MAKING
DEALS
Based on The 110%
Solution (1991) by Mark H. McCormack
Reviewed by Grady McAllister
December 2, 1995
Mark McCormack is best-known
for his 1985 best seller What They Don’t Teach You
in Harvard Business School . McCormack began his company,
the International Management Group, in 1960 when he left his
Cleveland Law practice to represent golfer Arnold Palmer.
Today, many people have trouble
classifying I.M.G.: The same company that represents race
car driver Jackie Stewart also represents the Noble Foundation.
He states that his company’s mission "to find opportunities
for top notch professionals operating in the international
arena." He interprets that mission as ruling out football
teams and rock stars, but it can include both tennis players
and opera stars.
In The 110% Solution
, his endorsements go on for eleven pages. Like his clients,
they are diverse and range from former Vice President Spiro
Agnew to Christie Hefner, Chairman and CEO of Playboy Enterprises.
One of the most readable of
business authors, McCormack introduces the subject of negotiation
with these words:
For eons, philosophers
have tried to define what distinguishes human beings from
the rest of the animal kingdom. Some say what sets us apart
is our ability to reason; others, that it is our use of
language…I would like to offer another uniquely human
attribute: Man is the only animal that negotiates.
When lions kill, the strongest
lion takes the prime bits, while the others settle for leftovers.
There’s nothing for lions to discuss…Only humans
talk things over to arrive at a solution. Only humans see
the world in subtle enough terms to realize that decisions
needn’t be all or nothing; some of what you want can
be blended with some of what I want, and the result can
be better for both of us.
McCormack says that negotiation
is so essential that "a 110 percent approach to life necessarily
includes a sensitivity to the nature of negotiation and a
willingness to make it work."
According to McCormack, negotiation
is an emotional as well as a rational activity. It acquires
a momentum of its own and becomes more that the sum of its
parts. In short, it is "a little drama all by itself." There
is no "airtight formula" for success. Nonetheless, McCormack
suggests that you keep these two elements in mind:
Timing. The truth
is that people are not always masters of their moods, judging
everything strictly on its merits. If you are a teenager,
you don’t ask Dad for the car while he is walking in
the door grumbling about his job. McCormack says, "This same
commonsense approach to timing pertains to negotiations where
millions of dollars are at stake."
Tone. There is at
least some component of conflict in any negotiation. Otherwise
there would be no need to have a negotiation. The conflict
is not, in itself, a problem. However, "What can become a
problem is a hostile or uncooperative tone that comes in response
to the conflict." According to McCormack:
The importance of tone
can hardly be over-stressed. It makes all the difference
between a deal where the two parties truly feel like partners
and one in which people are mistrustful and uneasy, always
looking over their shoulder to see who’s getting the
best of it.
The essence of negotiation
is "clearing away the obstacles so that the other party can
say ‘yes.’ " However, sometimes you have to help
people to say "no":
There are many ways of
persuading people to drop their armor, and maybe the easiest
is simply to allow them the opportunity to get the no’s
off their chest. People need to make a gesture establishing
that they won't let themselves be pushed around.
In working with Arnold Palmer,
McCormack would purposefully tell him about offers that he
was sure to reject. Before finally presenting him with an
important opportunity, McCormack might ask, "Are you ready
for a serious question yet, or do you want to shoot me down
a few more times first?"
McCormack says the "golden
rule" of negotiation is to have clear understanding of what
the other side wants and how you might be able to give it
to them. This information gives you leverage: "You create
more good will by trying to expedite the things they want
to accomplish. You foster a tone of cooperation by trying
to reconcile their needs with your needs."
Here are some common tactics
that occur during the negotiating process:
The negative attack
. You see this tactic when a bully goes on a tirade about
the "one or two details out of a hundred" in which you performed
less than perfectly. These are not valid complaints but tactics
designed to weaken your position. The counter-tactic is to
bring them up yourself, thereby "taking away his primary weapon."
The ultimatum. This
tactic is to scare you into conceding anything that will keep
that person at the table. McCormack writes: "Ultimatums are
rarely the end of a negotiation. They are often the beginning."
The bulk order. The
other party negotiates for a quantity price and, then, tries
to buy a small amount. The counter-tactic is to "stick to
your rate card."
Good cop/bad cop.
The opponent sends in a negotiator whose sole purpose is to
wear you down. Then, a "good guy" shows up who apologizes
his associate's bad manners:
Of course, you gravitate
toward the good guy -- because his temperament, demeanor
and negotiating position appear to be more inviting.
The funny thing about the
good cop/bad cop tactic is that I am very good at detecting
it--but I fall for it anyway. In my heart I want to believe
the good cop is on my side even when my brain is telling
me he is playing a role and his act is not necessarily in
my interest.
The best way to counter this
is to "shut out the good guy" and "focus your energies on
turning the bad guy around to your point of view." If that
doesn't work, "you weren't going to do any better with his
partner anyway."
The concession. McCormack
describes three types of concessions that can happen in a
negotiation:
- The 50 percent solution
is to concede but get nothing in return.
- The 75 percent solution
is to concede but only for something of equal value.
- The 110 percent solution
is to concede, but get more in return.
One way that negotiators
may get more in return is by not letting the other party know
when it is easy to meet their demands. Also, they may delay
making a concession simply as a negotiating tactic. McCormack
states:
There is nothing particularly
sly about this. As a negotiator, you are under no obligation
to tell the other side that a concession is easy to make
or immaterial to you. And you don’t have to concede
immediately.
The Times of London
has called Mark McCormack "One of the 1,000 makers of the
Twentieth Century." In 1995, McCormack released McCormack
on Negotiating , a book that provides further details
about his negotiating philosophy.
The
Vasthead is the professional web site of
Grady McAllister of Houston, Texas.
http://vasthead.com
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