Friday, 6 March 2015

No. 86: I am 45 and I am still learning

Having been the Commercial Director for Thames Water I like to think I know how to negotiate. I believe I am pretty good at bringing conflicting parties together around a common goal. After all, a good negotiation is one where both sides give a little, where compromise triumphs, where that elusive win-win is secured.  

Apparently not always.

Yesterday we reached a fairly crucial stage in a negotiation over the multi-tens-of-millions $ deal that has sucked up much of my life for the past 3 months. So important was this deal that we flew in our lead negotiator. Rather than share the precise details I will use a fictional example (but perhaps not as wildly fictional as you might think).

As part of the negotiation we wanted the other side to do something, namely to sing the National Anthem whilst sucking on 5 gobstoppers. In my make-believe fantasy world this is a common requirement in many private equity deals since it serves to both humiliate and amuse, whilst providing a nice bit of nationalistic dignity. Not surprisingly, the ‘other side’ came to the negotiation with a raft of good reasons as to why they thought this was an unreasonable request. They proposed a compromise: they would sing the National Anthem, but with only three gobstoppers. They outlined their reasons. We then countered, explaining why 5 gobstoppers was important to us. They then counter-countered reiterating their 3 gobstopper argument.

At this stage in a normal negotiation the next step is obvious: we would settle on the compromise of 4 gobstoppers.

That was not how it played out yesterday. To my surprise our counter-counter-countering was to raise the stakes and propose that they sang with seven gobstoppers. For a brief moment I thought I was in a scene from a Hollywood movie (think ‘Wall Street’!). The tactic took the other side as much by surprise as it did me and they have gone away to think about their next move.

I thought I knew how to negotiate. I know nothing. I am a Padawan.

Finally, for those of you who read my last Note please find the link to a 90 second clip of me being tormented by a scary Turkish man with knives. I had forgotten they had made me where a big wig as well. What little dignity I had left me that night:  https://www.dropbox.com/sc/ibllwvozjbwguqr/AAAnkCRCmoUTQWpiPOrDwi-Da



(CP, this one is for you ;)

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