At the end of the day, we can each control one person… ourselves.

Self-leadership involves being the sort of person and leader that we would each choose to follow at an individual level.

Does it work? If we practice self-leadership, do we find others following us? Please feel free to share your experience on this…

Filed by Coleen Davis at 9:40 am under Business Tips, Leadership, Team Building, Tips for Students
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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?

Filed by Coleen Davis at 10:23 pm under Business Acumen, Business Trends, Negotiations, Planning Tips, Solving Problems
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The other day, I was reading Fortune’s October 1, 2007, issue. The topic was on leadership and great leaders. It led me to think a bit about leadership. In many organizations, leadership is weak. Instead of leadership, we find managers and bosses, rather than leaders.

What is a leader? How is that different from being a manager or a boss? What makes a leader? Those are three questions that we will discuss today.

What is a leader?

It seems to me that a leader is a person who other people choose to follow. Leaders can be found at all levels of an organization.

When important decisions are being made, leaders are the people that ideas are bounced off of, regardless of the person’s level or official role. Think about the people that you look to and talk with when you are making important decisions. Why do you rely on them? What factors do they have in common?

How is a leader different from a manager or a boss?

That is a challenging question. Certainly, a leader needs to be a good manager. Many good managers are ineffective leaders. Think about some of the managers you know. How many of them would you follow? What would stop you from following the others?

Often, managers focus on process and adherence to rules. What I’ve experienced is that managers see rules as having value in and of themselves. Rules are to be followed. In contrast, leaders see rules as tools to help legitimate ends be achieved. If a rule is preventing the legitimate end from being achieved, a leader is likely to take a step back, look at the rule and ask if it is working correctly. If the rule is broken, the leader tries to fix it.

So, if that is what a leader and manager do, what does a boss do? A “boss” is someone who has been given a position of responsibility. Sometimes, a boss is a great leader or a good manager. In other cases, a boss is someone who got there by the Peter Principle (people being promoted to their level of incompetence).

What makes a person a leader?

There are exhaustive lists on this. Every “leadership” specialist or consulting firm probably has one. Many articles attempt to list the characteristics of a leader as well.

It seems to me that the key to being a leader is found in the details. How does the person earn others’ support? How are followers developed? Does the person model the behavior that will help others become leaders?

The characteristics that I think of when I think of great leaders include:

* Investing the time to learn the business or subject
* Learning to communicate effectively with others
* Developing listening skills and listening with an open mind
* Inviting dialogue and discussing differences of opinion
* Making it safe for people to make mistakes and disagree
* Helping people learn and develop their skills
* Encouraging followers to reach their potential

What do you think? Do these ideas track with your own and your experiences?

Filed by Coleen Davis at 9:32 am under Achieving Goals, Business Acumen, Leadership, Team Building
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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.

Filed by Coleen Davis at 10:37 am under Business Acumen, Business Tips, Marketing, Planning Tips, Solving Problems
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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)?

Filed by Coleen Davis at 5:07 pm under Business Acumen, Customers, Negotiations, Solving Problems, Sourcing
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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.

Filed by Coleen Davis at 7:07 pm under Achieving Goals, Business Acumen, Business Tips, Networking, Solving Problems
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In simple negotiations, emotions can lead to faster agreements. Think about the person who “falls in love” with a new car. In many cases, the person buys the car without regard to the fact that his or her current car is just a few years old and running fine.
When negotiations are more complex, longer, or fulfillment of the contract will require effort and commitment from all parties, some rely on emotion. Does it work? Well, it may work for some individuals even in this situation.
In these more complex negotiations, emotional responses can be a negative. When emotions are involved, important questions may go unanswered. These questions may include:

1. How will we fulfill the deal?
2. Why is this deal important to both parties?
3. How can we make the deal better for everyone involved?
4. What issues are likely to arise as part of the project? How will we know that the issues have arisen? What should happen if these issues arise?
5. Who needs to have what information? Why? When do they need it?

In other words, emotional responses often prevent people from thinking through and planning for the real world issues that determine the success (or lack of success) associated with complex projects.
How can people deal with emotions in negotiations?

Filed by Coleen Davis at 7:22 am under Achieving Goals, Business Acumen, Negotiations
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