Huge Power of Negotiation - Essay Example

Now or Then Negotiation is an interaction of influences. We are involved with negotiations throughout life. Knowledge is power and if one can have access to information, negotiations can be turned to advantage. However by keeping emotions in check and by avoiding antagonism, this weakness or disadvantage can be dealt with effectively. Being a real estate broker, I negotiate with people all the time to discuss deals. About four years ago, I teamed-up with another real estate agent, who had been in the field for over ten years in CA. This was the opportunity of getting involved in residential investing on behalf of investors from California. Frank Hu, the partner was located in CA at the time. He is a 40-year-old IT engineer with a great background of people resources in the area. His role was to act as a bridge between the CA clients and us, located in TX. In the deal, Frank’s primary job was to organize Seminars. This covered arrangement of location, advertising and general contacts. With this limited responsibility, Frank was happy with 20% share on each closed house deal based on 3% commission of sales price, plus 50% share cost on all business expenses for Advertising and Seminars. My team leader – Lady M, chose me to play her primary role, and gave me the charge of the investing department and the authority to deal with Frank. I was quick learner, and was able to lead the negotiations with confidence in a matter of two months. My primary duties were Seminar hosting, Real Estate tour trips, sales and buying, house leasing, and also rental management between investors and tenants. It was a 24/7 job and I was able to learn a lot and survived though unlimited multi-tasking. My own share percentage with Lady M was 1/3 of sales price in each closed transaction plus 50% of any bonuses from new home builders on top of deals. It sounded great in compare with my work. Monthly volume at the time was a minimum of 6 seminars in CA, with average of 10 or more closures. Besides we got 10 -15 rental houses on the market, and the cumulative number of housing management started from 50 from when I joined the business. It was exhausting work but the compensation was worth the effort. Indeed I thought my life could not be more perfect and tougher, until the unexpected happened. One day in winter, Frank and his wife secretly flied into Dallas for a private meeting with me. On the dinner table at my home, Frank started off with remarks that Lady M, who had not been neither involved nor devoted to any efforts all this time, skimmed off top percentage by way of share as a team leader. He then started to compliment my energetic and outstanding performance, and told me that I could become one of the top agents in real estate by the time when I reach 30 if I follow the right steps. Of course, I felt elated with all the praise until Frank blurted, “Have you thought about starting your own team? I offer to be a partner with you and we can share 50/5.” I did not expect this turn of the conversation. It was too stunning. However without wanting to respond to this question, I asked Frank why he thought this way, and also how about Lady M. June, Frank’s wife answered softly for Frank and said that we had been using Lady M’s name for all transactions, deals and advertisings, but no one had ever seen Lady M in person, or even know if Lady M really existed. All the clients were mainly from good referrals and they came as the agent’s services. She further said that because the Chinese population is small, people talked, and the news spread by word of mouth. Every client knew only Frank and Jennifer (me) throughout the whole deal. She went on to say that it would be unfair to offer our closing deal incentives to a person in absentia, like Lady M. I was indeed shocked with this whole conversation. With diffidence I manged to tell them that I would think about it. I have a very close relationship with my parents, so I brought the question up for discussion after that dinner. My first question was, “Frank wants to get into partnership with me, why?” Probably most people in my shoes would ask “should I partner-up with Frank?” instead. I did not have any doubts of my abilities and enthusiasm. I only worried that it might be some kind of trap. I did not have the ability to play either with Frank or Lady M. I did not know if there were any frictions between the two of them or it was just simply because Frank wanted to partner-up with me – a younger girl with great performances, but not enough experiences compared with Lady M. My parents, with their experiences in business and life, asked me simply, “What do dislike about your current job?” My answer was in the negative. I was very content with my profile. They said that if my answer was no, then I would need to think of how to turn Frank down and yet not hurt his pride. It was important not to make him angry and raise the possibly of his retaliation by turning Lady M. against me; assuming that Lady M. was not aware of this turn of events. This was indeed a tough call. Lady M. is a middle-aged lady who had been in property sales business since she was five. She knows people well and holds amazing power in people management. She is smart, but also knows to manipulate and only shows great amount of friendliness. She does not have good temper, but is able to manage it very well unless she is betrayed. Then she strikes back with lethal force and destroys her opponent. By working with her closely, I knew these characteristics very well. Frank’s offer was indeed very tempting, but the altercation at that time was only between the two sides of “me”; the negotiation was between the present and the future. Getting into the real estate job, I had become very independent, and also gained influence by my performance. I had also earned the trust of Lady M. If I now broke away and partnered with Frank, the clients would not know the differences because I would still be the one they deal with. Having my own team means no more percentage sharing with Lady M, only with Frank. I would gain maximum profit, and would be known as a leader. All these bright projections were overwhelming and exciting especially at the age of 26. After that dinner conversation with Frank, he continued to talk about the partnership more frequently on phone or in person. Even though I was very tempted with the offer, I continued to ask him to give me more time to think about it. Fortunately, he agreed. About one month later at the year end party in our Broker’s office, Lady M’s team was promoted and rewarded as one of the top 10 real estate teams of the year in ReMax realties in TX. With thousands of realties, severe competition and numerous real estate teams in TX that was once in a lifetime achievement for our team. Then, dramatically, Lady M pointed at me in front of the whole crowd, and said, “This young lady made it all possible.” This left me speechless! That night I went home, and browsed through all my past deals and the incoming ones, and I suddenly realized that partnering with either Frank or Lady M would not be my alternate goal for life. There is still a long way to go; to accomplish a great deal more. I just needed to go in the direction that I would not regret later. That night, I decided to turn Frank down. I had to go along with my unfinished duties as I have been taught by my parents. Not unexpectedly, Frank phoned me again. Not only did he congratulate me for the reward, but continued to persuade me vigorously to make a timely decision. In response, I finally told him that while I was grateful for the compliments, I also felt we needed more experience and exposure in order to benefit both of us. Over the phone, Frank was silent for a few moments. He then said to me, “Hope you do not regret it!” I thought that was the end of story, then realized that was only the beginning. The following summer, Lady M discovered that Frank started to partner-up with many other real estate agents in the Dallas area, and had the impropriety to use our budget to cover his business expenses entirely. Lady M. was really mad and made Frank an offer to either sign an exclusive agreement or to terminate the partnership permanently. At the end, they both agreed to have the freedom to partner-up with others and kept the current partnership between them as well. I learnt another lesson that day, that business means compromises. One month later, Frank flew in again, and wanted to buy me dinner. He began with apologies for the earlier partnership offer, and then shared a secret with me. He admitted that the main reason why he wanted to become my partner was that Lady M had become greedy. Lady M. had privately disclosed to him of her worry that one day I would become a threat to her in the team because of my performance and ability. She had been trying to set me up, and force me to leave by myself. Frank also brought along some emails and papers to support his confession. He further added that he knew if Lady M. gets rid of me successfully, then she might do the same to him and get another partner in CA to replace him. Frank decided to act first by offering the partnership to me in order to get rid of Lady M. After I heard this confession I was truly shocked. I finally realized that my desire for a peaceful ending to this episode would not happen. It was time for me to do something instead of remaining silent. I spent the following month finishing up the ongoing deals, and also told Lady M. that I needed a break for 3 months from this pressure job. She was surprised, but then acted calmly to ask me to stay because she needed me badly. I looked at her face without giving any hint of my feelings, and told her that I would train the current assistant diligently, but insisted on this break. She reluctantly agreed. The day before the commencement of my official leave, Lady M. bought me a little gift, and asked for a private talk. She said that maybe I hear lots of rumors about her, but she was an honest and fair person. After left her team, I started to get numerous calls from other real estate team leaders in TX, and CA with partnership offers. After a month of vacation break, I started my own company and invited two new wonderful partners in, one each in TX and CA for my new real estate business. We all signed the exclusive agreement legally, with defined common objectives. Now, three years later, I still wonder at the enormity of the situation. It was my integrity, for which I am grateful to my upbringing, that I turned down the partnership offer from Frank despite the lure of higher profit. With my parents’ sound advice; I took a decision that uprightness was more valuable than money. I cannot fathom to date whether Frank and Lady M colluded in what transpired, but it was an experience that I will remember for the rest of my life. It was a turning point in my career that was forced on me by providence and I must say that I negotiated through the affair rather well. First of all I had no prior knowledge of what Frank was going to say to me and it was a disadvantage and a weakness that I turned in my favor by postponing a decision and saved myself from a possible angry retaliation from him. Secondly, I broke off with Lady M without provoking her and bought time with a well crafted move that created a buffer between us and saved my any possible harassment from her. Thirdly, I avoided a conflict with either of them and came out of a difficult situation by controlling my emotions and retaining my focus throughout the ordeal. Lastly, I set off on a new career path with the firm knowledge that I had made the right choice of integrity over greed and over last the three years have been more content than ever before. Indeed I had done well at negotiating successfully on all occasions. Read More