Win-Win Negotiating Part 3

From the book: ‘Turn Your Customers into Your Sales Force’ by Ross Reck

Importance of ‘Negotiation’ was made clear in the last article(Feb ’13). Also, to become a successful salesperson, you must become an effective negotiator. There are two basic philosophies people utilize to get what they want from other people. The first of these philosophies is the Win-Win Philosophy and the other is the Win-Lose Philosophy.

The Win-Win Philosophy: “I get what I want by helping others get what they want and vice versa”.  In a true Win-Win sales transaction, both parties come away feeling very good about the deal they have just concluded. Both are likely to follow through on their respective promises, look forward to doing business together again in the future, and to refer others.

Ross Reck illustrates this with an example, when a senior vice-president of a bank approached him with concern that some of the competing banks wanted to go after some of the large depositors of his bank. These banks were trying to lure these wealthy customers by offering them significantly higher interest rates. But countering this with higher rates was expensive and it would have caused a price war resulting in everybody ending up not making money. Ross Reck suggested that the bank has to give a reason to stay for the valuable customers. He suggested to the senior VP to treat these customer in a different way. Provide them special attention; arrange gala events like afternoon tea parties for targeted customers. Invite them with engraved initiations. Serve tea and snacks with fine china and silver. Along with this, make sure the president of the bank or one of the senior officers was on hand at each of these events to mingle with the guests. These tea parties were smashing success. Instead of losing any of these wealthy customers, the bank actually began to attract new customers as the result of referrals from people who had attended some of the parties. This was truly Win-Win in action: The customers got what they wanted – special treatment that appealed to their egos – and the senior vice-president got what he wanted, in that he was able to hang onto these customers without having to match the interest rates being offered by the competition.

The Win-Lose Philosophy: “I get what I want from you at your expense.” In other words, I win and you lose and you know it. This philosophy does not motivate other people to stand in line just for the privilege of doing you a favour.

This is illustrated with another example. Ross Reck went to a local dealership with his family to buy a new car. After numerous test drives, the whole family liked a particular model and decided to go for it. They were then put on to the finance person, who took long time to process their request and give them details regarding the finance plan and procedures. The finance person told that the approved interest rate is 15.11 percent.  But when Ross Reck had a meeting with bank’s vice-president, he found that the interest rate was 11.9 percent for new car loans. When this was informed to the finance person, he reluctantly gave him 11.9 percent. But this has created a bad image about the dealer in Ross Reck’s mind. In the next two years, nine of his friends bought cars similar to his car. Each of them asked him about where he bought the car, his experience, etc. Because of the bitter experience he had with the finance person, he strongly recommended to avoid this dealer. It is very clear, because of trying to have a Win-Lose transaction with one person, the dealership lost nine more sales.

General Motor’s survey in 1990 on consumer behaviour also reiterates the importance of Win-Win philosophy in this customer centric business environment – A dissatisfied customer tells his experience to 22 people as against a satisfied customer who shares it with only 8.

It should be obvious at this point that if you want to be really successful as a salesperson, you must adopt the Win-Win Philosophy.

In the concluding part next month, I will be explaining the PRAM model of the Win-Win Negotiation process.

To be continued…

The Negotiator - Part 2

From the book: Turn Your Customers into Your Sales Force by Ross Reck

Whenever Ross Reck used to say “the ability to negotiate is critical to success as a salesperson”, he was met with raised eyebrows. And the reason for this is that negotiation is probably the most misunderstood concept in the World. He elaborates his point of view with some illustrations like reaching a labour agreement between the trade union and the management involves negotiation, also getting their children to make their bed or clean their room involves negotiation. That is, nearly all human interactions involve some element of negotiation. Their success in any of these situations is directly related to their ability to negotiate with different people.

Ross Reck further explains that the root word of negotiation is the Latin word otio. Otio means that a human being is at a state of leisure. When you are on a vacation or otherwise relaxed and enjoying yourself, you are at otio. The opposite of otio in Latin is neg otio. That is “not leisure”, or to “conduct business”. It is interesting to note that “to conduct business” is the precise definition of negotiation that you will find in any dictionary. This analysis points out two very important aspects of negotiation.

First, negotiation does not mean a process whereby you try to manipulate, con, or intimidate someone into saying yes when they really want to say no. Second, negotiation is a people process. Companies do not negotiate with companies. For example, a company like IBM does not negotiate a sales transaction with a company like Exxon. For such a transaction to occur, someone or a group of people representing IBM would negotiate with someone or group of people representing Exxon.

As one very successful businessman said when he was addressing a roomful of branch managers from Bank of America, “You people have to remember that people don’t bank with banks, they bank with people.” He went on to say, “To the average consumer, banks all look the same. What makes one bank stand out from the others is the quality of the personal treatment you get from the people with whom you come into contact.”

Based on all these factors, Ross Reck has defined negotiation as a basic process of getting what you want from other people. As such, negotiation is the fundamental activity involved in the sales process. Thus, in order to achieve a high level of success as a salesperson, you must become an effective negotiator.

To be continued…

Positioning yourself for Success Part-1

1.From the book: Turn Your Customers into Your Sales Force by Ross Reck

This is not about people who are born rich or inherited their wealth or people who won lottery or a game show. This is about people like you and me who are responsible for their own success. We all have our own definition for success. In most cases, these highly successful people had something special magical quality called “it”. There are different answers when we search for what is “it” all about.

Shiv Khera wrote in his book ‘You Can Win’ –“Winners don't do different things. They do things differently.” What is that “different” way of doing things? Ross Reck started research to find out, everyone was pointing out that highly successful people possessed this quality, but no one could explain what “it” was. He interviewed more and more successful people and grouped the answers into three categories.

The first category was that these highly successful people have an amazing ability to draw other people to them – a magnetic personality. In other words, if these people were selling something, customers seemed to jump out just for a chance to buy from them. The next category was that these people have an unbelievable ability to get other people to get the extra mile on their behalf. The third category was that these highly successful people have a wonderful ability to get other people to stand in line just for the privilege of doing them a favour. The process highly successful people use to get people to enthusiastically go the extra mile on their behalf is called Win-Win Negotiation.

To be continued….

Corporate Ethics - ಮಾಡಿದ್ ಉಣ್ಣೋ ಮಹರಾಯ

Is ‘ethics’ can be developed? Or can it be inculcated into someone in a corporate environment? I don’t think it can be. If you think, ‘yes’ then read on… it may change your opinion also.

In the financial services industry, stock broking is one of the major player. People with good experience are in demand always. The jumps between the companies happen. Once, a company who wanted to ramp up its business in Bengaluru and Karnataka decided to hire some ultra smart people to head their operations here. Two people, one in AVP level and other in the Branch Manager level, got an opportunity of their life time to take control of the business of this company.

They were given full control, power and authority to develop business in Bengaluru and rest of Karnataka. They were doing quite a good job, thought the company bosses, sitting in Mumbai. These two people were following hire & fire policies, used to get people on board and send them home in short period on the basis of performance. Poor executives, dealers or who ever worked for that company did not get any final settlement from the company’s side. Thanks to the great professionalism shown by the top bosses sitting in Bengaluru.

When they received the settlement cheques of the people who left the organization, they discounted it and pocketed the cash. Told the poor ex-employee that because of non performance, company has not given the final settlement.

Fortunately, the Company woke up in time, conducted enquiry and now the two culprits have been terminated from the services of the company. But will their compensation and settlement will be adjusted for their wrong doing or not, not known.

Now, you decide, ‘ethics’ can be thought to someone or inculcated in somebody? One was IIM, Kozhikode graduate and other person a graduate with vast knowledge of stock markets, its ups and downs, scams and scamsters. For some short time benefits, they forgot their long term effects.

I believe the concept of ‘ethics’ or acting according to one’s consciousness has to come from the childhood, the upbringing. The way one’s life evolved, the environment and circumstances also play important role on developing one’s thoughts about ‘ethics’. 

ಅದಕ್ಕೆ, ಕನ್ನಡದಲ್ಲಿ ಹೇಳೋದು - "ಮಾಡಿದ್ ಉಣ್ಣೋ ಮಹರಾಯ", "ಉಪ್ಪು ತಿಂದ ಮೇಲೆ, ನೀರು ಕುಡಿಯಲೇ ಬೇಕು, ತಪ್ಪು ಮಾಡಿದರೆ,  ಶಿಕ್ಷೆ ಅನುಭವಿಸಲೇ ಬೇಕು." 

ದೇಶದ ಪ್ರಗತಿಗೆ ಬೇಕು ಜನರಿಗೆ ಆರ್ಥಿಕ ಸ್ವಾತಂತ್ರ್ಯ

ಕಳಬೇಡ ಕೊಲಬೇಡ
ಹುಸಿಯ ನುಡಿಯಲುಬೇಡ
ಮುನಿಯಬೇಡ
ಅನ್ಯರಿಗೆ ಅಸಹ್ಯ ಪಡಬೇಡ
ತನ್ನ ಬಣ್ಣಿಸಬೇಡ
ಇದಿರ ಹಳಿಯಲುಬೇಡ
ಇದೇ ಅಂತರಂಗ ಶುದ್ಧಿ
ಇದೇ ಬಹಿರಂಗ ಶುದ್ಧಿ
ಇದೇ ನಮ್ಮ ಕೂಡಲಸಂಗಮನೊಲಿಸುವ ಪರಿ
-ಬಸವಣ್ಣ

ಎಂಥಾ ಸುಂದರ ಯೋಚನಾ ಲಹರಿ. ಎಲ್ಲಾ ರೀತಿಯ ಮಾನಸಿಕ ತುಮುಲಗಳಿಗೆ ಸರಿಯಾದ ಮಾತ್ರೆ/ಟಾನಿಕ್. ಇದೆಲ್ಲಾ ಸಾಧ್ಯವಾಗಬೇಕಾದರೆ ಮನುಷ್ಯ್ ತನ್ನ survival needs (roti, kapda, makaan, education & health)ನ fulfill ಮಾಡಿರಬೇಕು. ಈ ಅಗತ್ಯಗಳಿಗೆ ಯಾವತ್ತೂ ತೊಂದರೆ ಬರದಿರುವ ಹಾಗೆ ನೋಡಿಕೊಂಡಿದ್ದರೆ ಮಾತ್ರ ಮನಸ್ಸು ನೆಮ್ಮದಿಯಿಂದ ಇರಲು ಸಾಧ್ಯ. ಇಲ್ಲದಿದ್ದರೆ, ಮನುಷ್ಯ ಯಾವಾಗಲೂ ತನ್ನ basic necessities ಗಳನ್ನ fulfill  ಮಾಡಲು ಮೊದಲ ಪ್ರಾಶಸ್ತ್ಯ ಕೊಡುತ್ತಾನೆ. ಜೀವನದಲ್ಲಿ ಯಾವುದೇ ಸಾಧನೆ ಮಾಡಲು ತನ್ನನ್ನು ತಾನು ತೊಡಗಿಸಿಕೊಳ್ಳಲು ಸಾಧ್ಯವಾಗುವುದಿಲ್ಲ.

ಅಂದರೆ, ಮನುಷ್ಯನ ಇಂದಿನ ಜೀವನದಲ್ಲಿ, ಅವನ ಜೀವನ ಶೈಲಿಯಲ್ಲಿ ಹಣ ತುಂಬಾ ಮಹತ್ವದ ಪಾತ್ರವಹಿಸುತ್ತದೆ. ನನ್ನ ಮಾರ್ಗದರ್ಶಿ ಹೇಳುವಂತೆ, ’Money is not the problem, having not enough money is the root cause of all problems'. - ಹಣದಿಂದ ತೊಂದರೆ ಅಲ್ಲ, ಸಾಕಷ್ಟು ಹಣ ಇಲ್ಲದಿರುವುದರಿಂದ ತೊಂದರೆಗಳು ಪ್ರಾರಂಭವಾಗುತ್ತದೆ. ಈ ರೀತಿಯ ತೊಂದರೆಗಳಿಂದ ನಮ್ಮ ಜೀವನವನ್ನು ಖುಷಿಯಿಂದ, ನಾಲ್ಕು ಜನರಿಗೆ ಉಪಯೋಗವಾಗುವಂತೆ ನೆಡೆಸಲು ಸಾಧ್ಯವಾಗುವುದಿಲ್ಲ.

ಯಾವುದೇ ಒಂದು ದೇಶ ಅಭಿವೃದ್ದಿ ಹೊಂದಬೇಕಾದರೆ, ಅದರ ಪ್ರಜೆಗಳು ಅಭಿವೃದ್ದಿ ಹೊಂದಬೇಕು. ಪ್ರಜೆಗಳು ಅಭಿವೃದ್ದಿ ಹೊಂದಬೇಕಾದರೆ ಅವರ ಜೀವನ ಶೈಲಿ ಬದಲಾಗಬೇಕು. ಅವರ ಜೀವನ ಶೈಲಿ ಬದಲಾಗಬೇಕಾದರೆ ಎಲ್ಲರೂ ಕೈ ತುಂಬ ಹಣ ಸಂಪಾದನೆ ಮಾಡಿ, ನಿಯತ್ತಿನಿಂದ ತೆರಿಗೆ ಕಟ್ಟಬೇಕು.

ಬನ್ನಿ, ನಾವೆಲ್ಲರೂ ನ್ಯಾಯಯುತವಾಗಿ, ಧರ್ಮ ಬದ್ದವಾಗಿ ಹಣ ಸಂಪಾದನೆ ಮಾಡಿ, ದೇಶದ ಅಭಿವೃದ್ದಿಗೆ ನಮ್ಮ contribution ಮಾಡೋಣ. ನಾವು ಬೆಳೆಯೋಣ, ದೇಶವನ್ನು ಬೆಳೆಸೋಣ.  ಎಲ್ಲರೂ ಆರ್ಥಿಕ ಸ್ವಾತಂತ್ರ್ಯಗಳಿಸಿದಲ್ಲಿ, ಬಸವಣ್ಣನವರ ವಚನ ಸತ್ಯವಾಗುತ್ತದೆ. ದೇಶವೂ ಅಭಿವೃದ್ದಿ ಹೊಂದುತ್ತದೆ. ಈ ದೇಶ ಬೆಳೆಸುವ ಕೆಲಸದಲ್ಲಿ ಆಸಕ್ತಿ ಇರುವವರು ನನ್ನನ್ನು ಸಂಪರ್ಕಿಸಬಹುದು.

Financial Freedom

I read a post on BigPicture regarding Finanical Freedom http://financialphilosopher.typepad.com/thefinancialphilosopher/

A full discussion with comments is available on http://www.ritholtz.com/blog/2009/12/the-greatest-deception-in-the-history-of-finance/

The whole idea is about the posting is to say that Financial Freedom is the Greatest Deception in the filed of Finance.

Let us see what dictionary meaning of FREEDOM.

Some interesting observations are: FREEDOM is the state of being free; the power to act or speak or think without externally imposed restraints,

immunity from an obligation or duty. source: http://ardictionary.com/Freedom/6011 (you will get more definitions for FREEDOM)

It is quite obvious that the power of using Money without any constraints and restraints in one's life is Financial Freedom.

Now there is an argument that 'True freedom is being content'.

This may be true for the SURVIVAL need of man.

Pictorial description of Maslov's theory is given below:

(source: wikipedia)

Based on Maslov's model, I am proposing a simplified model below:

Survival -> Stability -> Success -> Significance

Survival level is you are just living. "Roti, Kapada & Makaan". That is food, clothing and shelter. Even though you have dreams about good standard of living you may not be able to stretch a bit to afford some luxuries in life. Being Content means people in this level will be continue to be in the same level.

As for as my understanding of Financial Freedom is moving from Survival, Stability level to Success and Significance level, Living a life with style... no adjustments... no tension regarding EMIs... fear about sudden commitments...

So, attaining Financial Freedom is to be self sufficient regarding having and using money. As one of my mentor says... Money is not the problem... having not enough money is the problem.

ಕನ್ನಡದಲ್ಲಿ ಮನದಾಳದ ಮಾತುಗಳು...

ಕನ್ನಡದಲ್ಲಿ blog ಬರಿಯೋದು ತುಂಬಾ ಸುಲಭ ಆಗಿದೆ. ಬರಹ ೭.೦ download ಮಾಡಿ, ನಿಮ್ಮ ಕಂಪ್ಯೂಟರ್‍ನಲ್ಲಿ install ಮಾಡಿ. ಬರಹ  -direct start ಮಾಡಿ. ಬರಹ direct ನಲ್ಲಿ language option -> kannada -> unicode select ಮಾಡಿ. ಜೊತೆಗೆ ನಿಮ್ಮ blog editor ನೂ latest versionಗೆ update ಮಾಡಿಕೊಳ್ಳಿ. Settings ನಲ್ಲಿ transliteration option from english to kannada set ಮಾಡಿಕೊಳ್ಳಿ.

Happy blogging... ಸ್ವಲ್ಪ ಜಾಸ್ತಿ ಕಂಗ್ಲೀಶ್ ಉಪಯೋಗಿಸಿದ್ದೇನೆ. ದಯವಿಟ್ಟು ಕ್ಷಮಿಸಿ.