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From The Editor's Desk:
Being "Different" |
Depending on the tone of your voice the exclamation, "That's different!" can either be an insult or a compliment. The recent UK elections have proven that while we like to play with the idea of the new and different, people often stick to the tried and tested, which is why the Liberal Democrats didn't get the kind of votes the polls indicated. So just as Kim Meredith, CEO of The Dealmaker Programmes Company, recently challenged a group of life and executive coaches to state what differentiated them in the market place, we too have to ensure that we capitalise on our uniqueness in business. However, we can't afford to be just out of the ordinary, we have to prove that what makes us different has value for the customer. Finding the power of what makes you effectively different is the theme of this Newsletter.
"In order to be irreplaceable one must always be different." - Coco Chanel (French Couturier; 1883 - 1971).
Enjoy your dealmaking.
Leigh
Strictly Come Dealmaking: Fourth Of Ten Drop Dead Dealmaking Moves
The Power Of Power
This is our fourth dealmaking tango step of the year. When the tango is brilliantly danced, you cannot help but be mesmerised by its power and precision. Last month we highlighted the flexibility of the dancers, but that never detracts from the energy, passion and focus that give this dance its thrilling power. In the same way excellent dealmaking is distinguished by maximising the power play.
Why is power important?
The party with the most power dictates the terms of the deal, it's as simple as that. If you have the power of, for example, size, market share, budget, authority, or sole supplier, the strength of your position allows you to get the deal you want. The temptation, if you feel you are in a weak position in a negotiation, is therefore to capitulate to the other party's demands.
Of course, those who think they have the power can use it and abuse it only for so long before it comes back to bite them. The history of battles through the ages testifies to how large, well equipped armies, who thought they were unbeatable, have been defeated by smaller, more committed and innovative bands of fighters.
We learn lessons from the tango too. In the most exquisitely danced tangos, while the male and female dancers perform different moves, go in different directions and have different strengths, both are equally powerful. If you do not believe you are negotiating from a position of power you need to find ways of increasing your power play to ensure a better deal for all.
The beginning of power
To start with, you have to assess where the power lies. On the surface it may appear obvious. However, you need to do thorough research and investigation before you can better judge this. Then in the course of your discussions, negotiations and getting to understand the other party, your assessment of the power base may again change.
George Ross, in his book, Trump Style Negotiation, encapsulates in the title of one of his chapters what it takes to search for a balance of power. The chapter is called, "Probe to learn what the other side wants, flush out weaknesses, and uncover important information."
One critical aspect of information that is required in this probing is finding out and recognising who needs the deal more. Obviously, whoever needs the deal more is in the weaker position. Small businesses suffer from this by relying too heavily on a "the one big deal", or big businesses when they depend on a single supplier.
Behind all this lies the one key element to ensuring you begin from a better position of power, and that is quality planning. The Dealmaker Programmes Company recommends that for every hour of engagement in negotiation, four should ideally be spent planning.
Creating power
Give the impression of power. Your title, your credentials, and your appearance all contribute to creating a perception of power. The point is not to lie, because you may well get caught out and then whatever credibility you may have built up is destroyed. However, you can say things, and dress in a particular way, that supports a more powerful, credible image in the eyes of the other party. For example in the early days of starting my business people would ask, "So how long have you been in business?" "Six months" is a pretty weak answer! So I would say, truthfully, "I have twenty years experience."
As George Ross emphasises, knowing what the other party wants or doesn't want is vital to ensuring a better power play. Ross admits that Donald Trump can't bear deadlock. Recognizing that Trump hates things to drag on can be used to your advantage by either offering to speed things up as an incentive, or threatening to bog things down as a disincentive. Using carrots and sticks to entice the other party and manage deals is a great way of creating power.
The power of communication
No-one can deny the power of words. Barack Obama won an election on three simple words, "Yes, we can." How we phrase what we want to say, how we answer questions, how we speak, all has an impact on the deal. This goes all the way down to the written contract and the dreaded "fine print."
Therefore planning what we are going to say and how we are going to say it is critical. As is listening. By listening carefully we can pick up clues as to what the other person really wants, or what their constraints are. On a recent sales call the potential client was quite impatient for us to say what we offered so he could quickly dismiss us and get on with his day. By holding back the information he was asking for, we were able to find out more from him about his actual business needs and therefore could tailor the information we presented to be more in line with what he needed.
Power negotiating
The place and use of power in negotiating is more subtle and dynamic than might at first appear. As business has evolved we cannot simply rely on "bully" tactics. Weaker players can find areas of unexpected power, and where the power lies can shift over time and in different contexts. So, planning, keeping on your toes, and listening carefully are all vital tools in being a powerful dealmaker.
Leigh Harrison, Johannesburg, May 2010
For Executives Only: Featured Programme - The Dealguru™
"Imagine that there is a suitcase containing 100 million dollars. You can walk off with it, but you then have to accept that a stranger on the other side of the world will die." Do you pick up the suitcase?
The Dealguru™ is an exclusive and intensive two day programme for Executives Only - people who have held a board position or partnership (or have extensive dealmaking experience) with a large company. Senior Graduates of The Dealmaker™ programme are also invited to attend. The number of attendees is strictly limited.
The programme competes directly with Business School MBA modules and focuses on advanced negotiating skills and business process optimization, particularly the dealmaking expertise needed for Mergers and Acquisitions, complex high-value contracts and other large transactions.
Why The Dealguru™?
- Your level of expertise will be elevated to that of a World Class Dealmaker in only two days.
- You receive personal coaching from expert dealmakers - Executives who have earned their international reputations the hard way - lecturing and doing business deals across the world.
- You will be able to immediately protect and increase not only your own financial wealth, but also the profitability of your organisation.
Value proposition
The Dealguru™ gives Executives the platform to examine, debate and apply the strategies of world class negotiators and dealmakers such as Donald Trump, Richard Branson et al. With participation limited to Executive decision makers, delegates are able to hone their dealmaking expertise to the highest possible level in the shortest possible time. While challenging their knowledge and ideas, Executives also have the opportunity to network with people exploring similar intellectual horizons.
Feedback from previous programmes
"This programme is up there with the best" - Chris Bamber, CEO SYSDBA
"Strong practical orientation - simple steps to improve negotiation driven skills and tactics" - Niezeem Davids, ex-CO: Strategy and M&A Vodacom
"Coach has a wealth of experience and able to adapt to the audience's different professions" - Dr Hussein Cassim, MD Richester Foods
"Let me tell you this is powerful stuff. I won't be surprised if this leads to the doubling of your revenue, and a threefold increase in margin." - Patrick Evans, ex-Country manager, global IT organisation
Remaining open programme for 2010 in South Africa
The Dealguru™ - Executives Only |
Date |
Venue |
13 & 14 October 2010 (Wed-Thurs) |
Johannesburg |
Win a place on the Dealguru™
You can win a place for yourself on The Dealguru™ in October by entering our competition. All you need to do is submit an account of your best deal - there is no time frame as to when the deal might have happened, and you can submit it either written or telephonically. This competition is open to all our readers, whether you have attended any of The Dealmaker™ programmes or not. The details, process of entering and rules are on our website.
Booking
To book a place on the South African, European OR American programmes, or an appointment with one of our consultants to help you evaluate what will work best for you and your company, send an email to enquiries@thedealmaker.com.
The Power Of Partnership: One Of The Dealmaker Distributors
The Dealmaker Programmes Company has recognised that growth is only possible when you empower and work with others. Therefore it has formed strategic partnerships and enabled new businesses to develop in order to expand into new markets. Currently there are four such partnerships: two in South Africa, one in Europe and one in the United States. In this newsletter we feature one of the South African distributors, called Profit Re-engineering. Read more about them below and contact them directly if you wish. - Ed
PROFIT RE-ENGINEERING (South Africa)
Sharon Maxwell and Paul Keates
Paul Keates, Managing Director of Profit Re-Engineering, and I first worked together 15 years ago when he owned an Information Technology company, which I had joined as a temp. I just forgot to leave - for about nine years! In fact I ended up becoming the Service Manager of the Technical Division.
I remember being exceedingly nervous on my first day until Paul breezed through the office, stopped at the desk I occupied and said "Hello - who are you? Do you work here?" "I'm Sharon. Uh, yes - for a bit", I stammered. "Oh good - welcome" and he was off.
Paul and I established a good working relationship over the years, so when he was looking for someone to help launch his new business, and I was looking for something new and exciting, it made sense for me to get on board once more. Paul is an inveterate entrepreneur and while running several businesses had attended The Dealmaker™ programme. The impact of the programme on him was such that he then took time out to facilitate the programme. This only served to convince him that The Dealmaker™ suite of programmes offered the cutting edge negotiation and sales skills businesses needed to set them apart, and this is where he wanted to invest his future business interests.
My own experience of The Dealmaker™ is that it's a programme which will pull you out of your comfort zone and probably take you to a dimension you didn't realise you were capable of achieving. One of my key learnings from the course is: "Never forget to ask for what you want".
Although Profit Re-engineering is relatively new in the market we are fortunate to represent an established brand. We focus more specifically on The Dealmaker™ and The Dealcloser™ programmes, and through this directed effort, have successfully secured several large customers. We have already run ten programmes this year and are geared up for more!
Sharon Maxwell, Johannesburg, May 2010, sharonm@thedealmaker.com.
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Graduate Mentors: Learning From The BestGraduate Mentors: Learning From The Best
An Interview With Chris Bamber, CEO SYSDBA and The Dealguru™ Graduate |
Chris spent his childhood in the UK but immigrated to South Africa during his high school years. Over the course of his school life he went to thirteen different schools! Two years in the army gave him enough time to think about what he wanted to do in the future, which turned out to be the wonderful world of computers and IT, which he loves to this day. Chris got on-the-job training in the mining industry and then moved to Johannesburg to train customers in mainframes. He got an opportunity contracting to help a specific customer, which grew into the company SYSDBA is today. SYSDBA has been in existence since 1996, and specialises in bringing together visionary technologies from around the world to provide innovative solutions to client's data centre issues.
By his own admission Chris is a fantastic cook and also plays guitar. He is married and has a seven year old daughter.
1. How did you establish a niche market?
We started as an IT consulting firm but when a supplier was unable to deliver a product we recommended for a client, we decided to also sell the solution directly. Our specialty is sourcing cutting edge technologies to solve the client's problem.
The difficulty with this is most people haven't heard about the products, there are typically no local references, and we are often competing against larger companies. We have countered this over the years by using local references from successes we have had solving client's issues. We also thoroughly research the concerns a potential customer may raise and make sure we have covered every eventuality to counter their objections.
Lastly, we differentiate ourselves through our first class level of service.
2. How do you succeed when your competition is so much bigger and well known than you?
Actually much of what we do is in cooperation with our competition, because you can only have finite coverage. The advantage of this is they often have a product that our client can use, and we can capitalize on the existing vendor relationship while adding value through our consulting and services.
Working with suppliers who are also your competitor's means you have to work consistently with integrity. And the simple rule with this is, if you don't you will lose; one-deal wonders have no value in the long term. You have to take into consideration, though, that it takes time to build trust, and everyone is trying to make the most profit they can.
3. How do you manage risk?
Even though we invest in first to market technologies, we manage the risk firstly by ensuring that our investment is in line with the future market with where we believe IT is moving. We keep track of market trends through the use of analysts and the internet. We also have a deep understanding of where common problems are occurring in companies because we are working closely with their data centres. We are therefore able to judge what will be needed fairly accurately.
One of the problems, of course, is that there are many exciting new technologies and products. Therefore we keep our mix of products complementary to each other. We are seeing that the current issue in companies is primarily around consolidation and optimisation so that is where we concentrate. This can always change, so the challenge is to remain visionary and keep ahead, making sure we stay relevant and competitive.
Because any product we represent involves significant investment, not only in the technology but in training people to maintain and service the product, we have a strong team which tests every possible decision. I also visit the vendor before we commit to a relationship and I can quickly gauge the ethos of the company and the level of the people, which assists in the decision whether to go ahead or not.
4. What impact did The Dealguru™ have on your understanding of how you do business?
I am better able to identify what should be a negotiation rather than a straight yes or no discussion. In this way I go into meetings better prepared because I am seeing more on the table than just price. So I am getting more value out of my deals.
5. Why do you enjoy what you do?
I have always loved technology and I get to be involved with the newest and best in the industry. There is also nothing like the satisfaction of making a positive difference for a company by fixing a problem they had. That's the beauty of what we do, we don't sell anything, we solve problems.
Leigh Harrison interviewed Chris Bamber in Johannesburg on 6 May 2010
Feature Book: Outliers: The Story of Success By Malcolm Gladwell
Outliers are different. So now you know why this is our feature book for this month! Malcolm Gladwell is an author, journalist and intellectual adventurer. His previous two books are Tipping Point and Blink. He uses stories, case studies and investigative research to challenge our commonly held perceptions. - Ed
What is an outlier?
Gladwell lists the definition of an "outlier" as:
1: something that is situated away from or classed differently from a main or related body.
2: a statistical observation that is markedly different in value from the others of the sample.
The "outliers" Gladwell is referring to are those people who stand out from the crowd by their phenomenal success. He studies such people as unusually healthy villagers living in Roseto, USA; intellectual geniuses; The Beatles and Bill Gates.
His question is, "What makes these people different?" Are they uniquely gifted that they are able to rise above the rest? Is it that fortune has favoured them with a talent most of us do not possess? His simple answer is no!
What makes an "outlier"?
Gladwell argues that opportunity and legacy are by far the greater contributing factors to success than individual talent. He doesn't dismiss talent, and he emphasises the critical role of long hours of hard work, but his point is that it is often arbitrary conditions and situations that create success.
Opportunity
By opportunity Gladwell is referring to the opportunity to practice, the opportunity to gain social acumen, and the opportunity to be seen and recognised, amongst other things. These opportunities are often not in the control of the person or group, but rather a combination of luck, circumstances, family background, and financial resources, as well as willingness to do the work.
One of the things Gladwell highlights is what he calls the "10, 000 hour rule". The 10, 000 hour rule is the amount of time it appears it takes to become an acknowledged expert in a particular field. He gives the example of The Beatles who had the opportunity to play eight hours at a stretch in Hamburg, for days on end. He refers to a study of musicians that suggests "once a musician has enough ability to get into a top music school, the thing that distinguishes one performer from another is how hard he or she works. That's it. And what's more, the people at the very top don't work just harder, or even harder than everyone else. They work much, much harder."
Legacy
Rather controversially, Gladwell also explores how ethnic and cultural considerations can impact success or failure. He gives the example of the abnormally high number of Korean Air plane crashes over a period of time, which was finally recognised to be related to the conditions of communication inherent in Korean social structures and language. He also relates what appears to be an exceptional ability amongst Chinese people to do Maths, to a history based on cultivating rice and all that entails.
Conclusion
We may not all have the luck of certain opportunities, or be born into the "right" social group, but the good news is that success is also not totally dependent on whether you are born with a particular talent or not. With awareness societies can change unjust circumstances, and with hard work even moderately talented people can become brilliant!
I Am In Love With My Uniqueness By Leon Klein
Optimising our uniqueness is a business strategy, but who we are as unique individuals also needs to celebrated. Leon Klein, a South African writer, who pulled himself out of a background of poverty and gangsterism, invites us to delight in who we are, without making excuses for staying the way we are. - Ed
Learning To Love Myself
I LOVE MYSELF, BIG NOSE AND ALL. The size of my nose got me teased a lot by my peers in school. It bothered me for a long time. In fact, my nose almost became the sum total of who I was. It became the core of my negative self-identity. It controlled my actions, attitude, behaviour, self talk and self-worth.
This changed when I came to the realisation that my nose was just a tiny part of who I am, not the whole of who I am. This new way of looking at myself has led me to focus less on my nose and more on all the many other beautiful parts of who I am - including my nose. I learned to accept and embrace my nose as a significant part of the beautiful person I am. I realised that I could not be fully me without my big nose.
Follow The Agenda Created By Your Uniqueness
Many people spend most of their lives trying to change themselves into what is more acceptable to other people. Their identities become the product of what other people want and wish for them.
The saddest thing to witness in life is to see how many people have lost their natural rhythm and flow of life. They become like, think like, behave like and live like others. They end up compromising their uniqueness. The result? They start living a life of pretence and they become the victims of the unrealistic expectations of others. They have dreams of their own, but never realise it. Why not? Because they are too busy living the dreams of others. Allow me to offer you a piece of free advice. See your differences, big nose and the like, as part of that which you need to offer to the world. Don't change it. Show people how much you embrace it as a part of your dream life - your authentic lifestyle.
If not, you will settle for other people's agendas for the rest of your life. Such people consciously and unconsciously follow the life agendas and lifestyles of others. Other people decide how they ought to live their lives. These people often say things like, "I don't know why I am doing the job I am doing"; "I struggle to say no to people"; "I feel so guilty and selfish when I enjoy myself".
Have you noticed that people, who do not tap into their uniqueness, normally live very unfulfilled, empty, boring, confusing and colourless lives? They rely on others to make their decisions; to affirm and encourage them. Others set their boundaries and determine their potential. Such people do not know the thrill of taking calculated risks. They seldom or never experience the rewards that come with trying out new things. Their lives are dependent on secure and yet boring routines created by others.
I cannot imagine living a life like that. It would strip life of its purpose and meaningfulness.
Not Everything Is Part Of Your Uniqueness
Do we really just blindly accept or justify everything about ourselves? Oh no. Let me just caution you here. Your bad attitude and destructive habits do not qualify, justify or permit you to say or even think: "This is who I am, there's nothing I can do about it." Don't use the consequences of your bad choices as an excuse to be who you are not supposed to be.
The choices we make daily are vital keys in living authentically - or not. Our bad attitude, overweight problem, unruly hair, bad dressing taste, plastic smile, dirty look, cold voice, incompetence... are not part of our uniqueness. We are not created with these bad attitudes or behaviour. These are learned attitudes and behaviour. They are destructive and do not contribute towards us becoming the best we can be.
These things are changeable. They can be changed through us making good, responsible, positive, wise and healthy choices. Go to gym, get a haircut, find a personality coach, read self development books, etc. Invest time on changing those changeable things. It is an investment in yourself. Trust me, the returns are life changing.
By Dr. Leon Klein, a family therapist and Head of a South African national initiative to develop places of counselling, from his book, Discovering An Authentic Lifestyle.
This excerpt has been adapted with permission from Dr. Klein.- Ed
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