CHAPTER 18
Commitment THE STRAIN
OF
IMPLEMENTATION
are over, tense negotiations have come to a close, the sixteen-hour work days have reverted to normal length, and the detailed reports have been written. Now the real work begins. A common problem among negotiators is that they return to their companies, contract in hand, with the belief that the job is complete. Unfortunately “the deal” is only a piece of paper at this point. Proper follow through by all participants will really be the test of whether negotiations were a success or a failure. Follow through can even save negotiations that were a “wash.”
THE BURDENS OF TRAVEL
Exploiting the Investment Investors rarely move into a market unless the timing is right. Those seeking investment generally have strenuous time constraints. Both groups also understand that the window of opportunity can close quickly. Political upheaval, exchange rates, and market movements can turn twenty-four hours into an eternity. And yet, after spending a great deal of time and money on negotiating a venture, either side or both may start to drag their respective feet during execution of the contract. This can happen because investors suddenly become wary of their new partners or because the recipients of the investment feel that, in retrospect, they got a poor deal. In the first case, the company receiving the investment must do everything they can to assure the investor that the whole process will go as planned. A sudden change in the legal or political environment may even require a return to the negotiating table. Both sides must be committed to making the deal work to overcome these hurdles, but the greater part of the burden is on the investment’s recipient. In the second case, the burden of commitment is reversed. Investors must convince their new partner that the deal as contracted will be to the benefit of both parties. While the counterpart’s lack of commitment should have been discovered during the original negotiations, new information (or suitors) may be at the root. Here again, a return to the table may be required to save the venture. Of course, many times there’s no real problem, only different senses of urgency. When investment is at the center of the deal, the pace will be set by whichever party has the lesser need. Companies hungry for investment will move at the whim of the investor. Investors hoping to gain marketshare in advance of competitors will find that the commencement of the venture will be very much controlled by their new partner. While a certain amount of gamesmanship is to be expected, all parties contracted are recommended to operate in compliance with the stated terms. In today’s marketplace, positions of power change rapidly, and the puppeteer can swiftly become the puppet.
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