ClimateKIC Negotiation Dynamics in Oslo with friends
To understand the dynamics of negotiations and to become a master it takes time, practice and of-course the gut and the energy to achieve great things. Sometime things don’t go as we want and we, as negotiators find ourselves in trouble where we want to seek answers. These answers are critical and they require knowledge, intelligence and of course, precise information.
First rule of the negotiation is information. The more you know about a particular deal better the outcome -> better the gain. Negotiators go at great lengths to find information which contribute to an expected outcome but one can go so much until it reaches the second rule.
Second rule of the negotiation is exchange. More you seek, more you have to offer in exchange to gain information which contribute to a better outcome thus a better gain. Information is power but with power comes consequences and one of that consequence is cost. A good deal in negotiation is considered to be good, when both parties win, but in real life is how much one can earn at the expense of the other party. Why? Well, less informed the party is less the quality of a decisions they make.
Let me give you an example. You have 5 apples to sell and the other party is a person which represents a business and wants to buy. You need to get rid of the apples because you lack storage and the other party buys to sell them. The other party knows about your apples but doesn’t know that you are overstocked and you don’t know how much is he willing to buy your apples for. A typical person would think they know and would immediately through a price at them. Other party first reaction in this instance; could consider the offer to be a great deal for the needs of their offer. The second rule is also preceded by a third rule which is patience.
Third rule of the negotiation is patience. Faster you run, less likely to succeed with a good deal. Of course, this is absolute and brings another vertical which is time critical, but I will explain at the end. Time is probably the single variable which affects the outcome of a negotiation because, less time one party has the bigger the constraint and more likely create a mistake. More time you have to gather information, better the outcome. More time you have to asses and test information, more likely to succeed and close a good deal.
These 3 rules apply every time to each single negotiation; however, I personally believe negotiations dynamics can be observed in a mission critical situation where decisions are made based on body sensors, extra sensorial experiences and the three rules above. In a such negotiation you have to look through a bullet time perspective in slow motion and make good deal assessments as fast as you can. This is difficult and requires a lot of expertise and I am not that person. However, I find reading former CIA, FBI, KGB or secret services negotiators which worked on time critical missions such as hostage negotiation to give some perspective on how they managed their assessments.
Also, I would like to thank to Professor Ingemar Dierickx to enlighten us on the dynamics of negotiations. Also I would like to thank to other ClimateKIC colleagues which took part in this practice.