Negotiating with Denva Poyntz, Senior Corporate Counsel at Rio Tinto

👋 Meet Denva Poyntz

Senior Corporate Counsel, Global Energy Development Projects at Rio Tinto

Denva is an Australian qualified lawyer with more than 15 years of experience, specialising in the development, operation, acquisition and disposal of renewable energy projects and other major infrastructure projects. Denva has worked on projects in Australia, the US, Africa, the Middle East, and Europe.

What’s your career story so far?

I joined Rio Tinto in 2021 as the Regional Head of Commercial Legal for the Pacific, leading a large team of senior lawyers responsible for supporting Rio Tinto’s procurement activities around the world. However, given Rio Tinto’s publicly announced decarbonisation objectives, I was given the opportunity to take on my current role to lead the subject matter expert legal support for Rio Tinto’s decarbonisation projects globally. 

Prior to joining Rio Tinto, I held various senior private practice and in-house roles based in Australia, the UK, and the Middle East, specialising in the development, operation, acquisition and disposal of renewable energy projects and other major infrastructure projects. Notably, I was previously general counsel for a large company based in the Middle East, where my primary focus was to establish the group’s (now very successful) energy and infrastructure investment platform.

What types of negotiations have you tackled so far in your career?

Broadly, I have tackled three types of negotiations in my career to date: 

1. Negotiations on my own behalf, regarding my compensation/ incentive package or promotion opportunities; 
2. Negotiations on behalf of my organisation/ my client for a wide variety of contracts and transactions, including M&A, joint venture arrangements, construction contracts, supply contracts, offtake contracts, financing arrangements etc.; and
3. Negotiations on behalf of my role/ my team, including for resourcing, promotion opportunities and compensation/ incentive packages for my team.

What do you think defines a great negotiator? How might it differ from the stereotypes?

I think a great negotiator is perceived by others as reasonable, knowledgeable, and quietly (but noticeably) confident. They also have a clear vision of what their desired outcome is for the negotiation.

It is difficult to advocate for an opposing position when you feel like you are being unreasonable, or you are made to look unreasonable. It is also difficult to advocate for an opposing position when it appears that the opposing negotiator is more knowledgeable on the relevant subject matter, provided they are also perceived as being reasonable.

Historically, I think it was perceived that the most effective negotiator was the loudest or most aggressive person in the room. I often find aggression is unsuccessfully deployed as a tactic by negotiators who are unprepared, do not understand the subject matter being discussed or know they are being unreasonable. It is a signal to me that I have the upper hand.

What’s your style when you negotiate, and how has it evolved?

My negotiation style has evolved a lot, due to negotiating with people from different cultures and backgrounds, particularly as a female working in male dominated industries. I learnt early in my career that

effective negotiation strategies for some do not apply to all, and that being flexible is key.

My negotiation style is therefore dependent on the style of the person I am negotiating against. I determine the style I will deploy at the beginning of the negotiation, as part of the initial chat that precedes the negotiation. I also use this pre-negotiation phase to build a strong rapport with my counterparties and get to know them and their motivations. Ultimately, facilitating an environment for an open and transparent dialogue is extremely helpful, although not always possible depending on the style of the opposing negotiator(s). 

I also use the relationship I have developed with my counterparty to understand their desired outcome and redlines for the negotiation. In preparing for the negotiation, I will have a base understanding of what they are or should be, but that needs to be confirmed. It is also key to understand if my lead counterparty is a decision maker, or if the decision maker is another person in the room (or if the decision maker is in fact not in the room at all). This could change my target audience in a negotiation. 

By understanding the opposing negotiators desired outcome, red lines, understanding the power dynamic and knowing my own desired outcome and red lines, I can then work towards achieving a win-win/ relationship-based outcome. 

A contract does not have arms and legs – therefore it is essential that the parties to the contract are sufficiently incentivised to honour the contract for it to operate as intended and ultimately, for the project/transaction to be a success.

How do you prepare for a negotiation?

Thoroughly! 

1. Ensure I have a clear understanding of the desired outcome for the negotiation, in consultation with my key stakeholders. As part of this, I will determine my red lines/ guard rails for the negotiation and get sign off on these limits if they are not within my delegated authority.
2. Ensure I understand the subject matter. If I am not an expert in the subject matter, I may consider bringing one to the negotiation or preparing/practicing with a subject matter expert. I think in certain circumstances, you can demonstrate that you are reasonable by acknowledging you don’t have all the answers and by referring to others who do.
3. Ensure I understand my counterparty and their motivations, including the personalities/drivers of the individual negotiators where possible.

How do you react to surprises & unexpected developments in a negotiation?

When new information or unexpected developments occur in a negotiation, which is not uncommon,

I tend to ask a lot of open questions to ensure that I fully understand the situation

and its impact on the subject matter of the negotiation. If the situation is easily accommodated for, there may be no need to change the overall strategy for the negotiation. However, if the development is significant, it may justify parking the negotiation or at least the present point being discussed, to revisit that matter at a later date once you have had sufficient time to fully digest the issue or discuss it with relevant stakeholders.

What are some common negotiation mistakes you see in action?

There are 3 common mistakes I see in action. The first is a negotiator who is too invested in the negotiation and takes everything personally. 

The second is a negotiator that is unprepared, or not knowledgeable in the subject matter of the negotiation. 

As mentioned earlier, both issues often result in a negotiator becoming aggressive or defensive which is not a successful negotiating tactic in my experience.

Another mistake I often see is people not selecting the appropriate forum for a negotiation. Depending on the matter being discussed, an online/virtual forum may be far less effective than a face-to-face meeting.

What other advice would you give to people learning to negotiate for themselves?

I personally find negotiating for myself much harder than advocating on behalf of others or on behalf of my organisation. I think to be able to advocate for yourself,

you need to know your own value and truly believe in it.

This is often harder for women then men. 

Preparation is key in this regard. Do your research and come armed with facts. Also, understanding your counterparties negotiating limits is key in framing your ask.