K E N T M A T S U O K A
K E N T M A T S U O K A
The Art of Negotiation
I recently had the opportunity to attend a workshop offered by the Producers Guild of America on Strategies For Successful Negotiations, taught by PGA Executive Director and former Studio Business Affairs Executive Vance Van Petten, and real life behavioral investigator Vanessa Van Edwards.
Vance imparted his 18 years of practical experience as a Business Affairs Executive at Paramount, Fox, and Universal, while Vanessa tag-teamed with the science behind his anecdotes.
The actual content of the workshop was quite in depth and there's no way I could do it justice here, but do highly recommend it for PGA members next time Vance conducts it.
Even if you're not a member, I hope you still take a moment to consider the importance of negotiation in everyday life and either pick up a copy of "Getting to Yes", or look into one of the many other books and seminars available.
What I'm talking about today are some of my own experiences in negotiating and how it applies to everything from online dating to pitching your next project.
As a producer and a location manager, I have spent my entire career negotiating everything from convincing homeowners that I am a legitimate location scout and to let me into their houses to determine if it works for our script, selling local government officials that our road closure is good for the economy, and with studio accountants that we really need that additional money upfront in order to save money in the long run. It was refreshing to hear that not only did Vance reinforce my beliefs on the practical aspects towards negotiation, but also to learn the science behind the negotiator across the table from Vanessa.
Negotiation has become a lost art in America where the "take it or leave it" attitude has become more prevalent in personal interactions between neighbors, in congress, and even in Hollywood where the studios are now being run by MBAs and accountants instead of bootstrapping fixers of the Eddie Mannix model. We have become accustomed to the fixed priced business model and uncomfortable with face-to-face interaction, accelerated by the convenience of internet commerce.
In the best case scenario, negotiation should come to a win-win solution for both parties to preserve the relationship for future collaboration, however if one party feels that they were cheated out of their product, time, or experience, you'll build resentment that will hurt efficiency and productivity in the long run. This applies to car salesmen as much as film producers.
A customer who leaves the lot thinking that they got a good deal will be more likely to recommend friends to the salesman and remember them the next time they need a car, just as the homeowner, city official, or studio accountant will be more likely to work and vouch for a producer if they feel that they were treated fairly and not taken advantage of.
Negotiation is an everyday occurrence in film production from the initial negotiation in rate and title when we're hired as freelancers, dealings with our vendors, the compromises between departments on set to coordinate who comes in when or which piece of equipment occupies what space, to determining the extent of l&d over reasonable wear and tear on rentals at the end of the shoot.
It's surprising how many people in Hollywood don't understand negotiation, especially when they're hiring people responsible for handling money and negotiating for them, and believe that they're actually saving money by hiring the cheapest and least qualified person available, especially in such a fast-paced and high pressure position that is film production.
I've seen this first hand from both sides of the table, and can attest that the best results often come not from beating your opponent to submission, but from allowing them to "save face". I've walked away from projects that tried to undercut a bid only to learn that the individual who would have hired me ultimately cost the company more money in the long run as the company hired under qualified personnel and was forced to hire someone else to come in at the last minute and clean up the mess at a significantly overscale rate.
One of the most important lessons I've learned is that you can't prepare enough for a negotiation. Research the other side as much as possible. Know the going rate and fair market value, and determine the real value of the transaction. Perhaps it's not money that your opponent is looking for, perhaps there's a charity they're passionate about or seeking status.
I've given away titles instead of a raise, an opportunity to meet with celebrities, or simply gave them an opportunity to vent and lend a sympathetic ear because I determined that it wasn’t necessarily money that they were looking for.
One way to determine these value points is by knowing what motivates your opponent through research, another is by simply paying attention during the negotiation and recognizing non-verbal micro expressions as you make your pitch.
Finally, the most important aspect of negotiation is to not get angry. Anger is a sure way to cause your opponent to walk away from the deal. Try and focus on mutual goals and try to understand your opponent's position. If you can address your opponent's hesitations, you'll get a lot further than simply forcing them to accept your position.
Tuesday, February 9, 2016