Seven wastes of negotiation: Difference between revisions

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{{a|design|<youtube height = "300"; width="450">https://www.youtube.com/watch?v=FU-tuY0Z7nQ</youtube>
{{a|design|<youtube height = "300"; width="450">https://www.youtube.com/watch?v=FU-tuY0Z7nQ</youtube>
{{image|1968 Toyota Corolla 1100 Deluxe|jpg|A cross-border, multi-currency [[Toyota Corolla|Corolla]] yesterday.}}}}What do you get the [[legal eagle]] who has everything? A spirited comparison of [[ISDA negotiator|ISDA negotiation]] car manufacturing, of course.
{{image|1968 Toyota Corolla 1100 Deluxe|jpg|A cross-border, multi-currency [[Toyota Corolla|Corolla]] yesterday.}}}}What do you get the [[legal eagle]] who has everything? A spirited comparison of [[ISDA negotiator|ISDA negotiation]] to car manufacturing, of course.


Now it is well-known that the ISDA negotiation process works like a production line at British Leyland in 1978.  
Now it is well-known that the ISDA negotiation process works basically like the production line at British Leyland in 1978 — see video in panel.  


But it needn’t be that way. Just as Toyota revolutionised the car manufacturing world by focusing on waste and not cost, so can the docs team. The metaphor is not perfect, but it is pretty good, as we will see.


The [[Toyota Production System]] (TPS)  was created by Toyota’s chief engineer [[Taiichi Ohno]] to eliminate [[waste]], called “muda.[[Waste]] — as opposed to ''{{wasteprov|cost}}'', is the enemy on any production line: a process that is ''inherently necessary'' must add value, even if it is expensive<ref>If you can’t configure it so it costs less than the value it adds, consider why you are running the process ''at all'': you have a loser of a business.</ref> so you should be cool about paying a fair value for it.
For those not steeped in the mythical history of the mass-produced motor car, in the 1950s, Toyota’s chief engineer [[Taiichi Ohno]] created the “[[Toyota Production System]]”, which revolutionised the car industry. The American firms took years to cotton on, and British firms never did.  
 
Ohno-sensei’s great insight was to focus on eliminating [[waste|''waste'']], not ''{{wasteprov|cost}}''.
 
Waste is the enemy on any production line: a process that is ''inherently necessary'' must add value, even if it is expensive<ref>If you can’t configure it so it costs less than the value it adds, consider why you are running the process ''at all'': you have a loser of a business.</ref> so you should be cool about paying a fair value for it.


Processes which do ''not'' add value are inherently wasteful. The job is to eliminate waste, not {{wasteprov|cost}} ''[[per se]]''. To get rid of waste, you have to know exactly what waste is and where it exists. Ohno-sensei categorised [[seven wastes|seven types of waste]] and for each one, suggested reduction strategies.
Processes which do ''not'' add value are inherently wasteful. The job is to eliminate waste, not {{wasteprov|cost}} ''[[per se]]''. To get rid of waste, you have to know exactly what waste is and where it exists. Ohno-sensei categorised [[seven wastes|seven types of waste]] and for each one, suggested reduction strategies.


Even though he was talking about a physical manufacturing line, Ohno-sensei’s categories of waste cross over pretty well to the contract [[negotiation]] process, a fact which seems to have escaped every [[management consultant]] who has ever ruminated on the issue. A lot of them have.  
Even though Ohno-sensei was talking about a ''physical'' manufacturing line, “waste reduction” translates directly to the type of ''intellectual'' manufacturing needed to make contracts. 
 
This fact seems to have escaped every [[management consultant]] who has ever ruminated on contracting process — and a lot of them have — for every single one obsesses with reducing cost, and will do so even when it creates more waste. 
 
Bad idea.
 
So, in the quixotic hope of nurturing better ideas in the minds of our consulting overlords, here are some thoughts on  how to read across the [[seven wastes]] to legal contract production.  
===Summary===
===Summary===
The seven wastes, as applied to contract negotiation, are these:
The seven wastes, as applied to contract negotiation, are these:
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===On machines, humans, and the relations between===
===On machines, humans, and the relations between===
Here is wisdom, taken directly from the Toyota site, which you might think explains the dissatisfaction of [[reg-tech]] and [[outsourcing]]:
Here is wisdom, taken directly from Toyota, which well explains the dissatisfaction of mindless automation and [[outsourcing]]:


:''Machines and robots do not think for themselves or evolve on their own. Rather, they evolve as we transfer our skills and craftsmanship to them. In other words, craftsmanship is achieved by learning the basic principles of manufacturing through manual work, then applying them on the factory floor to steadily make improvements. This cycle of improvement in both human skills and technologies is the essence of Toyota's [[jidoka]].<ref>Literally, “automation with a human touch”.</ref> ''Advancing [[jidoka]] in this way helps to reinforce both our manufacturing competitiveness and human resource development''.
:''Machines and robots do not think for themselves or evolve on their own. Rather, they evolve as we transfer our skills and craftsmanship to them. In other words, craftsmanship is achieved by learning the basic principles of manufacturing through manual work, then applying them on the factory floor to steadily make improvements. This cycle of improvement in both human skills and technologies is the essence of Toyota's [[jidoka]].<ref>Literally, “automation with a human touch”.</ref> ''


===It’s about your people, not the [[management consultant]]s you hire===
===It’s about your people, not the [[management consultant]]s you hire===
Sure, you can sluice the [[waste]] out of your Augean stables — there’s nothing more satisfying than a spring clean — but the Toyota methodology is very clear that long term, things will revert to how they were unless your organisation commits, through its permanent staff, to a continual process of self-improvement. This is a skill — a disposition, that you won’t get from dropping a hundred grand on a six-sigma black belt for three months to fix everything for you.
Sure, you can sluice the [[waste]] out of your Augean stables — there’s nothing more satisfying than a spring clean — but long term, things will revert to how they were unless you commits, through permanent staff, to a ''continual process of self-improvement''. You won’t earn this disposition by dropping a hundred grand on a six-sigma black belt for three months to fix everything for you.


The reasons for this are as obvious as they are routinely ignored: projects, priorities, processes and people change, and the [[path of least resistance]] is to layer a new process over an old one. That kind of short-termism is exactly the environment that created the baffling complexity, redundancy and waste in the first place: [[barnacles]] quickly accrete unless your people are permanently committed to process excellence. Train your staff to be constant gardeners, and you won’t need periodic visits from McKinsey to dig you out of holes.
The reasons for this are as obvious as they are routinely ignored: projects, priorities, processes and people change, and the [[path of least resistance]] is to layer a new process over an old one. That kind of short-termism is ''exactly'' the environment that created the baffling complexity, redundancy and waste in the first place: [[barnacles]] accrete unless you are constantly, permanently, committed to removing them. Train your staff to be constant gardeners, and you won’t need periodic visits from McKinsey to dig you out of holes.


Now you have people not only with detailed — ''unparalleled'' — [[Subject matter expert|expertise]] in the conduct of your [[Negotiation|contractual negotiations]], and they are as well-disposed to eliminating crushing [[tedium]] from their professional existences as you are, ''if only you’d let them'': your [[negotiator|negotiators]]. Instead of imposing a the fantastical schemes of some glib [[management consultant|management consultancy outfit]] on these poor people, how about offering them some tools to sort it out for themselves?
Which staff? The ones on the ground. You have people not only with detailed — ''unparalleled'' — [[Subject matter expert|expertise]] in the conduct of your [[Negotiation|contractual negotiations]], they are as well-disposed to eliminating crushing [[tedium]] from their professional existences as you are, ''if only you’d let them'': your [[negotiator|negotiators]]. Instead of imposing a the fantastical schemes of some glib [[management consultant|management consultancy outfit]] on these poor people, how about offering them some tools to sort it out for themselves?
==The seven wastes==
==The seven wastes==
{{overproduction}}
{{overproduction}}
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{{ref}}
{{ref}}
{{c|Negotiation}}
{{c|Negotiation}}
{{Friday Philosophy|8/1/21}}