English 箭头
Podcast Cover

[Why Deals Fail: Lessons from Google and the Military]-[Why Deals Fail: Key Insights from Michiel Koopman]

Negotiate Anything · B2 · 2024-10-05

Careers
Or study on the web version

📋 Summary

Why Deals Fail: A Masterclass in Negotiation

In this episode of Negotiate Anything, host Kwame Christian sits down with Michiel, a Head of Trading and Commercialization at Google, to discuss the critical factors that cause business deals to fail. Drawing from his unique background—spanning from a stint in the Royal Dutch Army to high-stakes corporate negotiations at Google—Michiel provides a roadmap for transforming from a transactional negotiator into a strategic, relationship-focused professional.

1. Leading with Empathy Over "Arm Wrestling"

Michiel identifies the lack of empathy as the primary reason for deal failure. Early in his career, particularly during his military service, he was trained to be part of a rigid hierarchy where questioning was discouraged and the goal was to "break you down so we can rebuild you." This mindset initially bled into his early corporate career, where he viewed negotiation as an "arm wrestling" competition—a zero-sum game where there must be a winner and a loser.

He argues that true success comes from leading with empathy, which he defines as genuinely trying to understand the other side's interests. He emphasizes that empathy is not a sign of weakness but a strategic tool to uncover the non-financial value that can bridge the gap in a negotiation.

2. Moving Beyond Positional Bargaining to Interest-Based Negotiation

Drawing on Harvard’s negotiation methodology, the discussion highlights the shift from positional negotiation (what do you want?) to interest-based negotiation (why do you want it?). Michiel notes that many deals fail because parties become fixated on price, ignoring the human elements—such as a counterpart's need for internal validation or a professional "podium" within their own company.

He admits that interest-based negotiation is "more difficult" because it requires time, effort, and the willingness to "investigate and dig deep." Even at a giant like Google, where leverage is often high, Michiel warns against the luxury of negotiating poorly, noting that a "win" in the short term often leads to a broken relationship in the long term.

3. The Critical Role of Relationship Building and Cultural Intelligence

Michiel identifies not taking relationship building seriously as a major pitfall. He stresses that business is a "people business," and even in high-tech environments, culture plays a massive role. He notes that cultural norms vary—not just by country, but by company and even by team.

He advises listeners to avoid the trap of being "fake" or only engaging during "deal season." Instead, he suggests genuine check-ins. He also advocates for introspection, suggesting that negotiators should assess their own role and ego, and be willing to put a colleague forward if that person has a better personality match or connection with the client.

4. Keeping the Ego in Check

Finally, Michiel discusses the importance of recognizing your ego. He references Jocko Willink’s Extreme Ownership to explain that effective leaders must understand their "mandate" and when to step back.

He shares a valuable practical tip for avoiding failure: "Ask them in the beginning, who can sign the deal?" He recounts instances where deals failed because he and his team failed to identify the true decision-makers in the background. By forcing this question early, negotiators can avoid the surprise of having a deal blocked by a stakeholder who does not see the value they have spent months cultivating.

Conclusion

Michiel concludes by reflecting on his work establishing a veterans' network within Google. He illustrates that the same negotiation skills used with external clients are vital for internal navigation. By combining the discipline learned from his military background with the empathetic, interest-based strategies of modern business, professionals can move past the "arm wrestling" mentality and achieve sustainable, winning outcomes.

🎯Key Sentences

1
I was also not the best student, to be honest.
2
little did I know.
3
there are a few things come to mind.
4
It's a people business, it's a human business.
5
There's not a straightforward answer on it.
Expand All

📝Key Phrases

1
harness the power of
2
delve into
3
what does that entail
4
bring value to the table
5
reverse engineer
Expand All

📖 Transcript

The LinkedIn Podcast Network is sponsored by SAP, harness the power of AI across your business and achieve results that are relevant, reliable, and responsible with SAP Business AI.
Revolutionary technology, real world results.
That's SAP Business AI.
This episode is brought to you by Ford.
When life keeps you locked indoors, the prescription is Bronco off -rodeo.
It's the ultimate Ford Bronco experience and it's available to everyone.

ListenLeap Brings You Into Real Context Learning

🎨 Interesting Content
🌍 Real Materials
📱 Listen Anytime
Or study on the web version