Deadline Dynamics and the Healthcare Reform Bill
Posted on | July 31, 2009 | No Comments
CNN reported today that Democratic leadership in the House reached a deal with several “Blue Dog” Democrats to allow the Energy and Commerce Committee to resume its debate of the health care bill with a vote expected by the end of the week. The deal also reportedly puts off a vote by the full House until after the August recess.
President Obama and House and Senate Democratic leadership originally wanted both the House and Senate to approve the bill before the recess. Why?
Short deadlines tend to increase pressure and urgency and provide incentives to parties to accelerate the negotiation process. As a result, they are often used by those hurt by the passage of time and who don’t care much about a future relationship with their counterparts. Here, President Obama sought to capitalize on his early popularity, which has started to wane as the economic slowdown continues. Delay – especially over the August recess - will also allow opponents of the bill more time to publicly organize and resist passage. Bipartisanship also wasn’t a huge priority for President Obama.
Now that a vote on the bill most likely won’t occur until September at the earliest with President Obama’s new deadline for a bill on his desk by the end of the year, let’s consider the benefits of this new longer deadline. Longer deadlines decrease pressure and urgency. As a result, they are often used by those helped by the passage of time and/or those who want a future relationship with their counterparts. Longer deadlines also help those creatively working together to resolve mutual problems.
Here, the longer deadline allows Senate Democrats and Republicans time to potentially negotiate a bipartisan compromise. This longer deadline thus increases the likelihood of garnering support from moderate Senate Republicans.
Finally, with both sides of the aisle creatively working together, it might also result in a more thoughtful and ultimately effective piece of legislation.
Marty Latz is the founder of Latz Negotiation Institute, a national negotiation training and consulting company, and ExpertNegotiator, a Web-based software company that helps managers and negotiators more effectively negotiate and implement best practices based on the experts’ proven research. He is also the author of Gain the Edge: Negotiating to Get What You Want. He can be reached at 480-951-3222 or Latz@ExpertNegotiator.com.
Do the Standards Dance
Posted on | July 24, 2009 | No Comments
In many sophisticated negotiations, each party will find independent standards like market value, precedent, expert opinions, etc., that favor their side and will use their most favorable standards to independently justify the “fairness” of their positions. The result? We get the “standards dance” - when the parties negotiate over which standard represents the most fair and applicable justification.
For instance, Secretary of State Hillary Clinton is currently in India discussing a range of issues, including carbon emission limits. The United States wants India to accept binding limits on carbon emissions, which India is resisting.
India argues that its comparatively low per capita carbon emissions (Standard #1) justifies its position. The United States’ argues that India’s absolute level of carbon emissions (Standard #2) that, according to Clinton, is “going up, and dramatically” is the more “fair” standard. Time will tell which side prevails.
What lesson can we learn from this?
Research your applicable independent standards beforethe negotiation. Then come prepared to use the most favorable ones and discredit the most unfavorable ones. In other words, prepare to negotiate over the most appropriate objective criteria.
Marty Latz is the founder of Latz Negotiation Institute, a national negotiation training and consulting company, and ExpertNegotiator, a Web-based software company that helps managers and negotiators more effectively negotiate and implement best practices based on the experts’ proven research. He is also the author of Gain the Edge: Negotiating to Get What You Want. He can be reached at 480-951-3222 or Latz@ExpertNegotiator.com.
Top Ten Independent Standards
Posted on | July 17, 2009 | No Comments
Why should you use objective criteria to support your moves or offers and concessions in a negotiation? Because we derive power and legitimacy from the perception that our standards and criteria are based on objective, independent factors. If our positions are based on truly objective, independent standards, our counterparts will more likely conclude our position is truly “fair and reasonable.”
Focusing on objective, independent standards also depersonalizes negotiations by appearing to remove parties’ subjectivity from the process. The more objective and independent and the less subjective the negotiation, the less likely potentially disruptive overt emotion will be involved.
Here are my Top Ten Independent Standards:
1. Market Value
2. Precedent
3. Tradition
4. Expert- and Scientific-Judgment
5. Efficiency
6. Costs and Profits
7. Policy
8. Reciprocity
9. Status
10. Professional or Industry Standards
For a comprehensive discussion of each, sign up for a free trial of my ExpertNegotiator Planning & Management Software to access the online version of my book, Gain the Edge! Negotiating to Get What You Want (St. Martin’s Press 2004).
Marty Latz is the founder of Latz Negotiation Institute, a national negotiation training and consulting company, and ExpertNegotiator, a Web-based software company that helps managers and negotiators more effectively negotiate and implement best practices based on the experts’ proven research. He is also the author of Gain the Edge: Negotiating to Get What You Want. He can be reached at 480-951-3222 or Latz@ExpertNegotiator.com.
Bracketing and the Center Mover
Posted on | July 13, 2009 | No Comments
The Financial Times reported this week that AIG has reopened talks with MetLife for the sale of AIG’s American Life Insurance Company (Alico) subsidiary. Reportedly, AIG hopes to raise “more than $15 billion” to help repay the $80 billion in bailout funds it has received from U.S. taxpayers.
The article also mentioned MetLife had previously offered $11 billion while AIG had sought $20 billion. Assuming MetLife made the first offer, what negotiation lesson does this illustrate?
That the party responding to a first offer can select its counteroffer so the center of the two parties’ starting points is its desired end point. Here, the center of the two offers would be $15.5 billion, which is about what AIG reportedly hopes to obtain for Alico. This tactic, called bracketing, takes advantage of the expectation that the center of both sides’ initial offers is often perceived by the parties as inherently fair since it means both sides will have moved the same amount. As a result, negotiators have a strong tendency to move to the center in negotiations.
You should always consider the advantages and disadvantages of making the first offer. While there are numerous advantages to making it, the fact that the party going second can often bracket your first offer and create a center which is more favorable to them is a potential disadvantage.
Marty Latz is the founder of Latz Negotiation Institute, a national negotiation training and consulting company, and ExpertNegotiator, a Web-based software company that helps managers and negotiators more effectively negotiate and implement best practices based on the experts’ proven research. He is also the author of Gain the Edge: Negotiating to Get What You Want. He can be reached at 480-951-3222 or Latz@ExpertNegotiator.com.
Formula One and Improving Your Plan B
Posted on | June 26, 2009 | No Comments
The future of the Formula One racing series is uncertain after negotiations between the FIA, the sport’s governing body, and FOTA, the racing teams’ association, broke down over the FIA’s plan to impose a budget cap for next season.
Last Friday, eight of the twelve teams announced plans to leave Formula One and start a competing racing series. The FIA responded with a threat to sue.
This illustrates a very important component of leverage – identifying your best alternative, or Plan B, and then taking steps to improve it. Here, the unhappy racing teams identified starting a competing racing series as their best alternative. Then by publicly announcing their decision to leave the FIA, they took a tangible step towards make their Plan B a real possibility.
This also created a much poorer Plan B for the FIA. Loosing their highest profile teams and drivers would negatively impact the value of the Formula One brand and undermine the FIA’s relationships with its venues, broadcasters and advertisers.
FOTA’s strategy appears to be working because on Monday, FIA president Max Moseley communicated a willingness to drop his plan for legal action. Bernie Ecclestone, Formula One’s commercial rights holder, also indicated a willingness to postpone or drop the budget cap.
Marty Latz is the founder of Latz Negotiation Institute, a national negotiation training and consulting company, and ExpertNegotiator, a Web-based software company that helps managers and negotiators more effectively negotiate and implement best practices based on the experts’ proven research. He is also the author of Gain the Edge: Negotiating to Get What You Want. He can be reached at 480-951-3222 or Latz@ExpertNegotiator.com.
Top Ten Impasse-Breaking Strategies
Posted on | June 19, 2009 | No Comments
Keeping with the “Top Ten” theme from last week, here are my Top Ten Impasse-Breaking Strategies:
1. Get or share more information
2. Switch objective criteria
3. Prioritize needs and interests
4. Brainstorm options
5. Set deadlines
6. Temporarily put aside the issue
7. Take a break
8. Move up the chain
9. Pick a fair alternative process (such as mediation or arbitration)
10. Concede
A big challenge in many negotiations revolves around how to break impasses. While there are many options, these ten are my personal favorites.
For a comprehensive discussion of each, sign up for a free trial of my ExpertNegotiator Planning & Management Software to access the online version of my book, Gain the Edge! Negotiating to Get What You Want (St. Martin’s Press 2004).
Marty Latz is the founder of Latz Negotiation Institute, a national negotiation training and consulting company, and ExpertNegotiator, a Web-based software company that helps managers and negotiators more effectively negotiate and implement best practices based on the experts’ proven research. He is also the author of Gain the Edge: Negotiating to Get What You Want. He can be reached at 480-951-3222 or Latz@ExpertNegotiator.com.
5 Common Interview Questions and How to Answer Them
Posted on | June 17, 2009 | No Comments
Marci Alobher of Yahoo’s Working the New Economy blog has a great article up on how to handle 5 of the most difficult interview questions.
Our own Ford R. Myers, author of Get The Job You Want, Even When No One’s Hiring is one of the featured experts.
Top Ten Information-Gathering Tactics
Posted on | June 12, 2009 | No Comments
Effectively and efficiently gathering strategic information is a critical but often underutilized part of the negotiation preparation process. Here are my Top Ten Information-Gathering Tactics:
- 1. Leave your ego at the door
2. Be sincere
3. Establish trust
4. List your information needs
5. Do the “big schmooze”
6. Ask questions. Ask questions. Ask questions!
7. Use the Funnel – open- to close-ended questions
8. Actively listen and use the “power of silence”
9. Ask “why” – get to interests, not positions
10. Evaluate and use nonverbals/body language
Use them to help prepare for your next significant negotiation. You won’t be disappointed.
For a comprehensive discussion of each, sign up for a free trial of my ExpertNegotiator Planning & Management Software to access the online version of my book, Gain the Edge! Negotiating to Get What You Want (St. Martin’s Press 2004).
Marty Latz is the founder of Latz Negotiation Institute, a national negotiation training and consulting company, and ExpertNegotiator, a Web-based software company that helps managers and negotiators more effectively negotiate and implement best practices based on the experts’ proven research. He is also the author of Gain the Edge: Negotiating to Get What You Want. He can be reached at 480-951-3222 or Latz@ExpertNegotiator.com.
Turning Today’s Adversities into Tomorrow’s Successes
Posted on | June 10, 2009 | No Comments
Who doesn’t know a story of someone who came back from terrible adversity to build remarkable success? In America especially a mythos has grown up around such stories—the penniless immigrant makes millions within a few years, the orphan in the street goes on to become a captain of industry. Of course, most people who experience adversity can’t boast such dramatic outcomes, but after decades in business, we’ve encountered plenty of people who credited their experience in overcoming adversity as the very foundation of their success. How is it that some people are able to turn today’s adversities into tomorrow’s successes?
To find out, we studied over 200 top business leaders who built their success upon “the adversity paradox,” and we interviewed those with the most compelling stories. The results, which inspired and enlightened us, are found in The Adversity Paradox: An Unconventional Guide to Achieving Uncommon Business Success. In a nutshell, The Adversity Paradox illustrates how those who’ve built their success upon adversity addressed whatever obstacles they faced, figured out how to overcome them, and then used what they learned to create success. The book provides in-depth analysis of real stories from business leaders such as Peter Dawkins, Doris Christopher, John Pappajohn, Bill Doré, Lee Liu, Clay Jones, and others, and shows readers how they can benefit from the lessons our subjects learned, even if they haven’t experienced such extreme adversity themselves. So whether one is dealing with adversity right now or just wants to learn from those who have, we provide the answers of how everyone can leverage the adversity paradox to create success.
Because there’s no single type of adversity, we studied people with a wide array of experiences—the oft-heard story of the immigrant who arrives to America with nothing more than the shirt on his back, the people who grew up with humble beginnings, those who went through serious health challenges, those who faced the adversity of starting a business on very little capital and with limited business experience. Incredibly, we found that everyone who had successfully overcome adversity tended to enhance their individual human capital in the same five core ways: 1) they learned how to conduct honest and regular introspection 2) they came away with (or reinforced) a superior value system 3) they gained a robust work character 4) they found a passion-fueled purpose, and 5) they developed a lifelong thirst for knowledge. This is where even the rare readers who have yet to experience serious difficulties can learn from those who have and boost their human capital so as to positively impact their own success trajectories.
We do a lot of public speaking in connection with The Adversity Paradox, and we get a lot of great questions. We’d like to share some of the most popular ones here. As you can imagine, many of the questions center around the adversity that is affecting everyone in the world right now—the global economic recession.
1. What’s the relationship between adversity and the youngest generation in the workforce, the Millennials, who’ve been called “soft” by many employers?
Up until the recession hit, Millennials had been largely shielded from the hardships that previous generations experienced. They came of age in prosperous times. By and large Millennials enjoyed bigger houses, more cars, myriad technological advances, and increased access to education and travel. Certainly these are terrific advantages, but a distinct disadvantage of this lifestyle is that it hasn’t exposed Millennials to the kind of difficult circumstances that can build the character that facilitates success. The work environment is not nearly as forgiving as the home environment many Millennials enjoyed, and as the economic crisis has made abundantly apparent, there are no built-in safety nets. Millennials are now facing a tough road ahead, perhaps one their predecessors were better prepared for, as they deal with layoffs, difficulty finding jobs, or working for much less than they anticipated.
The news isn’t all bad for Millennials, however. On the contrary, we believe the economic crisis might be their making! If adversity truly provides a learning environment, and we’re convinced that it does, then the recession is a big positive. Adversity, if faced head on, has a way of bringing out extraordinary qualities and abilities in people they didn’t even know they had. And with this generation’s technological savvy, creativity, excellent education, and ease with the forces of globalization, Millennials possess an enormous amount of untapped potential. We hope that their banding together and getting through this crisis will be the very thing that unleashes that potential.
2. As a parent, should I create adversity for my children so they can learn how to get through difficult situations? Another way of asking this question is, “Is adversity required for success?”
Let us address these separately. First, we want to make it clear that we do not advocate the creation of adversity for kids. No one is faulting parents for conferring advantages on their children—it’s human nature to provide the best for one’s family. But although the environment many Millennials grew up in has changed for the better, the working world has not. It remains as full of competition, land mines, and tough breaks as it always has. As such, if we have any parenting advice to give, it’s to prepare your kids for the sometimes inhospitable work environment they’ll inevitably land in. Some day, your kids will have a problem with a co-worker, boss, or customer, and they’ll need to know how to deal with it on their own. The key for parents is finding the right balance of involvement. Say your kid has a conflict with a teacher or a coach. Don’t ignore the problem, as this is a great opportunity for instruction, but don’t swoop in and solve it, either. Teach your children how to take accountability, face a difficulty with optimism, and most importantly, start creating the habit of “and then some” that will be so valuable to them in the working world.
What’s “and then some”? It’s simply giving every task before you everything that’s expected “and then some.” It’s routinely meeting expectations and then going above and beyond. We found that those who overcame adversity learned very quickly to implement “and then some” to get through tough situations, and it became a lifelong habit that never left them.
As for whether adversity is required to be successful, the answer is no. Experiencing adversity is not a prerequisite for success. Our point rather is twofold: undergoing adversity has a way of forcing you to draw upon inner resources that would’ve otherwise lain dormant, and the experience of overcoming adversity provides a unique and extremely valuable opportunity to build your human capital. The fact is, everyone is going to experience adversity at some point in their lives. In that case, the best approach is to “befriend” adversity by not succumbing to negative consequences and instead gleaning every positive benefit you can from it. Faced with the right attitude, overcoming adversity provides an invaluable crucible of learning that can catapult you to levels of success you never dreamed of.
3. As a manager, how do I deal with employees who are struggling with today’s tough economic environment?
Again, there’s a silver lining to be found. There may never be a better time to do some really meaningful coaching and mentoring than right now. We found three critical ways successful people dealt with adversity. First, they displayed an incredible level of self-accountability. In coaching, you can help an employee reflect on a setback and take responsibility for any part they may have played in it, help them get past anything they were not responsible for, and help them identify what they will change going forward. The second is optimism, or having a positive attitude. Studies show that people who have a positive outlook are healthier, they do better academically, and they fare better on sports teams and in the work environment. Some studies even indicate they have healthier, more fulfilling relationships. As a manager, your job is to prevent your employees from entering the ugly world of self-pity, which is an absolute waste of time and energy, and helping them find optimism. The third is the aforementioned habit of “and then some.” Managers can coach employees on how to apply the power of “and then some” to individual tasks and eventually to the entire process of self-improvement. Successful people routinely go above and beyond, and employees who cultivate this simple but powerful principle are all but guaranteed to be successful.
J. Barry Griswell is retired CEO and Chairman of the Board of the Principal Financial Group®. Bob Jennings is President of Lean Management Inc., a consulting company focused on senior management methods and execution. You can read an excerpt from their book, The Adversity Paradox: An Unconventional Guide to Achieving Uncommon Business Success, at their web site.
Tags: leadership > millennials > success
Only Five Interview Questions
Posted on | June 8, 2009 | No Comments
Ford R. Myers, Author of Get the Job You Want, Even When No One’s Hiring
When you boil it all down, job interviews are made-up of only five statements from the interviewer, which include four questions and one sentence. Sure, you’ll be asked more than five questions, but they ALL seem to be variations on the items listed below. Each of these questions has to be “nailed” in a job interview, and each has a different strategy to answer it. “Winging it” just won’t do!
Here is some simple, sound advice for responding to the five basic interview questions:
No. 1: Tell me about yourself.
This is the open-ended question that on the surface seems harmless, yet how you answer it may spell the difference between landing a job, or being pushed out the door to seek another position. You have to know yourself first – your strengths, your weaknesses, your likes, your talents and your goals. The best way to answer this question is to give your “Positioning Statement,” which is a one-paragraph summary of your career background, strengths, expertise and objective.
No. 2: Why do you want to work here?
This question seeks to determine if you know anything about the job and company. The goal here is to connect your talents, contributions and attributes to the employer’s needs, problems and challenges. You can only do this if you’ve done your homework, and have gathered all the necessary research. The best way to respond is to tell several relevant Accomplishment Stories that prove you have the right kind of experience for the job.
No. 3: What’s wrong with you?
Of course, the interviewer will not actually use these words. She might couch the question in more polite terms, but what she is actually trying to find out is why you’re unemployed, or underemployed, or why you’ve had so many jobs, etc. As the candidate, you need to acknowledge these sorts of career challenges in advance; then prepare and practice your responses. Your answers must be worded in such a way that they are fully positive, and elicit the responses you desire.
No. 4: What are your salary expectations?When it comes to “the salary question,” you want the other guy to make the first move. Do thorough research in advance to determine what the likely salary range is. Make it clear that the job is not all about pay. Say that you’d be happy to discuss compensation once a mutual interest has been established, and get back to discussing your relevant accomplishments. Tell the interviewer that you want the opportunity, and that you expect the company will make a fair salary offer. This doesn’t mean you will necessarily accept that offer, but it means they will have to “draw” first. Once you receive the initial offer, always negotiate up from there.
No. 5: Don’t call us, we’ll call you.
Take an active stance, not a passive one. Be sure to discuss “next steps” before you leave the interview. Ask the interviewer directly how your qualifications compare to those of the other candidates. Display your excitement about the job and the challenges it poses. Let the interviewer know how and when you’ll be back in touch. Don’t leave all the power in the hands of the interviewer; this should be a mutual decision-making process.
Since almost every interview question is a variation of the themes listed above, there’s no need to worry about the hundreds of questions you MIGHT be asked. If you go into the interview focused on addressing just these five basic areas, you’ll feel more confident and less overwhelmed.
The more practiced and articulate you are in responding to these five items, the better chance you’ll have of landing the job. But even if you don’t get the offer, you’ll still be well-prepared for the NEXT interview!
Ford R. Myers is a nationally known career expert and author of Get The Job You Want, Even When No One’s Hiring. For information about his career expertise, visit www.careerpotential.com and www.fordmyers.com.
This article is copyright © 2009, Career Potential, LLC. Reprinted with permission.
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