Negotiation

Commitment, Not Compliance

July 12, 2021 By Nagesh Belludi Leave a Comment

For some managers, fear is a dirty little secret … they use it when they are either unwilling or unable to persuade employees to work together to achieve goals.

Fear gets results but it does so at a cost. Fear is saps enthusiasm and stifles constructive deliberation.

Step back and work with your employee to determine performance objectives, goals, and priorities. Then, let your employee translate those objectives into tasks and determine how best to perform the task.
Don’t interfere excessively or micromanage. Don’t insist that there’s only “one best way” to do the job. Trust employees to make the right choices to reach the end result.
Don’t be a pushover, either. Be tough where you must be, kind where you can be. Managers can be strong without instilling fear. Be steadfast and unrelenting in your quest for getting results.
Let the employee customize the job to reflect her strengths and weaknesses to the extent possible, without compromising the core contributions expected of her role. Allowing the maximum possible use of your employees’ motivated abilities to achieve targeted results will not only use strengths to the maximum, but also drives intrinsic job satisfaction.
Take the time to get to know each employee’s unique set of talents. Try to dole out the available work to best match your employees’ talents.
Share the glory. Giving others a chance to claim credit is an easy, and effective, way to get results. As Dale Carnegie wrote masterful self-help manual How to Win Friends and Influence People (1936,) be “hearty in your approbation and lavish in your praise.” Learn to overlook small mistakes, but address problems before they escalate.

Idea for Impact: There is potentially no more powerful motivator than the intrinsic satisfaction that an employee could gain from autonomy under structure, and from using one’s motivated talents. Find ways to entice commitment from your employees. Don’t force compliance by virtue of authority.

More from Less // Book Summary of Richard Koch’s ’80/20 Principle’

May 10, 2021 By Nagesh Belludi Leave a Comment

The Italian sociologist Vilfredo Pareto (1848–1923) recorded a “maldistribution” between causes and effects in economic statistics. It’s an observable fact that a minority of reasons—nominally around 20%—tends to produce a majority—80%—of the results.

Most Effects Come from Relatively Few Causes

More than a century later, the Romanian-American quality control pioneer Joseph Juran (1904–2008) embraced Pareto’s notion and demonstrated that 80% of all manufacturing quality defects are caused by 20% of reasons. Juran urged managers to identify and address the “vital few” or the “critical few “—the small fraction of elements that account for this disproportionally large fraction of the effect.

This Pareto Law, 80/20 Rule of Thumb, Zipf’s Principle of Least Effort, Juran’s Law of the Vital Few, 80-20 Thinking—call it what you want—permeates every aspect of business and life. Now that you know about it, you’ll start seeing it everywhere.

A fifth of your customers accounts for four-fifths of your sales. 20% of your employees are responsible for the majority of your firm’s productivity. 20% of your stocks will be responsible for 80% of your future gains. You tend to favor 20% of your clothes and wear them 80% of the time. You spend 80% of your socializing time with 20% of your friends. 20% of the decisions you’ve made during your life have shaped 80% of your current life. 80 percent of the wealth tends to be concentrated with 20 percent of the families.

The Pareto principle is a state of nature (the way things happen) and a process (a way of thinking about problems.) The 20% are the sources of the most significant potential impact.

The Remarkable Variance of Contributors and Effects

Richard Koch’s 80/20 Principle: The Secret to Achieving More with Less (1999) elaborates on using this seminal prioritization principle. “The 80/20 Principle asserts that a minority of causes, inputs, or effort usually leads to a majority of the results, outputs, or rewards. … The winners in any field have … found ways to make 20% of effort yield 80% of results.”

Koch explains ad nauseam that most of us work much too hard and produce much less in relation to what could be produced. If trying harder hasn’t worked, perhaps it’s time to try less.

Invest your time and effort more wisely. Don’t address the less significant elements. “Most things always appear more important than the few things that are actually more important.” Examine what you do of low value. In other words, eliminate or reduce the 80% of efforts that produce less-significant results.
Know when to stop. Once you’ve solved the 20% of the issue to deliver 80% of the impact, any further effort can only achieve diminishing returns.

Idea for Impact: In most areas of human activity, just 20% of things will be worthwhile.

Recommendation: Speed-read Richard Koch’s 80/20 Principle. It’s an excellent reminder that not all effort is equal, so it pays to focus on what matters most.

Embrace the “80-20” frame of mind in everything you do—at work and home. Unless you want to spend every waking hour working, it’s essential to learn how to focus your efforts on the most promising, impactful aspects of what needs to be done.

Realize that few things really matter in life, but they count a tremendous amount. These vital things may be challenging to discover and realize, but once you find these things that really matter, they give you immense power—the power that gives you more from less. Spend a disproportionate amount of time and energy making sure these decisions are made well, and you put yourself in the best position you can in the process.
If you want to improve your effectiveness at anything, focus only on what matters most. Be extraordinarily selective—spend time resourcefully on the few essentials that matter the most and little or no time on the massive trivia that engulfs most of your time.

This Hack Will Help You Think Opportunity Costs

March 29, 2021 By Nagesh Belludi Leave a Comment

Making decisions is all about opportunity costs. For instance, every time you spend money to get something, you should ask yourself what else, perhaps of better value, you could get with that money—now or later.

The problem is, when forced to choose between something immediate and concrete and something else that’s comparatively abstract and distant, the opportunity cost could lack clarity.

Duke University behavioral economist Dan Ariely proposes the notion of “anti-goals” to help examine the trade-offs you’re forced to make. Ariely encourages pairing goals such that if you satisfy one, you’ll impede the other. For example, when choosing to spend $100 on an evening out today, you can consider a tangible anti-goal—say, saving for the family’s summer vacation—that’ll be held back.

Idea for Impact: Thinking about what you want to avoid—the anti-goal—is a potent tool. It allows you to focus on things that really matter.

Negotiating Without Giving In

February 1, 2021 By Nagesh Belludi Leave a Comment

Getting to Yes: Negotiating an Agreement Without Giving In (1981) by Roger Fisher et al. is a best-selling manual used in everything from marriage counseling to international negotiations.

Citing examples of all sorts of conflicts, the authors build the case that there’s a far greater chance of agreeable resolutions when parties aren’t bogged down in intractable positions. The tome helps highlight how the commerce of relationships is rarely ever simple and hardly ever so fair.

Behind opposed positions lie shared and compatible interests, as well as conflicting ones. We tend to assume that because the other side’s positions are opposed to ours, their interests must also be opposed. If we have an interest in defending ourselves, then they must want to attack us. If we have an interest in minimizing the rent, then their interest must be to maximize it. In many negotiations, however, a close examination of the underlying interests will reveal the existence of many more interests that are shared or compatible than ones that are opposed.

The book has its roots in the Harvard Negotiation Project. This interdisciplinary consortium started when Harvard realized that students from such faculties as law and business were ill-equipped to tackle conflicts effectively.

Negotiation Need Not Be a Zero-Sum Game

At its core, Getting to Yes focuses on what the authors call “principled negotiation”—it’s emphasizing what’s essential to you and why. In contrast, “position negotiation” is merely making demands and offering concessions until a compromise is reached. When you clarify why something is important to you and heed why things are essential to the other party, myriad solutions in your interests and theirs present themselves.

In traditional position-versus-position bargaining, the other must lose if you have to win and vice versa. With principled negotiation, you cultivate a supportive approach, “work side by side, and attack the problem, not each other.” Rather than stake out unwavering positions, you explore all possible “options for mutual gain” and present the other side with “yesable” propositions.

Separate the People from the Problem

To focus on underlying interests, the parties should try to get inside each other’s heads and consider the emotions involved—the desire for security or a fear of losing status, for example. “The ability to see the situation as the other side sees it, as difficult as that may be, is one of the most important skills a negotiator can possess.”

An illustrative anecdote cites President Nasser of Egypt being interviewed in 1970. His negotiating position was that Israel must pull its troops out “from every inch of Arab territory,” with no Arab obligation in return. The interviewer switches from positions to interests by prompting Nasser to consider what would happen to Prime Minister Golda Meir if she went on Israeli TV to reveal such a capitulation. Nasser bursts out laughing: “Oh, would she have trouble at home!” His compassion for Meir’s public perception transcends one of the most intractable geopolitical crises of our times.

Recommendation: The Best Little Book on Win-Win Negotiations

Must-read Getting to Yes (1981; reissued 2011.) It’ll change your general conception of negotiation by showing you how to benefit by seeing the world in terms of mutually beneficial transactions. This simple-but-practical guide to negotiations is full of useful tips on negotiating effectively without giving in or jeopardizing your relationship with the other party.

Any method of negotiation may be fairly judged by three criteria: It should produce a wise agreement if agreement is possible. It should be efficient. And it should improve or at least not damage the relationship between the parties.

Some of the book’s techniques seem naive, and the authors tend to oversimplify bargaining positions. Moreover, not all conflicts can be solved as discrete judgment-based conciliations without having one party benefit only at significant cost to the other. Nonetheless, Getting to Yes teaches helpful lessons on understanding oneself and others, compromising, and searching for “win-win-win” solutions.

Idea for Impact: To persuade, focus on fairness and mutual interest, not on insisting on bargaining positions and winning the contest of will.

You’ll Never Get a ‘Yes’ If You Never Ask

December 17, 2020 By Nagesh Belludi Leave a Comment

It never does any harm to ask for what you want

During a Q&A at Vanderbilt University in 2013, lifelong Billy Joel fan and piano player Michael Pollack plucked up the courage and stood up to ask his childhood idol a question.

Pollack, an 18-year-old freshman at Vanderbilt, asked to accompany Joel in a performance of “New York State of Mind,” Pollack’s favorite song: “I was very fortunate to play with Richie Cannata [Joel’s saxophone player] many times in New York City, and I was wondering if I could play it with you.”

With just a hint of hesitation, Joel said, “Okay.”

Joel gave a remarkable vocal performance to accompany Pollack’s piano skills. The crowd applauded.

“Remember that name,” Joel told the excited audience. “Guy’s got chops.”

An online video of the performance quickly went viral.

Stop Overthinking Every Simple (and Not so Simple) Request

Pollack took a risk and traded the possibility of embarrassment and rejection for a lifetime of memories and a huge payoff.

Before long, Pollack signed publishing deals and began collaborating with other musicians. After graduating from Vanderbilt, he wrote dozens of songs for celebrity musicians. This year, he achieved his first U.S. Top 40 radio #1 with Maroon 5’s “Memories.”

Idea for Impact: All it Takes is a Simple Ask

Most folks know that the key to getting what they want is merely asking for it. But they’re too wimpish to speak up.

Take a chance. A little bit of courage can open doors for you. Feel the fear and do it anyway.

Ask for what you want. You sometimes won’t get it, and often the rejection will be painful. But when this works, it works surprisingly well.

Try something today that has a small risk and a huge payoff.

How to Project Positive Expectations

June 4, 2020 By Nagesh Belludi Leave a Comment

If you want to be seen as a doer, somebody who can be depended upon to get a job done, answer with “I will” whenever possible.

According to George Walther, author of Power Talking: 50 Ways to Say What You Mean & Get What You Want (1991,) expressions such as “I’ll try” make you seem hesitant—even ineffective.

Recall all the people who’ve promise to do something by saying, “I’ll try to get back to you tomorrow.” They rarely do. They have to be reminded, prodded, and nagged.

Those who announce, “I’ll have an answer for you by two this afternoon,” typically follow through.

Idea for Impact: Watch Your Language

Your choice of words matters. You are building your reputation—your brand—one interaction at a time.

Your assertions set the tone for what others can expect from you. They also motivate you to get the job done as you’ve promised.

Speak the language of success.

The High Cost of Winning a Small Argument

May 14, 2020 By Nagesh Belludi Leave a Comment

Winning a conflict with a colleague over who’s right may feel good at the moment. But you could lose a future battle when you may need her cooperation and support the most.

Insisting upon being right when disagreeing with your boss could be dearer.

It’s futile to win any argument by overpowering or silencing the other person. Even causal denigration and occasional microaggressions can eventually lead to feelings of alienation and anger.

Conflicts sometimes evolve quickly from simple disagreements into high-stakes battles. So, before it’s too late, consider if taking a step back is wiser. Take the initiative and concede a point—even if you may end up losing the argument.

Seeking small glory now may only spoil your chance of bigger success in the future. Focus on the outcome—often, it’s the result that matters, not your role in it.

Idea for Impact: When you think you can nail someone with a winning argument, take a deep breath, and check if you could control your ego and back down. You may actually lose something small, but avoid losing something bigger.

When One Person is More Interested in a Relationship

May 9, 2020 By Nagesh Belludi Leave a Comment

The American sociologist Willard Waller coined the term “Principle of Least Interest” to describe how differences of commitment in a relationship can have a major effect on the relationship’s dynamics.

In The Family: A Dynamic Interpretation (1938,) Waller noted that, in any relationship (romantic, familial, business, buyer-seller, and so on) where one partner is far more emotionally invested than the other, the less-involved partner has more power in the relationship. In a one-sided romantic relationship, for example, the partner who loves less has more power.

Moreover, appearing indifferent or uninterested is a common way by which people try to raise their own standing in a relationship. Recall the well-known “walk away” negotiation tactic—tell a used car salesman, “this just isn’t the deal that I’m looking for,” and he may call you the next day with a better offer.

An imbalanced relationship can only last for a while.

A nourishing relationship shouldn’t involve a constant struggle for power.

Idea for Impact: Watch out for relationships where the other seems to care less about the relationship than you do. Such relationships can drain you dry.

How to Get Your Budget Through

December 3, 2019 By Nagesh Belludi Leave a Comment

Be familiar with your company’s procedures and criteria for approving and managing capital expenditures. Your management will require a compelling return-on-investment (ROI) study (net present value, payback, breakeven, or internal rate of return estimates) vis-à-vis explicit or implicit hurdle rates.
Establish clear links between your budget and corporate strategy. If your management can see the real benefits to the business, they’ll find the costs easier to absorb. Amazon’s customer-oriented culture requires every proposal for a new feature, product, or service to be pitched by means of a “Mock Press Release” arguing how a hypothetical Amazon customer would first learn about the feature and its utility.
Don’t just roll your budget over from the previous year adding a certain percentage “and then some.” Many companies have adapted a cost-management tool called “Zero-Base Budgeting” that requires you to justify each line item in your budget as if it were an entirely new claim for an entirely new project.
State your assumptions explicitly. Prepare worst-case and best-case scenarios to augment realistic forecasting of the future and help prudent decision-making. Keep your budgets ambitious but realistic.
Allow room for contingencies. Avoid rigidities that could inhibit the quick and effective response to an unexpected event. Bring your contingency planning into the open for a careful review.
Add some fat, but not too much. Keep this in your back pocket, but be ready to make some cuts by knowing what their impact can be. Be clear and confident when questioned about any of the numbers in your budget.
Explain how true you were to the previous year’s budget. Make a distinction between controllable and uncontrollable budget variances. This will build your management’s confidence in your pitch for the year ahead.
Put your budget proposal to test with your team and supportive peers. Encourage them to ask all the difficult questions they can imagine. They may not only know where the skeletons are hidden and help you with the answers you’ll need, but also become indispensable allies in getting your budget approved.
To persuade each member of management, know what matters to him/her and link your budget to his/her objectives. Discuss your budget with the key decision-makers separately before a group discussion. (Management consulting firm McKinsey calls this technique “pre-wiring.”) By getting each participant’s buy-in, you can count on his/her support and avoid surprise reactions and disagreements.

Here’s a Tactic to Sell Change: As a Natural Progression

October 10, 2019 By Nagesh Belludi Leave a Comment

In Venice: The Hinge of Europe, 1081–1797 (1974,) the eminent University of Chicago historian William McNeill outlined how the Venetian Republic shaped European history. Describing the notion of trans-cultural diffusion, he wrote,

When a group of men encounter a commodity, technique, or idea that seems superior to what they had previously known, they will try to acquire and make their own whatever they perceive to be superior, but only as long as this does not seem to endanger other values they hold dear.

University of Washington’s Roger Soder quotes McNeill’s remarks in The Language of Leadership (2001) and supplies a case in point:

This is best illustrated by the technique of Jesuits who brought “new math” [including astronomy and mechanics] to China in the 1600s. They created the myth that the new Western mathematics had in fact evolved out of ancient Chinese ideas. The new ideas, they felt, would be accepted much more readily if they were seen as a natural progression of previously accepted methods.

That’s an important lesson on how to sell change: as a natural progression of the status quo.

Idea for Impact: People find themselves unable or unwilling to make fundamental changes in their lives. They tend to be particularly unwelcoming of ideas that they fear will alienate them from their core values. Tread delicately if you want effective change.

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Negotiation

Wondering what to read next?

Most Effects Come from Relatively Few Causes

The Remarkable Variance of Contributors and Effects

Idea for Impact: In most areas of human activity, just 20% of things will be worthwhile.

Wondering what to read next?

Wondering what to read next?

Negotiation Need Not Be a Zero-Sum Game

Separate the People from the Problem

Recommendation: The Best Little Book on Win-Win Negotiations

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It never does any harm to ask for what you want

Stop Overthinking Every Simple (and Not so Simple) Request

Idea for Impact: All it Takes is a Simple Ask

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Idea for Impact: Watch Your Language

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