WHEN I BECAME PRESIDENT of Dale Earnhardt Inc., the best-known team in NASCAR racing, it seemed my first challenge was to beat the other side in a complex contract negotiation. Dale Earnhardt Jr., the son of the most famous driver in the history of the sport, wanted to take control of the company run by his stepmother, Teresa, who was my boss. Dale Juniorâeveryone calls him Juniorâwas now the sportâs best-known driver and its most significant source of merchandise revenue. He said that if his new contract didnât give him a controlling interest in the company, he would leave.
When I showed up, nine months into difficult negotiations, the binder of legal documents waiting for me to review was twelve inches thick. Every day, I was getting calls from legal and business experts, some of the greatest Ivy League minds in the field, telling me how I could structure the agreement in some innovative way they had devised. I heard about reverse equity deals, this kind of trigger, that kind of incentiveâall sorts of highly complex compensation mechanisms to get Junior paid on our terms. Meanwhile, we still had no deal. The situation was only getting worse. My phone rang all day long with reporters looking for personal gossip about the Earnhardt family. This new job was like being thrown into a hornetâs nest. And to top things off, before I even met him, I read in the paper that Junior didnât understand what Teresa was thinking when she hired some music company executive to run the company.
Of course, I had been hired to do much more than resolve this one dispute. As president of global operations, it was my job to help us win at the track, build relationships with our sponsors, burnish our public image, and transform DEI into a full-fledged entertainment company to set us apart from our competitors. In the longer term, my goal was to help NASCAR expand beyond its traditional white, Southern fan base, building the bridges that would make it a truly national sport open to everyone. But when I arrived, all those goals were eclipsed by the negative publicity of the contract negotiation. It was the number one story in the sport. Journalists spent more time writing about the fire that burned down Juniorâs motherâs house when he was six years old, and speculating on what it meant to him as a little boy to lose his childhood home and go live with his father and stepmother, than on the races themselves. They were exaggerating the present hostilities and creating an ugly image of a family feud. This was the last thing we needed as we worked to show America how racing had grown.
So how did I prepare for my first meeting with Junior and his sister Kelley (who was his manager and one of the most powerful executives in the sport)? I put all the legal proposals aside. I stopped thinking about my next move in the contract negotiations and focused on learning what made Junior tick. Most of all, I listened. I listened to my new boss, Teresa, and to everyone else in management who could give me perspective on the situation. I read everything I could find about his career, watched all his DVDs, and learned all the background I could about the Earnhardt family in NASCAR. What was I looking for exactly? I didnât know yet. Whatever would get me to his core, to what motivated him and made him feel good about his life. To succeed in this negotiation, I had to know what made him tick.
I was excited to meet the charismatic, powerful young racing star I had learned about, but at our first meeting he didnât exactly turn on the charm. His body language was stiff and suspicious, and his answers to my questions were clipped. He barely met my eyes. And so there we were in Juniorâs office. I suppose he and Kelley were expecting me to make a proposal, or at least to feel him out about some possible terms of his contract. I didnât do that. Instead, I said, âLook, letâs put all the papers away. Before we can even start to talk business, we need to know each other. Let me tell you a little about me.â
Junior and Kelley seemed surprised, but I went on and shared a story about my familyâthe one I shared with you in the preface of this bookâabout my father taking my sister and me away from our mother, about the difficulties after he died and my struggle to put the past aside and focus on building a successful future. I was trying to show Junior that I could appreciate him not just as a business opportunity but as a person I could relate to. If I could show him that I âgotâ him, then I could show him that I understood what he neededâand that I would work with him to get it.
I believe that 95 percent of meaningful communication is nonverbal and indirect, and that most of what mattered in that meeting was what I didnât say or do. To start, I didnât act like one of the hard-driving lawyers they had been fighting for the past nine months. I didnât lean on them to agree to a deal. Instead of pushing my needs, I offered them something: my interest and attention. I said, âIâm here to listen. Tell me everything I need to know.â
Slowly Junior started to open up about his life. As he talked, I came to realize that for him, this negotiation had very little to do with money. The deeper challenges here were not legal complications or how to structure a deal. The issue was the relationship between Dale and his stepmother. A young man was stepping out on his own, away from the shadow of his parents, and he wanted respect and control of his own life. He had been the son of the famous driver, the stepson of the owner, the one everyone knew as âJunior,â but now he wanted to feel acknowledged and treated well as his own man. That was what success meant to him.
Now I understood that those nine months of wrangling before I came on board and all those legal fees had been a waste. All the lawyers and the experts with their technical proposals had overlooked his deep motivation. But as we talked, Juniorâs tense body language started to relax. For the first time, he looked me in the eye. He said, âYouâre not what I expected.â We were beginning to develop a relationship of trust.
Iâve seen it again and again. So many books on success and so many courses in business school promise to get you an edge so you can âbeatâ the other side, but in my experience, thatâs often the wrong goal. Iâve seen so many professionalsânot to mention some family membersâforget that the people across the table are still human beings. If those human beings donât have a relationship with you, or if they donât believe the relationship will bring them success, they wonât do business with you. To winâand keep on winningâwith them, you need to learn what success means, deep down, to them.
There was no quick fix for that contract negotiation or for that challenging family situation, but what we could change right away was the tone. We showed each other and the press that we were perfectly capable of continuing negotiations while also getting along and doing our jobs. Junior went back to concentrating on races and the media went back to reporting on them. Teresa and I focused on the work of making the company stronger and more successful. And although in time Junior felt he needed a break from the family and signed a contract with another team, we remained supportive of each otherâs efforts in the sport, continuing to build a relationship that I believe will bring the best outcome in the long term for everyone connected to the Earnhardt family.
A MORE POWERFUL WAY TO LISTEN
WHAT GOT ME PAST all the distractions to the heart of that negotiation with Junior was the way I listened. Most of the time, we tend to listen for whatever will help us prepare our next statement or make our next move. When I fall into that way of listening, you may be talking to me, but inside Iâm focused on the goal or problem thatâs on my mind. Iâm thinking about how to get what I want, and the truth is that I mostly tune you outâI listen to you just enough to find something I can use to form my next response, maybe even something in your words I can use against you. Of course, when I do this, youâre going to feel that Iâm not really there for you, not really listening, and youâll tend to pull away, back into your own agenda, just as Iâm doing. Thatâs why this first kind of listening tends to close peopleâs minds and prolong their conflicts: each side keeps on going the way they were going all along.
But there is a second way of listening, which I think of as listening to understand. When we do that, we put aside our present problem for a little while and try to understand the larger situation of the person whoâs talking. That means listening not just for what they say, but what they meanâlistening for what they need and care about, which often lies underneath their words. When you listen to understand me, I sense that I have your attention and your interest, and naturally Iâll start to relax and get a little more comfortable. Itâs reassuring to have a respectful audience, to feel that my words arenât just a grab bag for you to dig around in and find something you can use. When youâre listening to understand me, then I am freer to talk to you not just about what I planned to say, but about what matters most to me, what makes me tick.
Itâs an approach with a proven track record and a very long history. If you go all the way back to the life of Jesus, youâll notice that although he was a spiritual man, in Bible stories heâs not usually found in the temple. You usually find him outside, meeting people in the regular paths of their life. His goal is to preach, but thatâs not what he does first. Itâs not even what he does second. He goes to where the people are and he listens to understand them. Once heâs understood what they need, he responds to it. If theyâre hungry, he feeds them. If theyâre sick, he makes them well. Only after he both understands what they need and responds to their need does he start to preach.
In those Biblical stories, Jesus doesnât take this approach as a way to seem thoughtful or nice. He does it because listening to understand is the most effective way to reach the goal of spreading his message. I would say something similar is true in any kind of relationship, including business relationships, though the messages may be very different. So no matter whatâs on the table, I start by trying to step outside myself and listen for what the other person needs, their expressions of their deep motivation. Often itâs not what I might expect, and itâs rarely what they say up front. Usually people have some kind of surface style they wear for the situationâcharming, confrontational, passive-aggressive, or whatever it may beâthat mostly hides what moves them. Their words may not clarify things much either; I can count on one hand the times Iâve met a person who actually expressed precisely what he meant and what he needed from me. So when you get past the surface postures and the opening remarks, thereâs often a surprise waiting. Those surprises have made listening to understand the most eye-opening experiences of my life.
What Iâm describing applies in every industry and every type of relationship, both business and personal. When I was newly married, I had some fixed ideas about what my wife, Jennifer, wanted from me and how I could make her happy. And she had some fixed ideas of her own. For a while, we just followed our fixed ideas and didnât listen to understand what the other wanted. The result was that two loving, committed newlyweds managed to kick up a whole lot of frustration and unhappiness.
For example, Jennifer thought that husbands wanted their dinners cooked when they came home from work, and though she had a demanding career of her own, she would put in the time to cook for us at night. I would come home and find her in the kitchen, but I wouldnât jump up and down with happiness and rave about her big dinner plans the way she expected. She felt offended and unappreciated, but I couldnât hear what she wanted, because I had my own ideas about what showed appreciation: Didnât I put money in the bank, bring home flowers or a new necklace now and then, and do other things she liked?
At first, when we tried to talk it out, we only listened for what would help each of us make our case: What do you mean you feel ignored? I spent two hours making your dinner! Or: How could you feel unappreciated? Didnât you see that necklace I brought home? It took us some time to start listening to understand. Finally I began to hear what mattered, deep down, to her. I told her, âI love a home-cooked meal, but we work so much that I would rather have two hours with you at night than to have you busy preparing the meal, then talk for a few minutes and go to sleep. I would rather go out to dinner or order in and have more quality time together.â Along the way, she helped me to understand that while she appreciated flowers and other presents, what was even more important to her was that I sit with her on the back porch and talk with her, acknowledging her efforts, so she could see that I recognized the hard work she put into even small things she did for me.
Gradually we both learned to stop listening for what would help defend and justify what we had been doing and to start listening to understand what the other one needed. We came to see that it was unfair to make a decision about how to treat the other person if we didnât get good information first. You can call getting that information âbeing a good listenerâ or âministering to souls in needâ or âconducting effective market research.â I donât really mind what you call it, because it all comes down to the same thing: listening to understand.
Of course, some people ask me, Max, is all this really necessary in business? If I have a simple business arrangement, do I still have to bother learning what makes them tick? My answer is that I donât think any business arrangement is simple. Maybe it seems that way sometimes to a customer who places a quick order, but thatâs only because the seller has done the work for the customer to make it seem easy. So if youâre the one with goods or services to offer, or if you have a good professional connection with someone and you want to keep it that way, then you have a relationship to cultivate. And that means learning what makes the other person tick, whether he or she is your customer, your client, your boss, or your employee.
LISTENING LIKE A PRO
HOW DO YOU LISTEN to understand? To some people that might seem like the wrong question. Listening and talking are so basic, so everyday; do you really have to think about how to do them? I know I started off, years ago, with a very casual and intuitive approach to business conversation, and I did all right with it sometimes. But one of the things I learned from a career spent working with top performers, whether in music, sports, or business, is that almost anyone can give a great performanceânow and then. Maybe one night with your friends you belt out a karaoke song and everyone tells you that you ought to be on American Idol. Well, you may have had a great night, but the question is, can you duplicate that performance the next time? And what about the time after that?
Professionals are professionals because they can perform over and over, in good conditions and bad, when theyâre feeling inspired and when they wish they could crawl back into bed. Even if communication comes naturally to you some of the time, itâs worth getting clear just what it is youâre doing right when youâre at your best. Because the day will come when the stakes are higher or the conditions rougher, and you wonât be able to cruise on instinct. Youâre going to need to be able to guide yourselfâstep-by-step like a great coachâthrough the challenge. So here are a few rules for listening to help others share what makes them tick when you first make contact. (Later Iâll talk about going deeper, when you already have a relationship established.)
- Show that youâre interested. As I said before, 95 percent of meaningful conversation is nonverbal and indirectâitâs not the words you pick that get through to people. Itâs your body language: your tone of voice, your small actions and gestures. Itâs the physical things that show someone you have my attention:
- Make them comfortable. The main reason most people donât share what moves them is that they donât feel safe and respected. So often now our days are rushed and everyone has an agendaâI think many people feel, much of the time, either pressured or ignored, and neither one makes a person want to speak his or her heart. So start conversations gently. Make a joke, or if thatâs not your style, begin with any easy topic. At this early stage, everything youâve heard about networking actually does apply. Pick a neutral, reassuring topic they canât get wrongâtheir favorite sport or hobby, their children or what they like to eat. What theyâll notice wonât be the topic, it will be the comfort they feel around you.
- Delay your agenda. Make clear that your interest is not just in achieving your own goals. In fact, put your goals on hold. This was crucial in my first meeting with Junior, when more important than what I said to him was what I left out: no new proposals. No deal talk. No pressure to reach an agreement. By delaying conversation about my own agenda, I was showing him that I thought getting to know him was more imp...