Preventing Spontaneous Collapse of Agreements

When two or more parties work out their differences, they often employ explicit agreements. Written or oral, signed or unsigned, agreements spell out what will be exchanged and when, or what the parties will refrain from doing. Agreements are essential to collaborative work in the context of constrained resources.

When agreements collapse spontaneously, there is no apparent external cause. Even when external conditions remain unchanged, agreements can implode. Distrust and rancor can follow, jeopardizing the possibility of future agreements. Because the long-term consequences of collapse can be more severe, unpleasant, and debilitating than the collapse itself, skill in crafting stable agreements is a valuable asset.

Here are some of the attributes of stable agreements.

They're voluntary

Stable agreements are voluntary. Neither party is coerced by the other, or by any other party. For example, the supervisor who addresses toxic conflict between subordinates by ordering them to "work it out or else" is establishing conditions for an unstable agreement.

If coercion drives the bargain, the agreement can remain stable only as long as the coercion remains effective.

Information quality is symmetric

Both parties have equal access to information about the context of the agreement and the value of the items exchanged. That is, one party estimates the fairness of the agreement about as accurately as the other. Information quality asymmetry is especially troublesome when the advantaged party knows that the disadvantaged party is agreeing to an unfair exchange, or when the advantaged party intentionally misleads the disadvantaged party.

When the truth finally becomes apparent, the disadvantaged party often feels harmed. Relationships degrade. The agreement collapses.

There are incentives for preserving the confidentiality of confidential terms

When agreements have If coercion drives the bargain,
the agreement can remain
stable only as long as the
coercion remains effectiveconfidential components, stability requires that there be incentives for maintaining that confidentiality. For example, when an agreement must remain confidential for delicate policy reasons, a trap awaits: the first party to disclose the agreement can sometimes shift responsibility for the need for delicacy onto the other party, even after harvesting value from the agreement.

When agreements are confidential, they must address the problem of incentives for first disclosure.

Value exchange is contemporaneous

Perhaps the most important stabilizer of agreements is simultaneity of exchange. If one party harvests value from the agreement before the other, or faster than the other, then the earlier harvester has an incentive to renege after having harvested enough value. Such an agreement becomes a form of "I'll scratch your back; you stab me in mine."

Working out contemporaneous exchanges can be difficult, sometimes requiring streams of small bits. Finding workable decompositions can require some cleverness.

Failure to find an agreement structure with these attributes after long negotiations can be painful. But living through an agreement collapse can be even more painful.  Top    Next Issue

Is every other day a tense, anxious, angry misery as you watch people around you, who couldn't even think their way through a game of Jacks, win at workplace politics and steal the credit and glory for just about everyone's best work including yours? Read 303 Secrets of Workplace Politics, filled with tips and techniques for succeeding in workplace politics. More info

Your comments are welcome

About Point Lookout

Thank you for reading this article. I hope you enjoyed it and found it useful, and that you'll consider recommending it to a friend.

Point Lookout is a free weekly email newsletter. Browse the archive of past issues. Subscribe for free.

Support Point Lookout by joining the Friends of Point Lookout, as an individual or as an organization.

Do you face a complex interpersonal situation? Send it in, anonymously if you like, and I'll give you my two cents.

Related articles

More articles on Conflict Management:

Top Ten Signs of a Blaming Culture

The quality of an organization's culture is the key to high performance. An organization with a blaming culture can't perform at a high level, because its people can't take reasonable risks. How can you tell whether you work in a blaming culture?

The Advantages of Political Attack: II

In workplace politics, attackers are often surprisingly successful with even the flimsiest assertions. Often, they prevail, in part, because they can choose the time and venue for their attacks. They also have the advantage of preparation. How can targets respond effectively?

Agenda Despots: I

Many of us abhor meetings. Words like boring, silly, and waste come to mind. But for some meeting chairs, meetings aren't boring at all, because they fear losing control of the agenda. To maintain control, they use the techniques of the Agenda Despots.

Impasses in Group Decision-Making: IV

Some impasses that develop in group decision-making relate to the substance of the discussion. Some are not substantive, but still present serious obstacles. What can we do about nonsubstantive impasses?

Overt Belligerence in Meetings

Some meetings lose their way in vain attempts to mollify a belligerent participant who simply will not be mollified. Here's one scenario that fits this pattern.

See also Conflict Management and Workplace Politics for more related articles.

Forthcoming issues of Point Lookout

Coming June 3: Capability Inversions and the Dunning-Kruger Effect

A capability inversion occurs when the person in charge of an effort is far less knowledgeable about the work involved or its purpose than are the people doing that work. In capability inversions, the Dunning-Kruger effect can intensify group dysfunction, sometimes severely disrupting the effort. Available here and by RSS on June 3.

And on June 10: They Don't Reply to My Email

Ever have the experience of sending an email message to someone, asking for information or approval or whatever, and then waiting for a response that comes only too late? Maybe your correspondent is an evil loser, but maybe not. Maybe the problem is in your message. Available here and by RSS on June 10.

Coaching services

I offer email and telephone coaching at both corporate and individual rates. Contact Rick for details at rbrenmhXARWRMUvVyOdHlner@ChacxgDmtwOKrxnripPCoCanyon.com or (650) 787-6475, or toll-free in the continental US at (866) 378-5470.

Get the ebook!

Past issues of Point Lookout are available in six ebooks:

• Get 2001-2 in Geese Don't Land on Twigs (PDF, )
• Get 2003-4 in Why Dogs Wag (PDF, )
• Get 2005-6 in Loopy Things We Do (PDF, )
• Get 2007-8 in Things We Believe That Maybe Aren't So True (PDF, )
• Get 2009-10 in The Questions Not Asked (PDF, )
• Get all of the first twelve years (2001-2012) in The Collected Issues of Point Lookout (PDF, )

Are you a writer, editor or publisher on deadline? Are you looking for an article that will get people talking and get compliments flying your way? You can have 500 words in your inbox in one hour. License any article from this Web site. More info

Public seminars

Bullet Points: Mastery or Madness?

Decision-makers in modern organizations commonly demand briefings in the form of bullet points or a series of series of bullet points. But this form of presentation has limited value for complex decisions. We need something more. We actually need to think. Briefers who combine the bullet-point format with a variety of persuasion techniques can mislead decision-makers, guiding them into making poor decisions. Read more about this program.

Here are some dates for this program:

• Time: 12:00 Eastern Time. Place: Wherever you are. It's a Webinar.: June 24, Monthly Webinar, sponsored by Technobility Webinar Series. Register now.
   
• Time: 6:00 PM Eastern Time. Place: Wherever you are. It's a Webinar.: June 24, Monthly Webinar, sponsored by Technobility Webinar Series. Register now.
   

The Power Affect: How We Express Our Personal Power

Many people who possess real organizational power have a characteristic demeanor. It's the way they project their presence. I call this the power affect. Some people — call them power pretenders — adopt the power affect well before they attain significant organizational power. Unfortunately for their colleagues, and for their organizations, power pretenders can attain organizational power out of proportion to their merit or abilities. Understanding the power affect is therefore important for anyone who aims to attain power, or anyone who works with power pretenders. Read more about this program.

• A recording of a program presented June 29, 2017, Monthly Webinar, sponsored by Technobility Webinar Series. PMI members can earn 1.0 Category 'A' PDU by viewing this program. View this program now.