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Executives at one of the largest software companies in the world were concerned when their distribution system in South America began to collapse. Pressure to solve this problem intensified as five of their eight distribution centers were close to bankruptcy. My opinion was the distribution centers were not the problem, but a symptom of the problem. Reframing the focus expanded our search for alternative causes of the problem (or problems).
When asked to specifically identify the nature of the distribution centers’ financial crisis it was revealed there was more product than they could sell to their retailers. This question refocused attention away from the detailed financial analysis to what was really going on. Further inquiry revealed that the sales team was concerned about one thing -- sell as much product to the distribution centers as possible. In addition, discussions with the South American distribution managers revealed that culturally they felt obligated to receive as much product as the salesperson would give them. The problem was now identified. Solutions were promptly developed involving the sales teams’ system of incentives and the distribution managers’ ability to refuse accepting more product than they could sell. The first step in negotiation is not action; it is understanding. Negotiators must be skilled at critical thinking. |