INTERVIEW – Busting 3 Business Negotiation Myths

INTERVIEW – Busting 3 Business Negotiation Myths

I came to Friday's interview with Matt Lohmeyer a bit selfishly. Negotiating has often made me nervous and yet he seems to thrive while discussing and doing it.

So, I wanted to learn how he gets great outcomes while actually enjoying the process.

If I am to interpret Matt correctly, the ‘insight' is to explore ‘possibility’ and seek out ‘opportunity’ rather than be driven by the fear of being cornered by a win/lose proposition.

Here are three fear busters that I took away that I hope help you also.

  1. Deal with the hairy beasts first
  2. See popular techniques as tools rather than the main strategy
  3. Avoid saying no

Let me now give you some more detail about these before offering the interview and two powerful free tools from Matt.

1 – Deal with the hairy beasts first. By that, Matt suggests dealing with the most difficult issues of a negotiation first. He recommends agreeing the negotiation strategy at the beginning as a way to build rapport, rather than dealing with small items. An example might help.

At the beginning you might ask the other person (note, I am deliberate in not saying ‘the other side') to identify their biggest concern. You might even suggest that you think item X is going to be the most difficult thing to resolve.

This gives them an opportunity to agree or to indicate that item Y or Z is a bigger deal for them. Taking this approach offers many advantages. You

  1. Enter into a collegiate discussion about the way forward that builds rapport
  2. Gain insight into their situation
  3. Work out quickly whether this negotiation will go far or not, so that you can avoid wasting time and resources if it is unresolvable
  4. Hold onto valuable bargaining chips that could help you address the hairy beast rather than trading them away to solve lower level issues

2 – See popular techniques as tools rather than the primary strategy. Matt suggests that emphasising win-win solutions or splitting the difference results in mediocre outcomes. Why?

Because they leave you thinking small. They lead you to

  1. Being adversarial which can put you back in the fear corner'
  2. Trading items tit for tat around micro elements of the deal
  3. Taking energy away from finding a really great outcome that neither party may have considered at the start of the discussion.

3 – Avoid saying no, and frame your response as a possible alternative. This doesn't mean NEVER saying no as Matt was quick to point out, but rather avoid saying it.

To give an example. Instead of saying ‘No, I can't have coffee with you tomorrow afternoon', say ‘I could have coffee with you at 9am tomorrow at a location near me'.

This then puts the onus back on the other person to decide whether they will make the extra effort to make that time and location work.

This is a simple example, but a powerful principle that empowers me by offering a constructive way out.

These are just some of the gems that Matt shared. You can visit the recording below, as well as download two powerful resources he has for us all.

 

DOWNLOADS:

1. A diagnostic to help you calibrate your personal blend of preferred negotiation strategies with the norm group of over 2,500 other executives. How do you actually negotiate? To unlock this tool, you will need to use the password Mythbusters.

>> Click here to access

2. A generously detailed PDF full of negotiation strategies for you to employ.

>> Download here 

 

Kind Regards,

Davina

What to do when stakeholders disagree with you?

What to do when stakeholders disagree with you?

I was recently asked a wonderful question:
 

How do we communicate with a large group that includes stakeholders who disagree with us?

 

The client and I had a terrific discussion and I mapped the outcome as a decision tree to share with you all.

The tree offers a series of decision points that we must navigate if we are to deliver a story that gets the result we need.

In this particular case, the issue centred around a common problem, which was how to handle ‘the story' when key stakeholders don't agree with it. Do we ….

  • Tell the same story regardless?
  • Edit the story to accommodate that person (or those people) only?
  • Ask someone else to present on our behalf?
  • Create a separate story that deals with the ‘objector's specific concerns?
  • Scrap the story and start again?

There are lots of alternatives, each of which might suit a different situation but none of which suit all.

Hence, the decision tree.

You can also download the decision tree here >> 

I hope you find it useful.

Kind regards,
Davina

PS – For those of you who have not yet joined one of our working sessions, please go to the session registrations tab on the main menu to do so. We'd love to do your work for with you!

The importance of asking ‘Why?’

In this session, we worked on Brooke's email which highlighted the importance of asking ‘why'.

  • Why might audiences be objecting (are they unwilling or unable?)
  • Why do you need to communicate? What is it you need them to know?

Once you have nailed down the ‘why', the storyline becomes so much clearer.

As always, we've included the notes below so you can see how we work through the storyline planner from the initial brainstorming through to the first draft of the email.

How to avoid being diverted by the back story so you can focus on the today story

How to avoid being diverted by the back story so you can focus on the today story

Has this happened to you?

You have an important presentation to make to a senior leadership group and a big chunk of the time is spent talking about ‘background’.

The leaders ask every question under the sun about the history of the program, what you have done in the past and you find yourself repeating your last five presentations. You use precious face time with them looking backwards rather than looking forwards.

This was a hot topic in today’s coaching session with the Senior People Leader at an Australian retailer.

Let’s look at what was going on before looking at a sanitised version of the before and after.

Here's what was going on : ‘Mary’ was going into way too much detail in the introduction

Mary would brace herself for these discussions as they felt a bit like an interrogation and to head off the questions, she included lots of background up front.

She referred to the history of the People Strategy and went into quite some detail about it.

However, in doing this she was also leaving the door open for questions as the first part of her paper wasn’t a complete summary, or perhaps described past events using new words which piqued the Board’s curiosity.

Her strategy was backfiring.

To avoid this, we suggest tightening your introduction to lead your audience directly where you want them to go (to the So What).

Here are four tips for doing that.

  1. Assume you must synthesise your context as tightly as you would synthesise your ‘so what’. Even for a lengthy paper, keep the context short, ideally to no more than 2-3 sentences in total.
  2. Stick to information that is or should be known to the audience.
  3. Ensure the trigger articulates clearly and simply why you are communicating with this audience about the topic described in the context at this point in time.
  4. Focus on material that introduces the topic as it stands right now. This will prime your audience on the topic that you want to discuss and open the door for the trigger rather than more questions.

Here’s a sanitised before and after to illustrate.

The ‘Before’ included far too much detail which gave the audience a chance to derail the conversation and not get to the so what

[CONTEXT] Talented people needed to deliver our ambition, has and been remains a business goal. We have focused on talent over the last 3 years – approach largely individualistic and limited by poor capability frames

Our new operating model provides an opportunity for us to differentiate ourselves in the talent market – move talent to max value work, no other retailer using this new operating approach, and we can become known for development

We have started implementing a 3-year strategy to drive enterprise talent & capability and that has changed the talent profile through recruitment. Development will be the focus in the following years

We will track impact and manage talent-based risk

[TRIGGER] We have a Talent strategy that we believe will deliver on our goal to win through talent.

[QUESTION] What is your strategy?

The ‘After’ is much tighter all round and led to a tighter discussion around Mary's agenda

[CONTEXT] Moving to the new operating model provides us with an opportunity to differentiate ourselves in the talent market. This enables us to build on the foundations established over the past three years to develop a winning talent strategy.

[TRIGGER] We have a new leading edge Talent strategy that will enable us to capture the full opportunity that our new business model offers us.

[QUESTION] What is your strategy?

I hope that helps and look forward to checking in with you again next week.

Kind regards,
Davina

PS – We have working sessions this week. Don't forget to register!