Introduction
This video shows the negotiators for Andrew Clapton and Brenda Clapton meeting for the first time. Each of these negotiators plans to take an integrative approach, they both intend to focus on understanding the interests of both parties in order to advance the interests of their own client.
Remember that negotiators need to be flexible enough to respond to the approach taken by the other negotiator. There is no point seeking to take an integrative approach if the other negotiator uses a distributive strategy. Be cautiously cooperative until you gain a clear understanding of the other negotiator’s approach.
Negotiators also need to be clear about their purpose for any given negotiation. Is the main focus to gather information? Alternatively, there may be an imperative to reach an agreement or to focus in on developing a process to be used in your efforts to reach an agreement.
Preliminary issues #1 - Confidentiality
At the start of a new negotiation, it is important to confirm your understanding about the confidentiality of your discussions and any other requirements.
Here, the negotiators also confirm how long they expect their meeting to last. Having a clear sense of the time available can assist you in structuring your meeting.
Preliminary issues #2 - Authority
In preparing for a negotiation, it is important that you clarify with your client the extent of your authority to reach agreements on your client’s behalf.
Once you commence a negotiation, you should also clarify the extent of the other negotiator’s authority to reach agreement on behalf of their client.
Preliminary issues #3 – Time Available
Here, the negotiators discuss how long they expect their meeting to last. Having a clear sense of the time available can assist you in structuring your meeting. You should plan to ensure that time is spent considering each of the matters that need to be addressed.
Sharing information
Early in the negotiation, negotiators should seek to gain a clear understanding of the interests and concerns of the other party. Without revealing information that could be exploited by the other negotiator, you should share details that will assist the other negotiator to understand your client’s perspective and interests.
Here, Andrew’s negotiator opens the discussion with the suggestion that the negotiators share information about the vision their respective clients have for the business. This is a fairly general invitation, designed to start the discussion.
Some negotiators concentrate on telling the other negotiator what the situation is when they really should pay more attention to listening to the other negotiator. Even so, you need to be prepared to share information rather than simply receive information.
Identifying common interests
It is helpful to identify where the parties might have matters on which they may be able to work together rather than competing.
Here, Brenda’s negotiator identifies that Brenda and Andrew have a common interest in seeking to resolve the issues between them without having to involve their parents. He emphasises the family aspects of the issues that need to be addressed.
Agenda setting
Developing an agenda can be very helpful in ensuring that you address the key negotiation issues in a systematic way. Your agenda should identify the key issues of concern to each of the parties.
It can be useful to structure your agenda so as to start with issues on which you expect to be able to reach agreement or at least find some common ground. There may also be matters that need to be addressed because of their urgency.
You can helpfully leave the most challenging issues to be addressed once momentum has been generated by agreement being reached on other issues.
Considering the whole family
Here, Brenda’s negotiator emphasises that the communication difficulties between Andrew and Brenda is having an impact on other members of the family.
Given that three generations of the Clapton Family are involved in the business, recognising the flow-on effect of the conflict between Brenda and Andrew is important in terms of the options to be considered.
Involving a third party
It can sometimes be very helpful to have a third person assist the parties to communicate more effectively.
Here, the parties need to rebuild a level of trust and this can be assisted by keeping their discussions private. This can be fostered by a trusted third person assisting the parties to talk constructively.
While Andrew’s negotiator suggests a family friend, Tom Harrison, Brenda’s negotiator has raised the prospect of engaging an impartial independent mediator. Both approaches can be helpful, depending on the situation facing the parties and whether there are any people they known to them who have both the skills and the time required to assist.
Remaining open to ideas
It is often useful to keep an open mind in relation to suggestions made by the other party. As the saying goes, ‘Never say never’. You should only dismiss a proposal out of hand if it is clear that your client would not agree to it or that it would be unworkable for some other reason.
Here, Brenda’s negotiator identifies a logistical issue with the proposal from Andrew’s negotiator but then explains that Brenda would be interested in exploring possibilities.
Opportunity to explore interests
The negotiators have started to communicate effectively. They now start to discuss the future of the business, especially in relation to the respective roles of their clients. Together, they identify a range of issues and share further details about those issues.
Both negotiators need to contribute to this type of information exchange in order for it to be effective.
Sharing information
Negotiating outcomes that are effective in creating benefits for each of the parties is dependent on the parties sharing information.
There is an important dynamic tension operating in this situation. The more the parties share information, the better they can identify ways to create value that they can then share. At the same time, sensitive information can be used to a party’s disadvantage. This means that negotiators need to be cautious as well as cooperative.
Acknowledging progress
Negotiators should attempt to create and maintain a climate in which they are comfortable with exchanging information and discussing options. This process can be helped by the negotiators acknowledging the progress made during the course of negotiations.
Reciprocity
Reciprocity is an important concept in negotiation. How we respond to someone tends to be shaped by our perception of their actions and people tend to respond in kind. Reciprocity is particularly important in relation to the sharing of information during negotiations and the making of concessions.
Here, Andrew’s negotiator identifies that Andrew and Brenda have both shown a lack of respect for each other’s contributions to the family business. Acknowledging that both parties have contributed to the difficulties can assist in creating an environment in which compromise is possible.
De-escalate the conflict
When parties are in conflict, they often need to take a few steps back before they can start to think about negotiating an outcome. There is considerable conflict between Brenda and Andrew and their negotiators need to recognise the need for everyone to ‘calm down’ before attempting to rebuild trust between them.
Here, Andrew’s negotiator reiterates her view that a third party mediator would be an important person to assist in working with Andrew and Brenda to improve their communication.
Ask for Specific Examples
During negotiations, views will be expressed about how one party perceived the actions of the other party. Often, these views will involve a negative perception. In such situations, it can be useful to seek specific examples of the behaviour that has given rise to the perception.
Here, Brenda’s negotiator asks for a practical example of what Andrew has described as Brenda’s meddling or interference in the business.
Acknowledging contributions
As mentioned before reciprocity is an important concept in negotiation.
Here, Andrew’s negotiator suggests that if Brenda can communicate more constructively and be respectful of Andrew, then he would certainly take the same approach. Parties in conflict are often reluctant to change their approaches without reassurance that the other party will similarly change their approach.
The importance of respect
Being respected is important to us all. Here, Brenda’s negotiator emphasises that Andrew’s interest in maintaining his independence in running the business needs to be linked to Brenda’s interest in having her contribution to the business both respected and acknowledged.
What role for paul?
Here, Brenda’s negotiator asks what role Andrew sees for Brenda’s son, Paul in terms of the running of the business. This draws from Andrew’s negotiator the important explanation that he sees Paul as the natural successor to the business in the long run.
How much information should you disclose?
As mentioned earlier, sharing information makes it much easier for parties to identify ways to create value that they can then share. At the same time, sensitive information can be used to a party’s disadvantage.
Here, Andrew’s negotiator reveals that none of Andrew’s children are interested in taking on a major role in the family business. Such information could be used as leverage by Brenda in the negotiation such that this type of detail should only be revealed if Andrew’s negotiator is comfortable that the constructive tone of the negotiations will be maintained.
Exploring options
During the preliminary stages of negotiation, it is helpful to gather further information in order to develop possible options. Options can be explored on the basis that they might provide the parties with a way forward. While this can take time, it is often helpful in clarifying what is important to each of the parties.
Developing clear roles
Where people have had difficulties working together, it can be very helpful for a negotiator to seek to clarify their respective roles.
Here, Andrew’s negotiator highlights the need to define the various work roles in clear terms with the development of job descriptions with a view to limiting the potential for misunderstandings. This sort of structured approach can assist parties to work together until their working relationship is re-established.
Exploring options
As mentioned before, during the preliminary stages of negotiation, it is helpful to gather further information in order to develop possible options. Those options can be explored on the basis that they might provide the parties with a way forward. While this can be time consuming, it is often very useful in terms of clarifying what is important to each of the parties.
Impact on parents
Both negotiators recognise the importance of Andrew’s and Brenda’s parents, Stuart and Irene, to the future of the family business. Stuart and Irene still hold a 40% stake in the business and Brenda’s negotiator identifies the need for input from the parents to ensure they are comfortable with any proposed agreement between Brenda and Andrew.
Court proceedings
The court applications initiated by both Brenda and Andrew will need to be addressed in any efforts to reach a negotiated agreement. Now that other aspects of the dispute have been addressed and a constructive climate has been created, it should be easier for the negotiators to address these court applications.
Andrew’s negotiator emphasises that it would be counter-productive for the court proceedings to continue given that substantial progress has been achieved in the negotiations thus far. The challenge is to provide both parties with a way to save face as they withdraw their applications. This can be difficult as parties can fell embarrassed by moving away from the claims they have made.
Seeking an apology
Negotiators should not underestimate the value of a genuine apology in assisting parties in conflict to overcome their differences and begin to restore trust in their relationship.
Here, Brenda’s negotiator has indicated that Brenda is seeking an apology from Andrew. Andrew’s negotiator emphasises that there are hurt feelings on both sides and seeks to secure an apology from Brenda in return for Andrew apologising.
Acknowledging contributions
Along with offering an apology, another aspect of showing respect in this negotiation situation is acknowledging the contributions each party has made to the business.
Here, Andrew’s negotiator links the offering of an apology with a public acknowledgement of Brenda’s contribution to the business. Brenda’s negotiator reciprocates that offer.
Independent valuation
As you would expect, the valuations of Brenda’s share of the business offered by Andrew and Brenda differ considerably. The only ways in which such differing valuations can be understood and perhaps reconciled will be through either the commissioning of an independent valuation or through the sharing of information regarding the basis for the respective valuations.
It can be helpful for the parties to focus on identifying the basis for the valuations – the assumptions made and the figures used.
Recap
It is important to ensure that each of the negotiators has a shared understanding of the content of the proposals on the table. They need to be clear about the matters over which they are negotiating. And about progress made to date.
Here, Brenda’s negotiator invites Andrew’s negotiator to recap about the understandings reached during the negotiation session.