The document summarizes key points from a book on Trump-style negotiation strategies and tactics. It provides background on Donald Trump and George Ross, the author of the book. It then covers various negotiation concepts and strategies discussed in the book, including understanding human nature, gathering information, flexibility and creativity, dealing with difficult personalities, and exploiting human nature in negotiations. The overall focus is on preparing for and engaging in negotiations using strategies inspired by Trump's approach."
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George H. Ross
A real estate lawyer
Trumpâs advisor since 1970s
One of Trump's two advisors on The Apprentice
A lecturer at NYU: Real estate and negotiation
The author of the book!
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Why: Resource scarcity or ConďŹict of Interest
What is Negotiation?
âNegotiation is a process in which people learn to
accept an available compromise as a satisfactory
substitute for that they thought they really wanted.â
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Itâs not all about money. It can also be ego, prestige,
recognition, and, most of all, satisfaction
Mindset
Negotiation is not science: You canât quantify satisfaction
Winning is not everything
Continuity is important
What is Negotiation?
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Trump-Style Negotiation
Focus on âWin-Winâ
Long-term beneďŹts
Itâs not ALL about money
Protect your reputation
Be TOUGH but FAIR
âHe [Ross]'s tough, ďŹrm
but fair, a very brilliant
lawyer, and I trust his
judgment.â--Donald
trump
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Rule#1: There is no rule in negotiation
Rule#2: Lying and cheating is OK!
Rules of Negotiation
Thatâs doesnât mean that you have to lie and cheat
You just have to be aware of them
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Why Do We Negotiate?
Money (Prime) and other
beneďŹts
Learn something new and gain
experience
Build up reputation
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What Do You Want?
Focus on build trust and rapport
Find out:
Satisfaction: What both sides
can live with
Constraints: e.g., time,
authority, regulation
Information: Personality,
education, knowledge,
morality, style, etc.
âIf you listen well, and are
open-minded in your
discussion with the person on
the other side, you will
broaden your knowledge.
Everyone can learn something
from everyone else. And, you
will deďŹnitely be smarter going
into your next negotiation, and
those that follows.â
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Prepare Yourself
Rapport means ârelation marked by harmony,
conformity, accord, or afďŹnity.â
Mindset Skill Set
⢠Be nice
⢠Build trust and rapport
⢠Be skeptic
⢠Make (not break) deals
⢠Gather information
⢠Communications (Listen)
⢠Creativity and Flexibility
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Gathering Information
Information is power!
Hard and laborious, but worth doing
Information about
Both sides and the deal
E.g., Constraint, motivation, weakness (e.g., details, time)
âGod is in the detailsâ
Ludwig Mies van der Rohe
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Knowledge
Actual Knowledge Apparent Knowledge
Nature
BeneďŹt
Accomplished
by
General Knowledge Appear to be ...
Support your
position
Create credibility
Experience, Reliable
source, Accuracy
Aura of legitimacy
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Aura of Legitimacy
People tend to believe in
What you show them, e.g., printed
document, Signs like âClearance
saleâ
Powerful/Knowledgable people, e.g.,
the president of the U.S., professors,
buzz words
Principle of least effort
Use it and donât be fooled by it
âPeople are inclined to
give you the beneďŹt of the
doubt until they have
compelling proof to
contradict that belief.â
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Communication
âSeek ďŹrst to understand,
Then to be understoodâ
Steven R. Covey
Listen
Invite other to listen to you
Raise your voice to take control
Lower your voice forcing the other side
to listen to you more carefully.
Learn to read body language: Voice,
gesture, look at friends for approval
âJust hear me now. I think you are
going to like my idea.â
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Flexibility and Creativity
Know where your line and the othersâ
line are.
Set out with multiple objectives â More
ďŹexibility
Make wise concession:
Cash is only a part of it
Others are marketing budget,
payment term, quality of project,
delivery date, etc.
âYou always have
negotiation power, if you
can force yourself to walk
away from a deal, either
temporarily or
permanently.â
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Be a Good Salesperson
Rapport : Relationship ďŹrst
Enthusiasm: Fire up the other side
Showmanship: Dress well, Proof of
Concept
Preparation:
Least Effort:
People donât like
spending too much
effort
Tenacity:
100 ânoâ before
a âyesâ
âPeople want to believe. They want
to believe in you. They want to
believe in your company. And, your
job is simply to give them the
opportunity to believe.â
Bill Murphy Jr.
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Greed
Invested time (and
money) principle
Pride
Tendency not to change
Friends or foes forever
Envy
People like free stuff and exclusivity
Make a list of give-away and must-
have items.
Dead dog on the table: Give
unimportant items for important
ones.
Fear
Superiority
Be dumb and make friends
Complexity
Nobility
Mutual exchange
Forgiveness
Greed
Invested time (and
money) principle
Pride
Tendency not to change
Friends or foes forever
Envy
People like free stuff and exclusivity
Make a list of give-away and must-
have items.
Dead dog on the table: Give
unimportant items for important
ones.
Fear
Superiority
Be dumb and make friends
Complexity
Nobility
Mutual exchange
Forgiveness
Human Nature
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Greed
Invested time (and
money) principle
Pride
Tendency not to change
Friends or foes forever
Envy
People like free stuff and exclusivity
Make a list of give-away and must-
have items.
Dead dog on the table: Give
unimportant items for important
ones.
Fear
Superiority
Be dumb and make friends
Complexity
Nobility
Mutual exchange
Forgiveness
Greed
Invested time (and
money) principle
Pride
Tendency not to change
Friends or foes forever
Envy
People like free stuff and exclusivity
Make a list of give-away and must-
have items.
Dead dog on the table: Give
unimportant items for important
ones.
Fear
Superiority
Be dumb and make friends
Complexity
Nobility
Mutual exchange
Forgiveness
Human Nature
âI know I made a
mistake. But if you
donât help me out, it
will cost my job.â
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Pride
Tendency not to change
Friends or foes forever
Fear
Superiority
Be dumb and make friends
Complexity
Nobility
Mutual exchange
Forgiveness
Greed
Invested time (and
money) principle
Envy
People like free stuff and exclusivity
Make a list of give-away and must-
have items.
Dead dog on the table: Give
unimportant items for important
ones.
Pride
Tendency not to change
Friends or foes forever
Fear
Superiority
Be dumb and make friends
Complexity
Nobility
Mutual exchange
Forgiveness
Greed
Invested time (and
money) principle
Envy
People like free stuff and exclusivity
Make a list of give-away and must-
have items.
Dead dog on the table: Give
unimportant items for important
ones.
Human Nature
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Nobility
Mutual exchange
Forgiveness
Fear
Superiority
Be dumb and make friends
Complexity
Envy
People like free stuff and exclusivity
Make a list of give-away and must-
have items.
Dead dog on the table: Give
unimportant items for important
ones.
Pride
Tendency not to change
Friends or foes forever
Greed
Invested time (and
money) principle
Nobility
Mutual exchange
Forgiveness
Fear
Superiority
Be dumb and make friends
Complexity
Envy
People like free stuff and exclusivity
Make a list of give-away and must-
have items.
Dead dog on the table: Give
unimportant items for important
ones.
Pride
Tendency not to change
Friends or foes forever
Greed
Invested time (and
money) principle
Human Nature
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Nobility
Mutual exchange
Forgiveness
Envy
People like free stuff and exclusivity
Make a list of give-away and must-
have items.
Dead dog on the table: Give
unimportant items for important
ones.
Greed
Invested time (and
money) principle
Fear
Superiority
Be dumb and make friends
Complexity
Pride
Tendency not to change
Friends or foes forever
Nobility
Mutual exchange
Forgiveness
Envy
People like free stuff and exclusivity
Make a list of give-away and must-
have items.
Dead dog on the table: Give
unimportant items for important
ones.
Greed
Invested time (and
money) principle
Fear
Superiority
Be dumb and make friends
Complexity
Pride
Tendency not to change
Friends or foes forever
Human Nature
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Envy
People like free stuff and exclusivity
Make a list of give-away and must-
have items.
Dead dog on the table: Give
unimportant items for important
ones.
Greed
Invested time (and
money) principle
Nobility
Mutual exchange
Forgiveness
Pride
Tendency not to change
Friends or foes forever
Fear
Superiority
Be dumb and make friends
Complexity
Envy
People like free stuff and exclusivity
Make a list of give-away and must-
have items.
Dead dog on the table: Give
unimportant items for important
ones.
Greed
Invested time (and
money) principle
Nobility
Mutual exchange
Forgiveness
Pride
Tendency not to change
Friends or foes forever
Fear
Superiority
Be dumb and make friends
Complexity
Human Nature
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Envy
People like free stuff and exclusivity
Make a list of give-away and must-
have items.
Dead dog on the table: Give
unimportant items for important
ones.
Greed
Invested time (and
money) principle
Nobility
Mutual exchange
Forgiveness
Pride
Tendency not to change
Friends or foes forever
Fear
Superiority
Be dumb and make friends
Complexity
Envy
People like free stuff and exclusivity
Make a list of give-away and must-
have items.
Dead dog on the table: Give
unimportant items for important
ones.
Greed
Invested time (and
money) principle
Nobility
Mutual exchange
Forgiveness
Pride
Tendency not to change
Friends or foes forever
Fear
Superiority
Be dumb and make friends
Complexity
Human Nature
SIMPLE SOLUTIONS:
1. Split the difference
A buyer asks for $100
A seller wants $150
Difference = $50
Letâs settle at $125
2. Maybe later: Leave when the conversation get so
heated
3. Third party: Let another person decide
4. Be creative and think outside the box
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Exploiting Human Nature
Be skeptical
Fundamental Rule: Do not accept
anything for the face value.
When someone say âtrust meâ, be
careful!
Stay away from dirty negotiation
âDonât believe
everything someone
write or say. Listed
price is usually made
to test the market. It is
much higher than
actual price.â
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DifďŹcult People: #1 Intimidator
Traits: Big, loud, higher status
Tactics: Scare the other side
Advice:
Play defend and stand your
ground. If you succeed, this
person will be nice to you
Establish rapport (perhaps
after the meeting)
Let him think heâs winning
Use details
Be good with his
subordinates
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DifďŹcult People: #2 Know-It-All
Traits: Know a lot, Arrogant,
Listen to no one
Problem: No communication
Advice:
Be humble
Do not confront him head-
to-head
Get people on his side to
help you
Do not give him new info. or
tell him what to do because
he wonât believe you
anyway.
If youâd like to give info., just
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DifďŹcult People: #3 WafďŹing
Traits: Undecisive
Problem: Never move forward
Advice:
Be slow and patient
Building up his conďŹdence
(e.g., compliment him)
Be stingy in concession
Donât give too many
choices
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POST
Know All
What to do to
achieve
objectives
Resource
allocation
Person
TacticsObjective
Strategy
Know all people and
objectives,
what to do to achieve
objective
Tactics = resource
allocation
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About the Meeting: Before
Gather information
Prepare agenda
Expect the other sidesâ reaction, and plan strategies
Ask yourself these questions:
What are you going to say?
How are you going to react to
what the other side says?
What will you say if the talk
come to a stand still?
What concession are you able/
willing to make?
What do you expect from the
other side?
Who will you be negotiating
with and what motivate them?
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During the meeting
Create positive negotiation atmosphere; Let them know why your proposed
solution is best for them.
Aim high and hold back your concession
After the meeting, IMMEDIATELY sit down with your team and
Prepare documentation (e.g., minutes)
Review the negotiation:
About the Meeting
New info. about people or the deal
Revised assumptions
Did you get what you want? Why? and
Why not?
Is there any strategy to get what you
want?
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Contracts and Minutes
Put what you want
Leave out what you donât like
The other side may not even
read it.
Itâs ok if they want revision
Send the minute to the other
side for conďŹrmation (by email or
in the next meeting)
âIâm so glad weâve
agreed on these items:
.....
If you disagree with this,
please let me know
immediately.â
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MoU and LoI
Not a contract (i.e., non-binding)
Reminder of whatâs been agreed
People tend to stick to MoU/LoI. Why?
Nobility
Invested time principle
Concise (2-3 pages)
Real decision maker signs the document
A template for drafting subsequent legal document
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Deal Books
Very powerful tools
1. General deal books:
⢠Record everything
⢠Eg., What, Who, When, Where, How (commun. means)
⢠Use it as a reference
2. Deal-speciďŹc deal books:
⢠One book for one deal
⢠Plan, Agenda, Strategies
⢠Issues classiďŹed by type (opened, agreed, pending, strategy to resolve)
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Deal Books
3.We-They List:
⢠The difference of both sides (e.g., constraint, authority, time)
⢠Show a part of it to the other side
4.Wish List:
⢠What we want and what they want
⢠What we can give
⢠Prioritized list
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Example Tactics
Tactics Countermeasure
#1: âYouâve gotta do better than thatâ
(Until you hear âthis is my absolute best deal.â)
âI offer you a very good price. Why do I
have to do better than that?â
#2âThatâs all I can doâ
(Do it like an apology)
Verify the line
#3: Nibbling
(Do for concession as if it is a general practice)
- Put the price on every item
- Give discount instead of free
#4: A Change of Pace
(Work at your own pace)
Stay focused
#5: âTake it or Leave itâ
Change parameters and look for
alternatives.
#6: Force Revision
(Revise the contract after it is signed)
Nothing you can do
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Control the Pace
Slow:
You need time to gather information
Do not accept anything right away
Be dubious and indecisive
Fast:
You donât want the other side to do research
Stay focus; Verify everything the other side ask for
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Delay
Esp. when there are several people (e.g., large organization)
Invested time principle â Drag the negotiation
Example usage
Pressure the other side (e.g., Iâll give you two days to ďŹnish or Iâll go
somewhere else)
Verify (e.g., why two days? I allocate all the time for you. Isnât that
enough?)
Use delay as a concession (e.g., I can do it faster, but I need to put
more people into work. Can you help me out with the extra expense?)
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Deadline
Not all deadline are equally
important
Test all the deadline
Missing deadline v.s. Worse Deal
â Most deals are closed near the
deadline
The worst deadline = imposed by
your side
You also need to be
aware that when a
negotiation fails, it is
usually caused by people
on your side, not the
other side.
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Deadlock
Both sides put their feet down
Initiating deadlock
To show your conďŹdence and to test the conďŹdence of the other side
To gain concession
To show people on your side that you are really on the same side
To change the pace of negotiation
Smile and be friendly when doing so
Always leave a way to come back
âThink it over. And, if you
change your mind, call
me.â
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Deadlock
Big organization fears deadlock because every decision
involves many departments.
Resolving deadlock
Move to other issues and come back later.
Offer small concession and ask the other side to do the same.
Go off the record and ask other people (who are not in the
meeting) for help
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Get Tough Strategy
Put you foot down. Donât make compromise.
Set the tone. Let the other side know that you can be tough too!
Donât back down. You cannot afford weakness when using GTS.
Manage concession properly; Be reasonable
Donât burn the bridge
Aim high
Donât succumb to simple solution
Use deadline
Patience and Stingy
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Telephone
Bad for negotiation. If you want a ânoâ, use telephone.
Interruption is deadly, caz you are not ready.
Guidelines:
People do not talk long on
telephone
People believe most calls are
important. They drop
everything when theyâre on the
phone
No body language
Cannot show the document
Whoâs on the other sides?
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Telephone
Be the caller.
Prepare a written agenda before you call
Prioritize them. Go through them one by one.
If someone calls you,
Ask to call back later
Otherwise, try one way communication. Do not make any deal.
Listen and make note. Only ask for clariďŹcation
Write a follow-up letter to conďŹrm the info. in the conversation
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Dos and Donâts
Dos Donâts
Trust your instinct Talk about your weaknesses
Adapt your negotiation style Believe in bogus theory
Tell your team to say as little
as possible
Use all the power you have
Aim high but be realistic
Waste your time for
worthless things
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