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From The Editor's Desk - The Power Of Gifts |
Christmas is just round the corner (!)
There are a few months before Christmas. Guaranteed we will be bombarded with decorations and "Jingle Bells" ads by the middle of October. Retailers are enticing us to spend more and more over an extended period of time. We can bemoan this commercialisation but most of us fall for it anyway because actually we like giving gifts (and, of course, receiving them!)
How do you choose gifts?
Depending on our personalities we approach gift buying differently. My one sister keeps her eyes open the whole year and stockpiles so that at any given time she can open her magic cupboard and find "just the right thing" for that person at that time. My other sister works on the strategy that it's the thought that counts and that's what you get - the thought.
Gifts and negotiation
The question is how do gifts play out in the negotiating arena? I recently heard an ad on the radio where a buyer starts negotiating a seller but ends up bargaining as if he was the seller. He closes the deal by saying he'll throw in "some chutney to sweeten the deal." Do we give gifts to "sweeten the deal?" Do we give gifts to get a deal? Is this bribery or negotiation? We need to qualify our use of gifts very carefully when setting up deals.
Gifts are wonderful
However, in our lives there is always a place to give and receive gifts with grace and gratitude. We are therefore grateful, in this newsletter, for the wisdom shared by our coaches, as well as a truly amazing endorsement from one of our The Dealguru™ graduates.
And, our gift to you is that we will be issuing a full newsletter each month from now on!
Leigh Harrison
Remaining Open Programmes for 2009
There remains only two Open Programmes for this year. You can take advantage of these by contacting:
Julie Purkis: tel: +27 11 440 0193; email: juliep@thedealmaker.com.
For more information on the courses please visit our website.
The remaining programmes in South Africa for the balance of 2009 are:
The Dealmaker™ |
Venue |
03 - 05 Nov 2009 (Tues-Thurs) |
Johannesburg |
The Dealguru™ - Executives Only |
Venue |
14 & 15 Oct 2009 (Wed,Thurs) |
Johannesburg |
Of course we can always run specific and customised programmes for your company. If this is something you would like to explore, you can book an appointment with one of our consultants via Julie.
Featured Programme: The Dealguru™
The Dealguru™ is an exclusive and very intensive two day programme for executives (ie: people who have held a board position or partnership with a large company) or people with extensive experience at an executive level, experienced senior people being groomed for executive positions, graduates of The Dealmaker™ programme, etc. The programme competes directly with Business School MBA modules and is presented only by The Dealmaker™ Master Coaches. The course focuses on both advanced dealmaking skills and business process optimization and implementation.
Here are some of our Graduates' comments...
"It was invaluable and has certainly made me more conscious and competent of my strategies going into closing deals." - Shelley Marsh, Director, Mentoring For Success Pty Ltd
"This course is a real refresher and gives you a good evaluation of yourself in front of your customer. Learnt a lot ... Highly recommended" - Anthony Davies, Sales Manager, Sithabile Technology Services Pty Ltd
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The Gift Of Our Coaches' Negotiating Wisdom |
What is the most helpful thing you do to negotiate your best deals? And why is it helpful?
Plan
Proper preparation and planning prevent poor performance. You MUST know exactly what you want out of the deal. - David Black
Plan, Plan and Plan - I have found out over the past years that Planning is the foundation for a successful business deal. If you are prepared you are already half way there...you are also able to adjust the power play nicely in your favour. In my case it also helps me to reduce my 'stage fright' before and during a meeting substantially! At the same time if you come across as well prepared it gives you further credibility in a negotiation and also shows a certain amount of courtesy towards the person you are dealing with, meaning that I took the time to arrive prepared. - Holger Morhart
Propose
Tell the other person what you want. Put your proposal on the table first. There is no place in negotiation for being shy and retiring, or for a position of "let's hear what the other person has to say first." Do your homework, understand the "ball park" for the discussion and tell the other person what you want. Then be prepared to negotiate. Negotiation by definition is "giving to get". - Kim Meredith
Listen
For me the art of persuasion, which entails understanding needs and expectations and more importantly listening. I think that many a negotiation never gets past first base because people are formulating replies before they have heard what the other person is really saying. Listening to people allows you to manage the key needs of any person (especially in a negotiation) - to be understood, appreciated, respected and their self interests addressed. - Iain Johnston
Be trustworthy
Relationship building around trust, become their trusted adviser and you have a client for life! If your product or solution isn't the perfect fit, tell them what is and who to speak to. When they realise that you are acting in their best interest and not yours you've reached the trusted advisor stage. - Paul Keates
What is the worst mistake you think a negotiator can make?
Greed
Being greedy and refusing to trade. - David Black
No flexibility or confidence
Lacking confidence and therefore not clearly stating what you want or being overly aggressive and not being flexible. - Kim Meredith
Not addressing client needs
The worst mistake a negotiator can make in my opinion is not making any attempt to address the other person or party's key needs. It will build resentment, aggression and quickly bring to the fore, all the human dynamics that drive negotiations to deadlock. - Iain Johnston
Broken promises
Don't make promises that you can't keep. One broken promise can undo all your hard work in an instant. - Paul Keates
Inventing information
To invent information - I have tried this once or twice and it does not work (for me). For one you get nervous, have to concentrate much harder not to get caught and also if you get caught you can kiss the deal goodbye immediately since your credibility disappears out of the window... and will not return for a long time! - Holger Morhart
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The Gift Of Endorsement: Pieter van Niekerk, CEO, NetcureBelow is a letter of endorsement from Pieter which he has allowed us to reprint. Thanks for these amazing words, Pieter. It is gratifying to know The Dealmaker™ Programme can have such a significant impact. |
I have not endorsed any product or service to anyone in many years and the fact that I would take the time to do so in this instance, bears testimony to the value I received from having participated in this extraordinary experience.
My colleagues and I still - after approximately a year of having attended this high intensity event, quote the methodology and principles on a daily basis. As the CEO of Netcure I actually have a "fuzzy gorilla" sitting on my desk and all of my team members have seen and heard me explain the simple yet profound concepts behind its use (sorry but to understand that comment fully you'll have to attend the course).
Specifically, I was impressed with the practicality of not only the material presented but also the interactive manner in which the course was designed to drive every principle home. This is not an incremental learning experience I can assure you. It will revolutionize how you look at business, how you win it and how you keep it!
I have been a business owner and senior executive for many years with an MBA and several other degrees. This still rates in my mind as one of the best investments I have made in my own development. I hope it does the same for you.
Regards
Pieter van Niekerk
CEO: Netcure (Pty) Ltd
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"The Real You" InterviewInterview with Bettina Mokete, Corporate Accounts Executive, Khula
The Dealmaker™ and The Dealcloser™ Graduate |
Bettina has been working for Khula for the past several years. Khula Enterprise Finance Ltd is a wholesale finance institution which operates across the public and private sectors, through a network of channels to supply much-needed funding to small business. Its primary aim is to bridge the "funding gap" in the SME market not addressed by commercial financial institutions.
Established in 1996 and operating as an independent agency under the auspices of the Department of Trade and Industry, Khula is recognised for its reputation as a major force in the development of the SME sector.
1. When you were six, ten and 16, what were your dream jobs?
Soldier, Nurse, Dietician
2. What was your first job and how much was your paycheck?
FNB as a graduate trainee, R3 200
3. In one sentence, describe your current job to a five year old
I am like a bank. I give money to people and I get something back in return to help small businesses grow.
4. Can you share one idea that someone could put into practice that would help them to improve their networking skills?
What prevents people from effective networking is their habit of prejudging. Before you know what I can do for you, you have dismissed me and I am already out of your life.
5. Where is the most interesting place you have ever visited? Why?
Swadini, Mphumalanga. Because I love nature. And while we were there a troupe of monkeys climbed into our car when we got out to look at the view. We had some trouble getting them out, especially as we worried they would take the car keys.
6. What is the best advice a grandparent ever gave you?
Who I am today is because of my grandmother.
"Even if I grow up to be successful never look down on others."
"You can't change the direction of the smoke from the fire so move where you are sitting."
7. Do you have a "Life List"? If so, name three things that are on your List?
Own my own business
Be debt free by the age of 55
Never take anything seriously to upset my life - be happy
8. What do you do when the going gets tough?
I start by swearing but I end by praying.
9. In your career, what has been your greatest achievement so far?
Having deals approved and knowing the impact on people in rural areas
10. If you were President for one day, what law would you put in place?
I would bring back the death penalty - an eye for an eye is what I believe in!
11. If you could choose the President of the entire universe, who would you choose and why?
This person is not yet born - but maybe my son one day!
Feature Article: "What Is The Difference Between Bribery And Negotiation?" by Leigh Harrison
Is there a difference between negotiation and bribery?
If a mother tells her four year old, "If you eat your spinach, I'll buy you an ice-cream" is she negotiating with or bribing her son? A mother in the UK was found to be giving her five year old a pound a pea! Is a father bribing his daughter when he promises her that if she gets straight As for her matric he will buy her a car, or rewarding her?
Flying clients in to the World Cup and giving them five star treatment is seen to be acceptable client relationship management. However, buying your client a car (which would probably cost the business less!), is probably not. So what is the dividing line between bribery and negotiation?
What is negotiation?
The Dealmaker™ programmes defines negotiation as primarily trading. That is, in order to get what you want you have to conditionally give the other party what they want. Negotiation is understood to be the process of coming to an agreement as to what is a reasonable exchange of value between the two parties.
An example of negotiation would be trading volume for discount, or no increase in price for immediate down payment. In negotiation you are using a combination of incentives and disincentives to encourage the other person to accept what you are offering.
What is bribery?
The Oxford Dictionary defines a bribe as "money etc offered to procure (often illegal or dishonest) action or decision in favour of giver." Sounds like negotiation to me! Except for the "illegal or dishonest" part, of course!
What therefore is the key difference between negotiation and bribery?
In essence it is ethics. There are no "golden rules". It is going to have to be up to you and your value system to determine the difference.
Of course companies try to draw the boundary lines to prevent some of this blurring. Unilever do not allow employees to receive gifts above a certain value - it may even be as low as R100. Some companies do not allow their employees to receive any gifts whatsoever.
Is it a bribe or is it business?
In many countries and cultures around the world, what the Western world would classify as a bribe is seen simply as a "gratuity" for services rendered. In order to get round strict company policies regarding bribery, one corporate employs "Protocol Officers" to manage the process of paying the various "gratuities", otherwise business would grind to a halt. In other words, cultural considerations also come into play with regards what is in actual fact bribery.
Intel were fined €1.06 billion by the European Commission in May for anti-competitive pricing. Intel, which sells about 80% of microprocessors for PCs in Europe, admits to making extensive use of discounts and rebates. This is obviously their sales strategy. What is the problem? Intel is accused of making these discounts and rebates conditional on excluding its rival, AMD. - The Economist, 16 May 2009 Is this business or bribery?
You decide
Where there are guidelines it is easy. The rule of thumb is: if it is going to get you into trouble with your partner, with your boss, or the law see it as a bribe. If the dividing line between negotiation and bribery is blurred you are going to have to decide. And it may be different to the next person.
Use your gut sense, that internal guidance system that you feel in the pit of your stomach. It is probably your most accurate gauge as to what constitutes negotiation and what constitutes a bribe.
Inspirational story: "How Much Are You Worth?"
A well known speaker started off his seminar by holding up a $20 bill. In the room of 200, he asked, "Who would like this $20 bill?"
Hands started going up.
He said, "I am going to give this $20 to one of you but first, let me do this." He proceeded to crumple the dollar bill up.
He then asked, "Who still wants it?" Still the hands were up in the air.
"Well," he replied, "What if I do this?" And he dropped it on the ground and started to grind it into the floor with his shoe.
He picked it up, now all crumpled and dirty. "Now who still wants it?" Still the hands went into the air. "My friends, you have all learned a very valuable lesson. No matter what I did to the money, you still wanted it because it did not decrease in value. It was still worth $20."
Many times in our lives, we are dropped, crumpled, and ground into the dirt by the decisions we make and the circumstances that come our way.
We may feel as though we are worthless. But no matter what has happened or what will happen, you will never lose your value. You are special - Don't ever forget it!
Taken from: http://www.indianchild.com/inspiring_stories.htm
Concluding Remarks: Gifts To Give Vs Value Exchange
To give something completely freely, with no expectation of anything in return, is rare. But in our private lives this is our choice. In business however, deals are made where there is an exchange of value.
As we begin the march to Christmas I hope you choose the gifts you give wisely and lovingly, but remember to value what you give in business so that you receive equitable value in return.
Enjoy your dealmaking.
Leigh
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