Dealonomics

‘It isn’t sufficient just to want – you’ve got to ask yourself what you are going to do to get the things you want.’

He comprehends the impact of the economy on his earnings and knows which laws to follow to get more of what he wants. He has identified how to build power and can recognise how information influences power. He even knows how to get the information he needs. Salaryman appreciates that if he doesn’t grasp his own value, no one else will, and he can fix his self-worth issues. He is also able to establish his market value in the job market.

Salaryman realises that two points have cropped up repeatedly, but have not yet been addressed. One, how can we work out precisely what we want, and two, how exactly do we go about getting what we know we want?

It’s time to send in the heavy artillery: Salaryman’s firepower behind his superpowers.

Have you noticed that I make far more reference to ‘value’ than to price? Dealmakers talk ‘value’, negotiators tend to emphasise cost and price. If you can understand the value of the deal as a whole, you are in a far better position to sell or negotiate than if you keep your focus too narrow.

Do you remember when people used to talk about ‘win-win’? The term became popular in the 1980s. Dealmakers don’t measure their deals in terms of win-win – they trade value for value. They consider ‘value-value’ to be far more important, and win-win a bit wishy-washy.

As a dealmaker, you should want your deals to be as measurable as possible. By ascribing value to any transaction, you are able to see exactly who is getting what in the deal. Value for value is sustainable and measurable and promotes long-term relationships far better than win-win ever did.

The simplistic view of the value-value process is someone gets something they value, while the other party gets what they value. But where does ‘cost’ factor into the equation?

You already know the answer. In Chapter 2 we touched on Subjective Value Theory, which identifies value as being based on the wants and needs of individuals, rather than on the actual cost of an object.

If you are a tad confused, this story about value and cost should clear the fog. The source is unknown, but it is thought to be based on an old Islamic parable.

A giant ship’s engine failed. The ship’s owners tried one expert after another, but none of them could figure out how to fix the engine.

Then they brought in an old man who had been fixing ships since he was a young man. He carried a large bag of tools with him, and when he arrived, he immediately went to work. He inspected the engine very carefully, top to bottom.

Two of the ship’s owners were watching the man, hoping he would know what to do. After looking things over, the old man reached into his bag and pulled out a small hammer. He gently tapped something. Instantly, the engine lurched into life. He carefully put his hammer away. The engine was fixed.

A week later, the owners received a bill from the old man for ten thousand dollars.

“What?!” the owners exclaimed. ‘He hardly did anything!”

So they wrote the old man a note saying, “Please send us an itemized bill.”

The man sent a bill that read:

Tapping with a hammer	$2.00
Knowing where to tap	$9 998.00

We have already discussed the value you offer, but have you thought about it in these terms? How much should you be charging for your small business’s products and services?

My organisation works with executives and their teams to help them increase revenues and improve profitability. We happen to use training programmes as the vehicle to achieve these outputs, but the executives aren’t really fussed if it’s training, transcendental meditation or boot camp. All they care about is seeing results – that the ship’s engine comes to life.

Does my company charge only for time and materials? No. We charge for the underlying knowledge and intellectual property of the programmes, the expertise of our facilitators, the value of our interventions in driving organisational results, an upside/downside bonus, as well as for direct costs such as venues, catering, taxes, etc.

If you are able to illustrate value effectively, people – particularly senior people – are far less concerned with price. Don’t believe me? Ask Warren Buffett (American investor and philanthropist; 1930–), who says, ‘Price is what you pay. Value is what you get.’

Be warned. What you see as valuable is not necessarily the same as what someone else perceives to be valuable. A lion will not value a carrot, but a donkey will. How do you find out what the other person values? Ask questions and listen to the answers.

When you are doing a deal, it is expected that at some point you will negotiate or trade. What you need to watch for is that you are exchanging value for value, and not just giving carrots away and getting no value in return. Even for small carrots, you must get something in return. And if you move from a 20 per cent raise down to a 15 per cent raise, you must get value in return.

The secret to cost and value and trading is for you to give the other person something they see as immensely valuable but that doesn’t cost you much, in exchange for something that you value highly but doesn’t cost them the earth.

An example: My business partner, Julie Purkis, works extremely long hours. Working hard is in her nature, so she doesn’t see it as costing her anything. Julie is a keen Harley-Davidson owner, so she needs a fair amount of time off work for her Harley adventures.

Julie’s hard work is of huge value to me. It means the company does not have to hire additional resources for her portfolio, which helps to contain costs. My value is reduced costs; Julie’s value is her Harley time.

We want different things, which is good news in a deal. So this is how Julie and I trade value for value. In exchange for time off work for her Harley excursions, Julie agrees not to let her work portfolio fall behind. She gets what she values, and I get what is valuable to me.

Julie’s concession – working hard – doesn’t cost her much, as she works hard anyway. My concession – giving Julie extra leave – is cheap to me because the work still gets done by one person.

In business, it’s very easy to fall into the trap of giving something away for nothing because it doesn’t appear to cost you or your company anything.

Think of a situation where your boss has asked you to take on an extra project because he believes it would be easy for you to handle. You probably said, ‘Sure, no problem,’ without another thought.

If I had asked you why you agreed to do the project without being paid overtime, you would have shrugged and said, ‘It’s not a big deal, as it isn’t going to cost me anything.’ However, the fact that your boss was asking you for something meant it had value to him.

The problem with giving something away for nothing is that if the other person sees how easy it is for you to give them what they want, they will ask you for more and more and value it less and less. When you snap and say, ‘No more!’ they are ‘shocked’ or ‘disappointed’ that you don’t value the relationship, that you are so mean-spirited, that you don’t want to help.

In future, when somebody asks you for something, determine the value of the concession to that person and the cost to you, and then give them what they want on condition you get something of equal value in return. If your value doesn’t cost them too much, you are far more likely to get what you want.

When you enter into a deal or negotiation, you should always try to begin with selling – persuading the other party to give you what you want. It doesn’t matter on which side of the fence you sit. If you are looking for a new job, you will try to convince the human resources person that you have the skills, experience and talent to do the job. The human resources person, on the other hand, will be trying to convince you to join their fabulous company.

How often do you think it happens that someone successfully persuades another person to accept a deal without going into negotiation or one of the other options? It all depends on the skill of the person doing the selling. By far the most effective way in which anyone can persuade is by using what is known as ‘Value Propositions’.

The best definition I have found of a Value Proposition is from an article by Jill Konrath titled ‘How to Write a Strong Value Proposition’ (from www.sideroad.com). Here is an edited version:

Most people and companies have lousy value propositions. They’re weak – and I mean really weak. Often they’re simply a description of the offering’s features or capabilities. Or they’re filled with self-aggrandising puffery.

Here are a few examples of weak value propositions:

It’s the most technologically advanced and robust system on the market.
We improve communication and morale.
We offer training classes in a wide variety of areas.
My product was rated the best-in-class by leading authorities.

You’re probably saying, ‘So what?’ That’s exactly what most customers think when you share a weak value proposition. They’ve heard lines like that a zillion times before and don’t believe you one little bit. Besides, you haven’t shared what’s in it for them – and that’s all customers care about.

Earlier, when I told you that my organisation works with executives, did you spot the Value Proposition we use? Here it is again: ‘My organisation works with executives and their teams to help them increase revenues and improve profitability.’ It is short and sharp, answers the question ‘So what?’, and tells the customer what is in the deal for them.

A Value Proposition is always stated from the other party’s perspective. A Value Proposition addresses the other person’s Key Issues in a deal – what they want from the deal.

Let’s pretend you are being interviewed for a job you desperately want. Saying, ‘I really really want this job’ to the financial manager interviewing you is not going to win you the position. You need to look at the world through the company’s eyes and say, ‘My knowledge of the latest financial regulations means that you won’t need to spend time training me. This will save you a lot of time and the company a lot of money.’ You can then expand on how time and money will be saved.

Always have a few Value Propositions in your arsenal, because different issues are important to different people. The financial person may be delighted with the savings your knowledge will bring, but the human resources executive may need reassurance that you are not a job-hopper. In the case of the latter, your Value Proposition would be: ‘My stable track record will mean that you won’t need to recruit for this position again in the near future.’

How do you know what the other person values? Ask questions and listen to the answers.

With human nature being what it is, people continually strive to get a better deal – to get a greater discount, or more for the same price, or something for nothing. This means that negotiation usually follows persuasion.

In the corporate world, the easiest way for anyone to strip value out of a deal is to try to commoditise the product or service they are buying. ‘We have more applicants for this job than we can handle,’ or, ‘You say your product is unique, but I’m sure we can build it in-house for next to nothing,’ or, ‘You are far more expensive than your competitors. You need to sharpen your pencil.’

If you are selling a commodity, your price had better be the cheapest. For the rest of us, it is essential to show the unique value of the service or product we are selling. It may be our skills that will make us efficient as soon as we walk into a new job, or our network that can get us in front of top business executives with one phone call, or the improved business results our small business has delivered for previous customers.

The value you offer is the compelling reason for someone to give you what you want.

Even when you move from selling into negotiation, you have to focus on value for value – the value the other party perceives they are getting for the value you believe you are receiving.

Before you begin playing, you need to research your opponent. You must know their track record and have an idea of their strengths and blind spots (i.e. their power and what information you need to get). You should decide where you will play – is there a home-ground advantage? When would it suit you to play? You need to start thinking through all the moves you will make and how your opposite number is likely to respond to your moves (i.e. the Ball Park). Once everything is thoroughly thought through, you initiate the game.

It is much the same with dealmaking, negotiating and selling. When a skilled dealmaker sets out to get something specific, they have scrutinised their power, figured out what information they need to obtain, and planned their strategy. They have decided on the ball park – their opening position and bottom line – and thought through their moves. They have prepared their arguments and proposals, and practised these conversations in their head. They have even contemplated how they are going to close the deal.

Sound like a lot of work? Are you familiar with the ‘KISS’ principle? Keep It Simple, Stupid. If a process is too complicated or time-consuming, people tend to avoid it or not do it properly. Planning is vital, and the consequences of avoiding it or doing half a job can be disastrous. In order to make planning as simple as possible, we are going to look only at the critical aspects of planning – what you must do for your salary negotiation, or to get a new position, or a contract signed or improved.

Where should you start the planning process? Let me ask you this basic question: Do you know what you want? Presumably it is to win the chess game. That is a fine place to start. Now, assuming you have a reasonable idea of what you want to achieve – an increase or a new job or a longer contract – your next step should be ‘how?’

Books on warfare, goal-setting, sales, negotiation and planning all recommend that you kick off with strategy. Structure then follows strategy. Goals follow structure, objectives follow goals, and action plans are at the bottom of the pile.

Strategy is an incredibly complex subject, but to respect the KISS principle, please forgive the minimalism here. My intention is to make strategy as easy and accessible as possible.

Once a company has their product or service identified, people in the company determine the strategy – how they are going to get the results they want (win the chess game). They begin with defining their target market (for example, will it be corporate or consumer?). They then decide how they are going to get into that market. This incorporates their sales strategy (sell direct or via distributors) and their pricing strategy for their product in the chosen market (low cost or high value). Next they select the processes and people to support their strategy, and off they go.

Similarly, once you have decided you want a new job, you determine your strategy – the position you want. You will need to define your target market (maybe specific industries or companies). You then decide how you are going to sell yourself to that market – will you approach the companies directly or go via a recruitment agency? Next you consider all the factors in your ‘pricing’ strategy (your job title, salary package and career prospects) and then you start the process by email and phone. And the game begins.

If you were to put your strategy into a model, it would look something like this:

Personal strategies can be quite similar to those used in business. Just as it is vital for a company to have a strategy, it is essential for you to know what you want, and have a broad view of how you intend to get what you want. A word of caution: remember the KISS principle.

Now that you have your head around your strategy, you need to use a simple process to specifically define what you want – what you are going to discuss and negotiate once you are in the interview (Step 4 of the strategy) with a potential new employer.

While your strategy was quite broad, the what – creating that which we will call the Ball Park from now on – is a lot more detailed. If you go into the negotiation with a clear idea of what you want, the chances of getting it are exponentially increased. If you do not prepare properly, expect to get your backside kicked.

For the rest of this section, we’ll stick with the example of how to secure a new position.

The simple process we will use to define what you are going to present and negotiate has only three steps:

Before you can begin identifying the Issues in your Ball Park, you need to understand your power base. Once you comprehend your power, and you know how you can adjust the balance of power, you are ready to plan a relevant and meaningful Ball Park.

In the section on ‘The power of carrots’, I said that when we got to defining the Ball Park, you would learn that there are two types of carrots or incentives – Key Issues (the big carrots) and Secondary Issues (the Marbles or small carrots).

Park ranking the Issues (carrots) for the moment, and concentrate on identifying all the Issues that would be relevant to this specific deal.

The major Issues already mentioned – industry, target companies, salary package and benefits, job title, career prospects – form part of this identification exercise. You need to expand on these major factors and identify as many other items as you can.

To kick off, write a list of everything you could possibly negotiate with the new company, and then compare your list with mine (below). Don’t be afraid to write down the crazy ideas – off-the-wall thinking may well trigger some other brilliant ideas. You can always remove those items later.

My items were written down as they occurred to me, so they are not in any specific order:

This list came easily to mind. As you can see, I got to 45 Issues, but with a little application, I could probably reach 50, which is a good number to target.

The trick here is to pick out the Key Issues – those that are most important to you. Depending on the negotiation, the number of Key Issues will range from three or four, to six or seven. You are far more likely to clash swords or reach deadlock if you home in on too few Issues.

The Key Issues are often the ones you thought of first – those that are top of mind. You will know when you have identified the Key Issues because there will be a big gap between the last Key Issue you think of and the next, most important one. The Issues that are less important are called the Secondary Issues. Put the Secondary Issues aside for a minute and keep your focus on the Key Issues.

Below are what would be my Key Issues if I was looking for a new job. I have written them in order of priority, and where I found overlaps, combined certain items. You will notice that they are no longer in the same order as when they were simply dumped onto the list.

For this exercise, I have pretended that my ideal new job would be as the marketing manager for a medium-sized information technology company in South Africa. I am currently the senior marketing assistant for an information technology company, earning R620 000 per annum. In this example I am 30 years old, married with no children, and love to travel. The reason I tell you this information is because it will impact the choices I make from the list above. My choices reflect what is important to me at this stage of my life. Now pretend that you are me, so that my list is now your list.

Once you have identified your Key Issues (still parking the Secondary Issues for the moment), you are ready to determine the negotiating range for each of your Key Issues.

You are not quite ready to rush off for interviews. You still need to determine where you will open the negotiation on each Issue, and where you will set your bottom line.

In our example, the Ball Park for ‘salary package amount’ would be the highest you could hope to earn for the position of marketing manager versus the lowest offer you would accept. This defines the boundaries within which your deal is likely to be struck.

Determining the Ball Park limits for each item takes time and research. In our example, you need to know the going rate for this position in the IT industry, how the market is performing (supply and demand), how many positions are available, and the like. You should ideally know this about each item on your Key Issues list, but you also need to be practical.

Once you have as much information as possible, define the Ball Park for each of the Key Issues. You will have three positions for each item:

It is easiest to draw up the Ball Park in a table format. Here is the example in a table.

What do you notice about the table? Check your observations against the ones detailed below.

Even when you are armed with your broad strategy and a Ball Park for your Key Issues, you are still not ready to start negotiating. What about the parked items on your Issues list?

Just a quick recap. The Key Issues are the big and important carrots, while the rest of the items on the list – these Secondary Issues – are the smaller, less important carrots. From now on, we will call Secondary Issues ‘Marbles’. The Key Issues are your ‘must haves’, and the Marbles your ‘nice to haves’.

Deals should be won or lost over the Key Issues. Do not let the Marbles become deal-breakers – they are there to leverage power and to give you the means to adjust the value of the deal you are negotiating.

To make the best possible use of the Marbles, you need to draw up another table – one that looks like this:

You then take all the Issues that are left over from your original list (the other 37 items) and put them into the ‘Secondary Issues’ column. Using these items as a prompt, you prepare a list of Marbles you can get from the other party, and a list of Marbles you can give to the other party.

This is how it works. Let’s take ‘Better or bigger office’ as the example.

When you have your Marbles, you are ready to go for interviews. This is how you would use your Key Issues and Marbles during the negotiating conversation:

You:	I am pleased you are impressed with my experience. Are you ready to talk about the salary package?
HR:	Sure. As the recruitment agency told you, we are offering a salary package of R700 000 per annum.
You:	Yes, but I did mention to the agency that I was looking for a salary of closer to R1 million per annum … You are telling the human resources (HR) person that you want R1 million, but you are using the words ‘closer to’, which signal flexibility. You need to take into account the HR person’s statement that they are expecting to pay R700 000, so give them what they want, using an ‘either/or’ approach. This keeps your proposal, as well as their opening offer, in the conversation. Do not dump your entire Opening position on the table. In this case, you need to address your Issues item by item to get the most leverage. Do not allow yourself to be interrupted – keep going until you finish your proposal.
You:	Yes, but I did mention to the agency that I was looking for a salary of closer to R1 million per annum, but, if you are prepared to give me an opportunity to apply for the marketing director position within two years, and you give me a BMW rather than a Toyota as my company car, and you are more flexible on annual leave, then I could look at a salary of around R750 000 with a review after six months.
HR:	I’m not sure the marketing director’s position will be available within the next two years. The good news is that you have moved the focus away from the difference between what you expect to earn and what they would like to pay, but you have hit an obstacle in terms of your career aspirations. Do you walk away? No, you think like a six-year-old and keep your options flexible.
You:	Well, perhaps you will be so impressed with my performance that you would create a new marketing director position! To help us move to something that makes sense for both if us, I have a suggestion. If you are prepared to consider me for any level of director position within the next two to three years, and you give me a BMW rather than a Toyota as my company car, and you give me 25 days’ annual leave, then I would accept a salary of R800 000, of which 30 per cent can be linked to the variable portion of my package. How does that sound?
HR:	That is starting to make sense, but our company policy is a maximum of 20 working days’ leave for people below director level. And we do expect management to accept a minimum of a 40 per cent variable on their salary package.
You:	Seeing as you are a global company and you would no doubt want me to travel overseas to keep my product knowledge current, if you pay for two business-class flights for me per year, I can be flexible on the annual leave and accept the 40 per cent variable.
HR:	Our management staff does travel business class, but I can’t guarantee the number of trips you would have to make in a year. You have now covered all the items on your Key Issues list. You need to start closing the negotiation. Don’t be greedy and try to get lots of items from your Marbles list: use one or two Marbles to close the deal. I suggest you use the office. Don’t forget to use selling skills when you need them.
You:	We are really close to a deal, and the more I speak to you, the more enthusiastic I am about joining your company. May I just summarise where we are in our conversation, and make one small suggestion?
HR:	Of course.
You:	If you are prepared to consider me for any director-level position within the next two to three years, and you give me a BMW as my company car, and you give me 20 working days annual leave, then I would accept a salary of R800 000 with a 40 per cent variable portion on my package. In exchange for me being flexible and giving you what you need, I would like a private office.
HR:	That sounds okay, but I don’t think there are any private offices available at the moment.
You:	If you are happy with all the other items, then I am happy to wait for an office. Before we agree this in principle, would you mind if I took a pressure break?
HR:	No problem at all. The conversation has gone pretty quickly, so you need to check where you are in the deal. When you go to the loo, have a look at how the deal is stacking up. This will give the HR person the opportunity to do the same – which is a good move. If you push them into a position they can’t honour, they will renege on the deal – and what if you have resigned from your current position when this happens? Here is how your deal looks (the items you have agreed in principle are shaded):

You:	Thank you for the break.
HR:	While you were out, I had a quick chat with one of my colleagues. I made a mistake. Managers only get 18 days’ annual leave, not 20 days.
You:	That’s disappointing. I tell you what – if you give me study leave for any company-approved studies I undertake, we have ourselves a deal.
HR:	We have a study policy, so that will not be a problem. You have had to dig into your list of Marbles to get something in exchange for reducing your expectation around leave. You have gone below your Bottom Line on this and need to decide if it is a deal-breaker. Look at the package as a whole and then decide. Also, you asked for study leave, something that the company was prepared to give you anyway. But that is okay – you value the study leave and don’t want to jeopardise everything else you have got by being a greedy pig. Time to close.
You:	That’s fantastic! We have a deal. Can I drop you an email confirming our conversation? I assume the next step would be for you to send me an Offer of Employment?
HR:	Oops, we haven’t spoken about your start date. When can you start? Why would you offer to confirm everything in an email when you are going to get a formal contract to sign? Because you want to make sure that nothing is forgotten from the deal, that’s why. Salaryman has the pen, Salaryman has the power.

Did you notice that there is a lot of backwards and forwards and to-ing and fro-ing in the negotiation? This is the tango I mentioned earlier. With each step, value is exchanged for value.

It is important that you estimate the monetary value of as many items on your Issues list as possible. This helps tremendously when it comes to calculating the total value of your deal. Homework of this type is an integral part of preparing for any negotiation.

The power in getting what you want in a negotiation is to give the other side what they want. Try to trade your Key Issues with what you perceive to be their Key Issues, and use your looong list of Marbles to smooth out the value of the deal.

Using the format we have applied to the new job example, practise buying a house or a new car, or negotiating a promotion or a contract. The more you practise, the easier it becomes. Try to get someone you know to role-play the dialogue parts with you.

People do deals because there is something in it for them – and they will do a deal with you if you have what they want. This is the law of negotiation.

The good news is that everyone on the planet is motivated by some sort of need. It can be something as simple as finding shelter and food, or as we saw in the section on ‘How to value you’, something more idealistic, such as self-actualisation. If you don’t believe me, read Dr Abraham H. Maslow’s A Theory of Human Motivation (or read what Wikipedia has to say about Dr Maslow – the Wiki article is good).

Problems creep in when people can get what they want from you, or from somewhere else. But you know how to differentiate yourself from the pack by offering carrots that are value-based and relevant (lions need meat). You also know that the best way to present this value is in the form of Value Propositions, and your Value Propositions should talk to their Key Issues.

Incentive-driven Value Propositions are your foot in the door. They help get you onto the short list. But what if your competitor has done the same – they, too, have presented value-based incentives and are prepared to negotiate? How can you differentiate yourself further?

This brings us to the point where it becomes important to distinguish between what people Need in a deal, and what they Want. In general, Needs are linked to Key Issues (big carrots), and Wants to Secondary Issues (smaller carrots).

Remember the Subjective Value Theory? This is where it comes into play. People make decisions based on their ‘wants’ and ‘needs’, not necessarily on the actual worth of an item.

Distinguishing between Needs and Wants may sound like splitting hairs, but in a competitive deal, this could be the difference between you winning or losing the deal. Your competitors are unlikely to think to this level of strategy, so if you can address the other party’s Needs and Wants, the odds of your securing the deal increase considerably.

In talking about Needs, I am referring to the specific business results and outcomes the other party requires from a deal. Bear in mind that a ‘company’ does not make a decision. A decision on a deal is made by individuals in the company, led by the Highlander.

For a deal to exist, however, the individuals have to recognise that a business Need exists. If the individuals, particularly the Highlander, don’t see a Need, then they will have little interest in doing a deal. I say ‘little’ rather than ‘no’, because they may have personal motivators for still doing a deal, but we will talk more about this when we explore ‘Wants’.

The challenge is that not everyone in the company will see the business Need in the same way. Getting to grips with how each individual involved in the deal perceives the business Need will help you to determine which Value Propositions will light their fire.

We will explore each of the four Needs through the eyes of the ‘looking for a marketing manager position’.

When individuals recognise that a Need exists because their company is on an upward trend, there is a good possibility of a deal. While they will want to move forward with decisions that capitalise on the growth and opportunities, the urgency to make a decision is only moderate.

Your Value Propositions for growth-based Needs must concentrate on showing how, as marketing manager, the marketing strategy you will develop and implement will support their growth and bring the opportunities to fruition.

If you are meeting with the Highlander, your focus would be on the measurable return on investment your strategy would give the company in this growth phase, and how a quicker decision on his part would increase these returns.

For you, Needs driven by problems or threats is great news. Once the individuals in a company realise that they must make changes to overcome or circumvent the problems and threats, they are quick to press the decision button.

The Value Propositions you present in this situation must be directed at how, by giving you the position, you would be able to eliminate the problems and ward off the threats.

In this scenario, your conversation with the Highlander will show how the actions you take will reduce and reverse the company’s financial threats and stabilise its position. Again, you would push for a quick decision.

If the individuals in a company can’t see a Need, they must be convinced that one exists. For you, this means lots of persuading and selling. They are not going to block a deal if others in the company perceive a Need, but they will not support it either.

Time to bring in the FUD factor. Fear, Uncertainty and Doubt. FUD is a useful tool, widely used by computer company IBM in the 1970s to build market share. FUD casts a shadow of uncertainty in the minds of indecisive and indifferent people. When used positively, FUD points out the risks associated with doing nothing. It makes people a little scared of the consequences of not making a decision, but it takes time.

The information technology industry used FUD to great effect with Y2K. ‘Yes, nothing might happen if we don’t reprogram your computers to handle the millennium “20xx” or “00” instead of “19xx” or “99”, but then again, your planes could fall from the sky at the stroke of midnight on 31 December 1999.’

If you were facing the Highlander and he did not buy into the Need for a marketing manager, you would try to FUD him on the potential costs and lost opportunities for the company if you are not appointed to the role.

You must have had experiences where someone resolutely refused to acknowledge that there was a problem or a Need. Did you see them as fools at the time? Or maybe as overconfident, or simply arrogant?

Irrespective of how you perceive the situation or a person, you are unlikely to get what you want from Mr Arrogant. If this is the Highlander, you will definitely not get a deal. Walk away before you waste any more of your time and energy.

Resist the temptation to tell the other person that they are an idiot for not recognising the problem, as this perhaps won’t be the best move for your relationship. The time will come when reality dawns on Mr Arrogant, and then he will go straight into panic mode. This is excellent news for your deal.

There are people who believe that trying to figure out someone else’s Wants (or hot buttons) is a waste of time. However, if you understand what makes the other person tick, you are far more likely to be able to give them what they want in a deal. And giving other people what they want gets you what you want.

Personal motivators exist. Wanting to operate at a purely business level is naive. The dealmaker who invests in building relationships with the other party is infinitely more likely to secure the deal.

How do you find out what is important, at a personal level, to someone? You could ask them, but they may not be willing to tell you. Why not? Hot buttons are often private and linked to ego or self-perception.

If you can’t uncover someone’s hot buttons, the problem is that your Value Propositions will address only their business Needs, not their personal ones. Luckily there are many ways to figure out hot buttons. Look for clues. What pictures do they have in their office, which watch or suit do they wear, what kind of car do they drive? Listen to conversations. What do they enjoy talking about? What are their interests?

When the person drives the latest Porsche, they could be ego-driven or enjoy the finer things in life or are in the middle of a mid-life crisis. So what if they have a big ego? Your place is not to judge anyone, just to comprehend what motivates them.

How about people who give to charity? They will argue that they are doing it to ‘give something back’, but at the end of the day, giving back makes them feel good about themselves. And what is wrong with feeling good about oneself? Nothing.

Personal Wants influence deals. Whether the other person’s hot button is to spend more time with their family, or look good in the eyes of their colleagues, or be promoted, or make life easier for themselves, your role is not to judge, but to facilitate. How can your deal give them what they want at a personal level?

Back to the example of creating the marketing manager role. If you realise that the Highlander is an inveterate name-dropper, address this Want in a Value Proposition. ‘If you create the position and give it to me, one of the events I can promote is the company’s golf day. Gary Player is my uncle, so I can ask a few celebrity golfers to participate.’ Trite? To you, perhaps, but to someone who enjoys meeting celebrities or plays golf, it is heaven.

Compare this to the Value Proposition of someone who can only address the business Need – that marketing is important to develop relationships with clients. It’s a damp squib by comparison.

Hot buttons differ from person to person. They are more a factor of character than the role someone is playing in a decision. Individual business Needs might be collective, but the personal Wants are mostly individual.

It is not manipulative to press someone’s hot buttons. You are serving their personal drivers. The fact that you benefit in the process, that your personal Wants are met, does not make it unethical. Do you not have a responsibility to give people what they want at a business and a personal level?

Logically, decisions about deals should be driven by business Needs and results, but this seldom happens. As Subjective Value Theory shows us, people make choices that are not always rational. They do deals with people they like (or don’t do the deal because of a clash), they pay more when they could get something for less, and they walk away from good deals for no obvious reason.

People are not one-dimensional. Factors other than logic and objectivity influence the way in which people make decisions about deals. If you can understand someone’s underlying personal motivators, and you show them how these will be addressed by giving you the deal you want, you gain a vital advantage.

KEY ISSUES	#	OPENING (do this last)	LIKELY (do this first)	BOTTOM (do this second)
IT industry	1	IT	IT	ICT (IT & Telecomms)
Salary package amount	2	R1,0 million p.a.	R850K p.a.	R700K p.a.
Performance bonus (% of package)	3	30%	40%	50%
Job title	4	Marketing manager	Marketing manager	Marketing manager
Career prospects	5	Marketing director within 2 years	Marketing director within 3 years	Director within 3 years
Company car or car allowance	6	Company car BMW	Company car Toyota	Car allowance
Flights overseas	7	2 × p.a. Business class	1 × p.a. Business class	1 × p.a. Economy class
Extended annual leave	8	25 days p.a.	22 days p.a.	20 days p.a.

SECONDARY ISSUES	MARBLES TO GET (for myself)	MARBLES TO GIVE (to the other party)
Bigger or better office	Nicer office than marketing assistants	Share open-plan office
Bigger or better office	Office on executive floor	Private office on any floor

KEY ISSUES	#	OPENING (do this last)	LIKELY (do this first)	BOTTOM (do this second)
IT industry	1	IT	IT	ICT (IT & Telecomms)
Salary package amount	2	R1,0 million p.a.	R850K p.a. R800K p.a.	R700K p.a.
Performance bonuses (% of package)	3	30%	40%	50%
Job title	4	Marketing manager	Marketing manager	Marketing manager
Career prospects	5	Marketing director within 2 years	Marketing director within 3 years	Perhaps director within 3 years
Company car or car allowance	6	Company car BMW	Company car Toyota	Car allowance
Flights overseas	7	2 × p.a. Business class	1 × p.a. Business class but number not guaranteed	1 × p.a. Economy class
Extended annual leave	8	25 days p.a.	22 days p.a.	20 days p.a. 18 days p.a.

SECONDARY ISSUES	MARBLES TO GET (for myself)	MARBLES TO GIVE (to the other party)
Bigger or better office	Nicer office than marketing assistants	Share open-plan office
Bigger or better office	Office on executive floor	Private office on any floor subject to availability