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NEWSSo What's The Big Deal? Part 2by Kim Meredith, Managing Director of Spectrum Solutions "dealmaker: a person skilled in using instinct, processes and expertise in primarily negotiation, selling and communication, and able to leverage or adjust the balance of power to bring closure to transactions that usually benefit all parties" (© The Dealmaker Programmes) So, did it work? Have you improved the quality of the deals you are doing? Are you making more money yet? For those of you that are reading this and have no idea what I am talking about, allow me to bring you up to speed. In my last article I made the statement that each and every one of us is born with dealmaking skills but that most of us start to lose these skills in conforming to "the system" during primary school. I also proposed that you practice one important element in order to get your dealmaking skills re-started. My recommendation was this: the next time someone wants something from you, ask yourself the following question: "what can I get in return for giving this person what they want?". I suggested you stop giving things away for nothing and start trading - just like a four to eight year old child instinctively does (at this age they still haven't lost the dealmaking skills with which they were born). I did caution against trying this with your loved ones (!), but boldly stated, in fact guaranteed, that just asking for something in return - trading - would set you on the path to being a better dealmaker. Something for Something The statement I made was bold - it had to be! This essential first step is what it takes to begin your journey towards being a more skilled dealmaker. I have never heard an expert dealmaker or negotiator say that asking for something in return is "acting in bad faith". I have never read a book on negotiation or business deals that says trading is "bad faith". I have, however, often heard unskilled dealmakers make this statement. Now, you might be feeling a little uncomfortable at this stage about asking for something in return for a discount or favour or whatever it is that someone else wants to get from you. I discussed briefly in the last article the saying "give to get", but have you ever come across the expression "quid pro quo"? If you don't already know, you may guess that this is Latin - and you would be right - and you may also guess that it means "an eye for an eye" or something similar. Again you would be right. The direct translation of "quid pro quo" is commonly accepted as "something for something". This is a concept with which good dealmakers are perfectly comfortable. It certainly helped the ancient Romans hang on to their conquered territories for many a century. But how do you feel about getting "something for something"? If it makes you feel uncomfortable, you need to work on your trading mindset. Bad Faith Let's explore "bad faith" further. As I have said, "bad faith" is something into which only unskilled dealmakers seem to buy. Here are a few definitions of "bad faith" from the Web:
Now, isn't this interesting? Nowhere is there a definition of "bad faith" as "expecting something in return for giving something" - ie: trading. So from where does this thinking come? My theory is that it emanates from the 1970's trade union negotiations in the UK where, typically, the unions would make outrageous salary and benefit demands, management would counter with demands for increased productivity or reductions in the workforce and the unions would bellow "bad faith!". This sure caught on in the circles of poor negotiators! Stop thinking about trading as "bad faith" and you will improve your dealmaking abilities overnight. Trading is quid quo pro, "bad faith" is the actual intent to mislead or deceive. Sweetening the Deal Another statement I have never heard from a skilled dealmaker or negotiator is that they give away something for nothing in order to "sweeten the deal". Once again, this is the domain of the unskilled. There exists a very naïve view that in giving the other party a "gift" of some sort, the relationship will be improved and the giver of the "gift" will get a better deal. If you want a better deal, trade your "gifts" for the concessions you want from the other party. Trade "gifts" for "gifts", so to speak. But keep it legal! I have heard too many tales about suppliers "giving" customers swimming pools or hunting trips or the like in exchange for the deal. We all know what happened to Schabir Shaik! "Sweeten the deal" by getting a deal with which all parties are satisfied! Bribery vs Trading I have been consulting in, and teaching, negotiation and dealmaking for many years and I am continuously asked to explain the difference between bribery and negotiation. Let's go back to children for the moment. When you want your six year old to get in the bath, he will usually start with delay tactics. Then he will change the subject, trying to distract you, but eventually he'll get to something like "I'll go bath if you give me ice cream tonight". Or you may even offer the ice cream to get him into the bath! Are you bribing him? By my definition, you are trading with him. For me, bribery is when you ask for or offer something that, should the law or your boss or your partner find out about, will land you in very hot water. The Concise Oxford Dictionary (10th Edition) defines a bribe as "dishonestly persuade someone to act in one's favour by a payment or other inducement". Where bribery starts and ends is a call you need to make in defining your trading parameters. All I know is that if it is going to get you into trouble, you shouldn't do it! The Loved Ones In the last article, and again in this one, I cautioned against trying to get something in return - or trading - with your loved ones. I have also said don't give "gifts". What about this advice when it comes to those you love? I am not suggesting that when you get home this evening and your partner wants you to hang up your clothing, you retort with "well if you take me out for dinner I'll hang up my clothes". You are far more likely to have an argument than get dinner! There are times - and loved ones are a case in point - when you may want to give something, or do something for somebody, out of the generosity of your heart. Go ahead and do it. Just be very careful of saying "I was being generous" when what you were really doing was avoiding trading and thus making a poor deal. Do not pretend, like a delegate did on a recent course, that you "love" all your customers and thus you can give things away to them without getting something in return! Use the tips in this article. They will help you to not only improve the quality of your deals and make more money, but also to have more fun when you do deals. Enjoy! Kim Meredith 11 January 2007 ABOUT THE WRITER
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