Tuesday, May 10, 2016

Book Review: The Art of the Deal

Many of my friends recommend Robert Cialdini’s Influence, a book about how to be persuasive and successful. I read a most of the way through, and it was okay, but I didn’t have it in me to finish the whole thing. It’s not that being persuasive and successful doesn’t sound pretty neat. It’s just that I wasn’t sure the book could deliver the goods.

Robert Cialdini’s Wikipedia page says “He is best known for his book Influence“. Since its publication, he seems to have spent his time directing an institute to spread awareness of techniques for success and persuasion. At the risk of being a little too cynical – a guy knows the secrets of success, so he uses them to…write a book about the secrets of success? If I knew the secrets of success, you could bet I’d be doing much more interesting things with them. All the best people recommend Cialdini, and his research credentials are impeccable, but I can’t help wondering: if he’s so smart, why isn’t he God-Emperor?

Donald Trump is also not God-Emperor, but he’s at least sort of on the short-list for the position. I knew that Trump wrote his own book on success and persuasion back in 1988 – Trump: The Art of the Deal – and I wondered if it might not be the anti-Cialdini.

Trump is no psychology expert, but he’s sure done well persuading people in real life. After a few months of attributing his victories to blind luck, most people have accepted Scott Adams’ hypothesis that he’s really a “master persuader”. Salon, Daily Caller, Bill Maher, and the Economist all use the word “genius”. The less you respect Trump’s substance – and I respect it very little – the more you’re forced to admire whatever combination of charisma, persuasion, and showmanship he uses to succeed without having any. If this guy has written a book on how to be persuasive and successful, that’s a book I want to read.

The downside of buying a book by a master manipulator is that sometimes you learn you were manipulated into buying the book.

Trump: The Art Of The Deal is 365 pages of some of the biggest print I have ever seen. The cover has a quote from the New York Times – “Trump makes one believe for a moment in the American dream again” – which some poor reviewer is probably desperately wishing he could take back right now.

Although the blurb says that he “fully reveals the deal-maker’s art” and that it is “an unprecedented education in the practice of deal-making” and “the ultimate read for anyone interested in achieving money and success” – only seventeen pages of very large print are anything resembling business advice. The rest of it is a weirdly deal-focused autobiography that doesn’t mention marrying his wife or having children, but devotes a lovingly detailed twenty-four pages to the time he renovated the Commodore Hotel.

But first, those seventeen pages. I am pleased to report that Donald Trump is well-abreast of modern science – he tells his readers looking for advice about how to make it big that deal-making is probably just genetic.


Either you’ve got the deal gene or you don’t:
More than anything else, I think deal-making is an ability you’re born with. It’s in the genes…unlike the real estate evangelists you see all over television these days, I can’t promise you that by following the precepts I’m about to offer you’ll become a millionaire overnight. Unfortunately, life rarely works that way, and most people who try to get rich quick end up going broke instead.
This is a weirdly humble and self-aware Trump. It might be that the book medium suits him well; more likely he just has a really good ghost-writer. Unfortunately, he has much to be humble about. His advice, while not bad, is vague and not too useful. For example, his first rule is “think big”. But his second rule is “protect the downside and the upside will take care of itself”, which he explains as:
It’s been said that I believe in the power of positive thinking. In fact, I believe in the power of negative thinking. I happen to be very conservative in business. I always go into the deal anticipating the worst. If you plan for the worst – if you can live with the worst – the good will take care of itself.
So – take a lot of risks, but also be very cautious. Okay. I’m not saying his advice is literally contradictory – it makes sense that you can have big plans but also be very careful about them. I just don’t get the feeling that his advice is too helpful in narrowing down your plans.

Is there anything at all worth reading in these seventeen pages? Oh yes. But not for the reason I expected. (...)

I started the book with the question: what exactly do real estate developers do? They don’t design buildings; they hire an architect for that part. They don’t construct the buildings; they hire a construction company for that part. They don’t manage the buildings; they hire a management company for that part. They’re not even the capitalist who funds the whole thing; they get a loan from a bank for that. So what do they do? Why don’t you or I take out a $100 million loan from a bank, hire a company to build a $100 million skyscraper, and then rent it out for somewhat more than $100 million and become rich?

As best I can tell, the developer’s job is coordination. This often means blatant lies. The usual process goes like this: the bank would be happy to lend you the money as long as you have guaranteed renters. The renters would be happy to sign up as long as you show them a design. The architect would be happy to design the building as long as you tell them what the government’s allowing. The government would be happy to give you your permit as long as you have a construction company lined up. And the construction company would be happy to sign on with you as long as you have the money from the bank in your pocket. Or some kind of complicated multi-step catch-22 like that. The solution – or at least Trump’s solution – is to tell everybody that all the other players have agreed and the deal is completely done except for their signature. The trick is to lie to the right people in the right order, so that by the time somebody checks to see whether they’ve been conned, you actually do have the signatures you told them that you had. The whole thing sounds very stressful.

by Scott Alexander, Slate Star Codex |  Read more:
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