Productivity

Win-Win WCP 2014

 

How To Become A Great Negotiator

Most of our successful leaders and entrepreneurs are great negotiators. The skill of negotiation is recognised as one of the important ingredients of success and yet so few of us truly understand what it is that makes a great negotiator.

It is often said that children are great negotiators; they are persistent and return to their objective time and time again, attempting differing angles to win their parents around. From here it often goes wrong as well-meaning parents impose rules and suggest that this constant negotiation is both bad manners and plain naughty!

Recovering from childhood scaring we recognise that negotiations are a fact of life, we are constantly negotiating in both our personal and professional lives.

Those that are not strong negotiators tend to fall into one of two camps: the first dislike or avoid negotiating and this can lead to problems in resolving issues or progressing their careers, the second see the first rule of negotiating as the need to “win”.

Both attitudes are problematic the first is both self-defeating and confusing to others and the second is always going to leave behind a bruised “loser” – neither is a good outcome.

There are THREE key steps essential to becoming a great negotiator:

Applying these three negotiation processes will significantly increase the impact and success of your future negotiations.

1.0 NEGOTIATING ATTITUDE

What you bring to the table in terms of your attitude and approach will have a significant bearing on the outcome, you should always:

Show Respect & Trust

See the other team or person as an equal and treat them with the courtesy and respect you would expect, it’s surprising how this opens real discussion.

Listen to what isn’t said

Look carefully at what the other side is really saying, this will tell you what they really want.

Remain Flexible

Successful negotiators view each key point from multiple perspectives; they are flexible in which points to concede to achieve the end game. Be prepared and willing to change.

Target Continuity

Always view the other team as a valuable, respected and long term contact. Armed with this attitude you will never be tempted to “rip off” the other team.

Win-Win Outcomes

This is the ultimate outcome in any negotiation; it will leave all parties satisfied and lead to productive, successful long term relationships. Sound groundwork, an open mind and a fair approach will find more win-wins than you would at first imagine.

2.0 THE NEGOTIATION

A successful negotiation is usually based upon 3 distinct stages: Preparation, Negotiation and Documentation. Each stage is of equal importance; a great negotiator knows this and allows for it when planning.

Preparation

“By failing to prepare, you are preparing to fail.” (Benjamin Franklin).

The key to preparation is to place yourself mentally into the other party’s position. Assess where they are at within the negotiation, what they want, what they need and what they can live with. Understand their motivation, perspective and opinions on the topic. What are the minimum conditions they can accept and at what point are they likely “to walk away”.

Define your own goals and objectives, analyse what you must have, what you can concede and where your fall-back position is. Develop several potential options; identify your best possible outcome and your least attractive “fall back” position.

Search for “win-win” solutions

Negotiating

Be relaxed, respectful and most importantly be prepared to really hear what is being said and retain an open mind.

Listen rather than speak, silence is your friend. Search for common points of agreement rather than the differences; agree these early to develop trust and comfort.

After the initial discussion take the initiative and start the actual negotiation by tabling your offer. This initial offer forms a subconscious reference point, a middle ground if you like. If you are buying start low and if you are selling start high.

An excellent tactic is to make multiple offers each with different terms and conditions this demonstrates your flexibility whilst the other party’s response to the choices tells you much about what they really want or need.

Always show “Samurai Sympathy”; that is do not box the other party into a corner from which they cannot escape without a loss of face.

Once you have established the other parties bona fides and you are satisfied they want to reach a genuine solution don’t be afraid to be the first to concede points but do so in a “give and take” scenario. Know what you want to take. Focus on the end point rather than the current position. Being pro-active will build trust and goodwill.

Showing respect for the other party does not mean that you cannot show strength or participate in the theatre of negotiating. If unreasonable demands or proposals are put forward demonstrate your dissatisfaction, show your surprise and your disappointment strongly but do not allow any genuine anger or frustration to develop, remain calm and remain in control.

Don’t be in a hurry, abide by your timetable (especially when buying), confrontations will occur, board approval may need to be sought, lawyers consulted all of which are normal. A great negotiator allows for this, allows time for parties to cool off when discussion becomes overheated. If tension builds, ask if you and your team can have 10 minutes alone to discuss the situation, be pro-active, remain flexible and remember your objective.

In the closing stages of a negotiation the great negotiator seeks a creative solution, they look beyond the box, they expand the available options rather than fight the detail and they stand firm to their position. This is the time to bring everything you have learnt into play in the best win-win solution you can offer.

3.0 DOCUMENTATION

I have seen people leave a negotiation “pumped-up” by the result and ready to party only to find out a day or two later that the other party has had a “change of mind” and called the deal off.

After reaching agreement around the table it is best to re-iterate the key points of the agreement, hand write them have two copies made and each party sign them off. This isn’t a binding agreement but it is a moral statement.

Confirm the agreement in a written Heads of Agreement and get this document signed within 24 hours of the meeting. The HOA should cover any conditions precedent and a timeline to contracts.

Call the other party as soon as appropriate after the meeting to thank them for their time and professionalism, work with them and strengthen the bonds for the future.

Finally food for thought…………….

“Let us never negotiate out of fear, but let us never fear to negotiate”

Unknown Quote        

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By, Neil Steggall

 The Barking Mad Blog

Business Advice with Bite

http://wp.me/p401Wv-jd

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Seven steps to getting rich  

Nest of Riches - WCP 2014

The accumulation of wealth is easier than most realise. Once your antenna is raised to embrace wealth potential and you commence the journey riches will follow. In recent times wealth and its creation have been seen as less than desirable perhaps even a little dirty, not quite the done thing.

I find this attitude strange as throughout nature creatures nest and those capable of building a better nest live longer, breed more successfully and generally enhance their bloodlines and community. Surely that’s a good outcome for all?

Wealth and its creation should not be considered ‘dirty words’, but remember the discrete and careful enjoyment of its benefits are attributes to be admired. True wealth is a state of mind and an ongoing way of living which embraces so much more than your bank balance.

As with so much in life a steady, incremental plan, will deliver a surer chance of success in the creation of wealth. Yes it is slower than “doing the great deal” but it is also more certain in outcome and you will have more chance of holding onto and enjoying the wealth you create.

It doesn’t matter how much you earn, whether you are a Gen Y first time investor or a seasoned baby boomer with multiple assets, there are seven key strategic behaviours that set apart the wealthy from the rest of us.

  1. Spend less than you earn – this sounds obvious but many of us live from pay cheque to pay cheque, which indicates it’s a lesson that is quickly forgotten. Save and invest because the law of compound interest will help ensure your nest egg grows quickly. Start as soon as possible because time is your best friend.

  2. Invest as much as you can in assets whose underlying capital value will grow – remembering income is usually taxed at a higher rate than capital growth.

  3. Reinvest any capital growth – as this adds to the amazing power of compound growth.

  4. Do not be afraid of debt – leverage accelerates your net worth but keep a suitable buffer for the unexpected.

  5. Invest in yourself – it pays to broaden your fundamental investment knowledge.

  6. Have a mentor – a coach will help drive you and keep you focused on your long-term goals.

  7. Have a team of experts – remember you don’t have to be the smartest person in your team.

Above all, generating wealth is about having a purpose and focused determination. We are all living longer and will need more wealth to look after ourselves when we are older. State pensions are no longer the safety net they once were and advances in medical research keep us healthier for longer, but at a cost.

Start today by determining how much wealth you want to hold and by which dates. Write a game plan detailing how you are going to achieve wealth, refer to it daily and update it regularly as change occurs. The sooner you start the easier it is!

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By, Neil Steggall

 The Barking Mad Blog

Business Advice with Bite

http://wp.me/p401Wv-j2

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Rotten Apple

Loyalty, respect and support for team members are values instilled in us from childhood and they are certainly amongst the key attributes of successful leaders. A recent review has caused me to recognise that at times we may carry loyalty too far and we risk severe consequences by doing so.

In a recent review of two unrelated corporate failures I realised that each business suffered enormous damage as a direct consequence of disenfranchised and under performing senior managers. With the benefit of hindsight we can see that it is possible that if these managers had been removed 12 months earlier each company may well have survived.

Why are such managers retained? It is likely that their shortcomings have been recognised and discussed with them during performance reviews or following poor management decisions or errors of judgement. When faced with the prospect of dismissing them their line manager has almost certainly taken into account:

  • The monetary cost of replacing them

  • The productivity loss from replacing them and retraining a replacement

  • The disruption within the team or business unit

These are rarely valid arguments a bad manager will cause a disproportionate level of problems which may well lay hidden for months before something finally breaks. Further a bad manager is fracturing the team and negatively influencing others.

What are the solutions?

  1. Only recruit the best: By recruiting the best possible people you are taking primary responsibility for quality – you dramatically reduce the risk of future problems.

  2. Always Reference Check: When recruiting don’t be afraid to ask the tough questions of current or ex employers, yes we need great technical and educational skills but what about their interpersonal skills. Are they team players, do they play favourites or get involved in office politics.

  3. Formal Process: I have a policy that senior people are employed on the understanding that they will face a 180 day performance review – fail that review and its sudden death.

  4. All or nothing: Being mostly a team player is like being “slightly pregnant”; it’s just not on and it’s not going to work.

Now it may sound tough but if one of your apples is looking bad throw it away and do it quickly. Your team will thank you and your bottom line will prosper.

By, Neil Steggall

 The Barking Mad Blog

Business Advice with Bite

http://wp.me/p401Wv-ip

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Who is.....WCP 2014

Don’t F*** With Your Business. Plan For Success.

I apologise for the title, but I see so many smart people with so many great ideas fail to make the grade and do you know why? They simply fail to develop and implement an effective business plan.

In my experience in leading dozens of business planning workshops across the world, I’d say only around 10% to 15% of the small to mid-cap teams I’ve encountered have an effective business planning process.

Why is this? Why do so many business owners fail to understand that good planning equals good management and that in turn, builds a great business? Am I missing something here? Can it truly be such a hard concept to sell, so hard for a burgeoning entrepreneur to grasp that a sound business plan could secure their future?

So back to the title……simply put it reflects my sense of frustration!

It’s not hard; business planning is about managing resources and priorities in an organized way. It is a function of leadership, and good leadership and management is directly related to productivity.

How can we fix this?

Well here are three very easy steps to help get you planning and, in turn, improve your management, productivity and performance.

1. Write a plan. Many business plans are written to look good and impress investors, banks and other external parties. What we are looking at here is a simple document designed purely to help you as the business owner manage better. Start simply and just jot down the essential points of your business as bullet points, tables, and short explanations. The strategy element of planning is to focus  on  where you want to be, what you’re good at, what matters to you, which people are most important to you and what you can do for them. It’s about positioning, determining your target market and product focus.

It’s important to write these details down in order to commit to your vision and to communicate your vision to close stakeholders such as employees. If you don’t have a team, there’s value in being able to refer back to your original thoughts and ideas for your business and to compare them to your actual results.

2. Set Milestones. In order to check your progress, define and then include your long-term goals. Think in general terms about how you see your business developing over the next three years.

From there, get specific. You’ll want to establish milestones for when you want to accomplish certain goals, and know who you will want to carry them out. Go beyond sales, costs and expenses, and look at what really drives your business. It might be conversions, page views, clicks, meals, trips, presentations, seminars and other engagements.

Then, establish a review schedule — when you and your team review changed assumptions, track results and make changes as necessary.

3. Implement Your Plan. Involve your team and encourage ownership of ideas. Tracking and analysing numbers can help you manage the work behind the numbers. You’ll be in a better place to recognize and highlight what’s working and what isn’t working for your business and your team.

Suppose enquiry is up, but conversions are down or revenues are up but margins down. You collect your data, review it with your team and develop a plan to make changes toward reaching your goals. That’s management.

Managing your business successfully requires more than just praise and pats on the back. Sometimes it means focusing attention on problems, helping people solve them if possible, discussing and embracing mistakes, and, in the worst case, weeding out people who don’t care about bad results. This can all be accomplished more efficiently when you have a plan in place.

Related article: – The Power of Marginal Gains |  http://wp.me/p401Wv-di 

Either way, whether results are better than expected or worse, the planning and tracking makes your follow up easier. The process itself adds commitment and peer pressure to the team. Highlighting good performance is easier when there are agreed-on numbers to define it. And, probably most important, dealing with poor performance is always hard, but not quite as hard when you can focus on the specific numbers instead of personalities or office politics.

Which brings me back to where I began: Planning is management. Without planning, your management is at a real disadvantage.

Neil Steggall

Barking Mad with Neil Steggall

http://wp.me/p401Wv-hE

Business Advice with Bite

 

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New Ideas - wcp 2014

Leader or Manager? – Vive la Différence!

The terms leadership and management are often used to describe the same person or even used as though the words are interchangeable. They are not. The differences between leadership and management are vast and varied and placing the wrong person in the wrong position could have dire consequences for your business.

Leaders are rarely great managers and vice versa. Both are much needed and both have very different skill sets needed to build and sustain a successful modern business.

In his book: Management, the Individual and Society, Peter Drucker stated that “Management is doing things right; leadership is doing the right things.” Whilst the phrasing of this is a little “clunky” I have thought about the quote over many years and I cannot really improve upon it.

There is no hierarchy between the two but it is important to recognise which is which as early as possible both to ensure each individual receives the best training and support and to plan where in your organisational structure these Leaders and Managers are going to fit. Understanding who your leaders and managers are will assist in strengthening your organisation and its corporate culture and morale.

Good leaders have a unique ability to rally team members around a vision. Their belief in the vision is so strong, and they are so passionate about achieving it that team members will naturally want to follow them. Leaders also tend to be willing to take risks in pursuit of the vision.

Managers, however, are far more adept at executing the vision in a very precise and systematic way, taking responsibility for the infrastructure and detail of the vision and working with the team to see the job done. Managers are usually very risk-adverse.

It is the combination of these two skill sets working in harmony which often differentiates two seemingly similar organisations.

I have often likened leaders & managers to composers and conductors. The composer creates the dream or vision and the conductor delivers it.

By, Neil Steggall

 

The Barking Mad Blog

Business Advice with Bite

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 www.wardourcapital.com

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Creating an Entrepreneur - WCP 2013

Creating an Entrepreneur!

Is it possible….YES it is!

 

Entrepreneurs can be seen as the rocket fuel of new ideas, they create new businesses and form new industries and in common with such dangerous fuels entrepreneurs can occasionally end with an explosion, yet despite the occasional explosion we have to accept that entrepreneurs have driven commerce and commercial ideas forward for millennia.

Why are entrepreneurs and sound corporate management generally seen as oxymoronic? A commonly held corporate view is that entrepreneurs are too highly individual, unpredictable, difficult personalities and when it comes to team work and the subtleties of the office culture…..well perhaps it’s best not to go there!

Is this a fair view in today’s market or a historical carry over? Well perhaps it is time to re-assess, as entrepreneurs are changing and today’s business schools and universities are turning out business and law graduates with specific qualifications in entrepreneurship.

Having a brilliant, yet well rounded entrepreneur within a company could provide a much needed boost for most organisations. Imagine; a manager who embraces autonomy, who can not only see the problems but looks beyond to the solutions and the potential opportunities which can flow from the solutions.

A new generation of innovative and creative executives who can transform  ideas into profitable ventures. They strike the perfect balance – they look, act and think like entrepreneurs, but they work for the corporation. As any manager knows, such entrepreneurial team members are a rarity; however, this need not be the case.

Why not change your management culture to enable your future leaders to become more creative and entrepreneurial by developing a focused culture where innovation and creative thinking is encouraged, supported and of course rewarded.

One of the main problems facing many organisations is that they have lost sight of the importance of fostering creative thinking and innovation. They have become afraid of change and in doing so they are placing their business at risk and allowing their competition a valuable advantage.

Innovation should be seen as your ultimate corporate advantage and innovation springs from the minds of motivated and engaged employees, yes your entrepreneurs!

In the sixth century Sun Zu said “you may survive though defence but you can only win by attacking” and more recently Peter Drucker said “Business has only two functions — marketing and innovation.” Of course the most efficient and lasting method of attacking your competition is through marketing and innovation.

So what can your business do to be more competitive, to as Sun Zu recommends, “go on the attack?”

A decision to attack can filter down from the board through the CEO or an entrepreneurial culture within the organisation of creative thinking and visionary innovation can develop the strategy and sell it up the ladder.

Either route is possible but the latter will always deliver a better result.

A successful organisations culture inevitably stems from good leadership. This doesn’t mean that the board or the CEO have great ideas, they may have, but more importantly they create the environment in which managers are given the freedom and confidence to experiment and innovate. A management team encouraged to think and innovate will be motivated and will form a strong and positive corporate culture.

So how can we turn this into reality and create an entrepreneurial environment in your organisation? Here are my 7 steps to creating an entrepreneur:

  1. Create the environment. Ensure that management feel free and secure in scoping new ideas, in testing the established methods, in questioning and innovating at all levels and across all ideas. Allow for failures, if one out of ten ideas succeeds that’s probably a good trend line, eventually one of these ideas will boom!

  2. Thoroughly research and understand your customer and market needs and how well those needs are being met, look at how your organisation and products are perceived and then turn the table and examine your competitors. Equalling the value of competitive offerings is not going to “cut the mustard” if you want to win you must always ensure that you are leading the field in Marketing and Innovation and following through on customer service. Encourage your team to be bold, be different and be the best.

  3. Assume responsibility for your organisations cultural change and encourage and empower people to bring forward and implement their ideas and innovations.

  4. Support, learn from and work through the failures. If you get two or three successful new ideas and one absolute winner out of every ten pursued you are ahead of the trend line.

  5. Constantly strive to improve, to innovate and to lead, implement a strategy of marginal gains (The Power of Marginal Gains http://wp.me/p401Wv-di ) you will be surprised by the strength of results.

  6. Never underestimate your competitors, look at today’s automotive brands compared with those of 30 years ago. The industry initially laughed at Japan’s underpowered, small cars with floral carpets and upholstery but few would laugh today. Again Marketing & Innovation win!

  7. Your staff are outstandingly flexible and reliable assets to be deployed in the building of your business. Never see them as a cost, create an atmosphere of respect, treat employees as the rare and valuable resource they are and you will both reap the rewards of an exciting and vibrant corporate culture.

Some of the best ideas and simplest innovations are from businesses that already have had such a drive or survived times of stress. Don’t always look to reinvent the wheel, occasionally take the world’s best wheel and simply improve it. Sometimes copying is the best route forward, look at how the Japanese destroyed the UK motorcycle industry in the 1960’s and 70’s, they initially copied the UK machines and then introduced innovative and more advanced products.

 In the end, innovation is an state of mind. Train your key people to think and see differently, to search every day for the new, the better, form, function, value and service. This is where Steve Jobs was masterful in transforming not only an industry which he had helped create but in transforming the culture of a major global enterprise.

The value of leadership and empowering your management is enormous and in truth no one has a choice in the matter. Everyone must adapt, change and innovate and we can all with training, help and enthusiasm become entrepreneurs.

Empowering employees to be innovative and creative, and encouraging a ‘can do’ attitude can reap rewards for everyone – whether monetary or reward based – and companies that do this are more likely to survive the recession.

A recent show on the ABC called Redesign My Brain, hosted by Todd Samson, shows just how adaptable to new ideas, concepts and skills our brains are.

It has been said so many times but the answer is to constantly look beyond the horizon and use 360 degree vision and thinking.

 

By, Neil Steggall

The Barking Mad Blog

Business Advice with Bite

http://wp.me/p401Wv-gv

 www.wardourcapital.com

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William Shakespeare WCP 2013

Much Ado About Nothing – When Doing Nothing Lifts Productivity.

In literary circles debate continues as to just what Shakespeare’s words relate to and that’s been going on for 400 years so let’s not expect too much management progress during the course of this article, however, its never too late to change and productivity improvements rapidly build the bottom line!

 “So much of what we call management consists of making it difficult for people to work.”

Peter F. Drucker

Now be honest….is this happening in your work place? Many managers and business owners still confuse activity with action. If phones are ringing keyboards clicking and people are rushing then we have action and action generates profit….right? WRONG!

Activity is all of the above but action is doing that what is needed, when it is needed and for the common good. Not all of us are as good at action as we might like to be.

There are days when it would be best if we just stayed away from work because on those days we are simply put – counter productive!

Five CPF’s (Counter Productive Factors) stand out in my mind and I have seen havoc wreaked by each and every one of them.

Let’s have a look at the 5 Key CPF’s:

The Hero Syndrome: This is the CPF which most trips my switches, the Corporate Hero who works all night drafting a document or arrives on a flight from Timbuktu at 6.00am and comes straight into the office. Unwashed, crumpled and lacking sleep do they really imagine they are going to be productive let alone make good decisions? Get home and go to sleep you naughty children!

The HUNGRY Warrior:  This manager is simply too important to take time to eat. As they have told everyone they arrived at work at dawn carrying a mega Starbucks (a bucket of luke warm, sweet liquid, usually brown) which has nourished them through to 2.00pm. Why they wonder are they throwing note pads, pencils, shouting and blinking back tears as their staff look on in joy? Its because your brain as ceased to function due to a lack of essential food. Go home eat and then stand in a corner until bed time!!

The Martyr: Don’t worry it’s only a sniffle, yes I am sweating, I ran for the lift, no my temperature has been steady at 40° all night and I should know as I didn’t sleep a wink! Ahhchoo!! Now how and why can this person possibly believe they can a) avoid infecting the innocent and b) make any contribution to the management of the organisation? Does this person think on a good day or can we excuse today’s silly performance on the basis of ill health. Go home immediately and wear a hair shirt for 24 hours!!

The Beast: It’s a long story which started late yesterday when driving home. Some absolute moron driving a “domestic car” would not let the beast into the traffic. Worse was to come. Finally home the beast’s life partner just didn’t care, the gin was Tanqueray and not BBR No3 as ordered and to cap it all the tuna was overcooked! Obviously sex was off the menu and our beast was again insulted in the morning traffic finally arriving 15 minutes late for the finance committee. The coffee was cold; the report still printing and the CFO was a moron. Now our beasty can actually be quite pleasant but too much work and not enough play has done its dirty deed. So Beasty go home, relax, and stay there until you can genuinely acknowledge that drivers of “domestic” cars have some rights and that your long suffering partner had done a great job over dinner and gin’s (authors note) –although BBR No3 is exquisite and really should have been available!

The Wolf: I am going to stretch your new age cred here and suggest that in my observation a section of our population is affected by Luna movements. Yes the full moon weirdos! I won’t blind you with science here but I knew someone who became so irrational with each full moon, his eyes became red rimmed and he was for a couple of days quite, quite mad! There have been others, far too many to mention who become just a little odd every 28 days or so. In fact my own family believe it best not to ask me for money or criticise any aspect of my being for this short period each month. Download a Lunar diary and monitor your colleagues, generally they can function but eccentrically so. Treat these sufferers kindly but discretely hide the knives.

“Efficiency is doing the thing right. Effectiveness is doing the right thing.”

Peter F. Drucker

 

By: Neil Steggall

The Barking Mad Blog

SMS Advice with Bite

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www.wardourcapital.com

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