Our most important goals often depend on effective government and political negotiation. Consider just a few familiar examples:
- You apply for a permit from your local zoning board to build an addition on your home, and the board asks to meet with you to discuss potential modifications.
- Your organization attempts to establish an office to deliver relief aid in a developing nation but encounters resistance from local officials.
- You reach an agreement to sell your company’s software to a private defense contractor, only to learn that the deal requires federal approval.
In situations like these, it’s tempting to assume that government officials are simply “following the rules.” But despite what officials may sometimes assert, they often have meaningful discretion in how they interpret laws, apply regulations, and make decisions.
In government and political negotiation, your challenge is to understand just how much discretion an official actually holds, notes the late Tufts University professor Jeswald W. Salacuse in his book Seven Secrets for Negotiating with Government (Amacom, 2008). That discretion—and how it is exercised—can determine whether your negotiation stalls, succeeds, or never truly begins.
4 Sources of Power in Political Negotiation
Salacuse identifies four core sources of power that governments wield in both domestic and international negotiations. Recognizing these forces can help negotiators adapt their strategies and expectations.
- Monopoly. When you’re negotiating in the private sector, you usually have alternatives. Competing suppliers, substitute products, or other potential partners give you the ability to walk away if the deal doesn’t meet your needs. By contrast, a government agency or official may be the only negotiating partner available. If you want to sell a drug in the United States, for example, you must secure approval from the Food and Drug Administration. There is no alternative regulator waiting down the street.This monopoly grants government entities significant negotiating power. Compounding the challenge, government agencies often have no direct financial incentive to do business with you at all.
- Privilege and immunity. Governments enjoy legal privileges and immunities that individuals and private organizations do not. They can pass laws, regulate industries, seize property through eminent domain, cancel contracts, and impose penalties. In many jurisdictions, governments are also shielded from lawsuits or face limited consequences for breaching agreements. As Salacuse observes, these privileges can lead negotiators to make concessions they would never consider in private-sector negotiations.
- The public interest. Government officials are charged with advancing the public interest, and many sincerely view this responsibility as their primary mandate. In negotiation, that mandate can become a powerful source of leverage. During Argentina’s 2001 financial crisis, for instance, the federal government refused to repay its international debts, arguing that protecting its citizens outweighed obligations to foreign creditors. In practice, almost any negotiation with a government can be framed in ways that mobilize public opinion—sometimes against you.Understanding how your proposal might be perceived politically is often as important as understanding its economic merits.
- Protocol. To preserve authority and legitimacy, governments rely heavily on formal and informal protocols. These rules govern everything from how meetings are scheduled to how officials are addressed.Violating protocol—even unintentionally—can damage a negotiation. For example, calling a government official by their first name might be meant as friendly in corporate America but interpreted as disrespectful in a public-sector or international context.
Power tools for dealing with governments
While governments hold considerable power, negotiators are not powerless. Salacuse outlines several tools that can help level the playing field in government and political negotiation.
- The power of precedent. To protect themselves from accusations of favoritism or misconduct, government officials often adhere closely to precedent. Even when no explicit rule exists, prior decisions can provide a safe path forward. If you can identify and cite a relevant precedent, you give officials the institutional cover they need to say yes.
- The power of “No surprises.” Government officials tend to have a strong aversion to surprises. Unexpected developments—such as community opposition, media scrutiny, or legal challenges—can threaten both policy outcomes and political careers. Before negotiations begin, educate yourself about the political environment surrounding your proposal. Once talks are underway, keep officials informed about both positive and negative consequences of an agreement. If public resistance is likely, work collaboratively to address concerns rather than allowing surprises to derail the process.
- The power of relationships. In cross-cultural negotiations, relationships matter enormously—and not only across national borders. Even negotiations between parties from different regions of the same country can be shaped by cultural misunderstandings. Imagine representatives from a New York City–based firm negotiating with officials in a small town in Arkansas. Differences in communication style, expectations, and trust may rival those found in international negotiations.One effective approach is to invite government officials to talk about their community’s history, achievements, and challenges. Demonstrating genuine interest signals respect and builds rapport. Sharing appropriate information about yourself can also humanize the interaction and help forge connections that extend beyond formal titles.
What strategies have you found effective when negotiating with governments or public officials?
1) Know the government negotiator’s job better than he/she does. This takes some research, but much of it should be publicly available or can be gleaned by talking with people who have dealt with the office before.
2) Related, know all relevant policy/guidance/law and what it specifically includes and what it excludes. Ensure you address all the “shalls” policy, guidance, or law require of the official. They live and die by these and see it as their job to enforce them.