8th April 2008

Negotiating with government

You may not be able to “fight city hall,” but you can negotiate with government - if you know how.

The first ‘Don’t’ when negotiating with government officials is, don’t use the word “negotiation” writes Jeswald Salacuse in Seven Secrets for Negotiating with Government (Amazom, 2008).

Government officials would much prefer you call your negotiations, “discussions,” “conversations,” “requests” or “interactions.”

Government officials don’t like talking about compromises and tradeoffs. Government officials view their role as enforcing the law, implementing regulations and pursuing policy. “Negotiated decisions” make officials uncomfortable.

Before you negotiate with government, you need to appreciate government’s power base. Salacuse identifies four sources of power that governments leverage at the bargaining table.

  1. Monopoly. Governments are, for the most part, monopolies. As a negotiator in the private sector you usually have the fallback of talking to a competitor. If you’re negotiating approval with a government agency e.g. to sell a drug, you can’t get the approval from anyone else.
  2. Privilege and Immunity. Governments pass laws, set regulations that private citizens and private companies cannot. In many countries, governments can’t be sued. These privileges can force you to make additional concessions.
  3. Protocol. Government is much more likely to use protocols that dictate how you will interact with government departments and officials.
  4. The Public Interest. At any time, governments can play the public interest card. You may be legally in the right, but it’s hard to beat a government player who claims public opinion is preventing them from going along with the terms you originally negotiated. Governments find it much easier than private players to renegotiate deals.

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