LET’S MAKE A DEAL
A former Stanley Cup-winning general manager says you need to be meek and egoless if you want to win—in a negotiation. That, and always keep your eye on the puck.
As president and general manager of the New York Rangers for over a decade, I had a responsibility to our ownership to negotiate effectively on almost a daily basis, whether with one of our own players or a fellow G.M. concerning a trade. The results of the hundreds of deals I conducted over that time were largely determined by how I conducted myself during the negotiations. Here are the basic principles I developed for successful negotiating.
1. Don’t Commit First
If you can get the other side to state their position or proposal first, you may be pleasantly surprised at what they want. At the very least, you’ll get valuable insight into what they’re thinking before they know what you’re thinking.
I once acquired a struggling player by asking the other G.M. how much of the player’s salary he’d be willing to eat if we took him. Surprisingly, he was willing to pay two-thirds of the contract, and I got the player to renegotiate his contract down to that figure just for the opportunity to stay in the N.H.L. Result? He played for us all season and the other team paid his entire salary.
Getting the other side to commit to a position first allows you to use their proposal as the “high-water mark.” Then, if it comes to taking a middle ground, you can be closer to what you want than they are to what they want.
2. Put Your Ego Aside
Negotiations are about getting a deal done, so don’t try to impress the other side with your intelligence and negotiating abilities. The stronger you look, the bigger the fight you’ll have on your hands.
One tactic I use is to get the other side to help me during the process, asking questions that make them feel superior, such as “I’m not really sure, what do you think?” Or I might say, “I don’t know the market nearly as well as you do.” Ego-driven negotiators make mistakes like telling the other side that they don’t have to check with anyone above them, or they don’t need to check with experts before making a decision.
When you put your ego aside, you retain options such as deferring a decision until you can think it through more thoroughly and consider opportunities to get something extra. You can also delay your decision until you’ve had a chance to check with your owner or board of directors.
3. Keep Your Eye on the Puck
When Wayne Gretzky played for the Edmonton Oilers during their run of four Stanley Cups in five years in the mid-’80s, he was constantly harassed by role players, fans, and coaches, all trying to get him off his game. But No. 99 knew that the only thing that mattered was putting the puck in the net more times than the other team. Just like Gretzky, an effective negotiator needs to focus on the issues and not be distracted by the actions of others. No matter what the outcome of a single meeting or phone call, don’t let the other side’s moves or reactions take your eye off the puck.
One of my strategies when negotiating with agents was to make up a ridiculously low offer from my owner to lowball the agent, knowing that they’d be offended or even insulted. No matter what curses or other words came at me, I simply looked at the result, which was often a lowering of their expectations, to judge if I’d advanced toward my deal. If you react and let the other side get you upset or out of control, you’ll always lose.
4. Always Make the Other Side Feel Victorious
When the deal is done, always congratulate the other side. You want them to feel like they won. “Thank you, but please let me say that you did a fantastic job negotiating this deal” was a favorite phrase of mine. Even if you think the other side didn’t do well, congratulate them and never gloat. The reason for this is simple: You never know when you’re going to want to do another deal with that person, and you want them to feel good about you personally when you do. Be humble in a victory and you’ll be sure to have more of them in the future.
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“Neil Smith was able to do what no other general manager could in 54 years for the New York Rangers-win the Stanley Cup! It was Neil's bold approach to changing the culture that allowed the team to galvanize into champions.”
