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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 />

SUBSCRIBE TO OUR<br />

DIGITAL EDITION<br />

Scan the QR code for a free subscription to the<br />

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

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 />

Looking for a way to refresh and embed negotiation capability in your teams?<br />

<strong>The</strong> Negotiators is an innovative online negotiation competition that delivers<br />

learning and engagement in equal measure, and at scale.<br />

Find out more at www.thenegotiationsociety.com

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