Paul Ryan’s Candidacy: Anatomy of a Negotiation
In the vacuum created by the resignation of John Boehner as Speaker of the House, Congressional Republicans have scrambled to find a replacement in a very contentious and divided Republican Party. At a time when the Republican Party’s decision-making is over-influenced by the so-called Freedom Caucus, a group of 38 (out of 435) Representatives who vote together in a unified but radical block, finding someone to both unite and represent the broader interests of the party (and the country) has been a challenge. The first candidate for the Speaker of the House position, Kevin McCarthy (R, CA), dropped out of consideration because he believed that he did not have the support of this group and did not want to risk just “squeaking by” if elected. In attempts to find a person who could represent the interests of the whole party, including this powerful splinter group, Paul Ryan (R, WI) was asked to consider being a candidate for the position.
Ryan’s initial response was that he preferred to remain where he was, as chairman of the powerful House Committee on Ways and Means, and he was not willing to be a candidate for the Speaker position. However, Ryan was asked to reconsider after McCarthy stepped aside. Regardless of your political persuasion, Ryan’s approach to ultimately accepting candidacy is a unique and dynamic view of executive negotiation.
Any time you are the pursued, and not the pursuer, you have greater negotiating power. How you use that power, the parameters of your demands, and the tolerance of the pursuer are the fodder of negotiation. During the negotiation process, there are typically three steps to getting what you want or walking away, as Paul Ryan demonstrated.
Negotiation
Ryan began the negotiation process by not showing any interest in the position. He did not “raise his hand” to embrace the opportunity. In fact, his response to Boehner’s announcement was rather nonchalant. This apparent indifference to seeking the position created a platform for Ryan to be in a stronger negotiating position than if he had sought out the position, as did Kevin McCarthy and Daniel Webster (R, FL). Ryan knew that, once you appear interested, you immediately reduce your ability to negotiate. Anyone who has ever bought a car can relate. Car salesmen know that the very fact that you have taken the energy to show up at the car dealership means you are interested. They have an advantage from the moment you say “hello.” Sociologist Willard Waller coined “The Principle of Least Interest” with reference to who has the power in such interpersonal relationships.
The second, and equally powerful, negotiating tactic used by Ryan was to respectfully decline to be a candidate when party colleagues initially approached him about doing so. This indifference by a seriously viable contender only heightens the intrigue of and interest in him or her. In Ryan’s case, this dynamic continued to strengthen his negotiating position. Finally, when party members kept urging him to be a candidate, he agreed that he would but only under certain circumstances, which was when the real negotiations began!
Compromise
Going into any negotiation, there is usually some understanding that neither party will get everything it wants. Regardless of the specific desired outcomes, there are limits to what you will ultimately get or give away in order to consummate the deal. Of course, there is always the possibility that one or both parties will walk away, after which there is no negotiation. The area between these extremes is where the back-and-forth negotiation takes place—and involves your concession strategy.
In negotiating, the research is clear that the first one to make a move defines the parameters of the negotiation. This is called “setting the anchor” and is based on the work of Galinsky & Mussweiler (1). According to their research, when a negotiation takes place, whoever makes the first offer (the Anchor Point) obtains a better outcome than if he/she had waited to hear what the offer was. The Anchor should be aggressive but rational. Once Ryan determined that the Speaker’s position was one he would consider, he was quick to “set the anchor.” He determined his Target Point—his ideal outcome and aspiration. He also determined his Walk Away Point—the point at which those items critical to him would not being met. The details of the negotiation then began in earnest (2).
Ryan’s Target Point was that the Freedom Caucus would endorse him and that they would roll back a procedure allowing lawmakers to overthrow a sitting Speaker. Ryan knew that he needed to broker a truce between disgruntled conservatives and a GOP desperate for the unity needed to get the House back on track. After eight years of very low approval ratings, he knew that he needed to once again enable his colleagues to be relevant and moving forward. His Walk Away Point was that he would not be in Washington, D.C., on the weekends, as had previous Speakers, but would be spending the weekends in his home state of Wisconsin with his wife and three children. The enormity of the Speaker’s position has required that the Speaker work weekends to represent the party, broker deals, and generally be present in Washington. However, Ryan would not accept the position at the expense of his family. The area between the Target Point and the Walk Away Point was where there was room for concessions and compromise.
Settlement
So how did Ryan fare with his concession strategy? The Freedom Caucus would not endorse him, but they did support his candidacy—a concession that was not given to Boehner. Ryan was then able to soften his position from eliminating the rule on overthrowing the Speaker to simply “changing” the rule. However, no one challenged his Walk Away Point and, for now, Ryan will be going to Wisconsin to see his family on the weekends. Thus, Ryan negotiated successfully the major concessions he was willing to make, while preserving that which was the most important to him—time to be with his family. At this point, it seems as if his candidacy is assured and that he will become the next Speaker of the House.
In summary, we have been able to witness the selection of the next Speaker of the House, a position that is third in line for the presidency! In the process, we have seen how someone at the executive level negotiates, compromises, and finally arrives at an arrangement agreeable to both the “buyer and the seller.” The process for effective negotiation includes:
- Maintaining the right approach in the initial pursuit and not giving up power by appearing too anxious or needy.
- Setting the parameters for negotiation by:
- Knowing ahead, and clarifying, your Target Point and your Walk Away Point.
- Setting the Anchor Point early
- Leaving room for making concessions and always pushing for your goal without relinquishing what is most important to you.
By having a negotiation strategy in place prior to beginning, your chances for getting what you want are increased dramatically.
(1) Adam Galinsky & Thomas Mussweiler. “The Role of Perspective Taking and Negotiator Focus.” Journal of Personality and Social Psychology, 2001, Vol. 81. No. 4, 657-699
(2) Joe Hernandez. “Negotiation Mastery Cloudbook.” http://www.cloudbookinc.com/joe-hernandez-negotiating
