Big Pie Wins

Whether it is for a contract, salary, or valuation, the negotiation process is a critical part of the business world. And nothing seems to invoke our primal competitive urges like a good old fashion barter. We may talk at length about the need for win-win solutions, but far too often urge to ‘better the other guy’ overcomes us and transforms the actual process into a win-lose proposition. That may be fine when you don’t need the ‘loser’ in the future, but when its a supplier, employee, or some other stakeholder whose ongoing support you need, your big win is more likely a pyrrhic victory.

Fighting for a “bigger” slice of pie does not make sense when the cost is a smaller overall pie. Certainly, the rationing of an opportunity’s value has to take in account who brings what to the table. That’s only fair and is what negotiation is all about. But ‘fair’ is not the only variable that matters. Success in business requires alignment of interests across a broad group of suppliers, employees, investors, and other stakeholders. You need them all motivated toward the same end (i.e., making a really big pie), and you simply will not achieve that if the reward (i.e., their slice) is not big enough to be motivating. If you reduce a critical team member’s motivation, you reduce the odds of your own success.

A win-win solution is one where all parties get meaningful (by their definition, not yours) value of out a relationship or transaction. Furthermore, a sustainable win-win solution is one where the value of the relationship continues to be better than new alternatives that will come along. For example, you may be able to command a great deal from a vendor that is having trouble but don’t expect to be at the top of their priority list when their situation improves. In my experience, the relationship you establish with your style of negotiation can have an even greater long-term impact than the specific terms of today’s deal. The key is to balance your desire for a big-slice win today with your need for big pie wins tomorrow.

Ty J. Shattuck
The Idea Whisperer
@tyshattuck

Phobos: The god of Fear

Phobos, the son of Ares, was the god of fear. He was a great and powerful god. He loved to toy with humans. One day he was boasting about his belief that all men were weak and fearful. He bragged that even the most powerful of men were putty in his hands.

Zeus heard Phobos bragging and suggested a challenge to his fellow god. Zeus would offer Phobos three men. If Phobos could get all three to kiss his feet (the most degrading act of the age), Zeus would give Phobos all of his powers and authority. But, if Phobos was unsuccessful, he would have to kiss the feet of the man. It would be beyond indignity for a god to kiss the feet of a mere mortal. He would be humiliated before all the other gods, and his ability to instill fear forever would be reduced. But Phobos was confident that this could never happen. He was Phobos, the god of fear. He was the very personification of greatness. He could intimidate any man. He agreed to the wager.

Zeus and Phobos went down to Earth. The first person Zeus put forward was a rich and powerful lord. Phobos went to the lord and told him that if he did not kiss his feet, all his power, fame and wealth would be taken. The great lord thought of life without his mansion, his servants and his money. It filled him with fear. He bent upon his knees and kissed the feet of Phobos. Phobos laughed and said “I told you Zeus! Men are driven by fear. No man can stand up to my power.”

Zeus then introduced Phobos to a famous and powerful political leader. The leader was a hero and revered across the land. Phobos went to the famous leader and told him that if he did not kiss his feet, all his power, fame and wealth would be taken. The beloved leader thought about his life without the praise and love of the people. It filled him with fear. He bent upon his knees and kissed the feet of Phobos. Phobos laughed and said “I told you Zeus! Men are driven by fear. No man can stand up to my power.”

Finally, Zeus introduced Phobos to a poor man. He was not wealthy, famous or powerful. Phobos went to the poor man and told him that if he did not kiss his feet, all his power, fame and wealth would be taken. The poor man laughed, “You may take all my wealth, fame and power. What have I to fear? I will not kiss your feet.”

Phobos was in shock. He had been defeated by the seemingly weakest of men. The gods laughed. He bent down upon his knees and kissed the feet of the poor man.

Ty J. Shattuck
The Idea Whisperer
@tyshattuck