From “Chicken Dance” to Mexican Hat Dance
It seems as though no matter how long I recognized the fact that the “chicken dance” always preceded negotiations, I always was learning new steps to the dance routine. Even though the ultimate objective of the dance — to gain power or position — never changes, adding the element of a new culture to the mix, always brings additional, and somewhat different, steps to the dance routine.
In the situation that follows, the “chicken dance” dragged out over a period of years, and ultimately, crossed the border into Mexico where it became commingled with some steps from the “Mexican Hat Dance” — an interesting combination to say the least!
Just to set the stage, I had been working for Ford in Mexico during the period 1974 – 1977. In early 1980, I was the business planning manager for one of Ford’s component manufacturing divisions in Michigan. At that time, all of the division’s manufacturing operations were located in southeast Michigan.
To the extent that the division required additional manufacturing capacity, I believed that they should seriously consider establishing operations in Mexico. There were significant advantages to locate there in terms of lower labor costs, government incentives, as well as export credits to name a few.
To me, it seemed like a “no brainer,” and I convinced myself that everyone would sign up to be on the team to develop the project. Accordingly, I set up a meeting with the general manager and and a few department heads, and invited them to a presentation outlining the benefits of locating in Mexico versus building more new facilities in the same area of Michigan. I was so sure of myself that I wanted all of the “top dogs” in the division to be there to participate. The meeting was attended by the general manager, “Gregarious Bob,” who of course was positioned at the head of the table. “Gregarious Bob” was flanked by his controller, and his director of operations. Also seated along both sides of the table were the director of human resources, all four local plant managers, and just about every other manager who caught wind of the meeting. I, of course was seated at the far end of the table, opposite “Gregarious Bob.”
As I looked around the room, it was a full house and I was about to lead what I believed was a well orchestrated dance. I must admit that in retrospect, it felt as though the whole world was looking down at me.
Well, I outlined the proposal to “Gregarious Bob” who very quickly told me that I must be out of my mind. He vigorously advised me that he believed that southeast Michigan was the right location, and that he would never consider operating or living outside the US. As he is saying the words, he is flushing from red to purple, and the veins in his neck appeared ready to explode. It was about that time that the dance routine changed radically. Every one of the department heads and managers either leaned back away from the table or actually pushed their chairs back from the table. Other than the shift in position sending a clear signal that I had absolutely no support, it also gave “Gregarious Bob” a much clearer shot at me!
Of course, everyone else in the room remained mute for a moment, after which a few of my “close allies” started taking “pot shots” at the assumptions in the study. Once on a roll, of course, they proceeded to attack the conclusion and the recommendation. After all, why jump in on the dance floor when the music is off key.
The funny part is about six months later “Gregarious Bob” accepted a job in Brazil where he remained for several years. After that he spent many years in Europe running other operations for Ford before returning to the US. So much for not getting involved in operations outside the US, or living abroad.
Once the new general manager settled in, I blew the dust off my “Mexican Proposal,” rescued it from my desk drawer and gave it another shot. This time, almost to my surprise, I was encouraged to proceed. Back then Mexican law required that automotive suppliers be established as joint ventures with the local partner owning a majority interest. That began the next phase of the “chicken dance,” and I did not have a clue as to just how many new dance steps I was about to learn.
Once we selected a partner, from among several candidates, it took six months of continuous negotiations to “ink the deal.” To say that the negotiations were interesting and educational would be an understatement, particularly as this was my first endeavor in negotiating a joint venture between two very large business entities both of which had a very definitive list of “must haves.”
Once signed, the next phase of the “chicken dance/Mexican hat dance” began. As the facility was constructed and the workforce trained, new steps were being introduced on every month. It seemed as though the two parties were continuously jockeying for position.
Although the initial phase followed a bumpy path, the parties had the foresight to look at the long term benefits and work out their differences. Once the manufacturing operation was “up and running,” and was producing adequate quantities of high quality parts, both parties got “Beyond the Chicken Dance.” At that point they sat around the table (rather than opposite one another), put their heads together to “make the pie bigger” so that they each had more at the end of the day.
Bottom line: They operated a very successful, growing business for many years after I left Ford in the early 1990′s.
