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The Need for Innovation in Procurement with Dr. Elouise Epstein, Ep #143

Dr. Elouise Epstein is a digital futurist and dot-connector in the world of procurement. She believes if you’re going to bring a new procurement operating model into this new world—and operate in the 21st century—it’s all got to start with digital. Dr. Elouise focuses specifically on digital excellence in procurement and supply chain. She’s a proponent of understanding emerging innovation in digital technologies. She has over 20 years of experience designing digital procurement and supply chain strategies for fortune 500 companies. Listen for a fascinating conversation directed towards those ready for a continuous shift into the future.

Outline of This Episode

  • [2:27] Dr. Elouise Epstein specializes in digital procurement transformation
  • [5:00] It’s not about what’s happening, it’s about what you do next
  • [7:37] Where innovation in procurement is happening
  • [12:36] The opportunities being taken advantage of
  • [17:37] The positive disruption through the process of collaboration
  • [21:05] Have large companies lost the ability to innovate?
  • [25:48] Whoever can deliver innovation in procurement will win
  • [28:08] Why it’s time to embrace the shift towards digitalization
  • [31:23] How to connect with Dr. Elouise Epstein

Innovation in procurement: You decide what happens next

Dr. Elouise points out that it’s not about what’s happening, it’s about what you do next. She’s tired of consultants and “professionals” who are full of hot air—they just throw out buzzwords, jargon, and nonsense. They’re sprouting futuristic terminology but doing nothing to help propel companies into a digital future.

Dr. Elouise notes that “If you actually understand this at the most detailed level of PO to payment, to payment terms and relationship to sourcing, and the entire procurement value chain, then it’s very easy to connect the dots and make the translation from, ‘Hey, this great new technology will solve this problem that every client has.’ ” Are you embracing innovation in procurement and implementing it in your organization whenever possible?

Is innovation in procurement moving in the right direction? To hear some of the biggest problems occurring in the world of procurement and how they can be overcome, keep listening.

The emergence of a new market

Dr. Elouise points out that as we emerge from the coronavirus crisis that we’ve been thrust into, a new market will begin to emerge with an arguably different architecture. Innovation in procurement needs to begin with a much more flexible, open, and agile platform. And whoever can deliver that will win—or will be well on their way to winning.

It could be Amazon or Salesforce that steps up to the plate with new innovations in a race to the finish line. As you redefine the landscape, other entrants can come in and make plays. Dr. Elouise points out that this possibility is stronger than ever. They’re able to emerge into a landscape they couldn’t compete in before. Those organizations that remain stuck in the mud and attached to the old ways of doing things will be left behind.

Have large companies lost the ability to innovate?

Companies must change and pivot—or they WILL die out. Do big procurement tech companies actually realize what’s happening in front of their noses? Do they realize that they’re literally getting destroyed on a day-to-day basis? Do they not realize that it’s time to wake up? Many have seemingly lost the ability to innovate. They have the financial ability to do so, but it seems like they’ve lost the passion for it.

Elouise believes—if you look at the Big Six—that there are only two legitimate companies that will survive at the enterprise level. She points out that you have to look at their evolution—all of them have grown through acquisitions. Any enterprise that goes through an acquisition tends to struggle culturally. They’re dealing with what Elouise labels as “legacy baggage”.

Automation is also impacting the number of category managers and buyers, lowering the number of requisitions. Then you throw in the coronavirus and you have businesses that are lucky if they’re able to pay their bills. Elouise points out that “There’s no doubt they have to evolve dramatically or die because they were already dying before that.”

Embrace the shift towards digitalization

Elouise believes we are at the point where many companies need to rip apart their operating models and realign with the workforce. It’s time to redo systems and start afresh with something agile. Companies need to embrace the work-from-home ability that they do have—because they’ve been thrust into it and adapted—and switch to an all-digital future. She emphasizes the need to put sustainability at the forefront:

“We’re not doing paper, we’re not accepting paper. We are driving risk and sustainability into every sourcing award we make, into every requisition we make, into every strategic decision we do and into every innovation with a supplier we do. And we balance that with an equal measure of cost reduction.”

Elouise points out the necessity for bold leadership, bold technology, and bold people—such as the younger generation rising up. We need bold processes, vibrancy and the cultivation of a community. Elouise believes we need a broader procurement community that can coalesce into a single entity, both within and without the organization.

What else does Dr. Elouise wish the procurement community would embrace? Listen to this fascinating conversation to find out.

Resources & People Mentioned

Connect with Dr. Elouise Epstein

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Resolving Conflict with Dr. Jennifer Goldman-Wetzler, Ep #142

Do you avoid resolving conflict in negotiations? Do you avoid any and all conflict in general? This is a common tendency and human nature for most, but not what you want to embrace to be a successful negotiator. In this episode of Negotiations Ninja, Dr. Jennifer Goldman-Wetzler shares some of her conflict resolution strategies that you can use to become aware of and change your own behaviors. Don’t miss her expertise and insight into resolving conflict.

Dr. Jennifer Goldman-Wetlzer is the founder and CEO of the Alignment Strategies group. She holds a Ph.D. in Organizational Psychology from Columbia University—and is now a professor at the same university. She specializes in helping individuals and organizations find freedom from challenging conflict. She recently penned the book: Optimal Outcomes: Free Yourself from Conflict at Work, at Home, and in Life.

Outline of This Episode

  • [0:34] Introducing Dr. Jennifer Goldman-Wetzler
  • [2:36] The relationship between conflict and negotiation
  • [3:38] The #1 mistake people make when faced with conflict
  • [5:25] Why do negotiators—and people in general—avoid conflict?
  • [8:01] How your family of origin impacts your behavior
  • [12:00] 8 Practices to use when you find yourself in conflict
  • [22:51] Tactical advice on resolving conflict in the workplace
  • [25:33] Sometimes conflict resolution is ended counter-culture behavior
  • [27:13] Resolving conflict using Jennifer’s method isn’t for the faint of heart

Conflict-avoidance in the negotiation process

According to Jennifer, a negotiation is a specific interaction between groups or individuals. Conflict is a situation where two or more people aren’t having their needs met OR they see situations from different points of view. These differing viewpoints often lead to frustration, anger, and conflict.

Conflict-avoidance comes naturally to some negotiators, who overuse it as a negotiation tool. If the relationship you’re in isn’t that important, conflict-avoidance can be a useful tactic. If you use conflict-avoidance habitually in important relationships, the conflict bubbles up, boils over, and explodes—leaving you entrenched in unavoidable conflict.

Conflict-avoidance isn’t always fear-based—it may just be how they learned to deal with conflict. But Jennifer asks us to question: What are the influencing factors that lead us to have the habits we have?What conflict style did our parents embrace? What messages did we receive about conflict from teachers, coaches, spiritual leaders, television, etc.?

Four conflict habits we fall back on

Jennifer points out that the #1 mistake people make when faced with conflict is responding the same way over and over and expecting a different result. We may use our habits with the best of intentions, but we get stuck in the same patterns that don’t yield positive results. Jennifer shares the 4 habits we tend to fall back on:

  1. We blame other people.
  2. We avoid other people and shut down in the face of conflict.
  3. We blame and shame our own selves.
  4. We relentlessly seek to collaborate even when other people do not want to cooperate with us.

Jennifer emphasizes that these things don’t get us what we want. So how do you change? She points out that the first step is recognizing what your conflict habit is. She offers a free assessment on her website that will tell you exactly what your habit is. Once you have that answer, ask yourself what you can do differently next time.

Jennifer shares a personal story about her family of origin and how it influenced her conflict habits, as well as 8 practices you can use when you find yourself in conflict—so keep listening.

Resolving conflict in the workplace

Are you the leader of a team stuck in a blaming pattern? In her book, Jennifer discusses a sales team that was in conflict with a talent manager they were working with. When the talent manager took a moment to take notice of the habits of the team, he found that they were hyper-competitive. With a motto like “Triples sales or go home”, how could they not be?

So it didn’t shock him when he realized their team-wide conflict habit was attacking and blaming each other. Their need to compete—that could also be positive and help them win—became destructive. It warped into blaming and attacking other people. So what did he do to begin resolving conflict and mesh with this team?

Keep listening to hear how the rest of the story plays out and what you can do to resolve conflict.

The ‘Optimal Outcomes’ conflict resolution strategy isn’t for the weak

You must overcome conflict avoidance and learn to be present and intentional. This approach isn’t for the weak—It is going to require immense amounts of courage and personal change. You need to embrace a willingness to practice and experiment which becomes a positive feedback loop.

Jennifer is no stranger to win-win methodology—and actually teaches it. However, she notes that it is limited in its applicability. We can’t always collaborate and there will not always be a resolution. You must simply call it what it is and try something else when resolving conflict the way you always have isn’t working.

Jennifer’s approach, by nature, is about applying new ideas and methodologies to resolving conflict so you aren’t continually banging your head against the wall. To hear more about the conflict resolution strategies she outlines in her book—listen to the whole episode of Negotiations Ninja.

Resources & People Mentioned

Connect with Dr. Jennifer Goldman-Wetzler

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Alexandra Carter Shares Powerful Negotiation Strategies and Tactics, Ep #141 

The negotiation strategies and tactics that you utilize can make a powerful difference in the outcome of your negotiation. How do you handle objections? What is the focus of your negotiation? Do you ask open-ended questions? Every step of the process is helped by the right negotiation strategies. In this episode of Negotiations Ninja, Alexandra Carter shares her insight into the world of negotiation. Don’t miss it!

Alexandra Carter is the Director of the Columbia Law School’s Mediation Clinic. She is a professor that focuses on teaching mediation and dispute resolution in negotiation. She recently published her book: Ask for More: 10 Questions to Negotiate Anything. Alexandra is a world-renowned negotiation trainer for the United Nations and has taught numerous negotiation workshops to hundreds of diplomats. Her expertise is unquestionable.

Outline of This Episode

  • [1:22] Alexandra’s background in negotiation
  • [2:06] Public negotiations vs. business negotiations
  • [3:41] Shift the focus toward determining the core problem
  • [6:32] The power of silence in the negotiation process
  • [11:32] How fear and guilt influence a negotiation
  • [17:00] A discussion of Alexandra’s book: Ask for More

Key differences between public negotiations and business negotiations

Alexandra has been involved in numerous high-profile negotiations and notes there are some key differences between these large public negotiations and small-scale business negotiations. Namely, negotiations in the public sphere are usually large multi-party negotiations dealing with different procedural and substantive issues.

To understand a counterparts’ behavior, you often have to think about the invisible groups that are influencing their decision-making. A table of people can be representing multiple different groups so you HAVE to think about the different audiences they’re catering to and how it impacts each move they make.

Shift your negotiation from the desired outcome to the core problem

Alexandra notes that in times of crisis we often approach negotiations from the wrong place. We try to immediately jump to solutions or we bury our head in the sand and wait for things to pass over. She emphasizes that “The first critical step that a lot of people skip in negotiation is figuring out what problem to solve. That’s a lot of the key of negotiation success—and even innovation success—in companies. Sit down first and think about the problem you’re trying to solve and then think about the problem they’re trying to solve.” If you start anywhere with negotiation strategies and tactics—that is the place.

Alexandra shares an example of a business owner struggling with cash flow issues during the Coronavirus Pandemic. The business owner wants to negotiate their commercial lease to alleviate some of their cash flow issues. Do they negotiate a 3-month rent reduction while they pivot their business? How will that impact the lease holder? If you start with and focus on the core problem—for yourself and your counterpart—your negotiation tactics must develop and flow from there.

Negotiation strategies and tactics: The power of asking the right question

A great negotiation strategy is utilizing silence. Silence is uncomfortable—but powerful. Alexandra believes that “Silence is proportionate to how good a question you just asked.” When you ask a great question there should be silence on the other end. It shows that the question was thought-provoking and compelling enough that they have to search for a solution.

Asking open-ended questions is a great negotiation tactic to get people to over-answer with things their lawyer didn’t want them to say. Silence often forces people to fill the awkwardness with something they were thinking—but trying not to say. Asking the right questions and leaving room for silence can be a game-changer in your negotiation.

Alexandra’s new book is all about this topic. In her book, she flips the script on the definition of negotiation. She also shares 10 research-backed questions that yield incredible results in negotiations. She firmly believes that asking better questions yields better answers—and better results.

The ‘Big Two’ emotions that influence a negotiation

The two big emotions that Alexandra sees more than anything else are “fear” and “guilt.” They have the power to blow up a negotiation more than any other emotion. Why? Because people don’t want to express those emotions so they try to mask them. Doing so causes fear and guilt to come out as anger.

When you’re negotiating in a crisis every element of a negotiation is affected: cognition, processing, emotional reactivity, self-regulation, etc. People are often afraid of the consequences to their business and lives. How does a negotiation impact their employees, family, health, and business? They feel guilty about not being better prepared to handle the crisis they’re dealing with. All of those emotions come boiling out as anger.

So how do you handle those emotions during a negotiation? What is the best negotiation strategy or tactic to turn things around? Listen to the rest of the episode to hear Alexandra explain the TWO powerful negotiation tools she uses to influence a negotiation towards success.

Resources & People Mentioned

Connect with Alex Carter

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How Anthony Sarandrea Finds Success Using a Blunt Negotiation Style, Ep #140 

Do you have a blunt negotiation style? Or are you more diplomatic in your approach? While negotiation styles can vary greatly, Anthony Sarandrea is an advocate for cutting the crap and getting down to business. What does that look like? How does his blunt negotiation style move the negotiation forward? Listen to this episode of Negotiations Ninja to find out.

Anthony Sarandrea is an entrepreneur extraordinaire that helps entrepreneurs scale their business(es). He’s recognized as one of the top lead generators in the world focusing in the health, finance, and legal space. One of his businesses—SiteFlood—generates thousands of inbound leads a day. He’s been recognized as one of Forbes 30 Under 30. Don’t miss this solid conversation.

Outline of This Episode

  • [2:50] Why should entrepreneurs excel at negotiating?
  • [4:56] Knowing yourself must be your starting place
  • [8:55] Achieve goals by embracing a blunt negotiation style
  • [12:15] Why we need to have more blunt conversations
  • [14:28] Overcoming dominance plays in negotiation
  • [17:51] How to improve your negotiation techniques

Understand who’s on the other side of the table

Anthony points out that you must understand the deep emotional needs of the person on the other side of the table. You have to “unpeel the layers” and get to the root cause. He uses the example of a guy asking for a raise—it usually isn’t just because they want more money. Often the root is something emotional. Perhaps he’s dating someone new and his masculinity took a hit because his girlfriend made a rude comment about his job.

Perhaps a raise isn’t the answer in his scenario. Maybe a job title change or working through his personal issues is the route that could be taken instead. Anthony sums it up in this statement: “Whatever is on the surface—sometimes—is not actually the negotiation that really needs to be taking place.” But you have to embrace a blunt negotiation style and cut to the chase to get answers and move forward in the process.

Mastering negotiation begins with knowing yourself

Anthony points out that masculinity issues can be a common motivator among men—but it isn’t just masculinity, and it isn’t just men. Everyone has something that impacts them on a personal level which in turn impacts their behavior in their professional life. A lack of self-worth and self-understanding hinders your negotiations and the ability to succeed at your job.

It’s why Anthony is quick to invest in his team (and himself) by buying books about emotional intelligence, paying for Tony Robbins Seminars, or even paying for something outside-the-box like a pickup artist class. He consistently provides his team with the tools to overcome their personal struggles to be able to achieve their goals.

Why a blunt negotiation style works so well

Anthony admits that he isn’t an overly blunt person, but has learned to adapt that characteristic as part of his negotiation style. Sometimes he’ll walk into a negotiation and open with, “So, how does everyone here make money?” Which is often met with discomfort and shock. But he points out that his goal is to come in and understand how he can help them achieve what they want—which begins with cutting through the bulls$%t.

If you can get to the root issues quickly—learn about the person, their struggles, etc.—then you aren’t wasting their time or yours. Anthony is all for cutting the nonsense, being blunt, and getting straight to the point. You have to stop worrying about being offensive and just say it like it is. You don’t want to waste their time, you want to help them, and you want to move the negotiation along. Anthony believes his blunt negotiation style achieves that goal.

Flip the script in your conversation

How does Anthony deal with dominance plays in negotiation? By flipping the script. You may be the small fish dealing with a large organization, but he points out that you ALWAYS have some sort of leverage. You simply have to nail down your leverage point before starting the conversation. What value do you bring to the table? How is that value different than what someone else can provide?

Go into the negotiation assuming they’re dominant and that they know it. But you can stand up to their dominant negotiation style when you educate them on your leverage point. It completely deflates their balloon. They may have been prepared to point out that they have the upper hand, only to have you tell them it’s not really the upper hand.

Listen to the whole episode to learn more about Anthony’s blunt negotiation style, how to improve your negotiation skills, and why it’s so important for everyday life.

Resources & People Mentioned

Connect with Anthony Sarandrea

Connect With Mark

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Why You Need to Know the Desired Outcome of a Negotiation with Keenan, Ep #139 

A problem-centric sales sales approach—versus product-centric—is about learning the desired outcome each side wants to achieve in the negotiation process. The author of the book Gap Selling: Getting the Customer to Yes is the special guest on this episode of Negotiations Ninja. Listen to this episode as we talk about the ins and outs of his gap selling sales strategy.

Keenan is the CEO of “A Sales Guy Consulting” and “A Sales Guy Recruiting.” He’s also the best-selling author of multiple books (Gap Selling and Not Taught). His strategy is a game-changer for sales organizations, geared towards helping them find long-term success. Don’t miss his unique and successful take on sales!

Outline of This Episode

  • [1:36] Keenan’s background in sales
  • [2:48] The major difference between sales and procurement
  • [4:05] Where sales and procurement miss the mark
  • [7:13] Keenan’s mission to banish open-ended answers
  • [11:52] Why ‘objections’ should never be an issue
  • [18:08] Understand that the sales process is based on emotion
  • [19:38] A sales negotiation is all about the desired outcome
  • [21:47] Where to connect with Keenan

How sales and procurement can come together

Keenan half-jokingly states that aside from the fact that procurement and salespeople are both human, they’re 100% different. A typical procurement person’s objective and goal is to drive down costs and get the most out of the negotiation process. They leverage their power to reduce pricing.

A salesperson’s job is to help an organization maximize their desired outcome, make a change, or solve a problem that’s impacting the business—usually while making money. They’re on completely opposite sides of the spectrum. But if things are done right, they can come together in the middle. How do they do that? Keep listening to find out.

It’s time to banish open-ended answers

Keenan points out that most salespeople don’t ask the wrong questions—but they don’t get specific enough answers. Keenan shares an example: you ask your prospect about their procurement process and they tell you it’s inefficient, takes too long, they’re spending too much money, losing too many documents, etc.

Most salespeople stop there and think they’ve got the solution to their prospect’s problem. But they should’ve taken it a step further: What is their definition of inefficient? How long is too long? How much are they spending? How many documents are they losing? You need to take those open-ended answers and define them.

You MUST drill down as much as you can, to get as many specifics as you can, to see if you can solve their problem. Keenan admonishes: “If you don’t know those specifics, you really can’t customize an approach nor can you understand the size of the value of the deal.”

What is your prospect’s desired outcome?

Gap selling is simply calculating the gap between where a customer is at compared to their future state (where they want to be). The larger the gap, the more value you can add to the process. So you need to ask questions to gauge their current state AND find out what their desired outcome is. Once you understand the size of the gap you can define and measure where they’re trying to go.

If you know the root cause of their problem, you know whether or not your product or services can be the solution. You’ll know—before ever reaching an objection in the process—if you need to get out early. On the flip side, you’ll know that you’re bringing them something of value because you know their desired outcome. If an objection does come up, you’ll know enough to point out that the objection doesn’t impact the problem they’re trying to solve.

Expertise is where the money’s at

Every sales professional is taught that relationships are the be-all-end-all. But Keenan points out that your expertise matters more. Relationships matter, but Keenan points out that “Too many salespeople think relationships are synonymous with being liked.” He notes that a relationship exists whether you are conscious of them or not. A relationship is established when you sit next to someone on a plane. You’re conscious of their arm, every time they move to get up and go to the bathroom, etc.

Prospects don’t care about likability—they care about credibility. Credibility is what builds trust. The moment someone believes you are credible and that you CAN solve their problem, they’ll want to work with you. It all begins with demonstrating that you understand their problems and their challenges and what their desired outcome is.

Listen to the whole episode for a more in-depth description of gap selling, how emotional responses impact the negotiation process, and more “why’s” behind the importance of determining a prospect’s desired outcome.

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