From The Editor's Desk
Dear Readers
Firstly, a huge thank you to those readers who have been with us since our first Newsletter was scripted just one year ago. If you too find yourself wondering what has become of 2008, then you are not alone! How time flies when you are having fun! And on that note, as many of our readers will be taking time out to enjoy a well earned break in December, we have combined our November and December Newsletters into this Christmas edition. Our next Newsletter will be a combined January and February edition in the new year.
As mentioned in the October edition of the Newsletter, we asked Portia Ngcobo to freelance for us, and she has graciously agreed. We trust that you will find her touch to this Newsletter familiar. Welcome back, Portia.
As part of her counselling responsibilities, Portia has been helping people to manage their debt. Below she shares some pearls of wisdom to control the overwhelming urge to spend, spend, spend at this time of the year.
Enjoy the read - Julie Purkis
I'm back! The one thing I did not expect when I took up my fulltime counselling position was that I would miss writing the Newsletters and being part of The Dealmaker™ team. It turns out that I have become very attached to the Newsletter and its readers!
The festive season is upon us. This is the time of year when people are inclined to become shopaholics and spend too much, accumulating debt in the process. It is imperative to do some financial planning. Creating a budget for the silly season will help you know exactly how much you have available to spend on festivities, gifts and the like. It will also guide you as to where funds really need to be allocated, enabling you to keep control of your finances. Beware of credit cards. Although they are very convenient, they're an easy way of creating debt - so avoid using them unless the debt you incur can be covered in full at the end of each month.
You may want to draft a list of all the people for whom you want to buy a gift and allocate a specific amount to spend on each person on the list. Try not to exceed the limit you have set. If there are too many people on your list, why not combine with another family member and buy joint gifts?
If you start preparing for Christmas early enough, you will be able to shop around for the most competitive prices on your purchases. Look out for sales and stock up on gifts when prices are lower. Set dates to go shopping, and try to avoid spontaneous shopping trips which can lead to unplanned spending. Christmas Eve is not a good time to start your Christmas shopping!
To keep you away from the shops, I have prepared what I hope will be an interesting Newsletter for you to read.
In this month's edition of the newsletter
Highlights in this edition include a fascinating look at Barack Obama and the qualities he possesses - many of which could be used to describe a good business leader, as well as Kim Meredith's imminent book launch.
- "Did You Know?" - we explore Saudi Arabia, with the focus on negotiation as usual, and give you the lowdown on what not to do, should you find yourself planning a business trip
- "How To Negotiate A Seemingly Impossible Outcome" is this month's inspiration. Here, we are shown how to obtain that which could be considered unobtainable, simply through intelligent negotiation
- We chat to Felicia Letsie, Senior Channel Manager of Fastnet, in "The Real You Interview"
- "Negotiation Is An Expensive Alternative" is the name of this month's article written by the Managing Director of Spectrum Solutions
- In our "Tips On How You Can Improve Your Business" section we focus on a man who has commanded attention not only in the U.S.A., but also internationally - Barack Obama
- Travel Safely - some tips courtesy of Arrive Alive
Happy Holidays! - Portia Ngcobo
Did You Know?
Doing Business in Saudi Arabia
This month we feature what could be considered the wealthiest country in the world - Saudi Arabia. Saudi Arabia is the world's leading oil producer and exporter, with oil exceeding 90% of exports.
Saudi Arabia is an Islamic monarchy state without a set constitution, although traditionally the Koran is deemed to be the constitution. Saudi Arabia is ruled by a king who is simultaneously prime minister, thus both state and government head.
Arabic is the official language, with English generally spoken by Saudis who conduct business internationally.
Non-Muslims may not enter Saudi Arabia without an invitation, which usually involves being sponsored by a prominent Saudi. Once you enter the country, realise that you are beyond the protection of your government and are subject to Saudi Islamic law.
Negotiating in Saudi Arabia
- The pace of business is much slower in Saudi Arabia than in the West, so be patient
- Meetings start slowly with long inquiries into one's health and journey
- Decision-making can be a protracted process
- Business cards should be printed in English on one side and Arabic on the other
- Be prepared to leave multiple copies of brochures and materials as you may not have spoken to the real decision maker, and your proposal may have to be relayed to many others
- Arabic is a language of hyperbole. A Saudi saying "yes" may well mean "possibly"
- Protecting one's dignity is vital to Saudis. You may have to compromise on some issue to ensure your Saudi contact is not embarrassed
- Do not bring up the subject of women unless your Saudi counterpart does so first
- Similarly, avoid mentioning Israel
- Sports such as soccer, horse and camel racing (betting is prohibited), hunting and falconry are popular and good conversation topics
Punctuality is not considered a virtue in Saudi Arabia. Your client may be late for an appointment or not show up at all. You, however, should endeavour to be punctual. It is standard practice to keep foreign businesspeople waiting. Do not expect more than one appointment per day to be kept.
Extracted from "Kiss, Bow, or Shake Hands" by Terri Morrison and Wayne Conaway
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"The Real You" InterviewInterview with Felicia Letsie (here with daughter Palesa)
Senior Manager - Channel Sales for FastNet
The Dealcloser™ Graduate |
1. When you were a child, what was your favourite toy? Why?
Definitely my bicycle. Very practical, and it got me places.
2. When you were six, ten and 16, what were your dream jobs?
A Teacher, a Chartered Accountant, and a Marketer.
3. What was your first job and how much was your paycheck?
I worked as a bank clerk and the pay was enough to pay my school fees, and still have some pocket money leftover.
4. In one sentence, describe your current job to a five year old.
I hunt and seek out new ways for my pack to thrive at what they do. In the end everybody wins.
5. Tell us one thing nobody knows about you.
I do not indulge in fantasy.
6. What is the biggest lie you tell about yourself?
I try to live my life purposefully, so there is no reason to lie.
7. If you were an animal, which animal would you be and why?
A lioness. She hunts instinctively in a cooperative fashion, and executes her skill with precision and teamwork.
8. What would your partner/spouse say are your three greatest strengths?
Energetic, compassionate, controlled.
9. In your career, what has been your greatest achievement so far?
Exactly what I do now, setting up a Channel from scratch, with multiple focus areas, and which drives new revenue streams for the business.
10. What do you do in your spare time to blow off steam or relax?
I love to relax at home with my two daughters; they provide the best entertainment value I could ask for. I also love to read a good biography.
11. What is your favourite gadget at the moment?
My cellphone, it's irreplaceable.
12. What would you like to be remembered for having achieved in your life?
- That I was a good mother and mentor to my two girls.
- That I made a contribution to the development of others.
From what we have seen, Felicia, you are certainly making a difference. Thank you for your input.
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Tips On How You Can Improve Your Business: Steady Leadership
Barack Obama - 44th President of the United States of America |
This article is undoubtedly topical yet extremely relevant - not only in terms of politics, but also in business. Who didn't watch with bated breath while these developments unfolded right in front of our eyes?
Barack Obama made history when he became the 44th President of the United States of America. He won the presidential election decisively for many solid reasons, not least of which, weakness on the part of his Republican opponent, John McCain. One of the reasons for Obama's win is deemed to be his steady leadership and calm temperament.
Steady Leadership and Calm Temperament
As of 21 October 2008, Barack Obama had earned over 120 newspaper endorsements, versus John McCain's 33.
Every Obama endorsement referred to his presidential-like personal and leadership qualities. All echoed the same sentiments regarding Obama's calm, steady, thoughtful nature, versus McCain's impetuousness and unpredictability.
The Chicago Tribune: "We have tremendous confidence in his intellectual rigour, his moral compass and his ability to make sound, thoughtful, careful decisions. Obama is deeply grounded in the best aspirations of this country, and we need to return to those aspirations. He has risen with his honour, grace and civility intact. He has the intelligence to understand the grave economic and national security risks that face us, to listen to good advice and make careful decisions."
The Salt Lake Tribune: "Under the most intense scrutiny and attacks from both parties, Obama has shown the temperament, judgment, intellect and political acumen that are essential in a president that would lead the United States out of the crises created by President Bush, a complicit Congress and our own apathy."
Various leadership characteristics are defined in these extracts. Just as in politics, a leader leads through example. Briefly what defines a (successful) Leader?
A Leader...
- plans
- has a vision
- shares the vision
- takes charge
- inspires through example
"The very essence of leadership is that you have to have a vision. It's got to be a vision you articulate clearly, and forcefully on every occasion." - Theodore Hesburgh, President of the University of Notre Dame
Leaders have vision, and they share a dream and direction that other people want to share and follow. The leadership vision goes beyond the organizational mission and vision statements. It permeates the workplace, and manifests in the actions, beliefs, values and goals of an organization's leaders.
A great leader "walks the talk".
Extract: "Leadership Vision / Leadership Success Secrets" By Susan M. Heathfield, About.com
This Edition's Inspiration - How To Negotiate A Seemingly Impossible Outcome
Jack, a smart businessman, has a talk with his son...
Jack: "Son, I want you to marry a girl of my choice..."
Son: "But Dad, I want to choose my own bride".
Jack: "But the girl is Bill Gates' daughter."
Son: "Well, in that case..."
Next Jack approaches Bill Gates
Jack: "Bill, I have a husband for your daughter."
Bill Gates: "But my daughter is too young to get married just yet."
Jack: "But this young man is a vice-president of the World Bank."
Bill Gates: "Ah, in that case..."
Finally Jack goes to see the president of the World Bank.
Jack: "I have a young man who I would like to recommend as a vice-president."
World Bank president: "But I already have more vice-presidents than I need."
Jack: "But this young man is Bill Gates' son-in-law."
World Bank president: "Ah, in that case..."
Extracted from www.brianseth.com/businessandsalescoaching/
Guest Article
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Negotiation Is An Expensive Alternative
By Kim Meredith, Managing Director of Spectrum Solutions |
In this series of articles on dealmaking, we have dealt extensively with the subject of trading, or negotiation if you prefer. You have probably realized that in "giving to get" or quid pro quo, you need to make concessions (ie: give something) in order to get what you want. This can be an expensive exercise, particularly if you are dealing with high value or high cost items. So, is negotiation always the best way to get what you want? Of course not! But then, you may be thinking, what are the alternatives to negotiation?
In their book "Getting To Yes: Negotiating Without Giving In" (1981), Roger Fisher and William Ury presented the concept of "BATNA", an acronym for "Best Alternative To Negotiated Agreement". Now, if experts on the subject of negotiation suggest that there are options for getting what you want that may be better than negotiating, this is a theory worth exploring. Especially if one considers that the concept of BATNA is embraced by Harvard Business School.
The easiest way to illustrate BATNA is by using an example. Let's assume that you are about to leave school and desperately want to study Zoology so that you can become a Game Ranger. You have even been accepted by Johannesburg University for a BSc in Zoology. The problem is that your parents want you to study Law and are not prepared to pay for any other degree. To make matters worse, your grades are not good enough for you to get a bursary and the banks want your parents to sign surety on a student loan (which, of course, they refuse to do). What are you options?
NEGOTIATE
Firstly, let's look at how you could negotiate with your parents. What could you offer them to get them to pay for your degree or stand surety on a loan? You may offer to support them financially once they have retired, or offer to repay double or even triple the amount of the university fees once you start working, or you could promise to send them on a cruise around the world once you have worked for three years. The list is endless, but you would probably try to offer your parents whatever it is that presses their "hot buttons". What is the cost of this to you? You could be mortgaging your financial future! It is because of this cost in negotiating that Fisher and Ury proposed the concept BATNA.
PERSUADE
If negotiating is so expensive, what would be your first alternative? In reality, you're more likely to try to persuade your parents on the merits of you becoming a Game Ranger. Your arguments would range from the importance of following a passion, to the expanding tourism industry, to the need for conservation to give future generations an environmental legacy… and so on. Will they buy your arguments? They might, so this option is definitely worth a try. Persuasion costs you time whereas negotiation usually costs a lot more than time. So, in this example so far, persuasion would undoubtedly be the better alternative.
SURRENDER
Another option, of course, would be to just accept your parents' decision - simply roll over and become a lawyer. But this too has a price. What will the cost of this be to your future happiness? Will you ever get your own way with your parents again? Will they respect you for simply giving in and showing no perseverance or backbone? Albeit not measurable, the cost to you of this option is potentially enormous. Is this a better option than negotiating with your parents? Your call!
CONQUER
The opposite option to the one above would be to defy your parents and do what you want. You may be able to approach another family member, perhaps an uncle or aunt with whom you have a good relationship, to fund your fees or sign surety on a student loan. Or you could start working in whatever job you can find to pay for a correspondence degree while you work. This option, like the one above, has costs. What will the price of this be to the relationship you have with your parents? Will they tell you to leave the house immediately? Will they make your life a misery? Dealmakers typically only pursue this option if they hold all the power - but what when the power turns against them?
POSTPONE
Another alternative available to you is to delay the decision to study or even the timing of when you approach your parents. You could wait to catch your parents in the right frame of mind and try persuasion (again). You could postpone studying and redo your Grade 12 year so that you can get better grades and qualify for a bursary. Postponing is a favourite tactic of mine - I am often happy wait for the balance of power to shift in my favour, or to postpone in order to give myself more time to think. Postponement, of course, does not work if there is a possibility of the power moving away from you or when you have strict deadlines to meet. As a BATNA alternative, however, it is one you must always consider.
COMPROMISE
Although compromise is indeed an alternative to a negotiated agreement, it is for me the least attractive option. If you compromise, or haggle or bargain as it is alternatively called, it means that you agree to settle for less than you want. It also means that the other party doesn't get what they want either - no happy ending with this option! The classic story falling into the category of compromise is the alternative suggested by King Solomon in the case where two women were arguing over which one of them was the mother of a baby - simply cut the baby in half, proposed Solomon. This would obviously have led to the baby's death - so why then are we so willing to resort to this behaviour in our own deals? What was King Solomon trying to teach the women? In terms of our studying example, why would you agree to complete a Law degree but vow never to practice Law. What is the point? Compromise is the death of good deals.
PROBLEM SOLVE
Most of us are quite adept at problem solving. In fact, we are so adept at problem solving that we tend to use this as our first means to get a deal and as a result, we conclude weak deals. In the study example we are using, if you adopt the problem solving alternative, the first step would be to look at where you have common ground with your parents. You want to study and your parents want you to study. A tick in that box. There is money available. Another tick. And so it goes, until you have ticked off all the boxes in which you and your parents agree. What remains? The choice of degree! You have effectively removed everything from the table except the main, contentious issue - what you study. The problem now is that conflict is far more likely to escalate when there is only one major issue on the table than when you can work with, and possibly offset, several issues. If you are in a conflict situation and choose problem solving as a BATNA option, you are far more likely to intensify the conflict than solve it.
CONFLICT RESOLUTION
This brings us to the subject of conflict resolution. In the real world, conflict resolution experts are very seldom the same people as negotiation experts. They are two very distinct fields following two very distinct schools of thought and approach. As I fall into the camp of negotiation rather than conflict resolution, I am unable to offer much in the way of advice here other than to say that in our example where you and your parents ideally want to have a decent relationship going forward, it may be advisable to engage the services of a person external to the family unit to resolve the conflict. Whether this is an arbitrator (someone who hears both sides of the story and then makes a decision, like a judge) or a mediator (a person who attempts to find the common ground for the parties and helps them compromise), you would be placing your future in the hands of a third party. The cost of this, particularly if the third party is not particularly talented, may ultimately cost you much more than negotiating.
CONCLUSION
We have only looked at a small selection of the BATNA options in this article. There are many more - walk away, deadlock, take bets, legal action, tenders, auctions, to name but a few. What is critical, though, is to consider as many BATNA alternatives as you can when doing a deal. The more time you spend analyzing the pros and cons - or costs and benefits - of each and every option, the greater you can make your power in any deal. And, if you remember my last article, at the end of the day deals are driven by power.
Kim Meredith, November 2008
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Book Launch Book Launch Book Launch
"There are only two types of women, goddesses and doormats"
- Pablo Picasso (Spanish painter: 1881 - 1973)
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About a year ago, Kim Meredith was approached by Struik (now Random House Struik), South Africa's largest non-fiction publishing company, to write a series of books for women in business, a la Suze Orman. Protesting that she would be the wrong person to write about finance, the publishing company suggested that the books address the challenges women encounter in the business world, in general. From this, as they say, the rest is history, and The Work Diva was born.
Work Diva: How to Climb the Corporate Ladder Without Selling Your Soul is the first in the series. The book examines the choices women face, and the decisions they need to make if they want to rise to the top of the corporate ladder - from kids vs career, to career vs life. In exploring these and numerous other subjects, the Work Diva confronts both stereotypes and holy cows alike, allowing the inner goddess in all women to be released.
All newsletter subscribers will be receiving an invitation to the book launch so WATCH THIS SPACE!
A Little Light Relief
(Next time you get a letter to pay your debts be sure to remember Van's letter.)
Letter to a large retailer in Johannesburg (the ending is pure magic).
Dear Sir/Madam
I acknowledge receipt of your letter dated 07 July 2008 in which for the third time, you request that I pay the monies owed to you. I first want you to know that by no means do I dispute my debt and I intend to pay as soon as possible.
However I would like to bring to your attention that you are not my only creditor. I have many more creditors, quite as honourable and important as you, and whom I wish to pay too. That is why, each month, I throw all the names of my creditors into a hat and draw one randomly. The one drawn is paid immediately.
I hope that yours will come out shortly.
Sincerely yours
PS: I regret to inform you that given the harsh and threatening tone of your last letter, you will not be taking part in the next three draws.
The Dealmaker™ Programmes - 2009 Courses at 2008 Fees
The Dealmaker Programmes Company has, like so many other companies, been subjected to the pressures of the changing global economy and will thus be increasing the price of its courses (which have remained unchanged for the past two years) with effect from 01 January 2009. In order to take advantage of the 2008 prices, why not book and pay for a 2009 course before 31 December 2008, and pay the 2008 price! See below for our list of Public Programmes scheduled for the 2009.
The Dealbuilder™ |
Venue |
18 & 19 March 2009 (Wed,Thurs) |
Johannesburg |
11 & 12 August 2009 (Tues,Wed) |
Johannesburg |
The Dealdiva™ - Women Only |
Venue |
25 & 26 Feb 2009 (Wed,Thurs) |
Johannesburg |
25 & 26 Mar 2009 (Wed,Thurs) |
Johannesburg |
1 & 2 July 2009 (Wed,Thurs) |
Johannesburg |
17 & 18 Sept 2009 (Thurs,Fri) |
Johannesburg |
The Dealcloser™ |
Venue |
11 & 12 Mar 2009 (Wed,Thurs) |
Johannesburg |
23 & 24 June 2009 (Tues,Wed) |
Johannesburg |
15 & 16 Sept 2009 (Tues,Wed) |
Johannesburg |
The Dealmaker™ |
Venue |
17 - 19 Feb 2009 (Tues-Thurs) |
Johannesburg |
17 - 19 Mar 2009 (Tues-Thurs) |
Johannesburg |
21 - 23 Apr 2009 (Tues-Thurs) |
Johannesburg |
12 - 14 May 2009 (Tues-Thurs) |
Cape Town |
9 - 11 June 2009 (Tues-Thurs) |
Johannesburg |
21 - 23 July 2009 (Tues-Thurs) |
Johannesburg |
18 - 20 Aug 2009 (Tues-Thurs) |
Durban |
8 - 10 Sept 2009 (Tues-Thurs) |
Johannesburg |
6 - 8 Oct 2009 (Tues-Thurs) |
Johannesburg |
3 - 5 Nov 2009 (Tues-Thurs) |
Johannesburg |
The Dealguru™ - Executives Only |
Venue |
22 & 23 April 2009 (Wed,Thurs) |
Johannesburg |
14 & 15 October 2009 (Wed,Thurs) |
Johannesburg |
All The Dealmaker™ programmes are guaranteed, high impact interventions for companies and individuals prepared to make the investment to achieve a significant shift in expert skills and behaviours. What are you waiting for?
Please phone us on +27 11 440 0193, or email enquiries@thedealmaker.com to secure your place.
Advice for the Holiday Season
Help Is at Hand! Road Safety Information on your Mobile phone - www.arrivealive.mobi
Information on:
- Treatment at Accident Scene
- Emergency Response
- Legal Duties
- Vehicle Recovery
- Tourist Tips
- Planning your Trip
- Your Vehicle
- Passenger Safety
- Avoiding Hijacking
- Driver Fitness
- Avoiding Road Rage
- Fatigue
- Vision
- Drunk Driving
For Road Safety Tips for the Festive Season, find Advice on www.arrivealive.co.za
Emergency Details
- Police: 10111
- Ambulance: 10177
- Emergency: 112
- Netcare 911: 082 911
Have a fabulous month! - Portia Ngcobo |
