Skill of negotiation important for HR

Honing negotiation skills a competitive advantage
By Fernando Olivera
|Canadian HR Reporter|Last Updated: 09/04/2015

In 2008, a cargo ship owned by the Danish Clipper Group was hijacked by Somali pirates. As luck would have it, company CEO Per Gullestrup made two quick decisions that led to the safe return of his ship and crew. First, after discussing the situation with his insurer, Gullestrup decided to pay a ransom. Second, he agreed to use a professional negotiator rather than handle the situation himself.

After a few weeks of professional haggling, the company’s expert negotiator managed to significantly limit the Clipper Group’s financial pain by striking a deal that saw the pirates receive between US$1 million and US$2 million — much less than their initial US$7-million demand, not to mention the ship’s insured value, according to National Public Radio’s story “Behind The Business Plan of Pirates Inc.”