{"id":764,"date":"2011-02-13T22:24:44","date_gmt":"2011-02-13T22:24:44","guid":{"rendered":"http:\/\/www.renando.com\/blog\/?p=764"},"modified":"2015-02-15T19:07:55","modified_gmt":"2015-02-15T19:07:55","slug":"coveys-seven-habits-for-a-digital-agency-habit-4-win-win-or-no-deal","status":"publish","type":"post","link":"https:\/\/sidewaysthoughts.com\/blog\/2011\/02\/coveys-seven-habits-for-a-digital-agency-habit-4-win-win-or-no-deal\/","title":{"rendered":"Covey’s seven habits for a digital agency – Habit 4: Win-Win or No Deal"},"content":{"rendered":"

Hearing the clich\u00e9d notion of “<\/strong><\/em>win-win<\/em><\/strong>” raises immediate concern that one party is attempting to manipulate the situation towards a less than equitable proposition.\u00a0 In sales efforts, client relationships, and managing staff, there is incredible freedom through additional outcome of “no deal<\/em><\/strong>“.<\/p>\n

\"Habit_4_win_win_or_no_deal\"<\/p>\n

It has been nine months since I last posted about Covey\u2019s Seven Habits<\/a>.\u00a0 The irony that the last habit was on priorities and time management does not escape me.\u00a0 Now that some big projects, holidays, and floods are out of the way, I figured we would break out the raisin toast for a final studio breakfast session, starting with the concept of win-win or no deal<\/strong>.<\/p>\n

Your options for client relationships<\/h2>\n

Scenario 1: I win. You lose.<\/h3>\n

The win-lose scenario<\/strong> seems to be the one most loved by our capitalistic culture.\u00a0 Relationships between clients and vendors, managers and employees, and competing suppliers are designed as a competition, with each party investing in their personal outcome at the expense of another.\u00a0 Me winning means you losing.<\/p>\n

In a sales transaction, the supplier tries to get the price as high as possible while the client tries to get the price as low as possible.\u00a0 Managers apply systems, structure and pressure to get the most productivity out of staff while employees attempt to work as little as possible for the highest wage.\u00a0 Organisations strive for monopolies through efforts directed at hurting competitors.<\/p>\n

Scenario 2: I lose. You win.<\/h3>\n

The competitive environment aimed at success for your type A personalities can drive other temperaments towards a lose-win scenario. <\/strong>In lose-win, one party continually feels the need to capitulate to the other.\u00a0 Similar to abusive relationships between individuals, both parties develop a common understanding of the power imbalance.<\/p>\n

This can be evident when small digital companies develop an unhealthy dependence on multi-national or large government clients. \u00a0To break the cycle, the smaller agency needs to ensure they have sufficient work from other sources to reduce the dependency.<\/p>\n

Scenario 3: I win.<\/h3>\n

In an “I win” scenario<\/strong>, there is no concept of \u201cyou\u201d. I achieve my outcomes without regard for the other party.\u00a0 I recall one particularly grating sales manager in a previous career who typified this with his common greeting of \u201cAre we winning?<\/em>\u201d From an organisational perspective, examples of this approach are when companies operate in a monopoly or as a single-source supplier of technology.<\/p>\n

Facebook\u2019s Zuckerberg confirmed his engagement with an \u201cI win\u201d disregard for other perspectives.\u00a0 When asked about the impact from the Social Network movie<\/a>, he stated: \u201cWe build products that 500 million people see\u2026 If 5 million people see a movie, it doesn\u2019t really matter that much<\/em>\u201d.\u00a0 The invisible hand of the capitalistic market does balance out these situations over time.\u00a0 Recent presentations by Facebook to developers focus on their mandate to generate revenue through selling advertising, showing a griowing alignment towards a competitive win-lose.<\/p>\n

Scenario 4: I lose. You lose.<\/h3>\n

We see the lose-lose scenario<\/strong> when everything falls apart.\u00a0 Both parties have decided that neither can win.\u00a0 All efforts are applied towards ensuring the other party loses as badly if not worse than the other.<\/p>\n

Digital solutions solve complex business needs, and the opportunities for scope, schedule and budget conflict is significant.\u00a0 I often wonder why, when projects do not meet expectations, the relationship goes quickly from one of collaboration to a situation where one party is perceived by the other as desiring to cause intentional hurt.\u00a0 Over the years, we have picked up the pieces of systems from other suppliers where both client and the previous supplier have been more intent on causing as much pain for the other party as possible than they were on resolving the issues.<\/p>\n

Scenario 5: I win. You win.<\/h3>\n

Based on issues identified above, you would think a win-win scenario<\/strong> would be the solution. \u00a0We both work together to ensure each party has an acceptable outcome.\u00a0 Looking at this scenario in depth, however, reveals a hidden word in the proposition: the notion of \u201cmust<\/em><\/strong>\u201d.<\/p>\n

Without any caveat or conditions, stating \u201cI must<\/em> <\/strong>win and you must<\/em> <\/strong>win\u201d is unrealistic.\u00a0 Clients frequently do not have a perception of the cost involved, and suppliers often do not view the technical solution from the client\u2019s business perspective.\u00a0 Unless each side understands the need to educate the other, forcing a situation into a win for each side is a losing battle.<\/p>\n

Scenario 6: I win and<\/em><\/strong> you win or<\/em><\/strong> no deal<\/h3>\n

This leads us to the final option: the \u201cwin-win-or-no-deal\u201d scenario<\/strong>.\u00a0 Either we both get an acceptable outcome, or the deal is off, and that\u2019s OK<\/em><\/strong>.\u00a0 Each party agrees that the project, contract, and even the relationship may terminate if the parameters are not acceptable.<\/p>\n

I found this concept incredibly liberating when I first applied it to the sales process.\u00a0 If the nature of the sale is not going to meet the client\u2019s objectives and be sustainable for my company, I need to be prepared to walk away.\u00a0 From the client\u2019s perspective, if my services cannot align with what the client is after, then there may be another company more suited for the work.<\/p>\n

Develop your character<\/h2>\n

Three character attributes<\/strong> are required if you are to apply a Scenario 6 approach.<\/p>\n

1.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Integrity<\/strong>
\nIntegrity removes your duplicity, allowing you to know without doubt what constitutes a win.\u00a0 From a business perspective, you need to understand your core offering and be able to say no to work that falls outside of your value proposition.<\/p>\n

2.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Maturity
\n<\/strong>With maturity comes social intelligence<\/a>, allowing you to understand the relationship from the other\u2019s perspective.<\/p>\n

3.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Abundance Mentality
\n<\/strong>Confidence in your ability will result in a core belief that there will always be enough work to support you.\u00a0 If you feel that losing the relationship will destroy your business, then perhaps your business model may need to be re-examined.<\/p>\n

The win-win or no deal conversation is a good one to have with clients.\u00a0 For some, we collectively come to the realisation that they are not prepared to invest in what is required to effectively manage their business.\u00a0 In others, we agree that the service we provide is not suitable for the price they are willing to pay.\u00a0 In most situations, however, the scenario provides a framework around which we can develop a strategy that allows us to work together towards a common goal of a sustainable relationship.<\/p>\n

Like most of the habits, \u201cwin-win or no deal\u201d is a paradigm shift in thinking and contrary to the natural inclination of the market environment.\u00a0 Consistent application requires an accurate awareness of the situation and a developed personal character by both parties.<\/p>\n

Then again, if you disagree and feel the approach is not relevant for you, I suppose you could just say \u201cno deal\u201d.<\/p>\n

Other posts in the series:
\nHabit 1: Be Proactive<\/a>
\nHabit 2: Keeping the End in Mind<\/a>
\nHabit 2: Finding and keeping your centre<\/a>
\nHabit 3: Putting first things first<\/a>
\nHabit 5: Seek first to understand, then be understood (no one wants a web site)<\/a>
\nHabit 6: Synergy<\/a>
\nHabit 7: Sharpening the saw<\/a><\/h6>\n","protected":false},"excerpt":{"rendered":"

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