One of the stories which dominats the US news today is President Elect, Donald Trump's 'Cancel the order' Tweet. The order being with Chicago-based Boeing for a new version of Air Force One. The Tweet is effectively saying "I am going to block this contract as I believe it is no longer a good deal". Now, that will send tidal waves through contractors and those in procurement in US public procurement! What will become the new modus operandi?
Needless to say Trump's estimate of the $4bn is challenged by many. Boeing, it appears, haven't even secured the deal! Then you've got the reality that the plane is unlikely to be delivered during Trump's residence of the Whitehouse anyway - it will be other Presidents' plane as opposed to his. Transition is taking on a new completion now and for his successor.
Anyway, is Trump ushering in a new style of Twitter usage, a new style of public procurement negotiations, or a new style of procurement strategy? If other political and business leaders chose to follow his style this will create a very real and present danger for procurement professionals. Trump has built a reputation of saying "You're fired" what's that mean for procurement?
I really wouldn't like to negotiate with Donald Trump. Compromise doesn't appear to be in his vocabulary and for him to publicly air his opinion on the matter is setting such a poor example.
ReplyDeleteHe's also portraying such a confusing message of lauding inshoring yet publicly shaming US corporations; wanting to create US jobs yet wanting to cancel contracts that could result in the loss of US jobs; wanting to reduce wasteful expenditure yet terminating a contract that could result in greater net costs.
His loose attitude to facts would also make negotiating very difficult. He claims $4bn as the cost of the contract. US Air Force budgeted $2.7bn. He claims his private jet, a Boeing 757-200, is bigger than Air Force One. It's actually smaller in every dimension. How on earth can you logically reason with someone like this?!