- Wednesday, May 25, 2016

There is a sharp difference between the worlds of government and business in the way they talk. Donald Trump is facing that difference every day in his campaign for the presidency. 

Two types of accusations are being made against him. The first has to do with his policy statements, the second with his so-called changes in positions. The press and pundits — as well as politicians and some voters — expect candidates to articulate detailed positions on every major policy and procedure as part of their appeal for votes. These pronouncements are then analyzed and critiqued by all interested parties — frequently in terms of sound bites. Candidates are expected to treat their positions as though they were cast in stone – never deviating despite critical analysis — and subject to criticism as a “flip-flopper” if they do.  

Unlike the world of politics, the world of business is essentially and universally a transactional enterprise. There are seller transactions as when the company sells to a customer, and there are also buyer transactions as when the company buys supplies and services; transactions which allow the company and its employees to work together, and transactions when teams are formed and functioning — to cite a few examples. Thus the better the company is in negotiating the myriad of transactions (usually called “deals”) required for success, the more successful the business will become. In this respect, Mr. Trump’s success in building a large international company demonstrates that he has mastered “The Art of the Deal.” 

Management of a huge company with thousands of employees and millions of customers and suppliers — all of whom are participants in various transactions — requires a distinction in roles. No one person can do everything, conduct every transaction which must be executed properly to be successful. The role of the leader is both strategic and personal: strategic in setting the goals of the entire enterprise (called “mission” in business terms), and personal in setting the tone for how all the people in the enterprise are to be treated.  

Like most CEOs, Mr. Trump talks in terms of goals, not procedures,  ends rather than means. The CEO sets the goals (which have a strategic rationale), then recruits the staff he judges best equipped to achieve these goals. These experts develop the plans for implementing each goal and present them to the CEO. Their dialog continues until the CEO agrees and puts his power and prestige behind the plan. If it does not work, he realizes harm may be done and he will be blamed. Like any good negotiator, he does not reveal his plans in advance. In fact his public statements may suggest a position which is more extreme than he intends to settle for. This is the world Donald Trump has been in for his entire career.

The press and pundits continually criticize Mr. Trump for not revealing the details of his policy goals. Frequently, he is accused of not even knowing the details. Frankly, he may not know how a certain goal would best be implemented. But he does not see that as his role. He is running to become the CEO of the United States of America. In that position, he will have access to the best talent in the entire country. His first job then would be to sell them on the idea of helping his cause. His final job would be to make sure their plans succeed. 

In the transactional universe from which he comes, Mr. Trump’s habit of stating goals for the United States government and motivating people to accept and pursue these goals is acting out what, in his world, is his primary responsibility. He accepts in advance that there may and probably will have to be modifications to the details of his positions as he begins to navigate the path to implementation with all the other players on the field. These outcomes are ever more complex the more people who must be satisfied in order for his goals to be realized. The current president’s “My way or the highway” approach to negotiation flies in the face of everything Mr. Trump has ever learned. To him, success depends on flexibility and creativity, the key virtues of a gifted dealmaker who repeatedly achieves his goals in spite of the odds.  

On the bright side is another characteristic of the business perspective which derives from the transactional nature of the enterprise, namely, a benevolent view of people. Henry Ford was the first to popularize the idea that his employees could also become his customers. To today’s successful businessman, everyone he meets is a potential customer. This necessity for optimism and consideration of individuals, groups and strangers requires a relentless effort to satisfy as many people as possible in business – as well as in government.  

Understanding Mr. Trump’s backstory makes his statements intelligible. Not understanding it — or choosing not to understand his context – causes frustration and ridicule which are undeserved and unfair. Of course, this has never stopped his enemies, most of whom have never met a payroll in their lives.

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