The Naked Negotiator

“Sequencing in negotiation involves lining up deals so that each deal raises the odds of knocking over the next one.”

When President Nixon and Henry Kissinger were planning their historic visit to restore diplomatic relations with Communist China in the early 1970’s, they were mindful of an even bigger need to get the Russians to agree to a summit, to discuss placing limits on nuclear weapons production.

For 14 months, the Americans had talked to the Russians about holding a summit - with little concrete progress. The Russians kept stalling and stalling.

However, the announcement from Washington that Nixon was planning a visit to China, put increased pressure on the Russians. The Russians were worried the Americans would ally with China into an anti-Russian Sino-America alliance. The Russians quickly shifted ground.

At a meeting with Henry Kissinger on June 8, the Soviet Ambassador Anatoly Dobrynin, became in Kissinger’s words, “…totally insecure.” The Soviet Ambassador stopped being “grudgingly” and “petty” and spoke in a spirit of “goodwill”. Moscow was now very keen for a summit, but asked the Americans to “come to Moscow before going to Beijing.”

Kissinger said no. Meeting with the Chinese would create further leverage for the U.S. when they had talks in Moscow.

Whenever you’re planning to negotiate with a critical but difficult party, ask yourself which prior deals or agreements with another party will tip the balance towards agreement with the most important player you ultimately need to do business with.

Popularity: 50% [?]

My daughter Amy, posted this joke about Bill Gates, that was circulating around the net.

This is how business is done!

Father: “I want you to marry a girl of my choice.”
Son: “I will choose my own bride!”
Father: “But the girl is Bill Gates’ daughter.”
Son: “Well in that case…ok”

Next — Father approaches Bill Gates

Father: “I have a husband for your daughter.”
Bill Gates: “But my daughter is too young to marry!”
Father: “But this young man is a vice-president of the World Bank.”
Bill Gates: “Ah, in that case…ok”

Finally Father goes to see the President of the World Bank.

Father: “I have a young man to be recommended as a vice-president.”
President: “But I already have more vice-presidents than I need!”
Father: “But this young man is Bill Gates’ son-in-law.”
President: “Ah, in that case…ok”

The father in this tale is clearly a seasoned deal-maker.

He knows that sequencing agreements is a key factor in deal success.

Sequencing involves lining up deals so that each agreement raises the odds of knocking over the next one.

Popularity: 35% [?]