How to Negotiate the Fiscal Cliff? What Did We Learn?
The Good, Bad, and the Ugly
It has been over a month since we did not go over the fiscal cliff. I have been mulling over what we learned from that near disaster. Here are my conclusions.
1. Relationships Matter
One reason that Vice-President and Senator McConnell were able to come together behind closed doors and knock out some agreements is that they knew each other as senators from way back and had a certain level of trust from that relationship. That is why it is usually easier to negotiate with people you know rather than people you don't know.
2. Bring in the Big Guns to Finish the Job
(See number one above.)
3. The Broken Record Approach Does Not Work
Saying the same thing (no more tax increases or no changes to Medicaid) over and over does not work. This is the take-it-or-leave-it approach which in union negotiations is an unfair labor practice, bargaining in bad faith. In order to succeed, there has to be some give and take and some compromise positions offered.
4. Think Big, but if you Can't Think Big, Think Small.
First the fiscal cliff was going to be fixed forever. Then it was going to be fixed for the fiscal year. Then it was going to be fixed for sixty days. Small is better than nothing at all and perhaps something can be built on the first compromise and agreement.
5. Kicking the Can Down the Road Usually Doesn't Work and Can Make Things Worse (especially if sequestration is involved).
We know why Congress didn't make a decision in the fall. They were waiting to see who was elected President. However, that inaction created the fiscal cliff and made things worse.
6. Plan B Doesn't Always Work
The Speaker of the House found this out the hard way. He kept on saying he had a Plan B in case Congress did not pass the first plan. However, he couldn't get the Republicans to agree to his Plan B. This goes with "Don't count your chickens until they are hatched."
7. Scheduling Negotiations at the 11th Hour Works
Most negotiators know if you schedule a session at 4:00 on a Friday, it probably won't go past 5:30 because everyone wants to eat and start their weekend and no one wants to come back on Monday morning to complete it. The Congress first had to complete their negotiations by Thanksgiving, then Christmas, then New Year's and then by January 3, the date the new Congress was sworn in. This really put pressure on Congress because who wants to be in Washington during the holidays? However, if a session is scheduled, a Congressman looks bad if he or she went home while everyone is working.
(See number one above.)
3. The Broken Record Approach Does Not Work
Saying the same thing (no more tax increases or no changes to Medicaid) over and over does not work. This is the take-it-or-leave-it approach which in union negotiations is an unfair labor practice, bargaining in bad faith. In order to succeed, there has to be some give and take and some compromise positions offered.
4. Think Big, but if you Can't Think Big, Think Small.
First the fiscal cliff was going to be fixed forever. Then it was going to be fixed for the fiscal year. Then it was going to be fixed for sixty days. Small is better than nothing at all and perhaps something can be built on the first compromise and agreement.
5. Kicking the Can Down the Road Usually Doesn't Work and Can Make Things Worse (especially if sequestration is involved).
We know why Congress didn't make a decision in the fall. They were waiting to see who was elected President. However, that inaction created the fiscal cliff and made things worse.
6. Plan B Doesn't Always Work
The Speaker of the House found this out the hard way. He kept on saying he had a Plan B in case Congress did not pass the first plan. However, he couldn't get the Republicans to agree to his Plan B. This goes with "Don't count your chickens until they are hatched."
7. Scheduling Negotiations at the 11th Hour Works
Most negotiators know if you schedule a session at 4:00 on a Friday, it probably won't go past 5:30 because everyone wants to eat and start their weekend and no one wants to come back on Monday morning to complete it. The Congress first had to complete their negotiations by Thanksgiving, then Christmas, then New Year's and then by January 3, the date the new Congress was sworn in. This really put pressure on Congress because who wants to be in Washington during the holidays? However, if a session is scheduled, a Congressman looks bad if he or she went home while everyone is working.
Mary Greenwood, Negotiator, Attorney and Author of How To Negotiate LIke A Pro: 41 Rules for Resolving Disputes, Second Edition, Winner of ten book awards, How to Interview Like a Pro, Second Edition, Winner of twelve book awards, How to Mediate Like A Pro: 42 Rules for Mediating Disputes Winner of twelve book awards Visit my website: www.marygreenwood.org
Email: mgreen464@aol.com
Posts
No comments:
Post a Comment