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Negotiation Strategies
May 2019
Protecting Yourself Against a Nefarious Negotiator
Dear Clients and Friends,

We all come face-to-face with a nefarious negotiator or devious deal-maker at some point. How do we identify them and protect ourselves against them?

Read this month's edition of Negotiation Strategies for effective tools towards this end.

For your reading convenience, this column is also summarized in the Lessons Learned bullet points at the bottom of the page.

With Best Wishes

Raphael Lapin
Protecting Yourself Against a Nefarious Negotiator
Introduction
In Venezuela in recent months, the opposition led by Mr. Juan Guaido has been working assiduously to remove President Maduro from office. Many western countries, including the United States recognize Mr. Guaido as the legitimate leader of Venezuela while Russia and Cuba recognizes Mr. Maduro.

As part of this effort, and likely engineered by the United States, secret negotiations between the opposition and President Maduro’s inner circle were taking place to plot a coup to depose Maduro and to install Guaido. The premise was that this inner circle including top military leaders would support the coup. 

A key figure in Maduro’s “inner circle” that was negotiating with the opposition was General Padrino Lopez, one of the most powerful men in the country with sweeping influence over the armed forces. The United States and the opposition firmly believed they he, among other powerful key figures, were strong supporters and negotiating partners with whom to work out a plan to overthrow Maduro.

These talks produced a 15-point plan for a peaceful handover of power that would be implemented by the military. Under the deal, Mr. Maduro would be allowed a dignified exit from the country. In fact, Washington believed that these talks were so far advanced that an aircraft was already waiting on the runway at the Caracas international airport to fly Maduro to Cuba.

Then suddenly, without warning, this negotiated agreement collapsed and President Maduro remained in power with full support of his armed forces with no signs of any breach whatsoever.

It turns out that the apparent conspirators on the Maduro side led by General Lopez were in fact double agents with no intent to ever negotiate a coup with the opposition. They were nefariously mining for information to channel back to President Maduro to help him crush any attempt to overthrow him.

Although this example is borrowed from a political landscape, we face similar nefarious negotiators in our business negotiations too.

Take for example, the top level executive of a Fortune 500 company, that was recruited to what he thought was a dream job, albeit at a start-up. He was lured with the promise of having broad decision-making authority which would allow him to guide and shape the industry.

Once brought on-board, he was quickly relegated to position of account manager and soon realized that the CEO of the start-up never intended to appoint him to the position of authority, but was rather only interested in his rich rolodex of contacts.

This CEO was playing the game of the nefarious negotiator, General Lopez, in Venezuela.

How then, can we protect ourselves from a counterpart who may not be negotiating in good faith?
Detecting the Nefarious Negotiator
Before we can protect ourselves, we need to be able to identify a counterpart who might be a nefarious negotiator.

There are many ways of detecting a devious deal-maker, ranging from intuition or a “hunch”, to setting a trap by asking questions you already know the answers to. Here however, are two red flags that should put you on high alert:

1)      AN UNBALANCED SHARING AND EXCHANGE OF INFORMATION
If, in a negotiation, you feel that you are sharing information with candor and honesty, and there is no reciprocity from your counterpart, consider the possibility that their intentions may be nefarious. Be prepared to probe further either to validate or invalidate your suspicion. In any good-faith negotiation there needs to be a balanced, equal and reciprocal exchange of information.

2)      A NEGOTIATION THAT DOES NOT MAKE SENSE FROM THEIR PERSPECTIVE
In any negotiation, ask yourself why the negotiation makes sense from the other party’s perspective? What do they stand to gain from it? How would it benefit them beyond the current status quo? How bad would it be for them if no agreement is reached?

If the answers to these questions are not obvious, more probing is required.

For example had we asked these questions about General Lopez in Venezuela, we might have been left wondering why he would enter into such high risk negotiations that might cost him his life should they fail? He was enjoying great power and wealth in his current position under President Maduro, and why would he want to jeopardize that?

In the business case above, we might also have found the fact that a CEO of a start-up would give carte blanche decision making authority to a new hire, inexperienced in that industry just a little strange.

These oddities should certainly have raised a red flag and prompted further investigation.
Protecting Yourself Against the Nefarious Negotiator
Once we have established that there is reason to suspect that our counterpart is negotiating in bad faith, we need to confirm or deny our suspicion before proceeding with the negotiation. We do this by transforming ourselves from negotiator to investigator as we interrogate with a series of highly targeted questions. It is with skilled questioning that we can detect a disturbing pattern of inconsistencies.

In the case of the Venezuelan negotiations with General Lopez, I might have asked questions of the following nature:
  • What are your worst concerns if President Maduro stays in power?
  • Walk me through what life might be like for you and your family if this attempt at a coup d'etat fails and your involvement becomes known? 
  • Why are the life-threatening risks that this effort presents worthwhile for you as opposed to the status quo that you currently enjoy?
  • What are the key drivers for you to switch your allegiance from President Maduro to Mr. Guaido?

In the case of the Fortune 500 executive who was recruited by a start-up with a promise to have broad decision-making authority, questions that I would ask might include:
  • How have decisions been made in the company until this point?
  • In the event that my decisions conflict with your judgement, how do you propose we resolve that?
  • As a CEO, why would you relinquish decision making to a new hire without much experience in this particular industry?
  • If I told you that I cannot share contacts from my previous position due to non-compete and confidentiality clauses, how would that affect these negotiations?

If your counterpart is indeed a nefarious negotiator, by asking such questions from different angles, you will hear inconsistencies in their answers and notice discomfort in their demeanor. At that point trust your intuition and terminate the negotiations immediately. As a skilled negotiator, it is equally important to know when to walk as it is to know when to talk!
Lessons Learned
  • When you feel there is an unbalanced sharing of information in a negotiation, or there does not appear to be good reason for them to negotiate, consider that the other party might be negotiating in bad faith.
  • Once there is a reason to suspect, transform yourself from negotiator to investigator and be prepared to ask a series of highly targeted questions.
  • It is with skilled questioning that we can detect a disturbing pattern of inconsistencies.
  • By asking questions from different angles, you will hear inconsistencies in their answers and notice discomfort in their demeanor. 
  • When your suspicions are confirmed, trust your intuition and terminate the negotiations immediately.
  • Know when to walk and know when to talk.

Lapin Negotiation Services offers training, consulting, advising and executive coaching in negotiation, business diplomacy and dispute resolution services.

Our proprietary and aggressively results oriented services are designed to help your leadership, teams and individuals master the essential negotiation, relationship-building and conflict management skills that increase revenues, decrease the high cost of conflict and build strong working relationships.
Learn more about Raphael Lapin's book, "Working with Difficult People" by clicking on the image above
Our Skilled Specialists will:
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