OPTIMIZED NEGOTIATIONS FOR HIGHEST RETURNS

INTRODUCTION

In negotiations, as in any business transaction, every effort should be made to achieve a high investment/return ratio. We should seek a strong return for the cost and effort invested. To achieve a high ratio, negotiations must be optimal on three dimensions or axis's, which are:

• 1) Efficiency
• 2) Value
• 2) Relationships

A negotiation which is efficient, but results in low value gains, or one that achieves high value gains but destroys the relationship, or one with a lot of wasted time due to severe inefficiencies is said to be "sub-optimal". For a negotiation to be optimal and to achieve a high investment/return ratio, it should be efficient in process, attain strong value gains and result in good and trusting working relationships.

Although to cover these three axis's in the detail that they deserve is beyond the scope of this one-minute read, nevertheless I will provide some useful guidelines that you can immediately implement.

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IDENTIFYING AND ESTABLISHING FIRM OBJECTIVES

LESSONS FROM THE IRANIAN FRAMEWORK AGREEMENT NEGOTIATIONS

Whether negotiating high level international negotiations,or corporate deals in business, the negotiation principles, fundamentals and processes are the same. As such, it makes sense to examine high profile international negotiations, learn from them and improve our skills by applying the lessons to our own business negotiations.

The recent framework agreement that the P5+1 reached with Iran over the nuclear weapons issue, drew very conflicting responses from heads-of-state, diplomats, politicians and pundits from all over the world. There were those who felt it was an acceptable deal, others felt, that although it was not great, it was still better than no deal. At the same time there were others who felt that no deal would have been preferred. In addition, some were concerned with compliance,verification and enforcement. What was most conspicuous however, was that the P5+1 did not attempt, nor were they able to defend and support the terms of the agreement or to alleviate the concerns of the many detractors and critics!

In any negotiation, if we are unable to explain to ourselves, to our superiors, to constituents or to others as to why we consented to a particular agreement, it is a clear indication that the negotiation process was flawed and that the outcome is bound to be suboptimal.

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REASON AND RATIONALE - A STRATEGY FOR AUTHENTIC PERSUASION IN NEGOTIATION

REASON AND RATIONALE VS. UNREASONABLE DEMANDS

In a Harvard social experiment, a librarian was asked to shut down all but one of the available copying machines. With only one copying machine in operation, a long queue soon formed at the only working machine as students were eager to do their copying. The social experiment involved getting people to try to get others to allow them to cut in front of them and get the copying done first.

The first group were instructed to simply ask: "I have five pages, may I cut in and use the copying machine?". In sixty percent of these cases, the people in line allowed the one who made the request, to go first.

Another group was instructed with a small but important variation of the first request and ask: "I have five pages, may I use the machine because I have to make some copies?" The only difference being that the second request included a reason "because...", even though the reason was the same as the others in line, presumably. The results of this request was that ninety three percent of the people approached, allowed the requester to cut in line. The finding suggests that people are more likely to respond to reason and rationale rather than unreasonable and imposed demands.

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DEFINING SUCCESS IN A NEGOTIATION

INTRODUCTION

Evaluating true success in a negotiation can sometimes be elusive. Yet knowing the extent to which our negotiations are a success is important. It enables us to commit with confidence; it helps us to persuade other stakeholders, superiors and constituents as to why the agreement reached was a good one; and it allows us to feel positively about the agreement, without resentment or feeling exploited. This translates into better compliance, stronger durability of the agreement and better working relationships.

In studying how to measure success in a negotiation, the latest negotiations in Minsk between the Ukraine and Russia is a good case to examine. In a recent article, the Washington Post declared Putin as the unequivocal "winner" in those negotiations, because he avoided further economic and military costs to Russia. This implies that Poroshenko of the Ukraine, was the loser.

However, as we analyze the concerns of the Ukraine and Russia and how the thirteen points of the Minsk agreement addresses those concerns respectively, a different picture begins to emerge.

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NEGOTIATION LESSONS FROM INTERNATIONAL TREATIES

INTRODUCTION

I recently had the opportunity to visit the Smithsonian National Museum of the American Indian in DC. I went specifically to see an exhibit that I was told about called "Nation to Nation: Treaties Between the United States & the American Indian Nations". From a negotiation scholar perspective, I found it not only enlightening from the US historical standpoint, but perhaps even more so from an international relations standpoint and specifically a better understanding of international treaties and treaty negotiations.

One insight that emerged for me during that visit was the difference between an agreement and a treaty. An agreement is a legal document which states and defines legal obligations, considerations, warranties and covenants between the parties, and is sustained by the rule of law and enforced through judicial consequences. (Or in cases of international law, by the United Nations charter and the International Court of Justice). A treaty, on the other hand, is not only a legal agreement, but goes way beyond that, in that it also defines the desired relationship between the parties. It is sustained not only by the rule of law, but moreover by trust, honesty and integrity. In addition to being a legal agreement, it is also very much a moral one too.

What further struck me in seeing that exhibit was how differently the United States viewed treaties as compared to the American Indian Nations.

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