Seven wastes of negotiation: Difference between revisions

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{{overproduction}}
{{overproduction}}


===2. {{wasteprov|Waiting}}===
{{waiting}}
''Over to you, Chuck''<br>
Whenever no-one is actively handling work in progress, in the sense of marking it up, or arguing with someone (internally or externally) about it, it is ''{{wasteprov|waiting}}''. In a typical [[negotiation]] that is likely to be more than 90% of the time.<ref>I totally made that up, but I think it is conservative. Over a three-month ISDA [[negotiation]], if you aggregate actual time physically editing a document, typing escalation emails and speaking to internal [[stakeholder|stakeholders]] and the client on [[Skype]] about the content of the document, would that be 24 hours? Highly doubtful. but let's be a little crazy and call it 48 hours. Forty eight straight hours - six full working days — of doing nothing but typing, editing and discussing. ''Over a three month period, 48 hours is 2.1% of the total time. So waiting time is 97.9% of the process.''</ref>
*'''Drafts out to client''': The negotiation process requires client input. {{wasteprov|waiting}} on that is wasteful and is largely outside our control? Largely but not entirely: the ''easier'' and ''less objectionable'' we can make the client’s review, all other things being equal, the faster it will come back.  How to make it easier and less objectionable?
:*'''Make it ''shorter''''': the fewer words to read, the faster you read it.
:*'''Make it ''nicer''''': Don’t include terms you don’t ''really'' need. Do you really need that [[NAV trigger]]? Before you say yes we do need it, ask yourself, ''“how many times have I ever actually enforced a [[NAV trigger]]?”''<ref>The answer, for the fiendishly interested, is ''never''.</ref>
*'''[[Escalation]]''': Eventually the client comes back to you, and they don’t like that NAV trigger. The negotiator needs to escalate this to the [[credit]] team. This involves composing that email, sending it and {{wasteprov|waiting}} for [[credit]] to read it  and answer. [[Credit]] will, eventually, be fine with dropping the [[NAV trigger]] — that is a 15 sec decision, but it took 24 hours to achieve. Reduce this wait time by:
:*Standardising terms to pre-approve obvious giveaways empowering negotiators to approve common points of contention
:*Recalibrating standards to reducing gap between “starting offer” and “walkaway point” so that escalation not necessary:
:*Standardising escalation process to capture metadata about necessary variations from the originally requested terms
:'''Post-negotiation approval, execution and storage processes''': Once the negotiation is finally approved there is a lot of time preparing execution agreements, summarising terms and submitting them for final formal approval, obtaining signatures and filing approvals, execution copies and capturing key agreement metadata in the firm’s risk and trading systems.
:*Currently this is  a labour-intensive, manual task. Technology here offers an enormous capacity for efficiency and digital audit.
:*Digital execution seamlessly captures necessary information and auto files storage
*'''Process maintenance''': 
:*Template maintenance and approval, version control, storage, retrieval
:*Template library complexity  –  too many models?
:*Playbooks, negotiation manuals
:*Legal opinions


===3. {{wasteprov|Transporting}}===
===3. {{wasteprov|Transporting}}===
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