How to persuade your How to persuade your customers: discussing the customers: discussing the tough stufftough stuff

FOR MICROSOFT PARTNERSFOR MICROSOFT PARTNERS

Your presenterYour presenter

Sandy Caspi SableSandy Caspi Sable

About CMAAbout CMA

Established in 1993 with the assistance Established in 1993 with the assistance of professionals from Harvard of professionals from Harvard University’s negotiation programUniversity’s negotiation programSpecialist provider of training and Specialist provider of training and consulting services in negotiation, consulting services in negotiation, mediation and conflict management mediation and conflict management Aiming to help organisations/individuals Aiming to help organisations/individuals maximise value from negotiation maximise value from negotiation

Session purposeSession purpose

Provide a framework for understanding Provide a framework for understanding negotiation and guidelines for negotiation and guidelines for persuasion and impact in the context of persuasion and impact in the context of negotiating SAM/licence compliance negotiating SAM/licence compliance with customerswith customersProvide communication strategies for Provide communication strategies for sending difficult or sensitive messages sending difficult or sensitive messages in those negotiationsin those negotiations

ChallengesChallenges

Limited time Limited time Each of you already has an existing Each of you already has an existing “theory” for negotiation/persuasion “theory” for negotiation/persuasion Each of you have different experiences Each of you have different experiences and face different challengesand face different challenges

Seminar processSeminar process

Briefly examine benefits of SAM/licence Briefly examine benefits of SAM/licence compliancecomplianceIntroduce guidelines for effective Introduce guidelines for effective negotiation (persuasion and impact negotiation (persuasion and impact tools) in the context of SAM/licence tools) in the context of SAM/licence compliance negotiationscompliance negotiations

Seminar programSeminar program10.0010.00 Introduction & purposesIntroduction & purposes

10.0510.05 Benefits of SAM/licence Benefits of SAM/licence

compliancecompliance

10.1010.10 The 7 Elements: Tools for The 7 Elements: Tools for

persuasion and persuasion and

impact impact

10.5010.50 Communication strategiesCommunication strategies

11.00 11.00 Wrap up and closeWrap up and close

Why Negotiate Why Negotiate SAM/licence compliance?SAM/licence compliance?

Benefits to PartnersBenefits to PartnersUncover new businessUncover new businessCompetitive edgeCompetitive edge

SAM specialistSAM specialistMS marketing / referral MS marketing / referral

Strengthen relationship with customersStrengthen relationship with customersTrusted advisor vs box moverTrusted advisor vs box mover

Meet contractual terms / legal Meet contractual terms / legal obligationsobligations

Why Negotiate Why Negotiate SAM/licence compliance?SAM/licence compliance?

Given the potential value to you from Given the potential value to you from existing customers with existing customers with SAM/licensing. How do you go about SAM/licensing. How do you go about it? ie. how do you negotiate this (or it? ie. how do you negotiate this (or anything else!)? anything else!)?

An important provocationAn important provocation

You’re negotiating every time you You’re negotiating every time you interact with someone for the interact with someone for the purpose of influencing their decision-purpose of influencing their decision-making making

An important provocationAn important provocation

But have you ever thought about the But have you ever thought about the way in which you negotiate? Or what way in which you negotiate? Or what your approach is based on?your approach is based on?

Gut feeling/intuition?Gut feeling/intuition?Previous experience(s)?Previous experience(s)?A specific system or theory for A specific system or theory for negotiation?negotiation?

An important provocationAn important provocation

Expertise in negotiation (as in Expertise in negotiation (as in anything) requires having a sound anything) requires having a sound system or theory on which to base system or theory on which to base your approach. your approach.

7 Elements of Negotiation7 Elements of Negotiation

The 7 Elements of Negotiation The 7 Elements of Negotiation provide a conceptual framework for provide a conceptual framework for enhancing performance in any enhancing performance in any negotiation regardless of context or negotiation regardless of context or who’s involvedwho’s involved

7 Elements of negotiation7 Elements of negotiation

This framework is This framework is principally based on the principally based on the work of the Harvard work of the Harvard Negotiation ProjectNegotiation Project

Professor Roger Fisher (Getting to Professor Roger Fisher (Getting to YesYes))

Introducing the 7 Introducing the 7 ElementsElements

Observational studies support the Observational studies support the notion that negotiation can be notion that negotiation can be broken down into 7 constituent broken down into 7 constituent elementselementsThe elements are a lens through The elements are a lens through which to understand negotiationwhich to understand negotiation

Value of understanding Value of understanding negotiation in 7 Elements negotiation in 7 Elements termsterms

The 7 Elements provide a framework The 7 Elements provide a framework for: for:

analysing what is happening in a analysing what is happening in a negotiation;negotiation; understanding how to persuade;understanding how to persuade;setting goals and measuring success.setting goals and measuring success.

The 7 ElementsThe 7 Elements

We’ll focus on the 7 Element tools for We’ll focus on the 7 Element tools for persuasion using the SAM/licence persuasion using the SAM/licence compliance issue by way of examplecompliance issue by way of example

Relationship

Communication

Interests

Options

Standards

Alternatives

Commitments

RelationshipRelationship

Definition:Definition:

The state of connection between two The state of connection between two or more peopleor more people

Note: Relationships are fluid and Note: Relationships are fluid and every interaction has an impactevery interaction has an impact

Relationship:A tool for Relationship:A tool for persuasionpersuasion

Create ways to improve the Create ways to improve the relationshiprelationshipIn difficult moments, separate the In difficult moments, separate the relationship from the substance. Be:relationship from the substance. Be:

Soft on the peopleSoft on the peopleHard on the problemHard on the problem

Relationship:A tool for Relationship:A tool for persuasionpersuasion

Eg.Eg.meet regularlymeet regularlyprovide email newsletterprovide email newsletteranticipate their needsanticipate their needsproactively identify problemsproactively identify problemsseek feedback on satisfactionseek feedback on satisfaction

Relationship

Communication

Interests

Options

Standards

Alternatives

Commitments

InterestsInterestsDefinition:Definition:

The needs, concerns, goals, hopes The needs, concerns, goals, hopes and fears that motivate the partiesand fears that motivate the parties

Note: - Interests are different from Note: - Interests are different from positionspositions

- Interests are qualitative as well - Interests are qualitative as well as quantitative as quantitative

Interests: A tool for Interests: A tool for persuasionpersuasion

Appeal to their interestsAppeal to their interestsHelp them understand yoursHelp them understand yours

Interests: A tool for Interests: A tool for persuasionpersuasion

Eg. Cut costs via:Eg. Cut costs via:Streamlining operationsStreamlining operationsAvoiding viruses and crashesAvoiding viruses and crashesAvoiding obsolescenceAvoiding obsolescenceAccessing volume licence discountsAccessing volume licence discountsReduction in support costsReduction in support costs

Relationship

Communication

Interests

Options

Standards

Alternatives

Commitments

OptionsOptions

Definition:Definition:

Ideas about how the parties might Ideas about how the parties might meet their interests togethermeet their interests together

Note:Note: - Options are possibilities - Options are possibilities onlyonly

- Can have process options as - Can have process options as well as substantive optionswell as substantive options

Options: A tool for Options: A tool for persuasionpersuasion

Be open to exploring many options Be open to exploring many options with themwith them

Build an option that is better than Build an option that is better than their/your B.A.T.N.Atheir/your B.A.T.N.A

Be creative: is there something else Be creative: is there something else you can add to provide value for you can add to provide value for them?them?

Options: A tool for Options: A tool for persuasionpersuasion

Eg.Eg.Assist forward planning for software Assist forward planning for software deploymentdeploymentTools / support re SAM (eg. website, Tools / support re SAM (eg. website, training, audit frameworks, free review)training, audit frameworks, free review)Certification of complianceCertification of complianceRebate program Rebate program

Relationship

Communication

Interests

Options

Standards

Alternatives

Commitments

StandardsStandards

Definition:Definition:

Criteria that the parties use to Criteria that the parties use to legitimise their perspectiveslegitimise their perspectives

Note: Standards can be objective Note: Standards can be objective and subjectiveand subjective

Standards: A tool for Standards: A tool for persuasionpersuasion

Rely on objective standards; and/or Rely on objective standards; and/or

Use their own standards in supportUse their own standards in support

Standards: A tool for Standards: A tool for persuasionpersuasion

Gartner Report:Gartner Report: enterprises implementing enterprises implementing software software usage tools usage tools typically yield savings typically yield savings of of 5% in Yr 1,and 2-3% in Yrs 2&35% in Yr 1,and 2-3% in Yrs 2&3

Copyright Act:Copyright Act: use of IP without permission of use of IP without permission of copyright owner is a copyright owner is a

civil offence civil offence (penalties include unlimited (penalties include unlimited

damages, and legal costs) making damages, and legal costs) making illegal copies for sale is a illegal copies for sale is a

criminal criminal offence offence (penalties include up to 5 (penalties include up to 5

years imprisonment and years imprisonment and substantial fines)substantial fines)

Corporations Law: Directors may be personally Corporations Law: Directors may be personally liable liable for breaches of the for breaches of the Copyright Act Copyright Act even if even if they’re not involvedthey’re not involved

Partners’ Agreement with MSPartners’ Agreement with MS

Relationship

Communication

Interests

Options

Standards

Alternatives

Commitments

AlternativesAlternatives

Definition:Definition:

Steps each party can take to satisfy Steps each party can take to satisfy their own interests outside the their own interests outside the current negotiationcurrent negotiation

Note: Alternatives see us doing Note: Alternatives see us doing things without the other party’s things without the other party’s agreementagreement

Alternatives:A tool for Alternatives:A tool for persuasionpersuasion

Help them understand the potential Help them understand the potential consequences of non-agreement (in consequences of non-agreement (in a non threatening way)a non threatening way)

Alternatives:A tool for Alternatives:A tool for persuasionpersuasion

Eg. Eg. Inability to use MS software Inability to use MS software Reputational damage Reputational damage Litigation (civil and criminal) Litigation (civil and criminal)

““SAM keeps the lawyer’s out of it!”SAM keeps the lawyer’s out of it!”““SAM gives you legal confidence.”SAM gives you legal confidence.”

Relationship

Communication

Interests

Options

Standards

Alternatives

Commitments

CommitmentsCommitments

Definition:Definition:

Promises made to build or finalise Promises made to build or finalise agreementagreement

Note: Commitments can be unilateral Note: Commitments can be unilateral

Commitments: A tool for Commitments: A tool for persuasionpersuasion

Keep process commitmentsKeep process commitments

Be realistic about substantive Be realistic about substantive commitmentscommitments

Commitments: A tool for Commitments: A tool for persuasionpersuasion

Eg.Eg.AgendaAgenda

explain purpose of discussion (aim0explain purpose of discussion (aim0outline how SAM/licence compliance outline how SAM/licence compliance meets their interestsmeets their interestsoffer standards in supportoffer standards in supportdiscuss broad options for assisting discuss broad options for assisting themthem(if necessary, note consequences of (if necessary, note consequences of non compliance)non compliance)agree upon next stepsagree upon next steps

Relationship

Communication

Interests

Options

Standards

Alternatives

Commitments

CommunicationCommunicationDefinition:Definition:

The transfer of messages by speech, The transfer of messages by speech, writing or other meanswriting or other means

Note: Non verbal communication is much Note: Non verbal communication is much broader than body languagebroader than body languageeg. eg. - who is involved- who is involved

- where (environment)- where (environment)- dress, etc.- dress, etc.

CommunicationCommunication

Perhaps the most important element Perhaps the most important element of persuasionof persuasion

So it’s worth taking a closer look at So it’s worth taking a closer look at how we use communication for how we use communication for persuasion and impactpersuasion and impact

Communication: A tool for Communication: A tool for persuasionpersuasion

Make communication a two-way Make communication a two-way processprocessie. balance advocacy (self) with ie. balance advocacy (self) with enquiry (other)enquiry (other)

Communication: A tool for Communication: A tool for persuasionpersuasion

Listen persuasivelyListen persuasivelySpeak persuasivelySpeak persuasively

Persuasive ListeningPersuasive Listening

Ensure you demonstrate your Ensure you demonstrate your understanding of themunderstanding of them

use appropriate body languageuse appropriate body languageask questions; check in; paraphraseask questions; check in; paraphrasefind your own style (sincerity is more find your own style (sincerity is more important than technique)important than technique)

Persuasive SpeakingPersuasive Speaking

Understand that what you say and Understand that what you say and how you say it can affect their ability how you say it can affect their ability to listento listen

Persuasive SpeakingPersuasive Speaking

As they listen to us, they can be As they listen to us, they can be distracted by another voice…..their distracted by another voice…..their internal voiceinternal voice

Persuasive speakingPersuasive speaking

You need to manage their internal You need to manage their internal voice - avoid irritating it and thereby voice - avoid irritating it and thereby distracting them from hearing youdistracting them from hearing you

Persuasive SpeakingPersuasive Speaking

Avoid words/phrases that are likely Avoid words/phrases that are likely to make them defensive, angry, to make them defensive, angry, suspicious etcsuspicious etc

Persuasive SpeakingPersuasive Speaking

Some examples:Some examples:AvoidAvoid

‘‘Legal consequences’Legal consequences’‘‘Audit’Audit’‘‘Illegal conduct’Illegal conduct’‘‘Microsoft’ Microsoft’ software software

management’management’‘‘Piracy’ Piracy’

Possible ReplacementsPossible Replacements

Legal confidenceLegal confidence

Software reviewSoftware review

Good business practicesGood business practices

Software managementSoftware management

Unlicensed software Unlicensed software

Persuasive SpeakingPersuasive Speaking

Are there any other words/phrases Are there any other words/phrases that are likely to irritate customers?that are likely to irritate customers?

CommunicationCommunication

Big messages to send to customers:Big messages to send to customers: SAM is an invaluable business tool (ie SAM is an invaluable business tool (ie

numerous commercial advantages)numerous commercial advantages) SAM is something that is routinely discussed SAM is something that is routinely discussed

with all customers (ie not targeting you in with all customers (ie not targeting you in particular)particular)

SAM is detailed but there are ways to SAM is detailed but there are ways to simplify its applicationsimplify its application

We’re interested in helping you meet your We’re interested in helping you meet your needsneeds

SAM ensures that you meet the legal SAM ensures that you meet the legal requirements re licensing (ie gives you legal requirements re licensing (ie gives you legal confidence)confidence)

Implementing SAM is important across Implementing SAM is important across allall software you run (not just MS)software you run (not just MS)

Communication: A tool for Communication: A tool for persuasionpersuasion

A final point of of note: A final point of of note:

Choose the right Choose the right environment/medium for your environment/medium for your negotiationnegotiation

Any questions?Any questions?

Going forwardGoing forward

Preparation is key to successPreparation is key to successSpend time strategising individual Spend time strategising individual approaches for your respective approaches for your respective customerscustomersCall on your MS partners for assistance, Call on your MS partners for assistance, support and feedbacksupport and feedback

Going forward with CMAGoing forward with CMA

Training:Training:Core negotiation skillsCore negotiation skillsAdvanced negotiation skillsAdvanced negotiation skillsConflict managementConflict managementMediation coursesMediation coursesExpert coaching (private session)Expert coaching (private session)

Going forward with CMAGoing forward with CMA

Consulting:Consulting:Negotiation analysis and adviceNegotiation analysis and adviceConflict resolutionConflict resolution

Mediation:Mediation:Relational mediationRelational mediation

Thank youThank you