"PROCEDURAL INTEGRITY – Building Relationships As We Negotiate"

INTRODUCTION

Many of us are very cognizant about what we need to negotiate, but few of us are as aware about how we negotiate. The process that we implement in the negotiation will impact the relationship and ultimately the outcome (or impasse).

I compare the process of a negotiation to the foundation of a building: Just as the foundation protects the structural integrity of a building, so too, the effective process in any negotiation protects the integrity of the negotiation structure. A constructive strategy that has procedural integrity, will build sustaining and enduring relationships as we negotiate, while at the same time, produce optimal and value-generating outcomes.

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"THE LETTER OF INTENT - A USEFUL TOOL TO HELP ADVANCE PRODUCTIVE NEGOTIATIONS"

THE FUNDAMENTAL PURPOSE OF THE LETTER OF INTENT

At the beginning of any complex negotiations, for example mergers or acquisitions, it is common for parties to sign a letter of intent (LOI). Typically, a letter of intent is used as a mechanism to protect parties to a transactional negotiation, during the negotiation and in the event that the negotiation fails.I have also used them in dispute related negotiations. (See my column "Avoiding Litigation in a Litigious Culture.")

They may contain non-solicitation provisions restricting the potential buyers ability to hire employees from the seller's business should the parties be unable to reach agreement. It will include other common clauses such as due diligence warranties and indemnification language to protect buyer from prior liabilities of seller.

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"UNDERSTANDING THE MAGIC OF MEDIATION"

INTRODUCTION
When negotiations stall, a good mediator can help both sides move forward.

When disputes escalate into bitter confrontation or litigation, and parties to the dispute are unable to reach any resolution, it is not uncommon for a neutral mediator to be brought in and within a very short time, the issues are magically resolved to the satisfaction of all parties.

Consider the following case: The research and development department of a pharmaceutical company had spent two years developing a highly potent topical cream that would deliver hormones to hormone-deficient patients without the common side effects of alternative oral supplements. They then sold a license to a large distribution company to re-brand and package it for resale. A few months after the distribution company went to market, it was discovered and reported that the cream had lost its efficacy due to a chemical breakdown upon packaging.

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"THE IMPORTANCE OF TIMING WHEN PRESENTING A PROPOSAL IN NEGOTIATION"

THE PREMATURE PROPOSAL TRAP

Many negotiators decide what they will offer to the other side before negotiations even begin. They become so committed to their proposal that often any new information that they may learn from the other side during the negotiations, will do little to move them away from their initial position.

Negotiation is not two individual parallel paths but a joint and collaborative process in which negotiators exchange information, define and agree on the problem, and jointly search for a mutually acceptable solution.

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"MAINTAINING AN OPEN MIND IN NEGOTIATIONS: A LESSON FROM RUSSIAN FOREIGN MINISTER, SERGEY LAVROV"

A COMMON NEGOTIATION BLUNDER

Many negotiators decide the outcome of a negotiation before negotiations begin They formulate a solution from which they won't budge, even before the dialogue and information development phase occurs. They are so committed to their own prematurely devised solution, that any new and valuable knowledge that they may learn during the negotiation falls upon their self-inflicted deaf ears. They are then bewildered as to why their counterpart does not find their beloved proposal quite as dazzling as they see it!

A poignant example of this kind of blunder from current affairs, are the proximity talks in Geneva, Switzerland, between the Syrian rebels and the Assad Regime.

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