2017 Fraser Valley Summit: Greater Things! · • Don’t present your need. • Present options...

Presented by R.E. (Ray) Marshall, CFRE

President & CEO MCR West Ltd.

ITERATIVE NEGOTIATION (IN) Go straight to Yes for major gifts




2017 Fraser Valley Summit:

Greater Things!







>>>>> IN. Why we need a major gift ‘disruptor’

>>>>> The Iterative Negotiation Framework

>>>>> Practice makes Perfect

Where to today?







Are you our Inquisitor! Putting my feet to the fire…




“One wrong move and the bears get it!”




• What did you shout out first?

• What came to mind about your strategy to save the bears?

What did you learn about your

natural sense of negotiation?




Block 1. IN. Why we need a major gift ‘disruptor’ today.

Competitive philanthropic marketplace. 90,000 NFPs.

Millennial's influence.

Narrowing Community Investments both personal and

corporate.

Other?




Learning Outcomes ….…

• Learn and apply the IN technique to increase the

chance of getting to a 'yes’ before submitting the

final proposal and reduce decision delays.




Overview of IN ….…

• Negotiating major gifts by:

– Researching the donor's assumptions vs. just

researching their giving profile, then doing an ask.

– Changing the game. Change their perceptions of

you/your organization.




Overview of IN ….…

• Negotiating major gifts by:

– Creating an atmosphere of ''negotiating from the same

side of the table’’.

– Through ‘co-negotiating’ , giving them a stake in the

outcome, and dramatically increase the chance of

getting a “Yes”.

• Not “win/win”.

• Setting out options not positions.




Go Straight to Yes for Major (Transformative) Gifts

• Based on a well known book Getting to Yes!




• New car?

• Spouse?

• House?

• How’d it go?

• Win or Lose?




Negotiations gone wrong

• Jimmy Pattison and the $1 million ask.

– One position. No options. Bad assumptions

• Joan Kroc and Salvation Army. I asked you “how

much you need not what you think you can ask for”

• My car purchases…




Natural styles and Negotiating DISC How does our natural style affect our negotiating style?

https://www.123test.com/disc-personality-test/

Of the 4 styles, what one fits best with negotiation of

transformative gifts? Discuss.

1. Compliant

2. Dominant

3. Steady

4. Influencing









Jack just wants toast

https://www.youtube.com/watch?v=hdIXrF34Bz0

https://www.youtube.com/watch?v=hdIXrF34Bz0




Jack just wants toast

• What went wrong?

• How is major gift negotiation similar sometimes?

http://www.youtube.com/watch?v=6wtfNE4z6a8










Definitions

• Positional negotiation –the old way.

The traditional way of trying to get what you want in a negotiation. Both start with knowing what your end position should look like and you "drive" the negotiations toward their desired outcome.

Sound good to you? Any holes?




• Iterative Negotiation IN. The NEW Way.

A new construct for negotiating major gifts by switching positions with the benefactor, so to speak. Knowing more than just profile information (name, title, organization, community investment focus and interests, past gift size, and so on) to understand what are the prospective donor’s assumptions. Sit on the same side of the table.

Definitions




Major Gift methodology

Old & New

Old Positional Negotiation

• Research person & Company/Org/CIG/Personal Information etc. • Present need • Wait for Response

• Yes or No are generally the only responses • But a Yes does not necessarily mean you get what you

want • A ‘no’ could mean a year to two years delay or worse

• Wait some more • Wait some more…the danger of not going back.




Major Gift methodology

Old & New • Explore assumptions and options at 1st meeting

• Don’t present your need.

• Present options in-draft form at 2nd meeting • Why present options vs. a single vision?

• Ask for feedback on ‘best fit’. Resubmit.

• In between. Check assumptions and options via phone/email.

• Co-Negotiate with their assumptions in mind and your needs at 3rd meeting.




Major Gift methodology Old & New

Positional Negotiation

Be Friends or Be Adversaries Be Problem Solvers

Goal is Agreement or Victory Goal is Co-negotiated End

Be soft on People & Problem Be soft on People/hard on Problem

Search for one answer

Capitulate Focus on Shared Interests

Invent options for mutual gain

vs. IN




Real Life IN

• Rich man Poor man. • The true story of an International Mining company and a

International Aid organization that changed a whole

community’s destiny.




A Step-by-Step approach to IN

• Research the basic facts of the prospective donor

as per traditional MG methodology

• Size of organization

• Known CIG (Community Investment Guidelines)

• Historical giving

• Personal connections

• Affinity to cause

1





2

• Gather Co-negotiators assumptions •Convene a small group. Recon mission.

– In person or virtual

• “Walk in their shoes” not yours • What are their realities, challenges, goals, pressures,

who do they answer to?





2

• “Go deep” • Who are their Key stakeholders

• Board/Senior Executive’s leanings

• Business style.

–The Brick. Pattison.

• Look for ‘off agenda’ Community investments –Why?





3

• Ask for a meeting • Seek advice

• Their new realities, Community Investment Guidelines, check your assumptions

• Foreshadow the IN concept early (Why?) • Participative





3

• In-person meeting Ask for Advice

• Invite your CEO (Why?) Every time?

• Ask about historical giving and the reasons for that giving

• Ask about what is coming up… (Why? RBC story)

• Ask what’s important to them (Starbucks Manager Training for community involvement, Housing developer wall of fame)

• Ask for another meeting, set the time right then • Why not go for the ‘Ask”?





4

• Take time to reflect • Test your assumptions against what you learned

• Don’t just look at what you want

• Explore multiple alternatives

• Include others in the reflections (Why?)

• Mock meeting. Argue from the other side of the table

• Arrive at two or three alternatives





5

• Send the draft electronically before the meeting

(DRAFT DRAFT DRAFT)

• Phone or in-person follow up

• Bring in the Team

• Ask what alternative fits best?

• Ask for their fine tuning elements?

• Bring them in to the negotiation

• Then “Take a sip of Tea Lassie/Laddie”





6

• Follow up. Set the time right then.

• Send the next to finished draft

• Ask if there is anything else they need?

• Expect a “Yes”




Check in

Has the Penny dropped?

Why does IN work?

Why could IN work for you?




Group up!

• 3 groups




Practice makes Perfect –Case Study 10 minutes to get your biggest gift ever using IN

• Meet in groups of 5-7 members

• Groups are YINN (Youth in Need Network) Team.

Leader is IDCF (Investment Dealers Charitable

Foundation) Board members




Practice makes Perfect 10 minutes to get your biggest gift ever using IN

• Time blocks •5 minutes in your own group, to set

up the negotiation using IN (YINN set up framework )

•5 minutes with the Leader.




Group 1. Find out all you can about IDCF’s negotiation position. Charitable heart, assumptions, etc. Group 2. Present the first DRAFT of your proposal –verbally. Group 3. Close the negotiation. Confirm the gift. Settle on the selected option, and details.




The Big Ask! • YINN (Youth in Need Network)

• Inner city resource for 15-25 year old street-involved

youth, holistic approach (short term housing,

employment, health, counseling), and emergency

needs. Religious based.

• Key needs

• YINN Emergency Housing Unit condemned ( 90 day

order to vacate)

• Scholarship/Bursary fund for “Phase 2” youth shelter

• Computer lab for youth employment centre

• BREAK OUT HOUSE -Life skills for Pimps




The Big Ask!

ICDC (Investment Dealers Charitable Foundation)

Assumptions CIG includes financial literacy projects & youth

Wind up project

• Haven’t done emergency funding. No Bricks & Mortar of late.

Wary of faith groups. Mundane projects mostly.

• Must give $2,500,000 away in the next 60 days. Two of the

members have a pet project literally; a shelter for abused

animals




What did you learn? Did you win?

• Did the IN construct change anything you may have done

previously?

• Did you negotiate from the same side of the table?

• Did it feel natural?

• How did you get over the “hills”?

• Did you win? Did you lose?

• Could you do it in real life?




IN Questions 8 Now it’s your turn to be the Instructor

1. What if the other negotiator has a different standard of

fairness?

2. Should I be fair if I don’t need to be?

3. Should we negotiate with terrorists and evil people?





4. How do we adjust for differences in culture?

-Asian? South Asian? Middle Eastern?

5. How do I decide where to meet? How high should I

start?

6. How do I move from ‘options to commitment’?





7. How do I try out IN without too much risk?

8. Can I really negotiate with a person who is much

more powerful ?










>>>>> In Summary










>>>>> In Summary

• Old MAJOR GIFT methods are frustrating

• The old way is easier, but not as effective.

• IN IS A NEW CONSTRUCT

– Know their assumptions!

– Hard on the problem. Easy on people

– Negotiate from the same side of the table

– Make it iterative










>>>>> In Summary

• Focus on interests not positions

• Co-create options with the donor

• Check and re-check assumptions and positions




Thank you AFP Fraser Valley! You’re on to Greater Things!

2017 Fraser Valley Summit: Greater Things! · • Don’t present your need. • Present options...

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