different hats! <strong>The</strong>n I decided to make the switch into<br />
something a bit more corporate.<br />
TNS: Over time and with experience, did you notice<br />
a difference in your negotiation style?<br />
Ashley: Hugely! In my first role it was very much trial and<br />
error and I did what I could. <strong>The</strong>n when I moved to Wayfair,<br />
I had phenomenal mentors. My manager took me under<br />
her wing and taught me so much, and I later found out,<br />
after I started in my role at <strong>The</strong> Gap Partnership, that she<br />
had attended our flagship <strong>The</strong> Complete Skilled Negotiator<br />
workshop in one of her previous roles!<br />
TNS: Where did that decision take you?<br />
Ashley: I moved to Boston and started my furniture career.<br />
I worked in the promotions team at Wayfair, curating<br />
collections within the home, and then a couple of years later<br />
I joined the corporate team at Ashley Furniture in Tampa,<br />
driving new strategy and growth across multiple different<br />
product categories.<br />
TNS: Did these roles put your negotiation skills to the test?<br />
Ashley: Yes, daily! And internally and externally. At the<br />
clothing company, I was both the buyer and the seller,<br />
working closely with manufacturers and retailers. I was<br />
negotiating over things I’d<br />
never dreamed of, like space<br />
and location for trade show<br />
booths. During Covid,<br />
I was working in the<br />
‘home office and storage’<br />
category at Ashley, which<br />
saw sudden huge growth<br />
as people were staying<br />
home, so the way I<br />
negotiated also shifted<br />
dramatically as people’s<br />
priorities changed.<br />
I constantly had to<br />
reassess the situation<br />
and get creative as<br />
the world evolved<br />
around us.<br />
TNS: Wow. She taught you what we taught her!<br />
Ashley: Yes! She’d even use some of the subtle wording that<br />
we would use. When I look back on my first role I think,<br />
‘If only I’d known.’ You live and learn...<br />
TNS: So, why the move away from furniture to negotiation?<br />
Ashley: I did some negotiation training and leadership<br />
conferences and realized my passion lay in strategic and<br />
creative thinking, finding the best solutions and enabling<br />
people to reach their potential. I knew immediately that<br />
TGP was the challenge I was looking for, and that’s what<br />
drew me in.<br />
TNS: Is the role living up to your expectations?<br />
Ashley: Absolutely. I love seeing the impact I have on<br />
people in my workshops in the time we spend together;<br />
how I can shape someone’s career or help them maximize<br />
a deal. Being so heavily immersed with people for four<br />
days and seeing how the teams interact and pull together<br />
is always a lightbulb moment for me.<br />
TNS: Where do you see yourself in two years’ time at TGP?<br />
Ashley: Consulting – taking a deeper dive into projects<br />
and creating brilliant bespoke solutions for our clients.<br />
Everyone is very open-minded to new ways of working<br />
at TGP. No one thinks it’s their way or the highway.<br />
I’m certainly never bored! TNS<br />
To hear Ashley’s interview in full,<br />
search <strong>The</strong> <strong>Negotiation</strong> <strong>Society</strong> on your<br />
favorite podcast platform, or access via<br />
www.thenegotiationsociety.com<br />
34
THE NEGOTIATION SOCIETY<br />
Tim Green<br />
Want to survive<br />
a recession?<br />
Watch a movie!<br />
In Monty Python’s 1979 film “<strong>The</strong> Life of Brian,”<br />
Eric Idle’s most famous moment comes when he sings<br />
“Always Look on the Bright Side of Life.” Films and<br />
songs have an uncanny ability to throw light on human<br />
characteristics and act as a mirror that reflects back, and<br />
challenges, our own reaction to life’s myriad scenarios –<br />
be that love, hope, loss, ambition, greed, and so on.<br />
Idle’s warbled advice could be seen as very timely<br />
right now when businesses and individuals are facing<br />
challenging economic times, with recessions something<br />
of a feature of modern economies. <strong>The</strong>y seem to occur<br />
every ten years or so, and more specifically often follow<br />
periods of strong growth. Recessions understandably<br />
illicit nervousness and even fear; as the economy falters<br />
and stalls, businesses may seek to protect themselves<br />
financially, cutting overheads and costs and minimizing<br />
the impact on their profits of currency fluctuations.<br />
So far so gloomy, and it’s all too easy to lose sight of<br />
the opportunities (or even bright side) that a recession<br />
might provide. But life’s optimists, like Idle’s character,<br />
will say that when one door closes another one opens.<br />
Take, for example, those in supply chain and<br />
procurement roles. <strong>The</strong>y need to ensure they have<br />
protected their supply chain along with the ongoing<br />
ability of their partners to continue to support them,<br />
all while setting the groundwork for returning to full<br />
strength and output after the recession passes. To this<br />
end, opportunities to strengthen relationships for the<br />
longer-term and enjoy greater value from the negotiations<br />
that ensue can be a positive outcome of recessionary<br />
“ It’s all too easy to lose sight<br />
of the opportunities (or even<br />
bright side) that a recession<br />
might provide.<br />
pressures. It also means that when the next recession cycle<br />
kicks in, businesses that think this way are better prepared<br />
and can minimize negative impacts simply because they<br />
are ready and have experienced it before.<br />
Thinking creatively and exploring options that can<br />
grow value for both parties are two of the key behaviors<br />
of a skilled negotiator, and recessions offer an opportunity<br />
to do both. It might be that things are not possible to<br />
implement now, but the sheer act of considering them<br />
with your business partners can strengthen existing<br />
relationships, or help one or other party view an existing<br />
counterparty in a new, more progressive way.<br />
Whilst I am thinking cinematically, another film, Tom<br />
Cruise’s 1996 classic “Jerry Maguire,” spawned many<br />
famous lines, the most relevant to working together in<br />
times of trouble being, “Help me to help you.” Businesses<br />
that do this will reap rewards once the economy stabilizes,<br />
not just in the short-term but the longer-term as well.<br />
It is this mutuality of shared interest, and the trust<br />
needed therein, that’s the basis of successfully navigating<br />
turbulent times. If one party seeks to use their power to<br />
impose terms on their counterparty, they may be able<br />
to protect themselves for the storm they can see, but<br />
they will lose the protection that a more collaborative<br />
approach would give for the longer-term and the storms<br />
yet to come. When recession looms, companies have a<br />
short window to negotiate with their partners to secure<br />
terms that will be advantageous for both parties when<br />
the economy recovers. A collaborative relationship offers<br />
the possibility of finding the holy grail of supply chain<br />
efficiencies and being able to survive the immediate<br />
turmoil, and emerging stronger when economies upturn.<br />
So, when you treat yourself – as people in recessions<br />
do to make themselves feel better – to a tub of expensive<br />
ice cream while you watch that new movie release you<br />
decided to splurge on at home, listen carefully<br />
in case there is inspiration for looking at<br />
the recession in a more positive way.<br />
Or maybe just enjoy the distraction!<br />
After all, this recession isn’t going<br />
anywhere in a hurry, no matter how<br />
much we might channel our<br />
inner Jerry Maguire and<br />
implore the economy<br />
to “Show me<br />
the money!” TNS<br />
35
QUESTION<br />
TIME<br />
We asked our expert panel to give us their<br />
considered yet concise response to this<br />
question: “Can you negotiate your way out<br />
of a recession?”<br />
Judy Hendrick<br />
Chief Financial Officer,<br />
CWT<br />
Companies are bracing for recession<br />
as soaring prices affect essential<br />
commercial and personal needs,<br />
threatening budgets and eroding<br />
savings. <strong>Negotiation</strong>s drive economies<br />
all over the world, leading to prosperity<br />
or recession. You can’t negotiate out<br />
of a recession, but negotiating skills<br />
are critical to emerging in a more<br />
competitive position.<br />
Recessions are a high-pressure<br />
exercise in change management and<br />
to navigate one successfully, a company<br />
must be flexible and ready to adjust.<br />
Building a strong cash management<br />
culture and developing a nucleus of<br />
financial leaders who embrace change,<br />
remain calm and clear thinking, but<br />
make hard decisions to weather the<br />
storm, are essential elements to survival.<br />
<strong>The</strong> aftermath of a devastating<br />
pandemic is still fresh and we saw many<br />
fail. But others thrived. Economic<br />
meltdowns create opportunities to<br />
focus relentlessly on negotiating<br />
strong vendor and client relationships,<br />
and gain market share as others<br />
stumble, to emerge even<br />
stronger than before.<br />
36
THE NEGOTIATION SOCIETY<br />
Nigel Wolfin Queenie Jiang Todd Bickmeyer<br />
Chief Financial Officer,<br />
<strong>The</strong> Gap Partnership<br />
Senior Consultant,<br />
<strong>The</strong> Gap Partnership<br />
Founder,<br />
Brick Accretive Management<br />
<strong>The</strong> short answer is yes - as long as<br />
you distinguish between what you can<br />
and can’t influence.<br />
While it’s unlikely any business will<br />
entirely escape the far-reaching impact<br />
of a global recession, how that business<br />
deploys the commercial tools at its<br />
disposal to navigate the choppy waters<br />
ahead will significantly reduce<br />
recessionary impact.<br />
<strong>The</strong> resultant risk to any business<br />
must change the usual rules of<br />
engagement. Commercial arrangements<br />
that had been assumed as cast in stone<br />
for the next two to three years are, in<br />
many cases, up for grabs.<br />
Understanding the opportunities<br />
to renegotiate commercial terms that<br />
mitigate the effects of spiraling raw<br />
material costs or a hike in funding<br />
costs, for example, must move right<br />
to the top of the CFO’s agenda.<br />
By reassessing your assumptions<br />
of where the balance of power lies<br />
in your commercial relationships,<br />
opportunities will open up to ease<br />
cash flow pressures through improved<br />
commercial terms with a multitude<br />
of counterparties.<br />
And that is the slightly<br />
longer answer.<br />
Bear markets can see dramatic<br />
lowering of revenue in businesses.<br />
With tighter windows of opportunity<br />
and often a one-shot chance, it is<br />
critical that organizations prepare by<br />
sharpening up their negotiation skill<br />
to maximize the value of every<br />
counterparty interaction. Leaders who<br />
reassess the balance of power, examine<br />
their BATNAs and understand not<br />
only their own value chain but that<br />
of their counterparties, will often fare<br />
better in a recession.<br />
Recession can create opportunities<br />
in capital markets, and savvy negotiation<br />
can assist an economy as it moves out<br />
of recession, as crisis unveils both<br />
resilience and deficiencies. A key watch<br />
out is to understand that as economies<br />
move from bear to bull, the balance of<br />
power can shift. A matrix of awareness<br />
is vital for self-growth and presence,<br />
while accurately gauging others'<br />
weaknesses and strengths. Tough times<br />
bond those who embrace them together,<br />
but recessions can see commercial<br />
relationships damaged in the longer<br />
term if a shorter term survival mindset<br />
has been adopted.<br />
We are exiting an unprecedented<br />
period of easy money, characterized<br />
by a record amount of fiscal and<br />
monetary stimulus. <strong>The</strong> monetary<br />
policy unwind through higher rates<br />
and quantitative tightening has just<br />
begun. When we look back on this<br />
period, I believe sustained negative<br />
rates and quantitative easing will<br />
be deemed a policy error. Capital<br />
over labor has clearly switched to<br />
labor over capital. “Negotiating<br />
your way out of a recession” will<br />
depend on how business leaders<br />
negotiate capital and labor costs<br />
in an increasingly volatile macro<br />
environment. For high growth<br />
negative cash flow business, the<br />
emerging environment will not be<br />
friendly; similar to the post-2000<br />
tech bubble, many won’t make it.<br />
Globalization has also reversed and<br />
onshoring production will accelerate<br />
for strategic industrial sectors<br />
(e.g., chip manufacturing) further<br />
pressuring input costs.<br />
Managing the convexity of the<br />
growth curve will become less of a<br />
focus, while developing a long-term<br />
plan for capital and labor inputs will<br />
become imperative to managing<br />
through this paradigm shift. TNS<br />
37
DEAR DIANA<br />
<strong>Negotiation</strong> expert Diana Jusepeitis tackles questions<br />
on managing doubt and avoiding deadlock.<br />
Q: I’m a senior buyer in a large<br />
grocery retailer, operating at<br />
the coalface of our increasingly<br />
pressured world, which means<br />
price increases relentlessly<br />
coming across my desk. Time<br />
is at a record low and the CPI<br />
notifications are coming faster<br />
than I can negotiate them away.<br />
As a result, my negotiations are<br />
hitting deadlock more and more,<br />
which seems unavoidable. Do<br />
you have advice on how to manage<br />
deadlock, or have a more productive<br />
conversation around it?<br />
D: <strong>Negotiation</strong>s may certainly be<br />
tougher right now – more transactional<br />
and with increased pressure on you as<br />
a buyer. A price increase in isolation is<br />
a unilateral demand. <strong>The</strong><br />
expectation will always<br />
be competitive, with<br />
either a win-lose situation<br />
or deadlock unless you<br />
widen your perspective<br />
and consider more<br />
variables. Try to trade<br />
across value differentials<br />
in order to create mutual<br />
gain for all parties. Get<br />
inside the other party’s<br />
head asking the following<br />
questions: Why have they<br />
made that demand? What are their<br />
pressures? What else is important<br />
to them?<br />
When you get a price increase<br />
on your desk you are already at the<br />
negotiation table and “in the battle”<br />
that might lead to deadlock. How can<br />
you be more proactive next time to<br />
prevent this situation? Think about<br />
preconditioning the other party to try<br />
to shape their expectations. Perhaps it’s<br />
time to think differently, look beyond<br />
short-term cost pressures, and build<br />
strong alliances and relationships with<br />
strategic suppliers for the future.<br />
“Doubt and insecurity are<br />
not great starting points<br />
for a negotiation.<br />
Q: As a senior member of the<br />
procurement team in a fast-growing<br />
fintech start-up, I regularly negotiate<br />
with suppliers and other partners.<br />
As we are still relatively small, I<br />
have a lot of autonomy in the way<br />
I approach and carry out these<br />
negotiations, which I enjoy. But last<br />
week, I reported back on a deal to my<br />
director, and she wasn’t happy with<br />
what I’d agreed (I’d introduced some<br />
creative variables in order to get<br />
the deal moving again after we<br />
hit an impasse, which I felt was<br />
entirely appropriate). It was<br />
a lesson for me in internal<br />
alignment, but I’m now<br />
concerned about whether I’ll<br />
have the confidence to agree<br />
a deal in the room next time.<br />
Any thoughts?<br />
D: We have a saying at <strong>The</strong><br />
Gap Partnership, “If in doubt, get<br />
out!” Doubt and insecurity are not<br />
great starting points for a negotiation.<br />
My recommendation is speak with<br />
your line manager and align on which<br />
framework you can negotiate arbitrarily,<br />
and when you need to escalate. Lack<br />
of stakeholder alignment and no clear<br />
escalation paths are two<br />
of the main reasons why<br />
negotiations either fail, or<br />
money is left on the table.<br />
Try not to react<br />
emotionally to criticism<br />
from your director.<br />
Instead, enter into<br />
conversations rationally<br />
and professionally,<br />
consider all perspectives,<br />
and ask questions to get<br />
information to help with<br />
an aligned approach.<br />
If you’re reading this as a leader<br />
of negotiators, you may want to ask<br />
yourself one of the following questions:<br />
Was my behavior appropriate? Are<br />
my team empowered to negotiate<br />
across a broad range of variables?<br />
Are our objectives aligned with all<br />
key stakeholders?<br />
If this has provoked your thinking<br />
and led to you improving your<br />
negotiation alignment and preparation,<br />
then it has made my day. TNS<br />
38
THE NEGOTIATION SOCIETY<br />
CROSSWORD<br />
Our fiendishly challenging British-style crossword returns.<br />
1 2 3 4 5 6 7 8<br />
9 <strong>10</strong><br />
11 12<br />
13 14 15 16<br />
17 18 19 20<br />
21 Desperately lean, say, leading to<br />
break down (7)<br />
22 Likes most of preserve<br />
belonging to us (7)<br />
24 Dr Varney, the bus driver, is too<br />
restrained at races, primarily (9)<br />
26 Negotiating these leads to<br />
tense engagement regarding<br />
28 <strong>issue</strong>s ultimately (5)<br />
28 Gosh, accepting 1 to get ready (5)<br />
29 Clearly old boy cunning after<br />
attending 6 university (9)<br />
ILLUSTRATION: WWW.CARTOONSTOCK.COM<br />
21 22 23<br />
24 25 26 27<br />
28 29<br />
ACROSS<br />
9 Act of going forward, scratching<br />
the head producing slump (9)<br />
<strong>10</strong>/16 Unusual – sir’s recipe for<br />
inflation (5,5)<br />
11 <strong>The</strong> first two at Freud’s party<br />
provide old currency (5)<br />
12 Live with rescuer, hard for son<br />
having manners (9)<br />
13 Internet cheat maybe at award<br />
ceremony finally showing thrift (7)<br />
14 Turner getting endless wine and<br />
EU rum cocktail (7)<br />
17 It’s forbidden as well to<br />
embrace sailor (5)<br />
19/20 <strong>The</strong>se produce items in<br />
undesirable periods (3,5)<br />
"<strong>The</strong> fish – will it be the market price at the time of<br />
ordering, the time of eating, or the time of paying?"<br />
DOWN<br />
1 Expert following teacher (4)<br />
2 Officer with duty to return<br />
ordinary book (6)<br />
3 Horror film has record publicity<br />
at the end, mind (<strong>10</strong>)<br />
4 Local objector grabs<br />
lecturer quickly (6)<br />
5 Astonishingly, neither daughter<br />
is owing 28 (2,3,3)<br />
6 Idler celebrities turned up (4)<br />
7 Covering boundary showing hesitation<br />
about opponent’s leg-bye initially (8)<br />
8 Big man to stand (4)<br />
13 More paintings by Magritte –<br />
his last mounted (5)<br />
15 Test Russian housing, one inside<br />
to provide inspiration (<strong>10</strong>)<br />
16 See <strong>10</strong> Across<br />
18 Do these rights lead to superior 12? (8)<br />
19 Vegetable variety of better sandwiches –<br />
two rounds (8)<br />
22 Try to discover longest river (6)<br />
23 Not able to relax, perhaps<br />
causing disorder (6)<br />
24 Drive up the No <strong>10</strong> slope (4)<br />
25 Blue elder principally found in island (4)<br />
27 Ray ostentatiously provide<br />
climbing bean (4)<br />
For solutions email<br />
hello@thenegotiationsociety.com<br />
39
Eat<br />
Sleep<br />
Negotiate<br />
Repeat<br />
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