Friday, July 25th, 2008
Archive for the 'Solving Problems' Category
Friday, July 25th, 2008
Sunday, April 27th, 2008
A question that has helped me decide whether to accept jobs, consulting engagements, and purchase important products and services is “should I do business with this company.”
In today’s business environment, it is important for those of us who rely on long-term relationships to have appropriate relationships with suitable business partners. (And, I use the term “partner” very loosely here, rather than as a legal term. In other words, a “partner” is just another party with whom you do business in any capacity.)
The question is best answered by considering the “big picture.” Specific factors that have helped me answer the question over the years include:
- What is the nature of the relationship?
- What is the other party’s reputation?
- Are there other parties that can meet my needs?
- How important is the relationship to my core business?
- How will the outcome of this relationship (good or bad) impact my future activities?
If a person is buying stationery for an office, the supplier’s situation is likely to be assessed differently from a situation in which a person is looking for employment at the senior officer level or the situation in which a customer lies to a supplier.
At the end of the day, there are few absolute answers. We have to make the best decisions we can with incomplete information, learn from the experience, and deal with the consequences. There are risks for us, whether we pursue the relationship or walk away.
Wednesday, November 7th, 2007
The other day, John had a terrible negotiation. It went downhill from the instant he picked up the telephone. The customer was angry about how John had handled an issue. John was unprepared for the discussion. The customer started yelling at him, and John went on the defensive. The situation went from bad to worse.
What might John have done to avoid or deal with this issue?
For me, this is the cost justification for voice mail, caller ID, answering machines, and having people screen calls. These approaches yield results in two ways.
First, this approach reduces the risk that John will say something he regrets, or in anger. Once the words are spoken, it is very difficult to retract them. Often, if people have a built-in pause, they are less likely to say something they regret.
Second, this approach can provide John with enough information to prepare for the discussion. When John knows who is calling, he can (1) talk with his team about the account and see if there are known issues, (2) find out how the relationship is working from his team’s perspective, and (3) prepare for the discussion. In many cases, John may identify options or solutions that address the problems before returning the call. If John can do this, his value to all parties increases.
What other steps can John take to prevent or deal with the situation?
Technorati Tags: negotiation problem solving conflict avoidance conflict resolution communication teamsThursday, November 1st, 2007
The other day, a customer said that he had been coming to The Illahe Lodge every year for the last 24 years.
Why might a customer use a firm for an extended period of time? Certainly advertising costs are lower and customers and the business have greater knowledge of what each offers. What are the costs and benefits associated with this decision? Think about the difficulties that could arise if a major customer experienced financial hardship or became dissatisfied. Consider too the pain that can result with changing the business model. Still, there are risks associated with every business decisions and every business model. It seems to me that we have to choose the approach that involves risks we find more tolerable. What one person may find more tolerable may be unacceptable to someone else…
So what is the moral of the story? Business relationships need to be aligned with a firm’s business model. Some firms do this by offering discounts on return visits, accepting higher prices or paying higher compensation based on tenure, or weighing their decision matrix towards suppliers with longer tenure.
Now, think about your business model and the importance of repeat and referral relationships. Who are you targeting as customers, suppliers, and employees? What are some steps that you are taking to appeal to people in these groups who meet your criteria?
Want to know more or talk about your situation specifically? If so, please feel free to send me an email at infoli@c-davisconsulting.com, or click on the button at the right to contact me.
Sunday, October 28th, 2007
The other day, Joe wanted his supplier to give a discount because part of an order was defective. Joe started with a friendly approach. When the supplier wanted more information to understand the problem, Joe became hostile and accused the supplier of unethical behavior.
At this point, the supplier became frustrated and said, “Joe, you have been a good customer for several years. I think that I have been a good supplier for your business for several years. That said, your business isn’t worth the insults and abuse. Joe, I am going to eat the cost of your order. In the future though, please take your business elsewhere.”
To this comment, Joe replied, “You mean that you are going to give up my business that has brought you several thousand dollars a year?”
The supplier said, “Yes, Joe. That is exactly what I mean. The cost of having you as a customer outweighs the benefits. I hope that you find a supplier that better meets your needs.”
What steps might have enabled Joe or the supplier to avoid this situation? How could the issue have been defused in the conversation? Are these issues that you have encountered in your supplier or customer relationships? If so, what steps did you take? What would you do differently, if you faced this issue today?
In short, how important is attitude in your business (and what action do you take to manage it)?
Saturday, October 27th, 2007
The other day, Sally asked for help with her business. Sally wanted people to make referrals to her. When asked who would be a good referral, Sally said, “anyone who needs my services.”
How many referrals was Sally likely to receive with such a response? Sally may receive referrals from such a response, but the referrals are likely to be all over the map.
What happens though if Sally tells the person how to identify a good referral? It may lead to more referrals, better referrals, and greater confidence in the referrals that are made.
The starting point when seeking better referrals is to know what problem you help a person solve.
Thursday, September 6th, 2007
The other day, Sam said that he was going to come to the lodge with six boats (18 people). To prepare for Sam’s trip, we went to town and got groceries - milk, bread, eggs, and some other items.
Suppose that Sam calls tomorrow and says that the number of customers has changed and he is only bringing four boats (12 people).
Think about what this change might mean for a small business.
Is it material?
How might it impact groceries?
Might it impact other reservations?
Could it affect the number of people needed?
How would it impact the gross and net profit for the trip?
Asking questions like these can help people see the world through another person’s eyes. Before communication occurs, the people involved have to understand each other’s perspectives.
