The HUD deal was arranged through Assemblyman Zellman, a mutual contact of Tony and Carmine, though it was Tony’s brainchild. Carmine, however, believed that his relationship with Zellman justified a cut, and he told Tony he wanted 40 percent. Tony offered him a much lower percentage. Both locked into their positions, and the tension began to build. As the prospect of war between Carmine’s and Tony’s groups seemed more likely, Tony had to decide whether to give in to Carmine’s demands. Another leader might have assessed the situation and determined that it was foolhardy risking everything over a deal in which they both could make money. On paper, at least, Carmine has more clout than Tony. It was as if a junior vice president refused to ful-fill a request of a senior vice president. It would have been simple for Tony to take the easy way out and give Carmine what he wanted or at least try to find a compromise percentage that would have made him happy.
Instead, Tony decided he would rather go to war than give in to Carmine’s unfair demands. At first, this might seem like an unwise decision, that Tony reacted emotionally rather than intellectually. With hindsight, though, we can see that Tony assessed the situation with lightning speed and determined that he was in a position to win the war of nerves. When Carmine closed the Esplanade operation, depriving them both of revenue, Tony knew that his business was more diversified than Carmine’s, putting him in a better position to wait out the closing.
Just as significantly, Tony kept his cool despite his anger at Carmine. In fact, after making the decision, he said, "I’m not going to go ballistic." Like other great decision makers, Tony was aware that his actions would help determine if his decision was the right one. While Tony took some small, retaliatory jabs at Carmine, he never did anything major that would provoke an allout war. He even tried to work through Carmine’s son in Florida to resolve their dispute. Though this attempt at resolution failed, Tony communicated to Carmine through this gesture that he wanted to reconcile. This conciliatory gesture no doubt was calculated; Tony probably figured that it would cool down Carmine. In addition, Tony didn’t act rashly as the stalemate dragged on. He consulted his crew a number of times to gather information and make sure he had his crew’s support. If he had to adjust his position along the way, he could have, but the information and support he received allowed him to stick to his decision. Eventually, Carmine gave in and accepted a smaller piece of the action from Tony.
What we can learn from this decision:
- Decisions that flow from strongly held beliefs give you the moral high ground. Tony communicated the depth of his conviction that he was in the right both to Carmine and to his own people. Carmine, who was clearly operating out of greed, couldn’t take the moral high ground. Tony’s position gave him an advantage for he was convinced he was fighting for something more than money, and because of this belief, Carmine knew that Tony wasn’t going to give in.
- Analyze the other person’s position as well as your own. Too many leaders focus exclusively on their group’s or company’s situation and make decisions only from that stand-point. Everyone talks about win-win deals, but it’s tough to structure those deals unless you know what the other side considers a win. How is your decision going to impact the vendor you’re hiring or the company you’re partnering with? How is your decision going to change a customer’s business? Tony made the right decision because he sized up Carmine’s situation and knew exactly what would happen if they locked horns on the HUD deal. In typical Tony fashion, he was thinking a few moves ahead and Carmine’s actions never seemed to surprise or throw him.
- Monitor the impact of your decision. Tony was especially vigilant about seeking feedback from his people about the repercussions of spurning Carmine’s request for a 40 percent cut. In this way, he could change his course of action if it became necessary. If, for instance, his people told him that Carmine was preparing to go to war, Tony had the option of opening negotiations and heading off a battle. Too often, leaders make decisions and that’s that. They aren’t willing to adjust their decisions as situations change, in part because they’re not requesting and receiving information that might cause them to change course. Actively solicit ideas and facts from your people, and you’ll be able to follow through on your decisions in a more effective manner.