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Negotiation Scenarios: Dealing with Telemarketers
Monday, June 25th, 2007

Suppose that a nonprofit organization calls you on a regular basis to see if you are interested in renewing a membership or donating to its cause.  Perhaps, a potential supplier calls you regularly to see if you are interested in buying its “widget.”

You have the ability to negotiate when dealing with telemarketers.  Your response is a negotiation.  Most responses fit into one of the five styles of negotiation which are avoidance, accommodation, compromise, problem solving, or competing.  Think about five typical responses and which category they may fall into…

Hanging up or seeing that it is a telemarketer and not answering the telephone would be two examples of the avoidance technique.  In this approach, people simply avoid negotiating.

If you listen to the person’s speech even though you are not going to buy, this consistent with an accommodation approach.  With accommodation, you solve the problem by solving the issue the other person is facing.  In this situation, the other person is trying to find people to listen to his or her information and that is what you are doing.

Suppose that you tell the other person you are busy and agree that the person can call you at a different time.  This is a compromise.  With this, both parties get less than what they were hoping for, but the result is somewhere between what the parties are hoping for.  

Imagine asking questions, learning about the widget, and mentioning it to your friend who may have a need for what is being sold.  That could be a problem-solving approach.  With problem solving, people often suggest out-of-the-box ideas that expand the realm of options beyond those that are ”obvious.” 

What approach would you be using if you told the person to go away and never call you again?  This approach would be one manifestation of competing.

The circumstances determine what response is appropriate.  The key is to use the approach that is most likely to lead to the result that you are seeking.

By the way, on the subject of telemarketers, here are a few tips for dealing with telemarketers…

Telemarketers often use “limited time offers” to try to force your hand.  Rather than falling victim to that, ask yourself if you were looking for what is being offered before you received the call.

Stay connected to your community.  When people are isolated, they may be more vulnerable to telemarketers’ tricks.  These are two reasons that many elderly people contribute to causes they don’t support and buy widgets they don’t need.

Get it in writing.  If someone calls you via telephone and you did not initiate the contact, have them send you the information in the mail.

Give the telemarketer little or no information.  Any information you provide can be used to try to make the sale.  The less you say, the more difficult it is for them to sell you something.

Use the do not call registry.  Click here to visit the site and register. You can also make complaints about callers on this site.

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Trouble with MBAs
Monday, June 25th, 2007

News flash…  According to the April 30, 2007, Fortune Magazine, it seems that MBA programs are graduating students that have technical knowledge and know how to measure all sorts of things.  Where the programs need to improve is in helping people learn interpersonal, teambuilding, communication, and networking skills. 

What can be done to deal with the emphasis on technical knowledge and measurement?  How can programs improve in the practical skills? 

Technical Knowledge

In the context of technical knowledge, one of the areas where issues often arise is in finance.  Too often, finance classes in MBA programs relate more to doing NPV calculations and opportunity cost calculations, rather than helping people understand why finance matters to them and how finance issues arise.

Imagine sitting in an MBA finance class and having the instructor tell the class how to turn on their calculator and explain what each of the buttons did…  Been there.  Done that.  Another instructor heard about the class and stepped in to teach what people needed to learn.  They needed to be able to answer questions like:

What did the financial ratios mean? 

How did NPV impact business decisions? 

What results were good (or bad) and how should the results be used?

If the results were below expectations, how would this impact the business and what could be done to improve the results? 

Measurement

There is a saying that if something can’t be measured, it doesn’t exist.  Beyond that, organizations spend a lot of money validating what they already know.  These are two areas where  many people and common sense suggest that there is too much emphasis on measurement.

It is amazing to know how many things get measured.  In some purchasing and procurement organizations (perhaps other organizations as well), managers are evaluated on metrics like: 

Savings they negotiate

Supplier diversity results

Compliance with corporate policies

Whether they use their vacation time

Timeliness of completing the contract

Documentation to support the contract

Client satisfaction with the results and support

Many of these metrics can change independent of the business results that are achieved.  At the end of the day, the products, services, relationship, and terms of a contract have to meet business needs.  Few organizations have a way to measure this. 

Practical Skills

Think about the practical skills that a person needs to have if the person is going to add value in a contract negotiation.  The list might include skills like: 

Planning

Negotiation

Networking 

Teambuilding 

Applied ethics

Communication

Decision making

Problem solving

Critical thinking  

Conflict resolution

Time management 

Project management

Relationship management

How many people learn these skills in school, at any level?  Few seem to do so.  Think about how schools could teach these skills.  As a starting point, here are a few ideas of how these skills might be included in substantive subjects…

After answering a question, the instructor could ask the students to come up with a plan for implementing the solution.  What would they do if they were trying to apply the information in a real world situation?

A second alternative is that instructors might ask students what it means for them.

Rather than just talking about building teams in classes on teambuilding, students could be required to apply the information they learn in teambuilding classes in other courses as they create project teams.  They could be required to develop a project plan and a timeline. 

 Questions could be posed that require students to break projects down into manageable pieces.

What other steps might be used to help students learn practical skills?  Is this an effort that should be undertaken?  Alternatively, consider how employers might help employees learn these skills.

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Congratulations
Sunday, June 24th, 2007

to the 2007 College World Series Champions and back-to-back College World Series Champion

Oregon State University Beavers

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What does TXU going private mean for you?
Sunday, June 24th, 2007

In today’s Dallas Morning News, there was a study about the benefits of TXU going private.  The study concludes:

The benefits supporting going private would have occurred even if TXU stayed a public company.

Going private is likely to lead to higher energy prices.

Going private will lead to reductions in employee benefits.

If this study is correct, is there any wonder about why TXU would want to go private?  Think about it.  If the study is correct, that would mean:

The company would pursue the same strategy as a private company that it uses as a public firm (so there is no additional cost).

The company would be freed from many of the reporting requirements that public companies face.  As a result, it can save money. 

The higher energy prices would lead to more profit.

As a private company, it would be likely to cut employee benefits and that too would lead to more profit. 

How will TXU going private impact you?     

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Negotiation Scenarios: Dealing with “NO”
Sunday, June 24th, 2007

Suppose that you are negotiating an important deal and the other party says “NO!” to your request.  Think about how this might arise for you.

Situations like this often arise in the contexts of contract negotiations, disputes between parties, or when people are trying to develop processes that allow them to work together.

How do you react when faced with such situations?

There are three basic reactions:

Reaction 1.  Accept “no” as the answer.

Reaction 2.  Try to change “no” to “yes.”

Reaction 3.  Try to understand the “no.” 

If it is important to resolve the dispute and the other options have been exhausted, which of these options is/are most likely to be successful?

Evaluation of Options

Reaction 1 may work.  It is most likely to work if the other person respects and values your advice or the dialogue continues.  Sometimes, an idea “grows” on someone.   

Many use Reaction 2 and try to change the other person.  Changing someone else requires an awful lot of effort and, even with the effort, it seldom works over the long-term. Beyond that, the use of this option can cause resentment. How many people really want others telling them what to do?

The approach which is most likely to be successful with an important negotiation is Reaction 3.  With Reaction 3, people are changing themselves.  This is much easier than changing someone else.  Reaction 3 involves trying to see the world through the other person’s eyes and understand what matters to that other person.  When people do this, they are better positioned to

Know if the other person needs what they are offering.

Modify the suggestion to meet the other person’s needs.

Build a relationship with the other person.

Once another person’s perspective is understood, it is easier to know how and whether to proceed. 

Trusted Advisor

Sometimes, people use the term “trusted advisor.”  A trusted advisor is most likely to use Reaction 3.  Note that the use of Reaction 3 does not make someone a trusted advisor, in and of itself. 

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Question is answered on the car from Oklahoma City…
Sunday, June 24th, 2007

The winner of the 1957 Plymouth that was given to the person who came the closest to guessing the 2007 population of Oklahoma City has been located.

According to this article, the car would have been worth about $50,000, if it had been in good condition.  As it was though, the car was rusted and is of little value.  The winner did receive a $100 savings bond.

Risk can come in a variety of forms.  Here, there was a risk that the car would rust.  What, if any, steps might have been taken to better manage this risk?

Based on the risk and the steps that were taken to manage the risk, would you have participated in the contest?

What does this situation mean for your business?

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Cheating in business school?
Sunday, June 24th, 2007

This week, Yahoo published this article about cheating in business schools.  According to the article, only three of the 25 top schools were able to provide specific data about ethical violations involving students.

In the real world, I knew of students who talked about having their secretaries and assistants write papers and do the homework for them.  Of course, the secretaries and assistants did not receive the degrees. 

Business school was a sharp contrast from how law school handled ethics.  At the law school I attended, even revealing the numeric code assigned to you for finals was an honor code violation that carried expulsion as the penalty.  

How important is it that business schools detect cheating?  What steps should be taken to detect and deal with cheating in MBA programs?  Are people who cheat in school likely to follow the rules once they graduate?

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