I was very lucky to have the opportunity to interview Ms. Pat Cusick who was a high level executive for Xerox. She is a very interesting woman who paved the way in her field not just for other women but for everyone in her field. Following is an excerpt from our interview where she tells intriguing stories about a couple of memorable negotiations. After the interview are a few pieces of advice she would like to give to students venturing out into their own negotiations in the corporate world.
Patricia Cusick -- experiences as:
Account Development Director, IBM Corporation
Corporate Vice-President & CIO, Xerox Corporation
CASE I.
One question is how you separated the person from the problem in a particular negotiation. Did you have to meet with someone you didn't particularly like in order to achieve a benefit for the company and had to put aside your feelings in order to negotiate effectively without affecting the deal? What was the negotiation about? How did you put aside your emotions? What was the outcome of the deal? Do you feel it was mutually beneficial?
“Although I had many situations negotiating with someone I didn’t particularly like, one stands out in my mind. My adversary was someone I intensely disliked…a self-interested, arrogant executive with less operational experience than me, but with some strong corporate sponsorship. We had several past dealings with each other which, while trying, mostly resulted to my advantage. We met again when our organizations were to merge and we were to negotiate the terms. My objective was to protect as much of my groups’ management team and structure as possible to provide service to our organization.
I knew my emotions could get in the way of our discussions. I scheduled set periods of time for our meetings to limit the interaction at any one time. I knew it would end in “x” minutes, so I could go to next steps & wrap-up if I got upset. I over-prepared so that I could take refuge in facts if things got heated. I came prepared to compromise on some items so that we could move on when we got stuck. I kept focus on my desired outcome and what it meant to my organization – the “big picture” versus my desire to win points. And I tried many calming techniques – especially the “2 second rule”, pausing 2 seconds to collect yourself before you speak in anger …often to no avail!
I was successful in a few areas, but lost many more. I don’t feel it was due to my losing negotiations, but more so because of behind-the-scenes corporate politics. My adversary had portrayed me as unwilling to cooperate and blocking the merger. I was instructed to cede several items in order to protect the overall deal. The outcome was substantially to my detriment.
I don’t know if this situation could have ended any differently given the personalities involved. The lesson I learned was that being factually prepared isn’t always enough. I should have known more about the corporate goals & the power bases I was dealing with. I could have lined up better defenses in advance.
By the way….all decisions that I lost in this negotiation were reversed over the next few years after they proved unworkable…& the corporate sponsors had changed!”
CASE II:
In a different negotiation how did you use your status as leverage to get what you wanted? Did you find being a woman in your field/position helped or hindered your negotiations? What was that one about? What was the outcome?
“For almost my entire corporate career I was the only woman involved in many high-level negotiations. It was a mixed scenario. I would say that, as a woman entering into these situations, I was usually underestimated and usually successful at the outcome. Initially, being the only woman was a disadvantage. I was often ignored. But it gave me the opportunity to lay back a bit and more fully judge the personalities & the objectives in the room. Many times, the “macho’ behavior was checked a bit because I was present. I sometimes overplayed my feminine style – politeness & consideration (always good traits!). That would allow me to make my points more effectively. I was patient, but persistent! I was tough, but fair. And, since I knew what I would be dealing with as the only woman involved – I was usually the best prepared in any negotiation I would enter. That always proved to be my advantage. And by the time I was a corporate officer, my status commanded attention & respect. I used it sparingly…but it was effective when I did.
One particular incident revolved around a promotion I was competing for. I got the job over several of my male peers. The executive I would report to told me I had been selected – to my delight. He then told me I would go into the role on a “trial basis” with no change in job grade or pay because he had to be sensitive to the men who did not get the job. What ensued was me swallowing my anger and asserting my position as the selected candidate…and the only woman at the level competing for the job. Any male selected would have been promoted without hesitation. I suggested that the potential for a discrimination charge was obvious and would have been embarrassing and distasteful to both of us. It became a “play me or trade me” kind of discussion. I was prepared to transfer rather than accept the job as offered. I got my full promotion.
I learned not to be afraid to ask for what you want, make your arguments and be ready to take alternative action if your negotiating tactics fail.”
CASE III :
Did you ever use any dirty tricks/tactics for your benefit in a different negotiation? Did you recognize when someone used them on you? Did you recognize them early and used those to benefit you or too late after the deal was done? What was that one about? What was the outcome?
“I was responsible to negotiate a deal worth tens of millions of dollars in revenue to my company. I was dealing with a no-nonsense customer looking to get the lowest costs possible for their company. They were an experienced team with a history of pressuring suppliers to get what they wanted. When I held my ground on some areas of pricing, they calmly said “no deal” and walked out of the room. I thought both companies wanted to make a deal and the mechanics would work out eventually. The abruptness of walking out shocked me and taught me a lesson at the same time. We found our way back to the negotiating table after higher level executive appeals, and closed a deal with more concessions than I intended. It was a tactic that worked and I never forgot the lesson.
Many years later I was negotiating a way out of a legal action, which revolved around an alleged breach of contract due to my company’s cancellation of services from a supplier. After discovering that the other party’s concern was really their loss of revenue, I moved the negotiation to extending our contract and replacing cancelled services with a prolonged revenue stream worth more money over time. This would be a win-win scenario for both companies, avoiding a costly legal action for us and providing desired revenue to them. As negotiations of the new deal unfolded we reached a point where we stalemated. When we exhausted what I thought were all reasonable attempts to compromise, I calmly stated my disappointment and that I would see them in court and walked out of the room. That abruptness had the same effect on my adversary as it had with me in the other situation many years before. After they had their higher level executive conferences, they called me back to the negotiating table and we were able to close a mutually beneficial deal.
This was an aggressive tactic and had to be used only when absolutely necessary, but it worked. I don’t know what would have happened if they called my bluff since we did not want to go to court! But I learned not to be afraid to walk away from a deal if it requires concessions you are not willing to make.”
SOME ADVICE from her EXPERIENCE:
· Be prepared, do your homework!
· Understand both sides’ objectives
· Constantly assess the situation – Listen, Listen, Listen!
· Be professional and polite
· Be patient but persistent
· Be firm but fair
· Don’t be afraid to ask for what you want
· Anticipate negotiating scenarios
· Ask high but know your bottom line
· Don’t compromise without reciprocity
· Always have options including a fall-back position
· Be assertive not aggressive
· Be willing to walk away
