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| The art of the deal: CEOs frustrated at pace of fiscal cliff negotiations | The art of the deal: CEOs frustrated at pace of fiscal cliff negotiations |
| (4 months later) | |
| A deal for the fiscal cliff, so tantalizingly close at the start of this week, has descended into name-calling and frustration. "Take the deal," instructed a clearly exasperated president to intransigent Republicans on Wednesday. "Irrational," sniffed speaker John Boehner about the president's proposal. | A deal for the fiscal cliff, so tantalizingly close at the start of this week, has descended into name-calling and frustration. "Take the deal," instructed a clearly exasperated president to intransigent Republicans on Wednesday. "Irrational," sniffed speaker John Boehner about the president's proposal. |
| Among all the people disappointed with how the fiscal cliff negotiations are playing out are those who actually negotiate for a living: corporate chieftains. They have been wooed by Republicans and courted by Obama. But neither side is delivering the only thing the CEOs really want: a deal. Now. | Among all the people disappointed with how the fiscal cliff negotiations are playing out are those who actually negotiate for a living: corporate chieftains. They have been wooed by Republicans and courted by Obama. But neither side is delivering the only thing the CEOs really want: a deal. Now. |
| In Corporate America, the art of making a deal is a highly orchestrated ballet, a complicated dance in which specific rhythms dictate a precise outcome. Strategy is plotted, lawyers are called, young associates are forced to work long hours crunching numbers. There is wooing. There is courting. There are dinners and spreadsheets and teams of people working together to pore over details. If there are shouting matches and put-downs, they're largely done in boardrooms, out of the sight of cameras. | In Corporate America, the art of making a deal is a highly orchestrated ballet, a complicated dance in which specific rhythms dictate a precise outcome. Strategy is plotted, lawyers are called, young associates are forced to work long hours crunching numbers. There is wooing. There is courting. There are dinners and spreadsheets and teams of people working together to pore over details. If there are shouting matches and put-downs, they're largely done in boardrooms, out of the sight of cameras. |
| The corporate way of making a deal is, in short, the opposite of the rambling, chaotic, time-wasting negotiations of the fiscal cliff. The government has to come up with a budget solution by 3 January. The president is supposed to have already left for his Hawaiian vacation, but he's still trundling around the White House hoping for Republicans to take the deal he's offered. | The corporate way of making a deal is, in short, the opposite of the rambling, chaotic, time-wasting negotiations of the fiscal cliff. The government has to come up with a budget solution by 3 January. The president is supposed to have already left for his Hawaiian vacation, but he's still trundling around the White House hoping for Republicans to take the deal he's offered. |
| If the average corporate merger is like a mannered episode of Mad Men, where all the pain is below the surface, the fiscal cliff negotiations are like an episode of Homeland, with disasters played out very publicly. | If the average corporate merger is like a mannered episode of Mad Men, where all the pain is below the surface, the fiscal cliff negotiations are like an episode of Homeland, with disasters played out very publicly. |
| So far, the CEOs I have talked to have responded with well-coded equanimity, expressing fervent hope that cooler heads will prevail and that an agreement is within sight. | So far, the CEOs I have talked to have responded with well-coded equanimity, expressing fervent hope that cooler heads will prevail and that an agreement is within sight. |
| Randall Stephenson, the CEO of AT&T, who along with other CEOs with the president and Congress, said: "I am more convinced than ever that a budget deal to avoid the 'fiscal cliff' must and can be found." | Randall Stephenson, the CEO of AT&T, who along with other CEOs with the president and Congress, said: "I am more convinced than ever that a budget deal to avoid the 'fiscal cliff' must and can be found." |
| Compromises on spending and taxes are part of it, he suggested. But, in a written statement, he stressed that actually getting the negotiations off the ground would be a good start. | Compromises on spending and taxes are part of it, he suggested. But, in a written statement, he stressed that actually getting the negotiations off the ground would be a good start. |
| "Now is the time for our nation's leaders to put aside partisan or philosophical differences and act for the good of the country as a whole. Failure to address this will result in severe market disruptions, a return to negative economic growth, and businesses pulling in investment. This can and must be avoided. It is no exaggeration to say that the future economic well-being of all Americans is riding on the outcome." | "Now is the time for our nation's leaders to put aside partisan or philosophical differences and act for the good of the country as a whole. Failure to address this will result in severe market disruptions, a return to negative economic growth, and businesses pulling in investment. This can and must be avoided. It is no exaggeration to say that the future economic well-being of all Americans is riding on the outcome." |
| De-coded, that reads as a very patient reminder to Washington politicians to just what kind of consequences they're messing with. | De-coded, that reads as a very patient reminder to Washington politicians to just what kind of consequences they're messing with. |
| Tiger Tyagarajan is the CEO of technology company GenPact – a former unit of General Electric that was spun off into a public company in 2005. He told the Guardian: "I am an eternal optimist and do believe that a more long-term solution will eventually be achieved. The faster that process starts, the sooner we will get to the structural changes needed to solve for the long term....Now that the November US elections are behind us, there is a real opportunity for everyone to work together toward a common solution. … As a CEO of a global company with more than 600 clients around the world, we see that economic uncertainty and volatility is the reality of today, everywhere." | Tiger Tyagarajan is the CEO of technology company GenPact – a former unit of General Electric that was spun off into a public company in 2005. He told the Guardian: "I am an eternal optimist and do believe that a more long-term solution will eventually be achieved. The faster that process starts, the sooner we will get to the structural changes needed to solve for the long term....Now that the November US elections are behind us, there is a real opportunity for everyone to work together toward a common solution. … As a CEO of a global company with more than 600 clients around the world, we see that economic uncertainty and volatility is the reality of today, everywhere." |
| Translation, in part: hurry up. | Translation, in part: hurry up. |
| Even the CEOs who are inside the process of the negotiation sound like they've had it. David Cote, the CEO of Honeywell, was profiled in the Wall Street Journal as the go-between for Democrats and Republicans in negotiating the issue. The strain is beginning to show. "I can keep talking about a market-credible fiscal plan," he said, according to the paper. "But it's time to say: 'You are the leaders – lead.'" | Even the CEOs who are inside the process of the negotiation sound like they've had it. David Cote, the CEO of Honeywell, was profiled in the Wall Street Journal as the go-between for Democrats and Republicans in negotiating the issue. The strain is beginning to show. "I can keep talking about a market-credible fiscal plan," he said, according to the paper. "But it's time to say: 'You are the leaders – lead.'" |
| Ed Brodow, a negotiation expert who advises corporate leaders and the author of Negotiation Bootcamp, is not so diplomatic as those who have to answer to shareholders. | Ed Brodow, a negotiation expert who advises corporate leaders and the author of Negotiation Bootcamp, is not so diplomatic as those who have to answer to shareholders. |
| "I think we have incompetent politicians, frankly," Brodow said. "It doesn't take a genius to look at the newspaper and say: 'these people are not functioning.' They're not doing their job. It requires a major look into our government, and how it's adapting to the 21st century, because obviously there's a problem." | "I think we have incompetent politicians, frankly," Brodow said. "It doesn't take a genius to look at the newspaper and say: 'these people are not functioning.' They're not doing their job. It requires a major look into our government, and how it's adapting to the 21st century, because obviously there's a problem." |
| The chief failing in the fiscal cliff talks, Brodow said, is that Republicans and the White House have failed to "transcend the adversarial nature of negotiation and turn it into a collaboration". | The chief failing in the fiscal cliff talks, Brodow said, is that Republicans and the White House have failed to "transcend the adversarial nature of negotiation and turn it into a collaboration". |
| Instead, he noted, there's been too much digging in. "No one wants to appear to be soft on this.They all want to show they're tough. One side wants to maintain higher taxes, the other side wants to cut expenditures. Neither side will give. The only way this will happen is if they both sit down and say, we agree on the objective, which is to avoid the fiscal cliff. To do that, we can make concessions, so let's brainstorm ideas to do that." | Instead, he noted, there's been too much digging in. "No one wants to appear to be soft on this.They all want to show they're tough. One side wants to maintain higher taxes, the other side wants to cut expenditures. Neither side will give. The only way this will happen is if they both sit down and say, we agree on the objective, which is to avoid the fiscal cliff. To do that, we can make concessions, so let's brainstorm ideas to do that." |
| But, he despaired, "It's not in their DNA." | But, he despaired, "It's not in their DNA." |
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