“I WILL MAKE YOU AN OFFER

WHICH YOU CAN’T REFUSE.”

Made by

Shahamat Mufti

HOW TO NEGOTIATE : BATMAN MOVIE

(CASE STUDY)

HOW TO NEGOTIATE : BATMAN MOVIE

(CASE STUDY)

The Dark Knight. Coleman Reese (played by Joshua Harto) is an M&A lawyer working for Wayne Enterprises. In the course of conducting due diligence, Reese has successfully deduced that Bruce Wayne is Batman just by reviewing the financial records. Armed with this information, he decides to blackmail Wayne.

In a meeting with Wayne Enterprises CEO Lucius Fox (Morgan Freeman), Reese gets right to the point. He tells Fox what he knows, shows that he has proof, and without giving Fox time to respond, he states his terms:

Coleman Reese: I want ten million dollars a year for the rest of my life.

Let's look at Reese's negotiation skills. He did a lot of things right. He laid his cards on the table. He did his research, which means that the facts are on his side. Given the nature of what he knows and the depths of their pockets, he's probably making a reasonable request. He made sure that he was talking to somebody in a position to negotiate. Best of all, he firmly anchored the discussion by clearly stating his terms -- ten million dollars a year.

HOW TO NEGOTIATE : BATMAN MOVIE

(CASE STUDY)

Unfortunately for Reese, he made one mistake.

He didn't consider his BATNA (Best Alternative

to a Negotiated Agreement.) In other words, he

never asked himself what would happen if he

couldn't come to an agreement with Fox. Without

blinking, Fox explains what Reese's BATNA is:

Lucius Fox: Let me get this straight. You think

that your client -- one of the wealthiest, most

powerful men in the world -- is secretly a vigilante

who spends his nights beating criminals to a pulp

with his bare hands... and your plan is to

blackmail this person? Good luck.

LESSONS LEARNT

Fox has the better BATNA, so Fox wins. In addition to having a better hand, Fox also has excellent negotiation skills. Note that he concedes nothing. (Making concessions may be a legitimate tactic in friendly negotiations, but since they're discussing blackmail, Fox is wise to not validate any of Reese's accusations.) More importantly, he restates Reese's position. In doing so, he reframes it in such a way to show that Reese has no leverage at all. Reframing is a good strategy for two reasons.

First, reframing the other side's position makes them agree to your version of their facts. (This is what happens in the Reese-Fox negotiation.) Second, it can also add clarity and understanding to a discussion, which can help bring both parties closer to a negotiated agreement.

The other thing that Reese gets wrong is he starts off the negotiation with a threat. This kind of pressure tactic can always backfire. It often creates a hostile climate and inspires the other side to push you back. I always push back those that make threats, and they normally back down, as Reese does here.

“When the chips are down, these... these civilized

people, they'll eat each other. See, I'm not a

monster. I'm just ahead of the curve.”