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From The Editor's Desk - Reward And Recognition |
Is there a point to end of year staff functions?
Staff end of year functions serve a number of purposes: team bonding, an occasion to let your hair down, and of course, reward and recognition. Even though I freelance, I did so much consulting for one large corporate that I received the obligatory certificate at their annual staff get together. It was the Nescafe Award for my "complete addiction to coffee."
We love to be rewarded
Most of us would say we are above needing recognition. The satisfaction of a job well done is all we need. Nonsense! Why else are there the Oscars, the Emmys, the Louries, ICC awards, Best of Joburg, and so on? We thrive on reward and recognition.
The question is when last were you recognised for what you do? When last did you affirm or reward someone else for excellent work or service?
Congratulations to The Dealmaker™ Programmes Company!
In this vein, we wish to congratulate The Dealmaker Programmes Company, which has just been nominated as a finalist for the ROCCI/FNB Business of the Year Award. Read more about ROCCI and about this honour in this month's Newsletter.
We reward our readers
We are also going to put our money where our mouth is and in talking about rewards actually give a reward! So, if you have attended one of The Dealmaker™ programmes read further to see if your memory (or your manual!) will serve you in getting a prize. In addition, we offer a reward to the person with the best negotiation story from their own experience.
In this Newsletter we also look at the vital role that reward, or incentives, plays in our lives and in negotiation. So let me end with this important question:
"When last did you reward yourself?"
Leigh Harrison
Feature Programme: The Dealmaker™
Final The Dealmaker™ Programme for 2009
There is one last opportunity to attend The Dealmaker™ this year. The programme will run 3 - 5 November at Blue Valley Golf Estate in Johannesburg.
The Dealmaker™ is our flagship programme and results in the greatest behavioural change in negotiation skill of the delegates.
About the programme
The Dealmaker™ looks at the closing of a deal as the managing of the entire transaction (including all the negotiations along the way).
A primary outcome of The Dealmaker™ is to give anyone who does high level and/or complex deals the means to bring their deals to closure with the greatest degree of profitability. One of the problems with sales training is that it focuses on bringing the sale to a close, forgetting that other negotiations may only begin when a sale is supposedly closed. The Dealmaker™ considers the big picture by understanding:
- The need to maximise the profitability of deals
- How to close down a deal more effectively
- That standard methodology and tools (the Dealcrafter© in our case) allows for real control over the dealmaking process
The value proposition
The Dealmaker™ programme helps to address your profitability challenges by increasing the ability of your customer-interfacing people to negotiate and close deals more quickly and more profitably. Your investment in The Dealmaker™ programmes is guaranteed - no improvement, no payment.
What differentiates The Dealmaker™?
- The programme can be customised to meet your company's specific requirements and will be delivered by business executives (as opposed to professional trainers)
- The Dealmaker™ programme is supported with ongoing consultancy, if required - you aren't left in the lurch when it comes to the practical implementation of the programme
- The courses are coaching based which means that each and every delegate gets personal attention from an experienced business person in order to ensure their skill level increases substantially
- The Dealmaker™ programmes are recognized by Intermediary Support Services (the largest independent professional compliance practice in South Africa - see www.isssa.co.za) as being ethical and supporting corporate compliance practices
Graduates comments
"Excellent material, extremely well delivered. Entire course managed very well." - CEO, Cida Investment Trust
"Been to many 'sales' courses - this has to be the one course where I definitely will use everything from all three days." - Key Account Manager, Neotel
"The course is brilliant, painful, difficult, often exhilarating - it is well rounded, thoroughly planned and brilliantly executed." - Contracts Manager, SAP Africa
"Extremely grateful for the confidence instilled in me. Excellent course!" - Sales Executive, Swicon
Congratulations to The Dealmaker™ Programmes Company!
ROCCI Business of the Year Awards Honours businesses whose hard work has created successful ventures elevating them to be recognised for those achievements. Congratulations to all finalists The Dealmaker™ Programmes Company is a finalist in the Roodepoort Chamber of Commerce and Industry's Business of the Year Awards, which is co-sponsored and hosted by FNB and adjudicated by the South African Institute of Professional Accountants. (For our overseas readers, Roodepoort is a municipality near Johannesburg.)
This is a great honour for all of us at the company and indicates the visibility and impact of The Dealmaker Programmes Company in the market place.
There will be a Gala Awards dinner on 7 November when the winner will be announced. We wish them everything of the best. Hold thumbs for us!
Reader's Prize
In the spirit of recognizing superior performance we would like to reward our readers and past Graduates. Therefore the first person to respond by correctly answering the question below will receive their choice of one of the following two books -
- Brilliant Negotiations by Nic Peeling or
- Work Diva: how to climb the corporate ladder without selling your soul by Kim Meredith
The question you need to answer is this:
"What is the PEC Process©?"
Send your answer to leighh@thedealmaker.com. Please include your full name, email address, postal address and telephone number. The first person to reply with the correct answer will receive their prize!
Writer's Prize
To add some spice to our Newsletter we would like to include some real life stories from your dealmaking experiences. Have you negotiated any deals with a level of excellence or successfully and speedily closed deals using The Dealmaker™ or The Dealcloser™ tools? If so, write of your experience and we will print the best of what we receive.
If your story is chosen to be printed you will receive a very elegant and exclusive The Dealmaker™ letter opener.
Send your stories to leighh@thedealmaker.com.
Feature Article: "Incentives"
This is an extract taken from Freakonomics by Steven D. Levitt and Stephen J. Dubner, published by Penguin in 2005
This is an abbreviated excerpt taken from early on Levitt and Dubner's book. It highlights how human actions are most often dictated by the degree of incentive that encourages those actions. In this case the authors use an example of how real estate agents sell their own homes for more than they sell their client's homes. This is in spite of the logic that says that they stand to benefit from a higher sale price of their client's home as much as their own houses.
Do experts use their informational advantage to help you get what you want for the best price?
It would be lovely to think so. But experts are human, and humans respond to incentives. How any given expert treats you, therefore, will depend on how that expert's incentives are set up.
What is the real estate agent's incentive in selling your home?
Your incentive and the real-estate agent's incentive would seem to be nicely aligned. Her commission, after all, is based on the sale price.
But as incentives go commissions are tricky. First of all, a six percent real estate commission is typically split between the seller's agent and the buyer's. Each agent then kicks back roughly half of her take to the agency. Which means that only one and a half percent of the purchase price goes directly into your agent's pocket.
So on the sale of your $300,000 house, her personal take of the $18,000 commission is $4,500. But what if she could have sold it for $310,000? After the commission, that puts an additional $9,400 in your pocket. But the agent's additional share - her personal one and a half percent of the extra $10,000 - is a mere $150. If you earn $9,400 while she earns only $150, maybe your incentives aren't aligned after all. (Especially when she's the one paying for the ads and doing all the work.) Is the agent willing to put out all that extra time, money and energy, for just $150?
The answer is no!
It turns out that the real-estate agent keeps her own home on the market an average of ten days longer and sells it for an extra three-plus percent, or $10,000 on a $300,000 house. She wants to make deals and make them fast. Why not? Her share of a better offer - $150 - is too puny an incentive to encourage her to do likewise.
Extract from Freakonomics by Steven D. Levitt and Stephen J. Dubner.
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"The Real You" InterviewInterview with Brent Nestler
National Learning and Development Manager, Ricoh
The Dealmaker™ Graduate |
Brent Nestler is a dedicated Life Adventurer, passionate about Personal Development.
An internationally-certified Facilitator, and Results Coaching Systems Executive, Team & Life Coach, Brent is focused on assisting people with discovering, exploring and entrenching underlying knowledge, skills and attitude required to drive overall success. His approach to Training and Coaching encourages both highly-interactive participation, and practical, experiential implementation of what is discovered, for maximum effectiveness and goal achievement.
Ricoh South Africa (formerly NRG Gestetner South Africa) began operating in 1921, making it one of the country's oldest office automation companies and is a wholly owned operating company within the Ricoh Group. Today, Ricoh South Africa is a leading provider of document management solutions, providing cutting-edge hardware as well as software solutions.
Founded in 1936 in Tokyo, Japan, Ricoh currently earns over $22.2 billion in annual sales with over 83,000 employees and offices in over 150 countries. It has a rich history of innovation, combined with a deep rooted respect for the environment.
1. In one sentence, describe your current job to a five year old.
I'm like a super cool uncle, who helps you have lots of fun learning new stuff...
2. What has been the proudest moment of your life?
Fathering three magnificent daughters in twelve months, then actually surviving with sanity intact! Fatherhood has been a blessing, the enormity of which I could never have anticipated, and it just keeps getting better. Kids are the greatest teachers.
3. Where is the most interesting place you have ever visited? Why?
Physically, I've experienced some incredible places in the world. However my ongoing journey to the center of myself has to be THE most fascinating, as I absolutely love getting to know who I really am in my purest form, and thereby what I bring to the world.
4. Do you have a "Life List"? If so, name three things that are on your List?
I wish to have an Exclusive Learning, Coaching & Healing center in some beautiful tropical beach location, to which significant contributors in the world will come for inspiration. Becoming a microlight and paraglider pilot. I've explored lots of ground and underwater, so need to add flight. Finally learning how to play my guitar that I've owned for ages.
5. What do you do in your spare time to blow off steam or relax?
The "Weekend Warrior" in me loves thundering around awesome single-track in beautiful surroundings on my Mountain Bike. And to relax there's nothing better than dozing on the couch or in a hammock surrounded by birdsong.
6. If you were President for one day, what law would you put in place?
The Creative Contribution Act, making it compulsory to spend at least an hour a day creatively coming up with ideas and ways to actively contribute to personal growth, family, community, country and planet in a positive, non-destructive way.
7. If you could choose the President of the entire universe, who would you choose and why?
Imagine Jedi Master Yoda in that role. Much to discover and learn there is. Great power we have when together we work. So greedy and destructive, we do not need to be. Do or Do Not, there is no Try...
8. What would you like to be remembered for having achieved in your life?
I think I will be remembered as being passionate about and encouraging living a full, active life, that balanced a lot of adventuring and exploration of my inner and outer world, while also contributing positive inspiration to the lives of those I interact with.
9. How do you define "networking" and do you feel it is important?
Networking is simply pro-actively developing and capitalising on the relationships and resources of who you know and who they know. This is essential since none of us is as clever or powerful as all of us together.
10. Can you share one idea that someone could put into practice that would help them to improve their networking skills?
"Make it about them", and give rather than take. In other words, ask questions and do what you can to discover the best in the other. That way you will always be clear on the best resources available to you, AND the other will have appreciated, and hopefully enjoyed, feeling powerful after the time spent with you, which in turn will inspire them to gladly refer you to their network.
11. If you were given the opportunity to have dinner with one person, alive or dead, who would you choose and why?
Alive would have to be Richard Branson who is an inspirational, maverick adventurer in Life and Business. Dead would be Leonardo da Vinci. Both represent some of the greatest minds ever, and in both cases, just one dinner conversation could lead to ideas and insights of planet-shifting significance.
12. What is the best advice a business mentor gave you? Who was the mentor?
Having spent a lifetime giving away loads of Gorillas, believing that success would follow being seen as generous, my father helped me realize that there is "virtue in being selfish". In as much as this selfishness affords one the ability to get, so that one then has something of value to be able to give. This has further been powerfully enhanced by the recently acquired mantra of "Get what you want, by conditionally giving them what they want..." Powerful stuff.
If you are wondering what Brent means by "Gorillas", come on The Dealmaker™ to find out! - Ed
Negotiation Tips: "How do you get someone to do a deal with you?" By Leigh Harrison
Why should someone want to deal with you? Through the eyes of the Freakonomics authors we have looked at the role of incentives in motivating human behaviour. Let's now look at how we use incentives specifically in the arena of negotiation. Primarily, we are looking at the influence of power on the deal.
The importance of power
You have to create compelling reasons for someone to do a deal with you. If you are not able to do this, the other party may have little interest in doing the deal with you.
The first step in this process is to understand the role of power in negotiating. We are not talking here about dominance or brute force. We are not talking about mind games like where you position yourself at the table, what height chair you use, or tactics like "good cop, bad cop". We are talking about a creating a power base that gives strong enough reason for the other person to deal with you.
Maximising the power play
The second step is to assess where the balance of power lies between the two parties. This will take some research as well as instinct. One of the key questions to ask in this regard is: "Who needs the deal more?" If you do, this indicates a weaker position. This doesn't mean now you give up! You just have to work on increasing your power.
Another question to ask in assessing where the balance of power lies is: "Who will be taking the greater risk, and will this be setting a precedent?" - keeping in mind that precedent setting is high risk! Of course, with high risk comes the potential of high reward, which must be borne in mind from both sides.
If you find yourself in a weak position, you will need to find ways to strengthen your power and/or minimize theirs. There are three significant ways you can maximize your power play:
- Quality planning
- Use incentives (carrots)
- Use disincentives (sticks)
The power of planning
Rigorous preparation is essential. The adage: "Information is power", remains true. With careful research, using a variety of resources, you gather the kind of information that helps you gauge who you are dealing with, what they are looking for, what their strengths and weaknesses are, and what their hot buttons may be. This helps you position your proposal accordingly and negotiate with some savvy.
An old but trusted tool in any preparation is the SWOT analysis. Assessing your Strengths, Weaknesses, Opportunities and Threats, helps you explore how best to utilize your strengths and opportunities and address your weaknesses and threats.
The Dealmaker Programmes Company has created an excellent planning tool called The Dealcrafter©. It is a one page document that guides your planning, and your negotiation encounter, in such a way that you more guaranteed of the outcome you are looking for.
In all of this remember that hard work and commitment are rewarded with results.
The power of incentives and disincentives
The Dealmaker Programmes Company team spends a great deal of time and effort thinking of what they can give in return for appointments, in return for getting a deal, in return for getting a better deal. We have lists of incentives ranging from free books, to payment terms, to additional consulting. If a company that specializes in negotiation does this, don't you think it might be a good idea for you too?
Of course, with the proper planning you can better design an incentive around what that particular person or organization is looking for. This is where the negotiating skill of trading is so essential. Negotiation is about trading to get what I want by giving you what you want.
We must not forget that inviting someone to do a deal with you through the right incentive might not work as effectively as discouraging them from not doing a deal with you through some disincentive. This might be in the form of withdrawal of services, late payment penalties, lengthened delivery dates, or in some drastic cases, the threat of public "naming and shaming".
The most powerful incentive from a seller's point of view is if they are the sole supplier of a particular product or service. Where the buyer has no option it is about as powerful as you can get, as so well illustrated by Eskom! A strong power play from the buyer's perspective is being able to play competitors off each other.
Good negotiators use time as in incentive and disincentive. Financial year ends, pressure to deliver, and looming deadlines all create opportunities for deals to get done swiftly. Construction workers used the time pressure of 2010 to their advantage in striking for better wages this year.
The power of who you are
When going into a negotiation you need to decide what impact it will have on your power play to either go in alone or as a team. Of course, if there is only you, I suggest you simply take yourself! Going as a team could demonstrate a show of force, or it could backfire as being perceived as too aggressive.
You will need to establish your legitimacy and authority in the eyes of the person you are dealing with in order to ensure the appropriate balance of power. Remember: perception is reality!
Also, don't underestimate the power of first impressions and of course, ongoing impressions! This includes your appearance. Dress the part.
The power of the deal is also in how it is presented. This means that your use of words and language is critical. Subtle power plays can be indicated in your use of questions, silence and phrasing. However, don't get trapped into conflict and arguments, especially if you are in a weak position.
Lastly, if you can present your proposal first you have a powerful advantage. This is because the proposal on the table drives the deal.
Conclusion
You get people to do deals with you by shifting the power play in your direction. You do this through thorough preparation and analysis, through the use of incentives and disincentives, and through presenting yourself in the best possible light.
Leigh Harrison
Inspirational story: "Your work is recognized!" by Gary Hruska
It all began in Everett, Washington, where my project team was in the process of implementing one of our business systems. One morning, as I walked through the parking lot with one of my employees, I found a penny and picked it up. Playfully, I presented the penny to the employee and said, "This is a discretionary award for your efforts." He put the penny in his pocket. "Thank you," he said.
About six months later, I was walking with the same employee, this time in Los Alamitos, California, when I again found a penny and gave it to him.
Later, I had an occasion to go into his office and there taped on a piece of paper, were the two pennies. He said he was displaying them as his recognition for a job well done.
Other employees noticed the pennies proudly displayed and began asking why they hadn't received any. So I started handing out pennies explaining that they were for recognition, not for reward. Soon, so many people wanted them that I designed a penny holder. The front features a place for a penny and beside it the phrase, "Your work is recognized!" The back has slots for thirty more pennies and the phrase, "Your achievements count!"
One time, I spotted an employee doing something right and wanted to recognize her, but I didn't have a penny, so I gave her a quarter. Later that same day she stopped by and returned twenty-four cents.
That's how the "Prestigious Penny Award" was born. It's become a significant source of recognition in our organization.
Such a simple gesture and yet what an impact. This story illustrates once again that people love, no, need to be recognized. Tom Peters, Management Guru, says, "We wildly underestimate the power of the tiniest personal touches. I find the short, handwritten 'Nice job' note to have the highest impact." - Leigh
Concluding Remarks: What motivates you?
You may not be working for that pat on the back but it sure is nice when you get it! And when you are recognized it can spur you on to keep up the pace.
Jack and Suzie Welch in their newspaper column reply to the question: how do you motivate your staff? Their simple answer: money works almost every time! Yes, the best reward, nine times out of ten, is cash in the pocket. So while we recognize the need for recognition let us not ignore the fact that money is a powerful incentive. Not an easy commodity in our current economic climate, but what is scarce becomes even more valuable!
We hope that your dealmaking skills are helping you increase your bottom line.
Enjoy your dealmaking.
Leigh
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