Negotiate with Sami Miettinen

What if everything was a negotiation?

2009-06-25T01:01:00.000-07:00

This Youtube video (thanks to Andre Bello) illustrates beautifully the many questionable arguments we use in "serious" business negotiations to claim value:

http://www.youtube.com/watch?v=R2a8TRSgzZY

It is true that, as per Dr. Karass, we don't get what we deserve, we get what we negotiate, However, a world where every small purhcase becomes a tiresome negotiation game is not efficient, nor fun. This is why bazaar-style haggling has not become the norm in retail shops.

Solid reputation and a two-faced Madoff

2009-05-26T06:24:00.000-07:00

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Madoff fooled his investors, who lost their money. Before his spectacular fall, Madoff generally enjoyed a good reputation among his clients and was also not singled out by regulators for more detailed review.

Can we really trust that a Government regulator approval stamp on e.g. financial institution guarantees true trustworthiness? Not really, you should do your homework regardless. It is a data point regardless, however, and better than no stamp at all.

Long-term track record is important. If an institution has been going on for 100 years, it lowers the counterparty risk, but then again you can get a rogue trader like Nick Leeson in the ranks who brings down the institution (in this case Barings) overnight.

Personal reputation is maybe easier to gauge. I have used the metaphor of coloured pool balls to illustrate this.

If one holds a two-coloured pool ball in a hand so that you can only see part of the face, the observer can't really tell whether the ball is "solid" colour or a two-faced one.

However, when the ball is released from the grip, if you look at the side angle, you spot the two-facedness instantly.

This is what reputation does, it gives you are side glance on your negotiation partner. Somebody else can tell you if your negotiation partner is "solid" or not, when you cannot make that judgment with your own observations alone (since you have been drip-fed only the spotless facade).

Once you get your own observations married with the reputation feedback from your network, you got "their number"!

Separating individual reputation from institutional reputation is difficult and another matter. However, I believe these correlate. If you have a good personal reputation, you don't want to work for shady firms. So I would recommend trusting individuals more than organisations as a loose rule. Just don't go too much along with your "blink intuition"!

Analytical Lauri Lyly to lead SAK labour union

2009-05-16T00:11:00.001-07:00

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Lauri Lyly was deservedly elected as the new head of the leading Finnish labour union, SAK. He follows Lauri Ihalainen. Juhana Torkki interviewed Lauri in Neuvotteluvalta. The interview, including our observations, was included as the concluding case in the chapter describing analytical skills in negotiations.

I was particularly impressed by Lyly's views on the benefits of building a long term negotiation relationship:

Picture: Lauri Lyly, SAK

"Constructing the appropriate negotiation subgroups is almost an art form. If there are lots of negotiations around, the negotiation leaders may judge which personalities should negotiate with each other. One needs to think person by person, who gets along, and who has previously negotiated with with each other", Lyly says. Negotiations shape their participants. According to Lyly it is a "epiphany", if tough participants possibly initially poles apart from each other can find each other accross the table. "Such pairing will be worth its weigh in gold in later negotiations."

Lyly's description is a good illustration of how to build a trust balance in negotiations though common respect. Great negotiators respect their negotiation partners and will humbly strive to earn respect for themselves. This will be rewarded in the long run.

Juror at Old Bailey and Sheriff of London

2009-01-10T07:39:00.000-08:00

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I received a Jury Summons from the Central Criminal Court of England, Old Bailey in London. Unfortunately I could not accept this honor due to my move back to Helsinki, Finland.

I was disappointed. Luckily my friend Roger Gifford suggested a visit for me and my colleague Leon Johnson to his offices at Old Bailey. Roger is Sheriff of London. Old Bailey is an impressive place, handling complex criminal cases. At the time, they were processing e.g. several murder cases.

Picture: Roger Gifford, Sheriff of London and Sami Miettinen

It would have been educational to be a juror in an English court proceedings, as up to now I have been somewhat sceptical of the ability of non-expert jurors to fairly judge the right and the wrong. Especially American court dramas are colouring my perspective, with images of great speeches turning the heads of juries for example in "small person's fair fight against an evil corporate". This decision will in addition form a case, which will be used as a reference point in similar future situations.

In criminal law, the stakes can be very high for an individual person. Like in negotiations, one would wish the result to be fair and based on facts. Innocent persons should not suffer for crimes they did not commit.... beyond reasonable doubt.

I remain skeptical for case law and using jurors and prefer the Finnish law system, which puts emphasis on the professional judges who must interpret the facts as they apply to the written law. Still, it would have been interesting..

PS. Over 10,000 visitors to http://www.neuvotteluvalta.com/. Many thanks!

Fair Apprentice

2008-10-18T10:39:00.000-07:00

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My wife Reetta Miettinen, the Managing Director of Taskukirja Loisto Oy recruited me to help the Loisto book stand during the Turku International Book Fair. Taskukirja Loisto is the leading Finnish pocket book company, for example at the moment the top 16 pocket books in the Finnish top 20 best seller list are from LOISTO.

I enjoyed the challenge to be a salesman immensely. We gave away hundreds of pocket book catalogues and sold scores of books, utilising "three for the price of two" special to shift the volumes.Picture: Kaisa Tenhunen, Leena Lehtolainen ja Sami Miettinen

The situation was very much exactly like from the hit TV-series The Apprentice. A book fair would be a great episode for the programme, and it would be cool to see either Alan Sugar or Donald Trump to recreate this. I tried several approaches to lock in to customers. The most effective style for me appeared to be the use of even slightly over the top humor as well as spelling out the 3-for-2 special discount (the members of Team Prometheus should remember my "literary candy"-routine for some time :-)

The seller should take the use of humour seriously. A good-humoured customer who enjoys their time with you is much more likely to buy than one that is gloomy. This applies in negotiations in general.

I also met a number of interesting people during the book fair, including the best selling author above, Leena Lehtolainen. Her book Luonas en ollutkaan was the No. 1 best-seller in Finland during the book fair. I also discussed with the member of European Parliament, Sirpa Pietikäinen, who had recently inherited the place held by the Finnish Foreign Minister Alexander Stubb (also an interviewee) in Brussels.

Picture: Sirpa Pietikäinen and Sami Miettinen

All in all, the weekend was extremely interesting, and the team spirit was excellent. The attendance in the 2008 Turku International Book fair also broke the record with 23,450 visitors, so recession-mentality was not yet present in the event.

Nobel Peace Price to Martti Ahtisaari

2008-10-10T02:47:00.000-07:00

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Martti Ahtisaari, a former president of Finland has today been awarded the 2008 Nobel Peace Prize for his efforts to build a lasting peace from Africa and Asia to Europe and the Middle East.

I repeat an excerpt of my blog entry Principles in Political Negotiations from May 2008, which commented what a honor it was to interview Martti Ahtisaari for Neuvotteluvalta book:

Martti Ahtisaari, the former President of Finland and an international elite negotiator, emphasizes principles in international negotiations. He has been a key negotiator in Namibia, Aceh and Kosovo. In these situations achieving the autonomy or independence of the region has been right in principle.

Ahtisaari emphasizes that before national sovereignty “the people of the world want two things: that both the police and the juridical system would treat everybody equally. If these two things are in place, the development towards something better is possible. But quite often that is not the case.” Equality is one of the key principles. A good negotiator puts emphasis on principles, equality, on a reputation of being just and having a long-term credibility.
Apologies for the low production values of my photograph with Martti Ahtisaari, which was taken earlier in 2008 at the Heathrow Airport. I am not particularly proud of that Toilets-sign or my holiday clothes!
Picture: Martti Ahtisaari and Sami Miettinen

Sources:

Interview with Martti Ahtisaari on 12 July 2007 by Sami Miettinen and Juhana Torkki for Neuvotteluvalta.

Principles in Political Negotiation blog entry

Markus Niemela wins

2008-10-05T23:54:00.000-07:00

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Congratulations to Markus Niemelä for winning the Formula Atlantic series with a dramatic win in the last race. The championship victory will give Markus a very useful booster for the 2009 contract negotiations!

http://www.markusniemela.com/

http://www.champcaratlantic.com/News/Article.asp?ID=5447

Flinch! It is the second coming of Neuvotteluvalta

2008-09-21T03:15:00.000-07:00

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WSOY has brought to the market the second edition of the book Neuvotteluvalta – Miten tulen huippuneuvottelijaksi (“Negotiation Power – How to become a top negotiator?”). Many thanks to the WSOY team, especially to the ladies working with the marketing issues, Tuuli Leppänen and Mari Männistö.

For me, the most interesting marketing event by far was the live interview with the national broadcasting company YLE's morning TV show. It is also a highlight for being the one day in my life when I had make up on (mostly mascara)!

The morning TV hosts, Heikki Ali-Hokka and Tom Kankkonen, from YLE (the Finnish BBC), interviewed us in the morning of the book publication on 11.3.2008. Juhana had more experience than me with live interviews. As a presentation and speech coach he gave me a few tips in advance of the show. Some of the tips were quite common sense: for example one should always take seriously the appeal of clear concrete examples and physical demonstrations for TV audiences.

I demonstrated how a good negotiatior should flinch most of the time when they receive a proposal. I illustrated that flinching does not mean a violent body movement, but rather a small shake of head from side to side. Psychologically, the negotiation party registers the flinch as a signal of dissatisfaction. It will be harder for them to ask for more, which is a possible reaction to a totally unreactive negotation party.

Flinching is a basic counterbalance for offers, and sets the stage for your own counteroffer.

PS. Congratulations to Markus Niemelä for winning from the pole position at Salt Lake City

Mobile phones and personal communication

2008-09-15T02:09:00.000-07:00

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This weekend, I had exciting times with my daughters in London. We purchased for them two
innovations in mobile communication technology. Sofia chose the new all singing and dancing 3 Skype Phone, which allows for free Skype calls via its internet connection. Stella and Senja selected Vodafone's colour range telephones. The colours were orange and pink, respectively reflecting the favourite colours of the girls.

The girls immediately started using the phones without reading instruction manuals, texting and calling to their grandmother and cousins. Ringtones were changed and demo games tested without any hesitation.

I continue to be amazed by the ability of children (not just my bright and wonderful girls) to instantly adapt to modern technology . Even Senja got to the top of the mobile phone functionality in a few hours, despite only turning seven this year! In Finland a child that does not have a mobile phone is a clear oddity, even my brother's six year old son has one and uses its regularly. The mobile phone is also a great safety device, as the children can use the mobile to call their parents when they are e.g. visiting their friends. It is also extremely cool to have a mobile phone!

However, in negotiations, using phones and remote communication has its place, but as a rule, a good negotiator always negotiates face to face, in person. A large part of this is because the social skills and trustworthiness only transmit well in personal meetings. Telephone conversations, and especially emails are always open to misinterpretations. Go personal!

National image and Finnish negotiation skills

2008-08-27T02:43:00.000-07:00

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I have lived for over ten years in London. However, I believe my character has remained true to my Finnish roots. In negotiations, this has been more of a blessing than a hindrance. The Finnish stereotypic image is positive, or at the very least neutral.

How to utilise this goodwill is a different matter. I wrote an article with Juhana Torkki regarding the Finnish negotiation style to the second largest daily newspaper in Finland, Aamulehti. The slightly provocative title was Having nerve in negotiations. Any national reputation changes over time and comes now from different sources than before. For example, the superior success of Finnish athletes in the early part of the 20th century was hugely important for Finland as a young nation.

In the modern times even the "vices" of olden times can positively shape a national identity. Two examples from England over the last two months: Finlandia Vodka advertisement in the Euston Station of London and the Tom of Finland fragrance display of Harvey Nichols store in Manchester.

Divorcing from reality

2008-08-04T03:18:00.000-07:00

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I grew up with listening to rock music. I had many favorites, including the likes of The Police, REM, U2, Guns ‘n Roses, Eppu Normaali, Boomtown Rats and even INXS. The last two bands had lead singers, Bob Geldof and Michel Hutchence, who ended being intertwined in a triangle drama around Paula Yates. Divorce entered the equation, as often happens. Divorce is also a negotiation situation, faced by some 50% of persons who marry in the first place. A very common, yet painful, story followed.

Below is how Wikipedia describes the events between Geldof, Yates and Hutchence:

“Geldof and Yates divorced in May 1996 and Yates moved in with Hutchence. Yates and Hutchence had a daughter, Heavenly Hiraani Tiger Lily. After Hutchence was found hanged in a hotel room in 1997, Geldof went to court and obtained full custody of his three daughters and has since become an outspoken advocate of fathers' rights. After Paula Yates's death from a drug and alcohol overdose in 2000, Geldof became the legal guardian of Tiger Lily, believing it best that she be raised with her three half-sisters.

Geldof has become involved in the British fathers' rights movement and claims to be an iconoclast, calling his arguments rants which express his feelings towards British family law, as well as towards issues of a more personal matter. Bob Geldof, and others, argue that without substantial changes, the application of current British custody law will lead to a generation of feral children. Geldof has written:

‘The law must know it is contributing to the problem. It is creating vast wells of misery, massive discontent, an unstable society of feral children and reckless adolescents who have no understanding of authority or ultimate sanction, no knowledge of a man’s love and how it is different but equal to a woman’s, irresponsible mothers, drifting, hopeless fathers, problem and violent ill-educated sons and daughters, a disconnect from the extended family and society at large, vast swathes of cynicism and repeat pattern behaviour in subsequent adult relationships.’

Fathers' rights campaigners question the assumption that it can ever be legitimate for the state to collude in disrupting a loving and natural relationship between a father and his children. Bob Geldof has written evocatively on this subject: ‘I cannot even say the words. A huge emptiness would well in my stomach, a deep loathing for those who would deign to tell me they would ALLOW me ACCESS to my children — those I loved above all, those I created, those who gave meaning to everything I did, those that were the very best of us two and the absolute physical manifestation of our once blinding love. Who the fuck are they that they should ALLOW anything? REASONABLE CONTACT!!! Is the law mad? Am I a criminal? An ABSENT parent. A RESIDENT/NON-RESIDENT parent. This Lawspeak which you all speak so fluently, so unthinkingly, so hurtfully, must go.’ “

Picture: Bob Geldofista by Erik Charlton

I have a lot of sympathy for Bob Geldof on this matter. There are countless legalistic fights going on between divorced parents, which could have been avoided by some humane level-headed discussion between the parents. In these one, often the so-called “non-resident” parent and the children will become cruel victims of the legal system. An example was my acquaintance in the UK a few years ago, who had a wife who was bored at home. My acquaintance encouraged her to liven her social life and to join a theatre practice group. She found a lover there, and promptly initiated a divorce. After the event, she has not worked a single day and lives together with her new live-in boyfriend on back of the child maintenance and ex-wife support payments received from her ex-husband. Quite unjust situation, in my eyes.

Yet in the end, this is also clearly a negotiation matter. However, what makes it completely absurd, is that the financially most rewarding path of action for one parent can also be the most disruptive for the balanced growth of the children. For example, a stay-at-home mum who lives off her ex-husbands income and who keeps her children’s access to the father at minimum, may be following the “maximum financial gain negotiation strategy”. In this situation, the low access by father will maximize the plotting mother’s child support payments from the ex-husband, and will also provide a psychological satisfaction from minimizing the role of the father and controlling him.

In Finland, things are more balanced. A situation where an ex-wife would live off their former husband without working rarely arises – Finnish women tend to be proud individuals. Bitter legalistic flights where one parent is branded ‘unsafe for contact’ do not exists to the same degree. There seems to be also less of the gold-digger mentatility where it would be acceptable to marry someone, have children, take the ex-partner financially for cleaners, and also restrict their address ot the joint children. I have trouble imagining a Paul McCartney – Heather Mills type drama in Finland.

Negotiating with ex-partners is very difficult. The best interests of children should always be the main goal, based on building solid routines for them. Greed should not be part of the thinking of either party. A touch of trust between the ex-partners would not be unreasonable to ask for.

Geldof’s daughters are just starting their own adult careers, gravitating towards celebrity careers like their esteemed father. I wish them well. Their father is a great man not only because of Live and Band Aid, but especially for the sacrifices he has made for his and others’ children.

Sources:
http://en.wikipedia.org/wiki/Bob_Geldof
http://en.wikipedia.org/wiki/Michael_Hutchence
http://en.wikipedia.org/wiki/Father

PS. Geldof was great in Grumpy Old Men as well!

Let’s link up, my friend

2008-07-29T06:53:00.000-07:00

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When I was in Middle East, a typical greeting from a complete stranger would be: “How are you doing, my friend?” I take this kind of approaches in good humour, as I am a very open person myself and don’t mind being approached by strangers. However, when this kind of language gets into negotiations, I find the practice slightly condescending – my friends I have got to know each other over years, not over five seconds.

This has parallels in the online world. I do use, and recommend others to use social and business networking sites. For over 5 years, I have been part of LinkedIn but have also been part of Facebook and Plaxo for a while. I have a strict rule for acknowledging a contact at LinkedIn – you don’t have to be a friend of mine to have my contact, but I must have met you face to face. I find Facebook and Plaxo a touch more personal, so I am more selective there.

What are the benefits of social networking sites for a negotiator? First of all, the provide background information, LinkedIn in particular is practically an on-line CV. Secondly, they provide information about the contacts and recommendations that your negotiation partner have. The social networking sites can also be a source for new business, as your contacts are ideal parties to approach if you want to do business with their company. Often they are not the appropriate person to approach, but they can point you to the right person within their organisation.

A new development in these sites is to allow the persons to form formal and semi-formal groups. Simon Angeldorff, an Investment Director at AAC Capital in Sweden founded together with me SEB Enskilda Network with the following purpose:

“SEB Enskilda Network is a group for current and former SEB Enskilda employees. Join us to stay connected, reconnect and network with investment banking professionals. Membership requires current employment or at least 2 years of past employment at SEB Enskilda. LinkedIn profile will be checked for valid employment.”

Welcome to the group, my friend, if you fulfill the criteria!

SEB Enskilda Network LinkedIn Groups site by Sami and Simon

Picture: Peak performance at Chamonix with Simon Angeldorff

The trap of continuity

2008-07-20T12:54:00.001-07:00

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Continuity is very important in agreements; we tend to do whatever we have previously done. There is even some misplaced pride in uttering boldly "old dogs like me don't learn any new tricks".

Many negotiation situations can be greatly improved by a new way of looking at them creatively. Only fools always think the only solution is the present one.

How do one break such deadlocks? The first step is to question what do you really need instead of focusing of securing what you are currently doing or receiving. The harder part is convincing your negotiation partner why they should think differently of the familiar situation. After all, change takes courage. In order to take bold steps, the negotiation partner needs security - that is why guarantees are so important in winning new business. You know that you are a success, but a prospective client does not.

Then again, some solutions are timeless - one such was this weekends' show in London: Agatha Christie's Moustrap, which is now in its 56th year. I watched it with my daugther and wife yesterday, catching the continuity train with its 23185th entertaining, and pretty much unchanged wagon.

Picture: Enjoying the trappings of life in the London's West End

Might as well jump

2008-07-11T02:26:00.000-07:00

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In relation to risk taking, I am a sort of adrenaline junkie. Yesterday was my 38th birthday, and my wife, with a glint in her eye, bought me a gift card for a parachute jump. I replied with my own joke on the attitudes of three nations to risk taking and risk assessment:

The English: "If at first you don't succeed ..... try, try again"

The Americans: "If at first you don't succeed ..... redefine 'success' "

The Finns: "If at first you don't succeed ..... well, skydiving is not for you"

picture: Sami Miettinen hanging by a thread

Somehow my joke is not that funny anymore! :-)

Random noise vs. Signal

2008-07-07T08:11:00.001-07:00

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I read Nassim Taleb's wonderful Fooled by Randomness - The Hidden Role of Chance in Life and in the Markets. I like the book more than his more recent Black Swan.

Nassim makes a number of convincing arguments about the importance of random noise to success in most professions, including that of getting wealthy by risk taking. Nassim argues that survivorship bias makes us worship false heroes, as successful millionaires may have got to where they are by chance alone. On the other hand, failed risk takers just disappear from the radar. We only see the surviving winners.

This has implications for negotiations as well. Firstly, one negotiation strategy is to have hard-nosed simultaneous negotiations with as many parties as possible. By chance alone, one of them might succeed. This kind of crude behavior might work in a very simple situation like in haggling to buy a trinket in a holiday beach shop street. A serious negotiatior should not gamble on important issues, though, but should rather concentrate on building trust and long-term value sharing.

Secondly, the ratio of noise and signal (random luck vs. true performance) is difficult to see. More generally, a good negotiator strives to separate valuable information from the noise of the negotiation situation. I use the metaphor of Texas Hold'em poker - a good negotiator is able to keep his or her hidden card hidden and can sometimes discover the information in the opponent's hidden cards. The negotiator signals the information he or she wants to give out with open cards.

One open card form me - as a Finnish author, I hope the foreign publisher such as Random House and Simon & Schuster will increasingly consider selling also Finnish books. One place to start is the leading publisher in Finland, WSOY, whose team is lead by Ms. Meena Kaunisto. Her contact details can be found in this example WSOY international book profile - obviously not randomly chosen! :-)

Agents & Principals & Principles

2008-06-30T07:01:00.000-07:00

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I received a welcome message from Tiina Pyrylä. WSOY, with Fredrik Rahka direction, has programmed the negotiation skill analysis of Matti Mielonen on the leading Finnish politicians. One can find this Finnish language quiz here - Neuvotteluvalta: Ketä politikkoa muistutat neuvottelupöydässä?

At least on a first try, I was Mauri Pekkarinen. Although I don't generally share his political views, I don't mind being associated with him. After all, he did "win" the title of a the best overall negotiator of those analysed in the original article. Pekkarinen's aggressive style of maximizing the benefits of his electorate is so well know in Finland, that it even has a word associated to him - pekkarointi.

Picture: Ville Oksanen

This style can be appropriate to an agent acting for the behalf of a principal. When the mandate is straightforwardly defined and narrow, the agents' own principles don't have only a limited impact on the negotiation process. It is good to realize, however, that the aggressive style of a agent is associated to the principal and therefore will have negative consequences for the reputation of the principal as well. Relentless aggression is therefore not optimal behavior.

Lies, damned lies, and statistics

2008-06-03T02:24:00.000-07:00

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I started my blog with an article on F1 and Nokia, which also included a questionnaire on the importance of powerful managers for the fantastic Finnish success run in F1.

Results are now in. Many thanks for those 29 who took part. This is slightly unfortunate, since according to statistical theory, polls start to become statistically meaningful with sample sizes exceeding 30. There was a bit of criticism for Helsingin Sanomat, when they asked eight political insiders to rate the negotiation skills of Finnish politicians in March 2008.

Are great Finnish managers like Keke Rosberg the main reason behind the Finnish F1 success?

The first of the three Yes-answers won the race. However, it should be noted that those answering the Finnish language poll voted most for the “driving skill matters”-choice. English replies tilted the winning scales to “Yes. Finnish managers are the critical success factor” – answer.

I personally regard the background work done by Keke Rosberg a huge, huge stroke of luck for the Finnish F1 success. It is great to see also Kimi Räikkönen and Steve Robertson are also running a F3 team – Räikkönen Robertson Racing. Getting Mika Häkkinen more involved in the managerial scene is hopefully only a matter of time, as I personally admire him the most of Finnish F1 drivers, as proven by the picture below… By the way, the oil painting in the picture hangs prominently on the wall of our study room.

Mika Häkkinen & Sami Miettinen in Utti, 2003
Statistics can also be used in negotiations. The newest book by Robert Cialdini (and Steve Martin and Noah Goldstein) YES! Fifty Secrets from the Science of Persuasion stats with an example on hotel towel use. The most powerful statistic to reduce the requests by guests to change towels was based on personalized statistics on how many guests staying in the same room had reused their towels. A personally tailored relevant statistic information such as “53% of the buyers of this car model, chose the metallized paint. Do you also want that?” is the most effective way to use statistics in negotiations.

Finally, did you know that according to a recent Finnish poll, 69% of the respondents think that negotiation skills is either critical success factor or success factor for Finnish F1 success, and that only 31% consider driving skill to be of greater importance! :-)

Publishing contract

2008-05-17T10:00:00.002-07:00

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Many of us want to authors, but do not quite know how to get a publishing contract. Personal contacs help here as well.

One path is via a partnership. My own book, Neuvotteluvalta (Negotiation Power), is a good example. The ideas and framework are largely mine, but equally large credit is due to co-author Juhana Torkki for developing the ideas and increasing the quality of the book. Juhana had already written a bestseller about giving public presentations and speaches - Puhevalta. Juhana's credibility greatly eased the publishing contract negotiations in 2007 with the WSOY director Aleksi Siltala - Juhana was already a known quality author. It also helped that my wife Reetta Miettinen had extensive experience in the publishing business.

Another example is a children's book by my best man, Juha Virta. Sylvi Kepposen pitkä päivä (The long day of Sylvi Kepponen) is an imaginative tour de force. Juha's path to May 2008 publication also used win-win - the illustrator of the book, Marika Maijala, had already been established as an illustrator with other children's books. Juha said that "In negotiations with publishing company Otava it greaty helped that we had nearly complete version of the book with illustrations ready when we started negotiating".

Juha Virta & Sami Miettinen

Partnership in co-authoring a book is not for everyone, but can work if both parties achieve together clearly more than alone. It is critical to motivate the already published author, since his or hers PR-reputation is the key for getting a publishing cotract. The new partnering author or illustrator must humbly accept that they have to bring a lot of the content to the table. The co-author model works best for non-fiction and in illustrated books - it is pretty useless to send co-operation proposals to the J.K. Rowlings of this world.

Principles in political negotiations

2008-05-07T02:38:00.000-07:00

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Matti Mielonen, a political reporter of Helsingin Sanomat, used the four-step negotiation framework to rate Finnish politicians. His article “Pekkarinen ranked highest among top politicians for negotiating skills” was published in March 2008.

Among the evaluated Finnish top politicians, Minister of Economic Affairs Mauri Pekkarinen of the Centre Party was judged to be the best negotiator. The highest-ranking political figures in the country, Prime Minister Matti Vanhanen and President Tarja Halonen, scored fairly low.
The evaluation was done before the uproar over the text messages of Minister for Foreign Affairs Ilkka Kanerva. Mielonen observed that “Kanerva was the fourth-best in negotiating skills, but he got the lowest marks in adhering to principle.”

Juhana, co-author of Neuvotteluvalta was quoted in the article: ”The idea of principle is difficult to define. It is a characteristic that matures over a long period of time in a politician. A trustworthy politician has created the impression that his or her behaviour is predictable. Capriciousness and opportunism bring down the grade".

Kanerva did not survive the text message uproar, and resigned. Alexander Stubb, previously a member of European Parliament and a refreshingly high-energy man, joined the Government in his place.

Adherence to principle is not only a private matter, but it affects the fates of nations. At the same article, I was asked to give my opinion on British top politicians as negotiators. I complimented the former New Labour prime minister Tony Blair as truly tough negotiator, which took power from the Conservatives and brought his country into the Iraq war even against the will of his own country (and in my opinion, against his own will). And he survived it without being destroyed.

After Blair left politics, Gordon Brown has not managed to maintain the New Labour strong position. On May Day, London got a new mayor, Boris Johnson, a Tory. It appears as if the charismatic Blair really was the backbone of his party, which has now snapped.

Martti Ahtisaari, the former President of Finland and an international elite negotiator, emphasizes principles in international negotiations. He has been a key negotiator in Namibia, Aceh and Kosovo. In these situations achieving the autonomy or independence of the region has been right in principle.

picture: Martti Ahtisaari & Sami Miettinen, London Heathrow June 2008

Ahtisaari emphasizes that before national sovereignty “the people of the world want two things: that both the police and the juridical system would treat everybody equally. If these two things are in place, the development towards something better is possible. But quite often that is not the case.” Equality is one of the key principles. A good negotiator puts emphasis on principles, equality, on a reputation of being just and having a long-term credibility.

We have a natural talent for learning

2008-04-26T03:10:00.000-07:00

suomeksi

How to move from good to great? Nature, nurture or Nietzsche?

Brains have plasticity and are very adaptable. Our basic hardware setup is inherited from our genes, but we can modify our brain software throughout our lives. Great negotiators sculpt their brains with a process called learning. An excellent framework for motivated learning can be found from professor Mihaily Csikszentmihalyi (pronounced roughly "Chick, send me hey!"). His book Flow describes how stretching our skill envelope can motivate us to learn.

A negotiator can also use flow. Even with limited skills, starting near from zero, origo, one can improve by taking small risks in everyday life. Risk taking, even when it fails, pushes our skills forward.

Goals, risk taking and repetition. That is the formula for "natural talent".

In February 2008, I decided to have a new project - to learn to play guitar with my daughters. A light-hearted start was to buy Guitar Hero III: The Legends of Rock to our Nintendo Wii. Playing the game until Before I Forget song in hard level required many repetitions. My daughter Stella can play the excellent When You were Young by the Killers perfectly. Stretch goals, risk taking and repetition. That is the formula for "natural talent". This week, a postman brought the next step in the project: Yamaha EZ-AG midi-guitar (pictured) and Gigajam-learning software.

My project benefits from a warning in Saku Tuominen's book Kuinka ideat syntyvät: You can become creative already within ten years! Learning to negotiate can also be a long-term process - with ten years, one can achieve great things, but even one week is a start. I learned this week to play the start of the Godfather theme tune (lovely song which also was performed in my wedding):

e:-----------------------------------
B:------1--0-----1-----0-------------
G:---2--------2-----2-----2-----0----
D:2--------------------------3-----2-
A:-----------------------------------
E:-----------------------------------

In my earlier blog, I warned about overusing the Godfather role in negotiations. The good power negotiation roles are:
1. Friend (for getting the negotiation partner to share information)
2. Partner (a default role)
3. Godfather (for special situations)

One can develop by avoiding bad roles. The bad power negotiation roles are:
0. Slave (at the mercy of the others)
4. Lieutenant Sonny Fuzz (an irritating weakling)
5. Dictator (an illegal role)

In my future blogs, I will now and then include negotiation exercises. Can the blog readers help me with my bad guitar playing? My practice horizon is years, so I have time. :-) Especially any web links to useful guitar sites would be appreciated!

Do acting skills help a negotiator?

2008-04-22T11:16:00.000-07:00

suomeksi

Negotiation is an interactive game, which is not won by commandeering. However, many successful persons are by nature strong willed. Forceful communication only works in special Godfatherly negotiation situations, where one needs to make offers the other side can't refuse. However, a Godfather will soon enough find a dead horse's head in their bed, unless they possess the resources of a dictator. What should one do?

A good negotiator can lower their status by being a natural … actor! I debated the topic with actor Simo Routarinne at Café Engel. Simo has written an excellent book (in Finnish) Valta ja vuorovaikutus (Tammi, 2007) which can also teach negotiators how to "act". Simo has also brought Keith Johnstone's improvisation techniques to Finland, which is all good - the interaction in negotiations is more improvisation than scripted acting.

With a cup of coffee in my hand, I tried to defend Tony Blair-like "happy high status" as a powerful way to negotiate. Using Socratic discussion and at times low status interaction, Simo convinced (or made me convince myself?) that a better role for a negotiator is a Partner or even lower status Friend. These are good power negotiation roles. A good power negotiator isn't a forceful communicator, but rather empowers others indirectly. One does not need to be a Jack Nicholson or Jodie Foster to achieve this, but rather to have an ability to change moods and postures by degrees.

A good negotiator plays tennis. The game is started by receiving the serve at the back of the court. Sometimes dashing to the net with a racquet in hand is needed, but not in the beginning.

Books on the topic:
Keith Johnstone: Impro!
Simo Routarinne: Valta ja vuorovaikutus

PS. Many thanks for the comments and compliments on the previous blog on Nokia and F1. Much appreciated.

Nokia and F1

2008-04-20T00:56:00.000-07:00

Nokia's negotiation style and F1

suomeksi

Nokia announced this week its first quarter 2008 results. The result was good, but not good enough according to the markets - the share price dropped. My friend Ilkka Rauvola, the Nokia analyst at Den Danske Bank saw this chain of events early. It was surprising to see his Sell-recommendation earlier this year, but he has been proven right.

However, I would personally think this is a temproary glitch. Nokia's value chain management negotiation skills are excellent. In my book Neuvotteluvalta - miten tulen huippuneuvottelijaksi (Negotiation power - how to become a top negotiator) we assessed with Juhana Torkki the power negotiation style of Nokia with its subcontractors. The ability of Nokia to add value to shareholders is largely based on multisourcing technique. With it Nokia can make its partners to compete in a controlled way. Neuvotteluvalta book has a case in its Power Negotiations chapter.

"In multisourcing, a large buyer can choose from many options, but a the subcontractors have limited options. When there are many subcontractors, none of them can get an upper hand where it could avoid 'open book pricing'. This kind of purchasing is not really negotiation - it is a use of direct power."

The growth of Nokia looks to have temporarily slowed down, but I would assume that Nokia's good system competence will soon return the growth to the typical Nokia-like pattern. Nudging its subcontractors towards the shared win-win of mutual share price growth will surely continue.

Formula 1
It has been great to see that one other interviewee, Markus Niemelä has started his motorsport career well in the America. It is promising for the season, that Markus got a front row in pre-qualifying. Markus Niemelä web site tells more about the man. I hope the season will progress well and that he will eventually get to negotiate more, possibly about a place in the F1. Markus has been unlucky with injuries early in his career, without of his progress could have been even faster.

Finns have been extrordinarily successful in motorsport. The background negotiators have had a huge impact on this. Keke Rosberg has of course given a fatherly helping hand to Nico Rosberg, but even in the 90s he brought Mika Häkkinen to F1. Mika Salo and now Heikki Kovalainen have succeeded without Keke, but at least Kovalainen can not complain about his supporters - Flavio Briatore has been an excellent "godfather" to Heikki. The continuation of Finnish F1-success requires that we will get new Kekes to negotiate in the background. Mika Salo and Mika Häkkinen can possibly activate to continue on this road.

In world championship rally, the support of the Sohlberg family has been a catalyst to Finnish success. One hopes that the past champions will get active more, and it looks like that at least Marcus Grönholm can become a strong background force for Finns. As a manager or negotiating agent one does not need to be only altruisim. A manager which has actively facilitated their driver's early career success can later on take up to 20% of the driver's income without feeling guilty.

One can watch Finnish drivers at http://www.driverdb.com/, where a search can be customised by country. Heikki Kulta has been very active in reporting at his Turun Sanomat F1 column about the up and coming Finnish drivers. Finnish drivers have had a great success at the track - one hopes they will have equal success in managerial circles.

(Finnish version available at Neuvotteluvalta-blog)