Partnering or Powerplay During Negotiations?

“Power play or paranoia” , was the headline, describing the recent meeting between Putin and Macron!?This got me thinking, is power play still used as a negotiation tactic, are people really paranoid of the other parties intentions?

Global politics aside, it took me back to my very early career, where I came across the 9am Monday morning meeting (So the other side would have to travel over a weekend) or process of delivering bad news on a Friday night, both with the aim of ruining the other person’s weekend, in an attempt to show the other side who was the boss in the relationship, but in the world of fast-paced change, supply chain shortages and global uncertainty who really has the power and does power play really drive a long term sustainable outcome???

When I lead key negotiations, I seek to understand the other sides drivers, to understand our own flaws (yes, they impact a negotiation and subsequent outcome), and look to partnerships to drive cost out rather than just cost down.? It takes courage, trust (internally and externally), experience, savviness and commercial nous to take a partnership route, it is not the easy route! But surely times where we negotiate through powerplay tactics are from a bygone era??

Surprisingly not,? power plays like in politics are still attempted and still used by many, I’m not sure if this is more, about their ego at play, their lack of ability to think differently or because they truly believe it’s the only way to negotiate.??

In a world with so much at stake, is it such a good idea to use a powerplay negotiation tactic.? Don’t get me wrong, negotiations can be tough, and partnership outcomes are not always achievable where values and goals are not aligned but we should aim for a win win through seeking mutual alignment to achieve an end goal.??

Yes you want to get the best deal possible, but how sustainable is that deal during global supply chain shortage, pandemics and high inflation if you’ve beaten the opposing party down, and left them with nothing but scraps. Will they honour the contract, will quality suffer, and will trust erode, when times are tough?

On occasion, goals aren’t always aligned, what can be offered and what can be accepted isn’t in harmony,? but isn’t it better to open and clear about the art of the possible, and even work together to find a solution that is agreeable to both, rather than negotiating to the bitter end??

This is different to holding each other accountable to the terms.? I’ve worked with people who want to walk away from a supplier at the first issue, rather than work with the supplier to resolve and learn.? Often the issues can be caused by the client so, you would end up in a cycle of jumping from failing supplier to failing supplier when it’s the us the customer who is creating the climate of failure. In a true partnership, neither party wants to fail, and where challenges occur, each party is confident to share their challenges in problems, in the hope of finding a solution!?

A few years ago I was asked to negotiate with a closed protocol OEM, a supplier we had outbid in a reverse auction (by significant margin), a supplier we needed, to fulfill our contract with the end client.? My first meeting with the supplier was tough, I am not sure 90% of the account managers comments would pass the profanity filter, but rather than try to boss the meeting, fight fire with fire,? I took time to allow this individual to air his frustration, share his concerns and understand his position. Overtime we came to an understanding, he offered me a deal beyond what I was tasked with achieving and they delivered exceptional service. When I left this organisation, I introduced this account manager to my manager, his opening line, was along this “ if you treat me with the level of trust and respect that Vaughan afforded me, I’ll be your best supplier..", not a bad outcome considering it started with a bitterness and a refusal to do business. I often look back at this relationship, when partnerships are being challenged, when tactics are questioned. If I had fought fire with fire, would I have achieved such a good deal, would I have gained his businesses support, without his support we would not have been able to deliver for the end customer.??

In the current climate, supply chains need more openness, transparency and desire for win win partnerships, not more powerplays, and egos.??

?End.

Headline source: ?

https://www.theguardian.com/world/2022/feb/08/vladimir-putin-massive-table?