I started talking about market segmentation in one of my previous posts (that the mid-segment is disappearing, but the lower segment and upper segment are simultaneously on the rise – see here for more). However, even if you are a household that is searching ways to save money there are numerous possibilities how you can get premium quality items. First, Continue reading Pre-owned and pre-loved: Simple ways to afford premium quality items
Category Archives: Management
At the opposite sides of the spectrum: Peaceful co-existence of upmarket and lower-market in a single household
After one of the business meetings of my husband we had a vivid discussion about consumer purchasing trends. What we both see is that the mid-segment is fading away: either people go for very qualitative and very expensive stuff or prefer OK and cheap things. Sometimes simultaneously going for both – what I often observe in our own household.
In general, a lot of different consulting reports nowadays are mentioning the same trends in the consumer goods sector, the most prominent one is that: a lot of people are searching for ways to save money (McKinsey claims that “a lot” in the context of the US for example is about 70%). Household incomes generally have decreased. However, at the same time “the wealthy” became wealthier. This widening of the income gap gives birth to two opposite trends: an upmarket segment with its premium offerings is on the rise, but at the same time a lower-market segment and discount stores also see an increased interest from consumers. What is left out? Continue reading At the opposite sides of the spectrum: Peaceful co-existence of upmarket and lower-market in a single household
Village vs. City: Pros and cons of living in the countryside
In one of the questionnaires I filled up recently there was a question if I prefer to live in a city or in the countryside and why. By now I lived in both and actually I did like both. Having been born and raised in a city, more than two years ago I switched its comfort for the beauty of the countryside. Before that I had never even stayed in the countryside for more than a week. Moreover, I could not have even imagined myself ever moving out of the city. And here I am now… Continue reading Village vs. City: Pros and cons of living in the countryside
Negotiations with a monster: Applying Negotiation skills theory to persuade a toddler
Today I would like to revise some of the basics of the Negotiation skills theory, something that is taught in business schools but should actually be introduced as early as in the primary school and for everybody not only the aspiring managers and consultants. You should take it with a grain of salt yet also a toddler is a party in negotiations. Yes, when there is a discussion about something you just want to shout out loud that he or she is going to do the way you want them to do otherwise their ass will be kicked big time, but however tempting that is, it’s not a solution in the long run.
I have studied the negotiation skills theory both through various online courses, including Harvard, yet the first introduction into the theoretical foundations was done by an almost legendary South African professor Dr. David Venter. I was lucky to get to know him (and his wonderful wife – Paula Venter, whom he uses as an example and an object of comments all the time!), be able to listen to him and even at one point in time stay in his cozy house in Hermanus – the best place to watch whales. I will use some of my notes from his course and the information from the Negotiations Planning template by Infostrat©.
So let’s begin. A toddler is a monster by definition! There are couple of aspects which are especially difficult in negotiating with this monster:
- accepting that a toddler is to be negotiated with, not just bossed around all the time;
- dealing with irrational behavior – crying and shouting (but, hey, your business partners tend to get emotional and seemingly irrational as well. Yes, usually they don’t fall on the floor in the middle of a shopping mall and don’t scream that they desperately need that new toy car, but those are nuances. Emotions can get pretty high also in a boardroom.)
- dealing with your own emotions and mostly with your own anger (this little thing dares to question my authority?!)
So, you have – let’s call it – a disagreement with your toddler. You went to the shopping mall, your kid saw a toy in one of the shops and wants it. You say no, your kid switches on the drama-button.
According to the Negotiations skills theory you start with identifying the nature of the conflict and the issues related. In this case it is your unwillingness to buy a toy that a kid wants, hence issues, roughly speaking, are: ownership of a toy and financials. Usually financials are less of an issue and much more the problem lies in the intangible plane. The intangible issues related to the conflict are numerous: feeling of entitlement, feeling of undermined authority, honor, ability to get what you want, ability to decide, perception of usefulness, feeling of control, just to name a few.
Now, what do you do? First, you have to identify the deal parameters. Here, let me first introduce couple of terms:
- aspiration base – the highest achievable goals or objectives for a negotiated agreement. In plain words – realistically, what do you want to achieve?
- real base – the minimum you want to achieve.
- BATNA – best alternative to negotiated agreement – what alternative exists to satisfy your interests.
So those three points are to be identified next for all the participants of the negotiations. The contracting zone or the zone of possible agreement (ZOPA), or bargaining range lies in between the real bases. This is where an agreement is possible.
Coming back to our toddler… Your aspiration base is probably – the kid shuts the hell up, gets up and peacefully walks home holding your hand and forgetting about a damn toy, right? And the minimum? At least shut up, huh? No, I guess you are more interested in the kid getting up and walking home. Your BATNA will be kicking that ass. Now, let’s look at the other side. The aspiration base of the kid is getting that toy. What’s the real base? Hmmm… Poor kid is not in the situation to “walk away from the deal”, so the real base of the kid is not having a toy, but at least expressing emotions about this unfairness of the world. No real BATNA either – I almost feel sorry for the little monster!
This all brings us in the ZOPA (that sounds extremely funny for the Russian-speaking, as [zhopa] in Russian is “an ass”; you would say literally “I am in the ass” when the situation is a total disaster). So the ass… I mean the ZOPA for our situation with a toddler will be anywhere between “not having a toy, but at least expressing emotions” and “not shutting up, but at least getting up and walking away”.
The Negotiations skills theory further prompts us to identify the most important characteristics of the other party and then proceed to the SWOT (Strength, Weaknesses, Opportunities and Threats) and competitive advantage, but I will skip these steps in our example (you have a very strong competitive advantage after all, you tyrant!).
What is important is what comes next. Interests, where also one has to identify shared interests, complementing interests and conflicting interests. Your interests are something like: having an obedient kid, quietness, getting your way (moral satisfaction of exercising authority), not having an additional useless toy at home, moving on away from the shopping mall, and so on. Interests of the kid are: having this extremely useful toy, getting his way (same moral satisfaction!), being able to express his emotions, being listened to and so forth. The real conflict if we analyze it deeper is actually only a toy, but having a toy is not even in the real base of the kid. It is all about emotions! Emotions that need to be recognized.
Theoretically (and also practically) you now have to proceed with identifying value creating options and concessions and counter-concessions. For that there is yet another template (also by Infostrat©, which prompts to answer the following questions:
- what is a concession we can make to motivate the other party to move in the direction that we want? – How about an ice-cream? Or even better – we are now going to eat an ice-cream, which one do you want: vanilla or chocolate? In that way the choice is not in between accepting or not accepting, but in between accepting option A or option B.
- what is the reason why we would make such a concession? – We would get the kid up and moving and that’s what we want, right?
- what is the cost of the concession to us? – low strategic importance, minimal investment.
- what is the value of the concession to the other party? – moral satisfaction and a pleasant feeling in the belly
- what is the counter-concession we would require? – here! we can get more than our real base: and the getting up and the shutting up.
Even though I used real negotiations steps and terms, the example itself is of course meant more as a humor, as you are not going to fill up a negotiations template every time you face a tantrum from your toddler, nor you are going to buy him an ice-cream. The important point, however, is – this little monster also has interests and feelings, emotions and wishes, hopes and aspirations. A kid is entitled to all of them and just shouting and forcing your way because otherwise your authority will be undermined or you might feel ashamed in front of other people is not reasonable either.
There are different ways to deal with tantrums in kids and as a parent you most probably know best what works and what doesn’t work in your case. However, some general advice is – stay calm yourself, if possible pick up your kid and give him a tight hug, see if you can give-in (within reason of course) or what works best with my kids – distract or use humor, make a funny face or tell or better show something interesting. Just keep your cool, admit the rights and interests of your kid and figure out what value creating options can you create and which reasonable concessions can you make. It will get better one day…
That’s controversial of course and a lot of people will disagree that it’s a good decision, but it saves me a lot of time and spares me back pain. I always hated ironing! However, when you are either tight on budget or just don’t want to spend extra money on laundry and ironing service for your husband’s shirts that’s what you have to do – you iron them! My speed was about 10 to 12 shirts an hour. An hour of standing and doing a repetitive, annoying and tiresome action with my arm which frequently resulted in the pain in between my shoulder blades. Not fun.
I have researched the matter, tried different speedy ironing techniques, but finally found a solution which avoids the iron all together. There are non-iron shirts! Whomever invented this thing is a genius. There are several manufacturers who offer good quality non-iron shirts yet for ourselves we found one in England – Charles Tyrwhitt. I should probably already ask them to pay me for advertising because I have referred all my friends to them. They are really worth every penny. One caveat – when you wash the shirts (and if your washing machine allows that) switch on the “easy ironing” button or just pick lower centrifuge speed and (!) this is very important – immediately take the shirts out and hang them on hangers, closing all buttons. Yes, it takes a bit of your time, but it totally eliminates the need to use an iron afterwards. Shirts look as if they have actually been ironed!
Ironing is still required for pants and t-shirts, unless you also opted for a non-iron version, and that’s it. I know that some people, like my mom, like to have their linens ironed. I don’t. Moreover, if you fold your linens neatly and stack them on top of each other most of the times they look good as such. Maybe this is due to my choice of fabrics, I don’t know. My linens are 100% cotton satin and they don’t get crooked.
The bottom-line is that you don’t have to iron everything unless you really want to, there are options out there that allow you to have the same result, while sparing you time and not costing more (and if you take into account that an iron consumes hell of a lot electricity – even saving you money).