Rotary Log: February 6, 2014

Rotary Log 1/30/2014

President David Underhill presiding.  The meeting began on a somber note with a moment of silence for the passing of Paul Careno’s mother Annette—may she rest in peace.  Guests included Kevin Oullette, Karen McCormack, Monika Shepard and Kevin Shultz.  Wil Backes from Munich, Germany was our sole visiting Rotarian.  Club flags were exchanged.

Rick Page gave us an update on our exchange student, Lorie McClure, who became ill during her stay in Indonesia and will be travelling back to the US.   Bob Lewis informed us there will be a meeting of the Basic Needs Committee to work on an upcoming food drive—more to come.  Janis reminded us to bring in wine for the wine auction and to reserve our tickets early if we wish to pay $17.  Tickets will be $20 at the door.  She also reminded us tables for 8 are available at $125.  Ted Alex graciously donated a boat excursion and Dan Hoefle has donated legal services.  Current value is set at $0 according to Dan.  Lastly, Walter Liff will be donating one of spectacular sculptures.

Joanie Dickinson gave us an update on the Interact Club and the club’s “crush” can project.  Many Rotarians have donated to the project and the Valentine’s Day themed cans are now available to Rotarians per Bill Hurley’s insistence.  President Dave proclaimed, “not that there is anything wrong with that.”  The Rotarian jury is still out on that one.  The price for one of the “cans” is set at a very affordable $3.00.  All funds collected will be donated to the American Heart Association. 

Jim Rini reminded his committee about a meeting after the main meeting.  Lastly, President Dave informed us about a $1,000 donation to the My Breast Cancer fund.

Jim Rini introduced us to our speaker, Alan Wheelock, former V.P. and Senior V.P. of Ironmountain Corp.  Alan currently provides consultation services to wholesale distribution companies concerning issues such as customer contracts, pricing and issue resolution.

Today’s presentation was an enthralling presentation about negotiations, specifically negotiation styles and how to adapt to an opponent’s negotiation style.  Alan began with a quote from President Truman’s Secretary of State, Dean Acheson, “one sure way to console a tiger is to allow oneself to be devoured.”   One may not like the outcome of such a consolation approach, but one could still win the day if the tiger chokes on oneself. 

Alan gave us a brief summary of his experiences as a chief negotiator while working on contracts with companies in the banking and pharmaceutical industries as well as the legal profession.  Over many years, Alan started seeing trends in the types of personalities showing up at these negotiating meetings.  He eventually gave names to what he perceived to be six types of personalities: 1) the skeptic, 2) the aggressor, 3) the litigator, 4) the statistician (most effective in his opinion), 5) the apologist and, 6) the corporate sloth.  With each style, Alan developed a counter-attack approach.

The skeptic is the type that tries to gain leverage by wearing you down.  They complain about your services—“can’t get it done,” your pricing is too high,” and anything else they can identify.  This type tries to put you on the defensive, to take you out of your game.  This is a hard one to overcome if you fall into the trap and start heading down that defensive path.  The counter-attack is to not buy into the skepticism.  If there are valid issues, own them and be ready with corrective action plans.  By all means, don’t get defensive.  The better approach is to try and anticipate the skepticism and have one’s
“ducks in a row.”  For example, have a market analysis prepared in advance to show how, for example, your company is not lowballing smaller customers.  Preparation is part of the counter measure and a theme that ran throughout Alan’s presentation.

The aggressor is the type that likes war.  Verbal attacked, raised voices, profane language, etc., you know the type.  The aggressor’s goal is to also put you on the defensive.  The counter measure is a simple one---don’t be intimidated.  Forecast where you think the aggressor will go, e.g., such hot button issues as pricing, service and quality.  Pre-empt the attack with creative solutions to known problems.  Alan gave the example of demonstrating one of his company’s customers was spending 20-25% on emergency delivery of services.  Alan recommended the customer use a scheduled delivery plan to eliminate the issue and lower the overall cost.  The customer was pleased.

The litigator is the one that delves into all the minutia in contracts.  This type if often found when a business is acquired and the buyer is trying to establish the first contract.  These type love contract clauses: indemnity clauses, confidentiality clauses, risk and liability clauses, etc.  Expect this type to really drill down to individual provisions and clauses.  The counter measure is to learn the details, once again---preparation.  Be ready to discuss the minutia and try and discern the customer’s limits, if possible.

The statistician type is the one well prepared.  This type has already tested the market and knows what is reasonable.  The positions taken often will be firm and considered fair.  The counter measure is a simple one—fight fire with fire.  Come armed with your own data to strive for a deal both parties can walk away from, each feeling they got a good deal.  Again, the watchword is “preparation.”

The apologist is the one that often relies on some mysterious “they.”  “They said we can’t agree to this price.”  “They said we can’t agree to this.”  “I wish I could help you, but they said . . . .”  When these phrases are used, this negotiator is not a true decision maker—just a representative of the true decision maker.  The counter measure is to use finesse.  First, find the true decision maker and try to get both the negotiator and the decision maker in the same room.  Only then will you be able to get something reasonable done.

Lastly, the corporate sloth type is now very common.  This type can’t get it done.  They cancel meetings.  They take too long.  They are very weak and highly disorganized.  The counter attack is to pick up some of their work.  Police their schedule.  Call to make sure they show up.  Push them as if they work for you.  The typical response is often one of relief that you picked up the slack.

Alan then summarized for us the key elements of a good negotiation: 1) never get defensive; 2) always tell the truth; 3) be well prepared; 4) know your bottom line before you enter negotiations; 5) structure agreements that will lead both parties to believe the process is good and fair; and 6) achieve trust and respect of your opponent.  If the last element is achieved, they will always walk away smiling.

Before parting, Alan gave a few more tips about real life negotiation events.  For example, some groups send multiple personalities.  Sometimes you have to give a “take it or leave it” ultimatum if the other side is very unreasonable.  Some negotiators are simply too new at it, or simply not effective.  Some play the good cop/bad cop routine.  If you get this routine, Alan suggests to call them out on it and to ask for a consolidated position.

President Dave pointed out the strong correlation between the negotiating elements Alan proposed and the Rotarian Four-Way Test.  Thus, we apparently have a leg up on the rest of the world’s negotiators with our indoctrination into the test.

The last order of business was the 50/50 raffle for $75 won by Tom Decker.  There was not a match. 

Rotary Log, February 6, 2014 by Aileen Dugan

There’s lot going on right now, so check out the Portsmouth Rotary web site for upcoming club events, including our Auction and the canned goods drive being planned by our Basic Needs Committee.  Don’t forget there will not be a regular lunch meeting on Thursday, February 20^th.  Instead, our Auction will be at the Portsmouth Country Club at night.  The Auction Committee is still accepting donations, contact Janice Reams or Joanie Dickinson if you have items to contribute.  We are having a wine auction again this year, so if you haven’t contributed, bring a bottle to next week’s meeting!  Tickets for the Auction are $17 in advance and $20 at the door. 

We welcomed into the club new member Karen McCormack, daughter of our own sadly missed member Diane McCormack Seagren, and step daughter of member Leonard Seagren.  Karen works for the Southeast Land Trust and she is excited to roll up her sleeves and participate in the good work that she has seen our club do in the community. 

We were treated to extra fines this week courtesy of President Dave.  Apparently, we are behind in fine income and both PP Butch and PP Neil were not in attendance so Dave did a great job doling out fines to members who hadn’t signed the membership directories for new members yet. 

Rotarian Everett Eaton presented a great program on sky diving!  His first and he assures us only time jumping out of a plane at 14,000 plus feet with his wife Carol and daughter Olivia made for a funny and thrilling story, complete with a hair-raising video showing both ladies jumping out of the plane.  Not surprisingly, the sky diving was 18 year old “adrenaline junkie” Olivia’s idea, and initially Mom and Dad were just along for the ride.  They went to Skydive New England, in Lebanon, Maine at 8 am last August 31^st.  After watching a safety video and participating in a brief training, Everett decided that he would go for it, which left Carol not wanting to be the only one left on the ground, and so their family adventure began!  They waited for the weather and conditions to be just right, at which point they boarded a no frills, stripped down cargo plane, where they were strapped to the floor.    Solo divers went first, while newbie dives were done in “tandem” meaning they were strapped to an experienced diver who would be their insurance that everything went as planned.   After watching the first few solo divers drop like stones and vanish out of sight out of the plane, Everett had some serious second thoughts but it was too late to back out.  The first 6000 feet were spent “free falling” which was a crazy experience.  At about 7000 to 8000 feet, the shoot was deployed and it took a leisurely 10 minutes to drop the remaining distance to the ground.  Asked if they would go back, both Everett and Carol gave a definitive no, once was enough, but there were many Rotarians interested in trying it after this fun presentation!