In these hard economic times, the need to make a “good” hire is more critical than ever. There is a lot riding on the investment an organization makes in a new employee-- for both public and private employers. Whether the position is entry- level or senior in nature, belt tightening makes it more difficult than ever for a hiring manager to justify opening a position. While it’s never a good time to make a mistake, the consequences are magnified because it is doubly hard to replace a dud in times like these.
There is some interesting research that shows that the screening traditionally used to select employees is pretty ineffective. An article in the June/July 2009 Community College Journal cites a 1999 study by Bain & Mabey that indicated the traditional reference checking is one of the most ineffective means in predicting the success of a new hire. Reference checking rates only 0.1 on a validity scale of with a max of 1.0 (think of standard deviation). The unstructured interview doesn’t do much better, with a rating of 0.25. Better are structured interview, (0.35) Personality Questionnaires ( 0.40), Work Sample Tests (0.46) and Assessment Center scores (0.60).
Even though no single assessment score is absolutely fool-proof in predicting success, many organizations continue to rely upon the least effective methods.
Consider using personality and work style assessments that are designed to uncover a candidate’s preferred style in the workplace. Many can be completed online and take about 45 minutes. Check out the Occupational Personality Questionnaire (OPQ) from the human resources consulting firm SHL.
Such an assessment can typically cost below $400 per person to screen 5 to 10 finalists. Organizations often engage in a consulting relationship that costs about $3,500 for a day to assist in interpretation.
-Dave
6.26.2009
5.19.2009
Corporate Culture and Tribal Leadership
Fish school,
Birds flock,
People tribe
I read recently how University of Southern California Marshall School of Business professor Dave Logan proposes the idea that people naturally form tribes and tribal cultures as a way of creating social structure. Logan, co-author of a book called “Tribal Leadership: Leveraging Natural Groups to Build a Thriving Organization,” describes these tribal units as groups as 20 to 150 people who all either know each other or know of each other.
The focus of the book is to help leaders move their organization from level 3 to level 4. Logan describes “leverage points” that a leader must recognize and apply in order to allow an organization to progress.
One cautionary point is about the way an organization can slide backward in stages if the leadership is not aware of the cultural mores indicative of each level.
Here are the five stages of tribal cultures:
Stage 1 (2% of all tribes): The culture of prisons and gangs, with a bleak view of life in general, and a belief that there are no redeeming qualities in humankind.
Stage 2 (25% of tribes): The culture of the Motor Vehicle Administration –defined by apathy and general misery about work life.
Stage 3 (48% of tribes): “I’m great and you’re not!” The culture of personal success and expertise, defined by individual accomplishment, competition for success, “I” statements, and the belief that others are less capable.
Stage 4 (22% of tribes): “We’re great” An environment of group-oriented success, teams, and triads. Level 4 tribes have strong organizational values and an orientation to a noble cause.
Stage 5 (2% of tribes): “Life is great” The rare organization where the tribal members are almost cult-like in their devotion to the organization’s cause. The values of the organization have become a purpose for being.
The greatest challenge for most of us, Logan said, is moving from Stage 3 to Stage 4.
Check out Logan’s web site and blog. I was able to follow a link to a complete, free audio version of the book and load it on to my iPod.
-Dave
Birds flock,
People tribe
I read recently how University of Southern California Marshall School of Business professor Dave Logan proposes the idea that people naturally form tribes and tribal cultures as a way of creating social structure. Logan, co-author of a book called “Tribal Leadership: Leveraging Natural Groups to Build a Thriving Organization,” describes these tribal units as groups as 20 to 150 people who all either know each other or know of each other.
The focus of the book is to help leaders move their organization from level 3 to level 4. Logan describes “leverage points” that a leader must recognize and apply in order to allow an organization to progress.
One cautionary point is about the way an organization can slide backward in stages if the leadership is not aware of the cultural mores indicative of each level.
Here are the five stages of tribal cultures:
Stage 1 (2% of all tribes): The culture of prisons and gangs, with a bleak view of life in general, and a belief that there are no redeeming qualities in humankind.
Stage 2 (25% of tribes): The culture of the Motor Vehicle Administration –defined by apathy and general misery about work life.
Stage 3 (48% of tribes): “I’m great and you’re not!” The culture of personal success and expertise, defined by individual accomplishment, competition for success, “I” statements, and the belief that others are less capable.
Stage 4 (22% of tribes): “We’re great” An environment of group-oriented success, teams, and triads. Level 4 tribes have strong organizational values and an orientation to a noble cause.
Stage 5 (2% of tribes): “Life is great” The rare organization where the tribal members are almost cult-like in their devotion to the organization’s cause. The values of the organization have become a purpose for being.
The greatest challenge for most of us, Logan said, is moving from Stage 3 to Stage 4.
Check out Logan’s web site and blog. I was able to follow a link to a complete, free audio version of the book and load it on to my iPod.
-Dave
5.06.2009
Value Proposition
The idea of a unique value proposition is most commonly associated with marketing and defined on Wikipedia.org as, “Put simply, what the customer gets for his money.” I’ve heard marketing executives describe the same idea as an organizational promise – that is, what the organization promises and is dedicated to delivering to which segment of customers. A good value proposition has to satisfy different goals: it will be true and believable, and it will also be both interesting and valuable to customers. FedEx is a company that has always had and used well crafted value propositions.
It seems to me that this commercial really put FedEx, then named Federal Express, on the map. The fast talking guy made everyone laugh, but the real message comes at the end. Before this, not many people ever worried about getting something anywhere “absolutely, positively … overnight!” Since then, FedEx has streamlined both its name and its value proposition, which brilliantly now claims “The world on time.” In both cases, the customer understands that every FedEx employee is it is on the job of getting our packages where we need them to be, and fast.
Even if we didn’t know we needed our things shipped so quickly, we were immediately interested. After seeing this commercial, FedEx was almost certainly the first provider that came to mind whenever we did find we needed such speed. FedEx did their part by actually living up to this promise.
Consider these questions as you ponder your value proposition:
It seems to me that this commercial really put FedEx, then named Federal Express, on the map. The fast talking guy made everyone laugh, but the real message comes at the end. Before this, not many people ever worried about getting something anywhere “absolutely, positively … overnight!” Since then, FedEx has streamlined both its name and its value proposition, which brilliantly now claims “The world on time.” In both cases, the customer understands that every FedEx employee is it is on the job of getting our packages where we need them to be, and fast.
Even if we didn’t know we needed our things shipped so quickly, we were immediately interested. After seeing this commercial, FedEx was almost certainly the first provider that came to mind whenever we did find we needed such speed. FedEx did their part by actually living up to this promise.
Consider these questions as you ponder your value proposition:
- What are the most important benefits your customers receive from your organization?
- What level of service are you willing to commit to 100%?
- What makes your product or service most valuable to your customers?
- If you could only offer one specific product or service for your customers, what would it be?
- What do your customers think are most important about how you do the things you do?
-Marc
4.27.2009
Negotiating 101: Part 3- Negotiation Tactics
I believe every negotiator should be thoroughly versed with the common (and uncommon) tactics used in negotiations. Not because I advocate their use—I don’t. Tactics often are used to pressure, wheedle, or otherwise manipulate the behavior of others. They often presume an “I win/You lose” scenario.
I think you should know them so you recognize them when they are aimed at you.
Most folks will be able to list tactics like Good Guy/Bad Guy, Start High/End Low, Split the Difference. Here are some other gems I adopted from ChangingMinds.org
The Break-off
A threat to walk is often just that—a threat. Try to remember that they are at the table with you because you have something they want.
The break-off can be used early in a negotiation in order to create a climate of “my way or the highway ” that can be leveraged in subsequent discussion. When deployed early it creates a mindset that the conversation could end at any minute.
When deployed late, it has the additional effect of leaving the other party with nothing to show for the time they have invested. If they have already won some concessions it’s even better, as it creates a deeper sense of loss.
High Noon
Set a deadline under which the other party must make a decision or face the consequences (sign with another partner, face increased costs, a break-off).
If you know the other party’s fiscal timetable this might be useful. When are commissions booked? When are sales quotas due? When does their fiscal year close? Choosing a timetable that can back the other party up against their own deadlines can be useful.
Essential …NOT
Strategize a series of positions that, while irritating to the other party, are not really important to either of you. “My boss asked that these points be included.”
Once won, you can relinquish them one at a time as a form of currency to demonstrate your willingness to trade concessions.
The Quivering Quill
Add something you really want after all verbal agreement has been reached. With pen poised over paper, you might say “This does include free upgrades, right?”
Rather shady, yes, but the other party is emotionally invested at this point, and might have a hard time pulling out.
Prix Fixe (Reduced Choice)
Do you want the Beef or the Chicken? It’s too bad if you want grilled salmon because it isn’t on the menu.
If you give a person no choice at all, he or she might feel that you are controlling the outcome. If you give too many choices, you abandon any hope of directing the outcome. Try “the limiting choice” (would you like that to pay net 30 or net 60?); “the desirable choice” ( we can use the pay as you go method, as that will keep you from owing us money); or, when faced with many options, try directing the decision by setting it up as a series of “hierarchical choices” ( enterprise version or single licenses? …web enabled or desktop based? … With gold-level technical support or silver?)
I am sure you could come up with scores of others. Perhaps you have been threatened by Bad Publicity, the Effect on Widows and Orphans, or enticed by Fame and Flattery.
Effective negotiators need to be prepared to face these tactics, even if their use may not fit with the own personal ethics.
-Dave
I think you should know them so you recognize them when they are aimed at you.
Most folks will be able to list tactics like Good Guy/Bad Guy, Start High/End Low, Split the Difference. Here are some other gems I adopted from ChangingMinds.org
The Break-off
A threat to walk is often just that—a threat. Try to remember that they are at the table with you because you have something they want.
The break-off can be used early in a negotiation in order to create a climate of “my way or the highway ” that can be leveraged in subsequent discussion. When deployed early it creates a mindset that the conversation could end at any minute.
When deployed late, it has the additional effect of leaving the other party with nothing to show for the time they have invested. If they have already won some concessions it’s even better, as it creates a deeper sense of loss.
High Noon
Set a deadline under which the other party must make a decision or face the consequences (sign with another partner, face increased costs, a break-off).
If you know the other party’s fiscal timetable this might be useful. When are commissions booked? When are sales quotas due? When does their fiscal year close? Choosing a timetable that can back the other party up against their own deadlines can be useful.
Essential …NOT
Strategize a series of positions that, while irritating to the other party, are not really important to either of you. “My boss asked that these points be included.”
Once won, you can relinquish them one at a time as a form of currency to demonstrate your willingness to trade concessions.
The Quivering Quill
Add something you really want after all verbal agreement has been reached. With pen poised over paper, you might say “This does include free upgrades, right?”
Rather shady, yes, but the other party is emotionally invested at this point, and might have a hard time pulling out.
Prix Fixe (Reduced Choice)
Do you want the Beef or the Chicken? It’s too bad if you want grilled salmon because it isn’t on the menu.
If you give a person no choice at all, he or she might feel that you are controlling the outcome. If you give too many choices, you abandon any hope of directing the outcome. Try “the limiting choice” (would you like that to pay net 30 or net 60?); “the desirable choice” ( we can use the pay as you go method, as that will keep you from owing us money); or, when faced with many options, try directing the decision by setting it up as a series of “hierarchical choices” ( enterprise version or single licenses? …web enabled or desktop based? … With gold-level technical support or silver?)
I am sure you could come up with scores of others. Perhaps you have been threatened by Bad Publicity, the Effect on Widows and Orphans, or enticed by Fame and Flattery.
Effective negotiators need to be prepared to face these tactics, even if their use may not fit with the own personal ethics.
-Dave
4.08.2009
Negotiating 101: Part 2- Anticipating and Overcoming Objections
There are two basic points when anticipating and overcoming objections. One is to realize that you need to have a rationale ready to support your statements. If you have a hard time coming up with the logic to support your position, the other party will, too.
The second is to have a concession or two ready to make the other party feel that they get something by relinquishing ground an objection.
So, how do you anticipate the objections of the other party? Look to their interests. The point of negotiation usually turns on the results satisfying the interests of each party, as opposed to satisfying specific positions. For example, think of a business negotiation that requires a split of proceeds from the sale of a product or service. A position is when one party believes that there should be a 75/25 percent split (or a 60/40 or 50/50 or whatever). An interest is when the other party wants a fair share of the proceeds in order to reflect the efforts or risks involved in the production or sale.
If you anticipate that the point of negotiation will revolve around the split of monies, and the other party will object to your suggested split, be prepared to have a logical rationale for your split (your investment, your intellectual property, the difference in time spent, and so on).
I recommend that you write down the other parties probable interests in the negotiation. Then, list the potential interests. Your script (see Negotiation 101 part 1) should have specific statements that you can use to offer logic or rationale that satisfies their interests while supporting your own.
Objection: “You should pay for the marketing, not me.”
Response: “Marketing is done more cheaply by your organization than mine. I would have to hire external talent, which will increase my costs proportionally more than yours. If I take on marketing, we will need to reexamine the split because it creates an imbalance in our profit sharing principle.”
Next week: Tactics
-Dave
The second is to have a concession or two ready to make the other party feel that they get something by relinquishing ground an objection.
So, how do you anticipate the objections of the other party? Look to their interests. The point of negotiation usually turns on the results satisfying the interests of each party, as opposed to satisfying specific positions. For example, think of a business negotiation that requires a split of proceeds from the sale of a product or service. A position is when one party believes that there should be a 75/25 percent split (or a 60/40 or 50/50 or whatever). An interest is when the other party wants a fair share of the proceeds in order to reflect the efforts or risks involved in the production or sale.
If you anticipate that the point of negotiation will revolve around the split of monies, and the other party will object to your suggested split, be prepared to have a logical rationale for your split (your investment, your intellectual property, the difference in time spent, and so on).
I recommend that you write down the other parties probable interests in the negotiation. Then, list the potential interests. Your script (see Negotiation 101 part 1) should have specific statements that you can use to offer logic or rationale that satisfies their interests while supporting your own.
Objection: “You should pay for the marketing, not me.”
Response: “Marketing is done more cheaply by your organization than mine. I would have to hire external talent, which will increase my costs proportionally more than yours. If I take on marketing, we will need to reexamine the split because it creates an imbalance in our profit sharing principle.”
Next week: Tactics
-Dave
3.18.2009
What Every CEO Knows About Negotiating
There are as many approaches to negotiation as there are self help titles on the shelves of a discount bookstore.
Fearless Negotiation, Win - Win Negotiation, How to Win at Negotiation, Getting to Yes, and Getting past No are just a few examples.
One theme that seems to run through almost any guide to negotiating is preparing a script ahead of time, where the ideal result is defined, the likely points of negotiation are anticipated, potential objections anticipated, and tactics and strategies are planned.
Identifying your ideal result should be the product of you and your team defining not only the optimum sweet deal, but setting the limit on the minimal that you will accept.
Strategy #1 Establish the initiative.
Think of a chess match where the less experienced party has to respond to the master’s moves, instead of the reverse. Even experienced players find it very difficult to regain initiative once they are in a responsive mode. Similarly, by framing the discussion, you can maintain initiative and therefore require the other party to accept (or reject) your version of reality. You should lay out the points of negotiation, either by revealing them one at a time or by creating an agenda. Either way, it helps to have a printed agenda or talking points with you to provide to the other party. Use your sense and don’t reveal too much.
It is also important that you don’t allow social niceties to inadvertently squander your initiative. One of the famous ones is the open- ended invitation “Tell me what’s on your mind.” This polite invitation for the other to go first usually sets up a conversation that is managed by the other party.
Strategy #2 Script the negotiation.
Create your script in a way that you
One last thought: there exist all sorts of Jedi Master and jujitsu approaches to negotiating that can win concessions in the short run. When building long terms relationships, both parties need to feel they have done well. This philosophy is the underpinning of win-win negotiating style. Concluding that your partner drives a hard bargain is quite different than deciding that you have been outwitted or arm-twisted into a bad deal.
-Dave
Fearless Negotiation, Win - Win Negotiation, How to Win at Negotiation, Getting to Yes, and Getting past No are just a few examples.
One theme that seems to run through almost any guide to negotiating is preparing a script ahead of time, where the ideal result is defined, the likely points of negotiation are anticipated, potential objections anticipated, and tactics and strategies are planned.
Identifying your ideal result should be the product of you and your team defining not only the optimum sweet deal, but setting the limit on the minimal that you will accept.
Strategy #1 Establish the initiative.
Think of a chess match where the less experienced party has to respond to the master’s moves, instead of the reverse. Even experienced players find it very difficult to regain initiative once they are in a responsive mode. Similarly, by framing the discussion, you can maintain initiative and therefore require the other party to accept (or reject) your version of reality. You should lay out the points of negotiation, either by revealing them one at a time or by creating an agenda. Either way, it helps to have a printed agenda or talking points with you to provide to the other party. Use your sense and don’t reveal too much.
It is also important that you don’t allow social niceties to inadvertently squander your initiative. One of the famous ones is the open- ended invitation “Tell me what’s on your mind.” This polite invitation for the other to go first usually sets up a conversation that is managed by the other party.
Strategy #2 Script the negotiation.
Create your script in a way that you
- require the other person to negotiate with themselves. An example: “Wow—that’s much higher than I had anticipated.” or “That is not as competitive as other rates I have seen.”) Give them multiple changes to lower their price before you suggest a lower number. You will find that they sometimes offer even more than you would have asked for. It will also prevent you from starting your bargaining bracket below too far above or below their limits.
- get or give some freebees. It never hurts to ask (“Can you throw in a one time mailing to your customer list?” or “What can you add to that?”). The interaction might include some offers of value-ads that the other party had not anticipated. A skilled negotiator must have the mental flexibility to perceive when one of these unanticipated items is worth a concession against the optimum deal, or even can tip the scale past the minimal deal.
- use silence as leverage. Most people are uncomfortable with silence. 30 seconds is along time for someone to squirm. Decide how long you will let something sit. People will often fill in the silence in a way that works to your advantage.
One last thought: there exist all sorts of Jedi Master and jujitsu approaches to negotiating that can win concessions in the short run. When building long terms relationships, both parties need to feel they have done well. This philosophy is the underpinning of win-win negotiating style. Concluding that your partner drives a hard bargain is quite different than deciding that you have been outwitted or arm-twisted into a bad deal.
-Dave
3.10.2009
Viral Marketing
Want to get your business to spread like the influenza? Ponzi did it... Madoff (allegedly) did it… Not that they are worthy of emulation—my point is they generated huge revenue with virtually no traditional advertizing or marketing. Their ideas spread like a virus.
According to Wikipedia,” Viral marketing / advertising refers to marketing techniques that use pre-existing social networks to produce increases in brand awareness or to achieve other marketing objectives (such as product sales) through self-replicating viral processes, analogous to the spread of pathological and computer viruses. It can be word-of-mouth delivered or enhanced by the network effects of the Internet.”
(Viral Marketing is a term coined by Harvard Business School’s Jeffrey Rayport in a December 1996 article for Fast Company The Virus of Marketing.)
According to Wikipedia,” Viral marketing / advertising refers to marketing techniques that use pre-existing social networks to produce increases in brand awareness or to achieve other marketing objectives (such as product sales) through self-replicating viral processes, analogous to the spread of pathological and computer viruses. It can be word-of-mouth delivered or enhanced by the network effects of the Internet.”
(Viral Marketing is a term coined by Harvard Business School’s Jeffrey Rayport in a December 1996 article for Fast Company The Virus of Marketing.)
Jessica Hibbard, Communications Director at the Frederick County Chamber of Commerce has this advice:
- It's beyond your control. In the past, the advertisers with the biggest budgets controlled the message by purchasing air time and ad space. Now, the tables are turned, and your audience determines the value of an idea, a product, or a company.
- It's easier than ever to spot a fake. If you're not authentic, people will know that, and the response to your message will be weak at best.
- You have to participate. If you want followers or replies, you have to follow and reply to others. If you want comments, leave positive comments on photos/videos/blogs that appeal to you.
- Remember that the main goal of any marketing is to communicate with humans, and most humans don't respond very well to a constant barrage of spam.
- Think about the photos, emails, videos, blog posts, or other tidbits that you've shared with friends recently. They're probably authentic, useful, funny ... They're probably not negative, self-absorbed, or spammy.
Here is a link to a quick read on the topic: The New Rules of Viral Marketing, by David Meerman Scott. He takes a page from his own advice by providing a free, abbreviated copy of his book online. (Free, shortened ebooks are one of the techniques he mentions as a viral tactic, as are no cost Youtube spots.)
My favorite is a campaign he describes where Universal Orlando Resort prepares to launch the Wizarding World of Harry Potter theme park. The director of marketing took the risk to launch the new park’s campaign by informing just 7 people. Of course, which 7 people and how to inform them were the keys to success.
Here’s some parting advice for those of you who can’t get J. K. Rowling to return your calls about a license for a Harry Potter theme park--check out Viral Marketing for Boring Industries.
Are you doing anything that you think of as viral marketing?
What’s the most intriguing viral strategy you’ve come across?
-Dave
Subscribe to:
Posts (Atom)
Posts
