Engineering Conflict in Negotiations

Engineering (as a noun) can be defined as the act of working artfully to bring something about, and when we consider that negotiation is the art of letting them have your way, it’s easy to spot some comparisons: as a commercial negotiator, you engineer the deal you want the other party to accept.

Now let’s consider conflict, which (as a verb) is defined as to come into collision or disagreement; be contradictory, at variance, or in opposition; clash – and this, for many people, can be extremely uncomfortable, to the point that they try to avoid it all together.

The opposing mindsets can sometimes lead to argumentative stances, “I’m right!”…“No I’m right, clearly you’re wrong!” This can be tiresome, unproductive and in some cases even aggressive. But conflict will always exist in negotiation because you have two opposing opinions and positions, so taking this on board we must accept it and consider what we can do to utilize the conflict to create value.

Consider the combination of engineering and conflict. If we see that there will be conflict, do we avoid the conversation because it is uncomfortable, or can we work that conflict into the conversation to artfully bring value about and a deal that can work for both? Clashes and conflict have occurred since our earliest history, but more recently there have been conflicts that have led to more forward-thinking mindsets and peace agreements. For example, Colin Kaepernick taking a knee during the US national anthem before NFL games led to widespread disagreement and outrage – in other words, conflict. But it also led to awareness and was the beginning of a movement that swept across the globe to highlight racial injustice and police brutality. His stance was in some people’s opinion disrespectful to the American flag and many people still believe he was wrong to do what he did. However, it can’t be denied the awareness that was raised from this position – in other words, engineered.

There are many other high profile examples from politics and commerce in which conflict ultimately resulted in the engineering of an agreement. One such is from the world of entertainment, and features an iconic web slinging superhero. In 2019 Sony and Disney had a disagreement surrounding the Spiderman franchise with Disney wanting to keep all future Spiderman projects as co-financed between the two in a 50/50 stake. This was in direct opposition to what Sony had planned – in other words, it represented conflict. Through an arduous process of discussions and negotiations an agreement was struck for both parties to co-produce the next Spiderman movie and all the Marvel fans got a third Spiderman movie to enjoy in the franchise – in other words engineered.

Conflict resolution exists in so many fields, but in commercial negotiations it can lead to fruitful outcomes for both parties. Out of issues arises opportunities; out of problems new variables surface to create value. Now, this isn’t to say go out there and beat your counterparty into a conflict, but there is a lot to be said about disagreements turning into opportunity to be creative and generate benefit for both.

In accepting that there is conflict between you and a counterparty, you are already a step closer to creating new opportunities. Once you have seen that a conflictual scenario exists you can begin to examine all the other factors linked to that situation; or perhaps they are not even linked but you would like to bring them to the table. Perhaps they’ve not arisen previously, or perhaps due to circumstances new things have come into existence and you want them to form part of the overall deal.

But recognizing a problematic scenario, however big or small, will open your eyes to creative thinking. This will encourage your counterparty to do so as well. By making yourself clear to the counterparty on what the position is, you may lead them to shift their perception of the situation. In exercising this right to be upfront about issues, you are imposing flexibility on them which can be productive in creating and shifting mindset. You may be in a partnership that has become one-sided or routine: for example, every year there is an increase in investment, the same percentage for no reason, just because it’s what you’ve always done. But by engineering conflict, you are imposing the need to show flexibility in order to maintain and strengthen that partnership. One of the key behaviors of a skilled negotiator is to think creatively, applying various variables to the overall deal. This creative mindset allows the previously mentioned flexibility.

Now that you have engineered your conflict, you’ve brought issues and concerns to the table. It is highly likely that the other party will have some concerns of their own; issues that have been underlying. It is important as a negotiator in a collaborative negotiation that you open your ears and listen to understand, not just to reply. Negotiation takes place inside the other party’s head: if you’ve worked with me in any way, shape or form, you’ll have heard this statement numerous times. That’s because by listening to their needs, you can take that journey inside their mind and use that to formulate new proposals, new agreements, and new business plans.

In conclusion, it is important that we do not avoid conflict that exists because it makes us feel uncomfortable. There is a lot to be said for raising issues that are either buried away or have arisen due to changes in circumstance. Think of it like a ticking time bomb; the longer it’s left, the closer you become to it - the relationship - exploding. But this conflict doesn’t mean the end of the relationship. Rather, use it as an opportunity to engineer value for both parties. And remember, as Albert Einstein wisely observed, In the middle of difficulty lies opportunity.