The Kremlin School of Negotiation. Igor Ryzov

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      For several months, Andrei, the manager of a company selling construction materials, has been negotiating with the procurement manager of a construction company. Andrei knows for a fact (nor is the buyer hiding this) that the construction company is currently buying in its materials from a competitor. During these negotiations, the procurement manager has repeatedly stressed that they enjoy working with this competitor. They are happy with the quality and price that the competitor offers, as well as their fast service. The buyer isn’t refusing to negotiate with Andrei, but they never manage to get down to the nitty-gritty. Andrei keeps on offering them discounts, shares and better terms, all in the hope of poaching their business. After four months of futile efforts, Andrei learns by chance that the buyer has been using his quotes to get better terms from the competitor.

      In this example, it is clear that the buyer’s motives have nothing to do with a future partnership, but Andrei doesn’t see what is really driving the discussions and so falls straight into the trap.

      This happens quite a lot. A man decides he wants the best possible deal on a car, and so conducts his own pseudo request for tenders. He goes to every car dealership in town, using one single phrase to get the best possible price: ‘Your rival offered me a better deal.’ He is, in effect, putting his competitors head to head. The dealership managers, believing he’s negotiating because he intends to buy from them, get caught in his net.

      Fred Charles Iklé, an American sociologist, political scientist and author of books including Every War Must End and How Nations Negotiate, outlines the following types of and motives for negotiations:

      • Negotiations with a view to extending existing agreements. Such negotiations are often held in the trade sphere to extend the validity of a contract, or to add certain clarifications or changes to a new contract to reflect the current state of affairs. Such negotiations are also not uncommon when extending labour contracts.

      • Negotiations with a view to normalising relations. These presume a transition from a conflict situation to a different relationship between the parties (neutrality or co-operation).

      • Negotiations with a view to finalising redistribution agreements. These negotiations are when one party takes an aggressive position and demands changes to agreements that are to their advantage, at a cost to other parties. Such negotiations take place when haggling over a price or other material resources – an increase or decrease in rent, for example.

      • Negotiations with a view to reaching a new agreement. These are intended to establish a new relationship and new obligations between parties. Negotiations with a new partner, for example.

      • Negotiations with a view to gathering information. Indirect results may not be reflected in agreements, and in some cases the negotiations may not even lead to an agreement at all. Examples of this type of negotiation include talks to establish contact, identify partners’ points of view or influence public opinion.

      Iklé wrote his books in the twentieth century. In light of present-day practice, we can extend this list to include:

      • Negotiations with a view to misleading an opponent. These are, quite simply, an imitation of the negotiation process. Opponents often enter the negotiation process and deliberately draw it out, safe in the knowledge that time is on their side. In this type of negotiation, every one of your proposals will be met with a ‘maybe’, a ‘we’ll need to consult on this’ or similar.

      • Provocation. Negotiations with a view to showing the other party’s inability to negotiate.

      It is very important to identify your opponent’s primary motive in the early stages of the negotiation process, and to use this knowledge when deciding on your next steps.