Donald Trump, the president-elect of the United States, tries to intimidate and crush his counterparts in negotiations. Sister Mary Scullion, an influential advocate for the homeless, searches for solutions that allow everyone to win. Their negotiating styles could hardly be more different—yet both are extremely successful.
Bottom Line/Personal asked business school professor G. Richard Shell, an expert on the topic of negotiations, to identify some of the most notable negotiators from modern times…lay out the lessons that can be learned from each…and explain how our readers can use these lessons to be successful in their own dealings…
Trump is an expert at finding and exploiting the most vulnerable weak spots of his opponents. He understands that the ability to make someone else’s life worse can be a powerful bargaining chip in negotiations. Example: For weeks, he refused to rule out the possibility of running for president as an Independent if he didn’t win the Republican primary. Trump said his use of that leverage was aimed at forcing the Republican Party to treat him “fairly.”
How you can use Trump’s negotiating technique: First, be honest with yourself about whether you, like Trump, are cut out to make thinly veiled threats, use people’s weaknesses against them and create enemies. If not, don’t try this—you’ll find it stressful and unpleasant, and it might backfire.
If this strategy does fit your personality, don’t just ask yourself, What do I want? before negotiations. Also consider, What power do I have to make my opponent’s situation worse?
If the person on the other side of the negotiating table has an archrival, you might threaten to work with that rival, for example. If he/she is working under a tight deadline, you could delay closing the deal. If he is very busy or impatient, you could make the negotiations extremely detailed and time-consuming. Whatever way you inflict pain or the threat of pain, use that to try to get a better deal than was originally offered in exchange for backing off this tactic.
Sister Mary, a Catholic nun, has devoted her life to helping the homeless of Philadelphia, where she is executive director of Project HOME. Her efforts have been so successful that in 2009, Time magazine included her on its list of the world’s 100 most influential people.
Her success in negotiating for the homeless is rooted in the fact that she does not simply try to win people over to her cause—she seeks solutions that align the interests of people who have the power to help the homeless with the interests of the homeless.
Examples: When Sister Mary wants a politician to support a project, she explains how it will get homeless people off the streets of that politician’s district, helping him politically. When she wants a real estate developer to build low-cost housing, she makes sure the project will produce a profit for that developer.
For one recent fund-raiser, Sister Mary found homeless people who had artistic ability, gave them art supplies, then arranged an exhibition of their work. The homeless didn’t just receive a handout…they got a start as professional artists. The donors didn’t just give money…they bought paintings they could hang on their walls.
How you can use Sister Mary’s negotiating technique: Before any negotiation, ask yourself what are all the things that the other party in the negotiation needs or wants, and think about how you can help him get these things. In doing so, look beyond the obvious. For example, in negotiating with a potential buyer of your home, the price may be only one factor. Your flexibility in timing your move, your willingness to accept unusual financing, etc., may be equally important. Once you’ve figured out an arrangement that will help the other party in ways beyond the obvious, present your idea not as a request but as a solution that will benefit everyone.
Warren Buffett, whose fortune was made in buying and, to a lesser extent, managing companies, never enters any negotiation until he has a deep understanding of the business that is the subject of the negotiation…the alternatives available to him…and the sector that the business is in. Nor will he negotiate unless he believes that the timing is in his favor—if a company he likes seems overvalued, he waits.
When Buffett finally does enter negotiations, he makes a fair offer, not a low-ball offer. His offers are so fair, in fact, that at least initially, he sometimes is criticized by analysts for being too generous. But Buffett is not being generous—paying a little extra is part of his long-term strategy. It increases the odds that the executives of the company he is seeking to acquire will be enthusiastic about the sale and about working for him…and it telegraphs the message to people who enter future negotiations with Buffett that he will offer them a fair deal, increasing the chance that they, in turn, will accept his terms.
How you can use Buffett’s negotiating technique: Gain as much knowledge as possible prior to a negotiation. For example, do not try to buy a new car until you have first researched precisely which car and options you want and the price other buyers are paying for this vehicle. Patiently wait to negotiate until the other side is most likely to offer you a good deal—with new cars, for example, that’s typically near the end of a model year and near the end of a calendar month. Then make a reasonable offer that allows both sides to walk away happy.
Anna Wintour, the infamously demanding Vogue magazine editor in chief who inspired the Meryl Streep role in the film The Devil Wears Prada, has positioned herself as the hub at the center of the wheel of the fashion industry. She knows virtually everyone of importance in fashion, whether it is designers, celebrities, advertisers or publishing executives. Her connections give her tremendous power in negotiations. She can leverage them by bringing people together…or by threatening to shut people out of the industry if they displease her. Her power is so great that her advocacy can be the deciding factor in the choice of a designer at a fashion house.
How you can use Wintour’s negotiating technique: Build as broad a network as possible. Get to know people throughout your company and industry, as well as your community. Find out what really matters to these people and what challenges they face. Then look for opportunities to help these people form useful connections with other people you know. Those people later might be in a position to help you. Encourage people to come to you when they encounter problems. When someone treats you poorly, let everyone in your network know about it—if enough people react negatively, this could serve as a warning to others not to cross you.
Former president Bill Clinton uses his considerable personal magnetism as a negotiating tool. It is said that his opponents, knowing his reputation, sometimes refuse to meet with him face-to-face for fear that he will charm them into agreeing to something that isn’t in their best interests.
How you can use Clinton’s negotiating technique: You can’t learn this sort of charm—you either have it or you don’t. If you are fortunate enough to have it, understand that your power of personal magnetism is strongest when you are face-to-face and diminishes with time and distance. Push people to sign on the dotted line right away, before they have a chance to reconsider. (Conversely, if you are negotiating with a charmer—someone you find yourself liking immensely despite yourself—sleep on any deal before finalizing it.)
President Ronald Reagan was a man of deeply held beliefs, and he refused to compromise those beliefs during negotiations. Reagan strongly believed in the importance of standing up to Communism, for example, so rather than try to smooth over differences between the US and the Soviet Union, he stood at the gate between East and West Berlin and exhorted Soviet leader Mikhail Gorbachev to “tear down this wall.”
Refusing to compromise might seem like a terrible negotiating tactic, but it actually can be quite effective when used properly. If people believe you truly cannot be moved off of a position, they often will back down.
How you can use Reagan’s negotiating technique: First, identify which of your beliefs are your core beliefs—the ones on which you are unwilling to budge. There cannot be many of these—if you have more than one or two, people will see you as unreasonable, not principled, and refuse to deal with you at all. Communicate very clearly that you will not waiver on these core beliefs. Explain why they are so central to who you are. Perhaps compromising in these areas would run counter to your ethical compass or religious beliefs. Perhaps you gave your word to a now-deceased loved one. Then offer to brainstorm with your negotiation opponent about how you can find common ground without your having to give ground on this issue.
