engage workbook

6 bias Liking / Disliking – The Halo Effect Highlighted by Robert Cialdini in his 2001 book Influence, Science and Practice, the notion of liking or admiring suggests that we are prone to ignore the words of someone we dislike, and agree with the words of someone we like, regardless of what they are actually saying. This explains why “popular” politicians often get elected, despite their clear lack of sensible or coherent policies. It also means that we may play-down or ignore input from those we do not like or find attractive. This could result in you missing opportunities through avoiding people you do not get on well with. What you can do • Be aware of how you feel towards others, and how this shapes your behavior towards them. • When dealing with someone you like, force yourself to ask why you are agreeing with what they say. • For those you have difficulty with, try to separate the person from the ideas. Try to focus on the positives – what are they good at; what do they bring to the conversation; which of their views might be worth pursuing further? • Where you do not like the person, consider bringing another person into the relationship. © engage universe limited 46

Confirmation bias It ain’t what you don’t know that gets you into trouble. It’s what you know for sure that just ain’t so. Richard H. Thaler, Nobel Prize Laureate, 2017 Author of Misbehaving: The Making of Behavioural Economics Did you listen to the Yes, I thought the radio discussion on second speaker how to adapt to the spoke a lot of good challenging business sense, I agreed with environment? everything she said. Confirmation bias is our tendency to process new information in a way that fits our pre- existing view of a topic or situation. In a business setting, it is that thought that says “Oh yes, I’ve seen something like this before and this is what happened...”. At that point we tend to stop listening because we know how things turn out. In extreme cases, we might even be tempted to interrupt and complete the other person’s thinking for them! Our tendency to fit what we hear into our existing thought patterns can discourage the flow of new ideas, and be interpreted as impolite (not listening and interrupting) and arrogant (prematurely giving advice or making recommendations). More subtly, even if we have no pre-existing confirmation bias, simply putting forward our ideas in a conversation will normally cause us to view the remainder of the conversation from the perspective of our stated view. This can mean we miss the wider picture, and miss opportunities to uncover value. What you can do • Use a variety of questions to explore any situation. See section 8 – SHAPE Questioning. • Search out alternative ideas, and try to see things in the context of the wider picture. See section 11 – Levels of Thinking and section 12 – Spicy Questions. • Welcome new information that challenges your existing views. 47 engage-universe.com

6 bias The Curse of Knowledge Blah, blah, ??? The Curse of Knowledge occurs when a person blah, blah... unknowingly assumes that the others have the background to understand. Your knowledge literally curses your chances of successful communication. For an example, think no further than someone giving directions and referencing a picture in their head, describing turns, landmarks and other information that the receiver simply cannot relate to. This curse can make it very difficult for highly knowledgeable people, such as technically competent consultants / salespeople, to engage with those who have a lesser understanding. While you may feel you are sharing your wisdom, by not explaining things in simple terms, others may feel lost, confused, and in the worst cases bored. The moral is that people are paying less attention to you than you believe. Richard H. Thaler, Nobel Prize Laureate, 2017 Author of Nudge: Improving Decisions About Health, Wealth, and Happiness What you can do • Put yourself in the other person’s shoes. What level of understanding do they have of the area you are covering? • Try not to rush your conversations. Take your time – start off with simple messages, and look out for signs that they may not be following. • Avoid jargon and use stories to illustrate your messages (see section 14 – Presenting Ideas). © engage universe limited 48

Self-serving bias The tendency for people to attribute positive outcomes and events to their own character, efforts and behavior, while attributing negative events to external factors. For instance, when people win new business they credit this to the strong relationships they have built, the amazing proposal document they created, or the engaging presentation they gave. Contrast this to when they lose - they blame it on being undercut by a competitor, believing that price alone was the cause. Or, more insidiously, a suggestion that the buyer didn’t know that they wanted. This second bias cheerfully ignores the fact that a key responsibility of a consultant or salesperson is to help the buyer envision and articulate what they want. Similarly, while price is a factor in most purchasing decisions, it is seldom the overriding one. It is however, a convenient excuse that confers limited or no blame on the person or team responsible for the loss. Self-serving bias can be very destructive, preventing you from learning from experience – in particular from failure. What you can do • When conversations or situations do not work out the way that you want, look beyond your immediate reactions and snap judgments on the reasons. • Seek input from others on situations where you think your objectivity may be compromised. • When you lose or win work, analyze carefully the reasons why. When you lose, do not accept the “Great Price Lie”. Probe further. The \"Great Price Lie\" is the often encountered explanation for failure to make a sale, win an account, or a piece of work. \"The customer or client said that our presentation or proposal was very good, but unfortunately we missed out because of the price.\" Typically this is not the full story, it is simply the easiest response for the customer or client to give. Much easier than saying that they did not like you, or your team, or your product/service! Better also for you, because you can attribute blame to the price rather than your own failings. Our advice? The next time you encounter the \"Great Price Lie\", politely acknowledge that price is always an important factor and then ask what other factors influenced their decision. 49 engage-universe.com

6 bias Bias Blind Spot Having considered several important biases, it should be pointed out that it is often easier to see biases in others, rather than yourself - the Bias Blind Spot. In one experiment conducted by psychologist Emily Pronin in the US, 85% of people believed they were less biased than the average American, with only one person believing they were more biased. Clearly this does not add up. This blind spot has serious implications for your business relationships. If you are not even aware of your own biases, and their influence on you, then you are unlikely to take action to mitigate their harmful effects. What you can do • Try to be more conscious of how you approach decisions. • Ask others for feedback on how you tend to behave. • Complete the Octagon™ Behavioral Questionnaire (see section 16) and consider the feedback. © engage universe limited 50

Activity 1. Work in pairs. 2. On a sheet of paper person A quickly draws a simple line drawing involving no more than 20 lines or curves and that does not take more than three minutes to draw. No coloring or shading. Once completed, person B will attempt to draw a similar object under instruction from person A. 3. Person A: • Cannot describe the object drawn. • Instructs B to draw lines and curve at angles to each other. • Can specify shallow curves or deep curves. • Can describe the length and thickness of lines. 4. Stop after five minutes. 5. Compare the two drawings. 51 engage-universe.com

6 bias Activity This activity is designed to help you understand how biases impact upon your own relationships. 1. Spend ten minutes on your own thinking about a recent meeting or conversation you had with one of your buyers. • Identify areas where biases may have affected the way you dealt with the other person / people. • Consider the influence of your various biases before, during, and after your meeting. • Consider also the impact on your overall and ongoing relationship with them. 2. After this, spend ten minutes discussing your findings in groups of two / three. 3. Be prepared to share with the group as a whole. © engage universe limited 52

I We You framing 7 • I – Purpose • tIalkthtooudgahyt it would be good to • We – Process to… • You – Outcomes •• gWdWeohteaefstroctIhom’mautltdahsiiumossuidennigdst?chfueosrtsiYimonoe…uish…toow ••• •p B gUocUeceUSontontnnnedenddovneeveneeusrefrsrettrisrssttistoaaaotsaaafntflntindtiodfhobdhinoainnineunvgrgwigiycnsoiootlgeolfanhffrrbswvehuowoehonmurhawstateattttchhitooehenneytrwoilll Benefits for the consultant / salesperson • Credibility aided by the buyer’s perception of your confidence • The buyer’s attention is more focused • Stops you talking too much and taking control • Reduces the risk of cognitive bias The key is to recognize that customers are also looking to lower their interaction costs, so any contact with them must be meaningful. McKinsey Quarterly, The basics of B2B sales success 53 engage-universe.com

Every time you meet your buyer, or talk to them by video phone, you have the chance to make an impression. I We You framing helps you make the best impression through Learn focusing on your buyers’ needs and demonstrating a desire Why to deliver value. Learn It is about being the person your buyers want to talk to, Explain as opposed to the person they feel they have to talk to (because you made an appointment and they have already toolbox postponed twice!) I We You framing is useful in many situations: 1) to request a conversation; 2) to open a phone or face-to-face discussion; 3) to frame a particular topic within a conversation and re-emphasize your focus on your buyer's interests. Key to your success is resisting the temptation to talk to your agenda and topics, focusing instead on the needs of the buyer – as quickly as possible. To guard against cognitive bias and help you get the focus right, I We You, suggests purpose, process and outcomes as a loose verbal agenda. I for INTENT (Purpose) “The reason why I thought we should talk today is…” This shows respect for the other person’s time as well as demonstrating focus and structure. Most people like to know the reason for a conversation. We for how WE should make best use of the time that you have set aside (Process) “One way we could use the time is to…Does that sound OK to you” Suggesting how to spend the time and asking for feedback shows both respect for the other person’s time and a desire to involve them in a two-way collaborative conversation. It also gets them speaking early and stops you entering into a monologue about your organization, services or products. You for what YOU will get as a reward for giving up some time to speak to me (Outcomes) “And what I am aiming for you to take away from this conversation is…” This shows that you appreciate that they are giving some of their valuable time to you and indicates that you want to give them something in return. The stated outcome is normally quite small and is expressed as an aim, goal or hope – there is no guarantee. © engage universe limited 54

Ideas, insights, experiences shared and contacts are the most commonly expressed video desired results. In every conversation, these can be shared and they represent tangible value to buyers. Many consultants / salespeople seriously underestimate the value that can come from an open conversation with a like-minded, knowledgeable professional. Learn Challenge Requesting a conversation Consider the following two approaches from Y and Z. Which meeting would you agree to? Example 1 Example 2 Dear X Dear X My name is Y, I’m a […] specialist My name is Z from ABC and I was from ABC, one of the world’s [largest; wondering if you would be interested leading; best-known; specialist; in spending an hour with me talking oldest] providers of […]. about the current market conditions and how your business is adapting. I enclose a brochure outlining our capabilities and I would like to meet at Whilst I suspect that I may gain more your convenience to explain how our from our conversation, I also hope you world-class solutions can help grow will benefit from my sharing insights your business. of what others are doing to adapt, so that you walk away with some new Please let me know when you are ideas, or contacts of people to talk to, available, I can meet at any time that that will be of immediate use. suits you. If you think this might prove a good Regards, use of your time, please let me know a convenient time for us to meet. Y Regards, Z Note how in the first example there is an implied assumption that as we are the largest; leading; best-known; or specialist provider, we have views and solutions that you will want to hear. This hints at confirmation bias (see section 6) and a degree of disinterest, self-interest (see section 4) and arrogance. 55 engage-universe.com

7 I We You framing Activity Two weeks ago you met Tog at a conference. You chatted briefly and exchanged business cards. He looked at your organization’s slogan on it and said “we could do with some of that – why don’t you call me?”. This meeting is the result of your follow up call. You have done some research on Tog’s organization and there appears to be a good potential fit. Decide how you will frame the main part of the conversation with Tog. I We You © engage universe limited 56

Activity Dit is a senior executive of Marathon Limited and you are meeting her for the first time. The introduction came through a mutual friend Tek who felt Dit would value meeting you and learning about what you do. You set up the meeting by phone and Dit seemed interested in meeting you. Decide how you will frame the conversation with Dit. I We You 57 engage-universe.com

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shape questioning 8 Today, the most dramatic growth opportunities come from divergent offerings. Salespeople following problem-based models often fail to uncover opportunities until very late in the call - if at all. What is needed is an approach that encourages discussion of opportunities much earlier in the sales process. Neil Rackham, author of SPIN Selling •• • H CFooBomuwrwyfeoairrsrtddairbltoilveoedknfiionfrfgethreebnuty?er Adjust Engage to change for next direction steps Surface facts Hunt Paint for outcomes challenges There are things known and there are things unknown, and in between are the doors of perception. Aldous Huxley, author of Brave New World 59 engage-universe.com

Breaking the pattern video Business conversations should be interesting and informative Learn for all involved. Critically though, if your buyer's interest is not Why engaged, their mind may stray to other more pressing matters. If this continues, the other person will cease participating, you toolbox will not get the information you could have, and it is likely that your buyer will find reasons to avoid accepting future requests for conversations. Too many buyer conversations follow a linear pattern with the consultant / salesperson retaining control of the agenda and mentally ticking off the points they wanted to cover. In more extreme cases, the consultant / salesperson follows a well-rehearsed route, driving the agenda towards an end point where they put their offering on the table. Introduction Point 1 Point 2 Point 3 Point 4 Point 5 Conclusion The influence of confirmation bias is clear in such an approach (see section 6 - Bias). We Learn think we’ve seen similar situations before and know what the other person needs, so we Explain push them along a path or through a process that is familiar to us. Other biases such as liking/disliking, availability bias and self-serving bias can also subconsciously drive our behavior. SHAPE mitigates the impact of our subconscious biases and forces us to pay more attention to the other person, with the conversation following a less structured route, that allows the other person to participate equally in guiding the direction of the conversation. For the consultant / salesperson, the focus is more on listening (section 13 - LISTEN) and sharing experience and insights (see section 14 - Presenting ideas). Any points not covered can be picked up and dealt with at at the end of the conversation or covered in a later conversation. Point 4 Point 2 Point 1 Conclusion Introduction Point 3 60 Point 5 © engage universe limited

SHAPE conversations are non-linear. SHAPE represents a toolkit of questions from which video you can choose the most appropriate question to ensure that points of conversation are fully understood. Adjust – to seek confirmation, identify priorities or seek permission. e.g. Is addressing this Surface – to surface facts. a key priority The who, what, where, when. e.g. What is making you so for you? Adjust busy? Paint – to paint to change future desired direction outcomes. e.g. Six months Paint Surface from now, if you were facts less busy, outcomes what would you do with the extra time?\" Hunt – to hunt for the impact of current facts. Engage – to agree Engage Hunt The focus is usually current and negative. next steps. for next for e.g. How does your e.g. What will you steps challenges being so busy do first to make a affect your change? colleagues? SHAPE questions engage - helping shape and prioritize future goals and current challenges. They ensure a comprehensive understanding - and prevent the offer of poorly thought-out ideas and solutions based on biased assumptions and an incomplete picture. SHAPE questions differentiate - through a focus on what matters to others, positioning the questioner as a catalyst for valuable thought and action. My greatest strength as a consultant is to be ignorant and ask a few questions. Peter Drucker, author 61 engage-universe.com

8 shape questioning SHAPE conversations look like this: open and engaging conversations where facts, challenges, outcomes and next steps are discussed in response to a variety of SHAPE questions: This agenda-less presence can be seen, surprisingly, in many top-performing sales people and client managers. Stars in these fields do not approach a customer or client with the determination to make a sale; rather they see themselves as advisors of sorts, whose task is first to learn and understand the client’s needs – and only then match what they have to those needs. Daniel Goleman, author of Social Intelligence © engage universe limited 62

Examples of questions and potential responses Surface - to surface facts • How is business going? • You know how it is, ups and downs. video Fact • How busy are you at this time of year? • Extremely busy, it is our peak period. • How do you think you are doing Fact compared to the competition? • I think we are OK. I suspect we are all • What is customer feedback like? in the same boat. Fact • Generally it is fine. You never get perfect feedback. Fact Facts gathered by Surface questions can feed confirmation bias. Hunt - to hunt for the impact of current facts • Does this have any other knock-on • Yes, it is starting to lead to some video effects? negative feedback. • How does that impact on your bottom Challenge line? • It reduces our net profit by around 6%. • Does using more than one provider Challenge lead to any issues? • Yes, we sometimes miss deadlines • Does the reduced profit have any impact because the different providers don’t on your ability to spend on R&D? communicate effectively. • Is staff morale suffering as a result? Challenge • I had not really thought about it – yes it does. Challenge • I guess it does not help. Now you mention it our staff turnover has increased. Challenge Our desire to confirm our beliefs on a topic (confirmation bias) can result in too much focus on Hunt questions. Balance with Paint questions. 63 engage-universe.com

8 shape questioning Adjust - to seek confirmation, identify priorities or seek permission • In terms of your overall objectives how • This is the key concern at present. video significant is this? Confirmation • Is this the most important challenge • It is a big issue but there is another facing you at present? which is causing me sleepless nights. • Would your CEO agree that this is the There is a bigger priority key challenge at present? • Absolutely – he mentions it every day. • Can I ask a few more questions about Confirmation this? • Sure, go ahead. • I can see how this might be a sensitive Permission issue, are you happy to continue or should we move on? • Assuming confidentiality then yes, we should explore further. Permission Adjust questions help mitigate the impact of confirmation bias and the Curse of Knowledge through checking for the other person's level of interest and understanding. Paint - to paint future desired outcomes • What would be the impact of resolving • It would reduce our down-time in the video this? office, and improve morale. • What would be your ideal situation Outcome regarding this? • I would like the communication to happen • If you manage to deal with this it will without my constant involvement. not only help motivation, it will also Outcome improve profits and reduce stress. • Yes that is right, we really do need to Correct? resolve this now. • And if we could get the turnaround Outcome down to a week what would that mean to you? • It would mean we perform better than our competitors – and my CEO loves that! Outcome © engage universe limited 64

Engage - to agree next steps • What happens next? • I need to speak to my boss and get video approval. • How do you see things moving forward? Next step • Would you like me to see if I can find someone who may be able to help you? • We need to organize budget approval for the spend. • What would you like us to do next? Next step • If you could find someone that would be great. Next step • Come back to me with a timetable and costs. Next step Engage questions seek to understand next steps, they do not prescribe next Learn steps. As such, they prevent confirmation bias pushing us to offer solutions Challenge too quickly, before the other person has decided how they wish to move forward. Note that Engage questions can either include you or not. Engage is best used as a two-part questioning approach. First ask the other party what they will do next (without including yourself in the question), then consider a follow-up question that asks how you might help with that. You can tell whether a man is clever by his answers.   You can tell whether a man is wise by his questions. Naguib Mahfouz, Nobel Laureate. 65 engage-universe.com

8 shape questioning The 3 Strikes Rule While the consultant / salesperson should always be mindful of the other person’s video preparedness to discuss a particular topic, we sometimes see the consultants / salespeople moving on too readily when a buyer does not respond as hoped to a particular line of questioning. For example, the buyer says: “The market will pick-up at some point and we need to be well positioned against our competitors.” We observed the following response: “Is this issue also on the radar of others or are they very much caught up with more short term responses?” In responding this way, the consultant / salesperson does two things: 1) They redirect a future-positive line of thought around the market picking up into a current-negative “issue”. 2) They miss the opportunity to expand the conversation. Instead, let’s try a Paint question: “In what areas of the business do you think you need additional resources to gain maximum benefit from the upturn when it comes?” Strike 1 A positive Paint question, but suppose the response is: “Honestly, we’re more focused on cost containment at present.” Now you have a choice. Let the line of questioning drop, or persist. If you started down this track, you did it for a reason, so maybe you should be persistent and politely ask a second question, staying with your topic, as opposed to giving up too easily. You might say: “I can understand that, but I also think you’re right to prepare for the market picking up. In which areas of the business do you see the greatest potential when things pick-up?” Strike 2 You might get a better response this time. Or you might get another negative response such as: “It is difficult to say at the moment because we’re reducing headcount and destroying some capability in the process.” © engage universe limited 66

You face another choice. Ask a third question or change topic. You arguably don’t want to talk further about destroying capability as that isn’t likely to be a conversation your buyer will enjoy. Instead you could move to an Adjust question along the lines of: “And given the current market conditions what do you see as your key priority?\" Or you could try one last time to get your buyer to focus on future opportunities with a question like: “And what do you see as the key skills and capabilities that will be needed to take advantage of the upturn when it comes?” Strike 3 The point is that sometimes buyers need help to break through the mental barriers they erect around their own thoughts, especially in times of difficulty when “keeping your head down” can become the ruling behavior. Being the person who helps your buyers focus on the positive aspects in difficult times can be a very powerful differentiator. Mind your language! Use Avoid Challenges, goals, Issues, problems, opportunities, areas to concerns improve “If you do not fix “Going forward, if you these problems can address these now how will the challenges and realize business be the opportunities, how affected?” would the business change?” 67 engage-universe.com

8 shape questioning Activity Which of these is a Surface, Hunt, Adjust, Paint or Engage question? E Learn Challenge SHAP 1. How do you use social media? 2. What value would speeding up the process add? 3. Does this problem ever affect your profitability? 4. Which of these is the most important issue? 5. What will you do first to address this? 6. Do you have any difficulties projecting where you’ll be in five years? 7. How would you like to control inventory? 8. What do you see as the next step? 9. Who do you need to talk to about this? 10. Could you miss an opportunity because you cannot respond fast enough? 11. Whilst this is clearly important to you, is it one of the key issues that you would like to resolve? 12. What is the most frustrating operation in your process? 13. If you could get the data in 48 hours how would it help you? 14. Have you any thoughts about what you want done first? 15. Are you happy for me to ask more questions on this subject? © engage universe limited 68

Activity Read each statement and decide whether it represents a Fact, a Challenge, a Priority, Learn a desired Outcome or a Next Step Challenge F C PON 1. We need some way to cut our costs 2. Our systems are outdated 3. I’ll get back to you next week with a timetable 4. I have trouble with data storage 5. Compliance with new regulations is increasing our costs 6. I would like to have less stress 7. Customers complain that our inventory process is very slow 8. This is very important 9. I have to discuss it with my colleagues 10. I’m very dissatisfied with our accounting system 11. Our online presence is weak 12. We would like to schedule a planning meeting 13. We’d like to increase our productivity 14. Please send us a draft work plan 15. We’re very focused on this right now 69 engage-universe.com

8 shape questioning Activity To use SHAPE questioning effectively, you need to develop the capacity to ask any type of SHAPE question in response to any statement made by your buyer. The skill lies in knowing the next best question to ask to move the other person’s thinking forward. To practice this, think of five different questions you could ask in response to the follow- ing statement: The best next question S Statement: Learn Challenge H Competition A is fierce P E © engage universe limited 70

Activity This activity provides an opportunity to respond to various business scenarios in the moment - the consultant / salesperson responds immediately. Materials required SHAPE cards Instructions 1. Organize into groups of three and collect one pack of SHAPE cards per group. 2. Person A takes the role of the buyer. 3. Person B takes the role of the consultant / salesperson. 4. Person C is the observer for the activity. 5. The buyer selects a card. They then read it aloud. 6. The consultant / salesperson asks a follow on question. 7. Person C gives feedback on the consultant / salesperson question. 8. Repeat four more times. 9. Then rotate the roles and repeat the process. Guidance for running the feedback and analysis • Start by asking the consultant / salesperson for their thoughts. • Then give feedback on the phrasing of the question: • Was it an open question? Was it clear and concise? • What type of SHAPE question did you think it was? • Then ask the buyer what impact the consultant / salesperson made. • If it went well…what do you want to remember? • If it didn’t go well…what might you do differently next time? 71 engage-universe.com

8 shape questioning Engaging with SHAPE Too often, business development related conversations amount to little more than a series video of closed, open and probing questions that deliver information to one party but hold little of interest or insight for the other. SHAPE questioning aims at a conversation that is interesting and valuable to both parties. Activity Note below the positions of each type of question on a scale from 0 to 100, where 100 is totally interested and engaged, and 0 is totally uninterested and disengaged: 0 50 100 Activity Estimate the % of questioning time you What % of questioning time do you currently spend asking each type of SHAPE think you should spend to create a more question: interesting and engaging conversation: Surface Surface Hunt Hunt Adjust Adjust Paint Paint Engage Engage © engage universe limited 72

A natural SHAPE video SHAPE is a real-world questioning approach and must be integrated into the natural flow of a conversation. Context Before asking a question, consider if it would help to provide context e.g. “To better respond to customers’ demands, some companies have been doing […]. I was wondering [SHAPE question]”. Equally, when you hear the other person’s response consider taking time to comment on what they’ve said before moving straight to your next question. Everyone likes to be heard and their thoughts valued. Summarizing Also factor in the need to periodically summarize the key points discussed. This demonstrates that you’re interested and paying attention, plus it gives an early opportunity for the other person to clarify any misunderstandings; to add further thoughts, if any have occurred to them since the point was first covered. Also if your summary is accurate, it will normally result in agreement to the points you’ve made. Small agreements, expressed as nods of the head or verbal agreement contribute to shared collaboration and commitment to action. Adjust questions provide a natural point for summarizing before asking whether to proceed with the same topic or change to a different subject - all with the aim of engaging the other person. Listening Some years ago, at a conference, David, co-author of Smarter Selling, had a conversation with Laurie Young, author and marketing guru. At the end of the conversation Laurie commented: “Do you realize you have a rare gift? When you have a conversation with someone, you give them your full attention. You shut out everything that is happening around you and focus 100%. It’s very flattering.” Questioning and listening are two sides of the same coin, and we should never forget that people like to be listened to. In our information–heavy world, with our shortened attention spans, and driven by our cognitive biases (see section 6), we have a tendency to hear, but not listen. See section 13 – LISTEN for more on listening. 73 engage-universe.com

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focus-5 9 Focus-5 1) • • • •FB CiPnuRaradesongvhfceeiftiltnaoulw:e 2) Customers 3) Competitors 4) ••M MMaraakrrekktee:tt psehracreeption 5) Resources Lack of direction, not lack of time, is the problem. We all have twenty-four hour days. Zig Ziglar, author of Born to Win 75 engage-universe.com

Most business challenges impact a limited number of key video business variables. This means that with a good mental checklist and a little practice, it is quite possible to master the skill of Learn constructing engaging Hunt and Paint questions on the spot. Challenge Memorizing the categories of Focus-5 will help you construct toolbox thought-provoking questions and demonstrate commercial acumen. Focus-5 also helps mitigate the “narrowing” effect of our cognitive biases since it encourages us to ask questions on a broader range of topics. Activity Taking the Focus-5 areas, list below questions that you could ask your buyers to explore areas relevant to the service or product that you offer. © engage universe limited 76

value sheets 10 V•••a • l FuCCoWeocolurmlaiSstbpetholeserenmaaetrteitetvnecsetnostridSonHAPE Too often, salespeople position their organizations as transactional ones instead of high value-adding organizations who can remove problems and add innovation. Miller & Sinkovitz, authors of Selling is Dead 77 engage-universe.com

Value Sheets provide an excellent framework around video which to focus a conversation. They are a shared document, populated by you during a conversation in full view of the other person (as opposed to notes that you take for yourself). Value Sheets have four key benefits in the engagement process: Learn Why 1. They credential the user as a clear listener and a clear thinker. toolbox 2. They provide a framework for a person who needs structure to feel comfortable talking to a person who does not like structure and whose thoughts jump around. 3. They encourage a strong focus on seeking value, since no-one wants an empty column! 4. They minimize the impact of your various cognitive biases leading you down a narrow path. Use SHAPE questions to complete the Value Sheet: Challenge Current Future Value Learn Explain Hunt Surface Paint Paint To understand To understand To understand the To understand the negative the facts of each desired outcomes in the value derived implications of relation to each challenge from achieving the each challenge challenge and the positive impact of desired outcome achieving the outcomes Adjust Hunt Adjust To understand To understand the To understand the importance negative implications of each challenge of each challenge the relative importance of achieving each desired outcome How we can help Value Sheets do not contain a column for solutions / services or products. Where ideas 78 or solutions are introduced too early into the mix, the value focus diminishes (as we get enthusiastic about what we can do) and opportunities are missed. The idea is to flush out and prioritize a range of challenges that the other person faces. Some you might be able to help with directly; others you will need to discuss with colleagues and even third parties. © engage universe limited

Using Value Sheets Learn Challenge In a face-to-face, one-to-one setting, a good way to introduce the Value Sheet is simply to ask if it is ok to take notes, and then to turn your paper landscape and draw four unheaded columns. As the conversation progresses, start to populate the sheet. Most of the time, the other person will ask what you’re doing and you can explain, prompting comments like “Oh, that’s clever!”. Some consultants / salespeople use Value Sheets to manage phone conversations too, keying the answers on-screen while they’re talking, then sending the sheet to the other person after the call as a record of the key points discussed. Consider using a Value Sheet on a whiteboard, to frame group conversations. We’ve seen many examples of teams using Value Sheets to brainstorm ideas with buyers, and even to frame pitch presentations. We also have examples of Value Sheets being used to highlight the essential messages of reports and slide presentations and, notably, being printed on the reverse side of placemats at buyer lunches to facilitate after lunch conversations. Challenge Current Future Value Service seen as a - Buyers cannot - Seen as different - Increased commodity profitability differentiate - Staff walk and - Greater - Pressure on pricing talk the difference investment - Margins falling - Fewer price discussions Skills gaps - Can’t recruit the - Right people, right - Fewer errors right people place, right time - Satisfied buyers - Best staff being - Broadly - Increased poached commercial, penetration and technically skilled, referrals - Training ineffective socially adept Silo mentality - People do only - Cross-functional - Save duplicated - Lack of cooperation what benefits their teams solving effort and cost - Fewer new ideas business unit problems across - Poor execution the organization - More enjoyable working environment Finally, remember that completing a Value Sheet is not a form filling exercise. What is written mirrors the thought process and discussion. 79 engage-universe.com

10 value sheets Activity Instructions 1. In pairs. Person A holds a conversation with Person B, seeking to understand their cur- rent work and trying to find ways to help. 2. Person A uses a Value Sheet to guide the conversation and SHAPE questions to clarify and encourage Person B’s thinking. 3. Stop after about 10 minutes. Discuss the impact of using the Value Sheet (identifying any key moments triggered by SHAPE questions). 4. Change roles and repeat. Guidance for running the feedback and analysis: ● Start by asking Person A for their thoughts on using the Value Sheet approach. ● Then ask Person B what impact they felt the Value Sheet had on the flow and feel of the conversation. ● Discuss key moments - good and bad. ● If it went well…what do you want to remember? ● If it didn’t go well…what might you do differently next time? © engage universe limited 80

Activity Instructions 1. Organize into groups of three. Person A is the buyer, Person B the consultant / salesperson and Person C the observer. 2. The buyer identifies something they care about and want to change. 3. The buyer starts to talk about the issue. 4. The consultant / salesperson uses SHAPE questions to understand the issue and clarify the buyer’s thinking. 5. As they discuss the issues, the consultant / salesperson introduces the Value Sheet headings and uses it to summarize. 6. Stop after about 10 minutes. Then the observer leads the feedback. Change roles so everyone has a go at being the consultant / salesperson. Guidance for running the feedback and analysis: • Start by asking the consultant / salesperson for their thoughts. • Then ask the buyer what impact the consultant / salesperson made. • If it went well…what do you want to remember? • If it didn’t go well…what might you do differently next time? 81 engage-universe.com

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levels of thinking 11 A problem cannot be solved at the same level of consciousness at which it was conceived. Albert Einstein Why use levels of The Four Levels thinking 4 Vision • To address causes rather LOerggaacnyization 3 Strategy than symptoms YDeeaprartment 2 Actions • To engage the buyer at a Team Month different level 1 Details Individual • To develop higher level Day relationships How any two people perceive the same problem or activity will be different according to the differences in their level of abstraction. Elliot Jacques, author of Levels of Abstraction in Logic and Human Action 83 engage-universe.com

When faced with an issue or challenge, most of us look at video whatever is immediately in front of us and attempt to tackle learn it. In doing this, we often lose sight of the bigger picture - or never consider the bigger picture - and so achieve less than stellar results. Our various biases, discussed in section 6, reinforce this behavior. To change perspective and be able to engage buyers at a higher, strategic level as opposed to a tactical level, enhances the value we bring. Applying Levels of Thinking, Spicy Questions (see section 12) and PEST analysis (see later in this section) leads to higher level conversations that deliver valuable insights for us and for our buyers. How do the 4 levels work? Level 4 gets to the heart of our dreams and goals. What do we aspire to? What gets us out of bed in the morning? So, a good level 4 question would be “What do you want to be remembered for?” The response might be: “To be our customers’ go-to IT services provider.” Level 3 refers to the broad strategies required to achieve the level 4 goal. An example would be: “What do you see as the key areas to address to achieve your goal?” The response might be: “We need to keep right up-to-date with technology changes, and also how they affect customers’ businesses, plus we need to be having regular, insightful conversations with customers.” A level 2 question gets more granular around the actions needed to support the strategy. A level 2 question would be: “What steps do you need to take to achieve the first of those?” The response: “We need to identify early-adopters and look into how they use new technology; we need to research more widely; and we need to share knowledge better.” At level 1 we get more specific or detailed: “And what specifically can you do to share knowledge better - and what about timelines?” The response: “We should have monthly technology updates led by our staff, possibly with our customers contributing. These updates - in a workshop or webinar format - should focus on the application of the technology. Let’s aim for the second Thursday of each month.” In a single conversation, you might address only one or two of the strategic areas at level 3; typically the areas where you can help, or where you know of others who can help. © engage universe limited 84

For the buyer, the benefit comes from talking through their ideas with an outside person who can offer different perspectives. It can get lonely at the higher levels of management and the usefulness of a structured, third-party perspective should not be underestimated. Working with groups In a group setting, where you have multiple buyers to deal with, it is often best to start at level 1, uncovering the day-to-day dissatisfaction with the status quo, before moving to level 4 and a vision of a brighter tomorrow. If you skip the first step and go straight to level 4, you risk the chance that some of the group will mentally keep reverting to level 1. Representing the flow of ideas in a cascade format (as below) can be useful for showing how each stream of activity supports the agreed overall goal - and also for rejecting activities that do not contribute to the agreed goal. Level 4: Dreams, goals, vision Level 3: Broad strategies, levers, areas of focus Level 2: Actions needed to support the level 3 strategies Level 1: Details. Timetables with dates and people involved / responsible 85 engage-universe.com

11 levels of thinking Paint questions (see section 8: SHAPE Questioning) are a good tool for helping both you and your buyer move towards levels 3 and 4, which tend to be forward looking and broad in scope. See also Spicy Questions, which are designed specifically to help thinking move outside normal constraints. In Octagon™ terms (see section 16), big picture people and opportunity seekers will enjoy the thrill of a level 4 conversation, so take them there immediately and then work down through level 3 then 2 then 1. If however, you are dealing with someone who is detail oriented and / or risk averse, better not to start at level 4 as they are likely to respond, mentally if not verbally, with “don’t believe you”, or “prove it” or “be realistic”. Driving to Level 3 and 4 with PEST New perspectives bring new insights. Similar to Spicy Questions, using a PEST analysis video or one of its variants helps unblock narrow lines of thought and almost always reveals new insights. PEST (which stands for Political, Economic, Social and Technological) is a macro-analysis tool that looks at the broad strategic environment. It is less well-known, and less-used by corporates than the SWOT micro-analysis tool that tends to focus on an organization’s internal workings and immediate external environment. Common elements of a PEST analysis include: Political Economic • Political stability • Home economy situation and trends • Ecological / environment issues • Level of government intervention in • Current legislation home market the economy • Future legislation • Exchange rates, interest and inflation • International legislation rates • Regulatory bodies and processes • International trade / monetary issues • Government policies • Overseas economies and trends • Government term and change • Taxation • National trade policies • Seasonality / weather issues • Funding, grants and initiatives • Specific industry factors • Home market lobbying / pressure groups • Market routes and distribution trends • International pressure groups • Customer / end-user drivers • Competition laws • Efficiency of financial markets • Pricing regulations • Infrastructure quality • Labor laws • Skill level / productivity of workforce • Wars and conflict • Business cycle stage (e.g. prosperity, • Legal framework for contract enforcement recession, recovery) • Intellectual property protection • Trade regulations and tariffs • Favored trading partners © engage universe limited 86

Social Technological • Demographics • Competing technology development • Lifestyle trends and leisure interests • Research funding • Consumer attitudes and opinions • Associated / dependent technologies • Media views • Replacement technology / solutions • Law changes affecting social factors • Maturity of technology and capacity • Brand, company, technology image • Impact of technology change on: • Consumer buying patterns - Value chain • Fashion and role models - Cost structure • Major events and influences - Consumer buying mechanisms • Buying access and trends • Technology legislation • Ethnic / religious factors • Innovation potential • Advertising and publicity • Technology access, licensing, patents • Ethical issues • Intellectual property issues • Globalization Many variations of PEST are in use. Typically these add to the categories and focus on areas of particular current interest. Variants include: - SLEPT – adding Legal and re-arranging the letters - PESTEL – the separating out of Environmental and Legal elements - DESTEP – Demographic, Economic, Social, Technological, Ecological and Political The usefulness of PEST and related approaches derives from broader thinking about the general environment and the implications on the organization of any likely future changes – either known or imagined. From such thoughts come new insights about how the organization needs to change in order to survive and develop. A consultant / salesperson who skillfully uses PEST in a buyer conversation is likely to be viewed as thoughtful, strategic and commercial. You might also find it useful to use the PEST approach to analyze the strategic environment for your own business! Using PEST in a group setting involves a broader diversity of views and generates a broader range of insights. When brainstorming insights and ideas using PEST or other approaches, refrain from qualifying individual contributions until you have exhausted ideas. Early discussion of the pros and cons of each idea stops the flow of ideas. 87 engage-universe.com

11 levels of thinking Activity Choose one of your key buyers (or an industry / market where you focus) and on a flipchart undertake a PEST analysis. Work for 15 minutes and be ready at the end to share one unanticipated insight. Political Economic Social Technological © engage universe limited 88

spicy questions 12 W••• h VPyRareroSymbeptohvideceeypebaploQceceruksestions? Types of Spicy Question • Mitigate bias • Timeline • Legacy • No barriers • Stretch • Positive / Negative • Shock • Non-stick Computers are useless. They can only give you answers. Pablo Picasso, artist 89 engage-universe.com

As the name suggests, Spicy Questions add a certain piquancy to video a conversation. They are unusual questions that lead to different learn thinking. Spicy Questions are designed to mitigate bias (see toolbox section 6), and unblock narrow, conventional thinking. Spicy Questions aid the development of level 3 and level 4 thinking because they help to break the mental constraints of level 1 and level 2 (see section 11: Levels of Thinking). Thus, they can be as helpful for the detail-oriented, risk-averse consultant / salesperson as they can be for the detail-oriented, risk-averse buyer! - see section 16: Octagon™ Behavioral Questionnaire. Spicy Questions can also be helpful in encouraging thought about the future, so are highly complementary to Paint questions (see section 8: SHAPE Questioning). They come in seven flavors each with a different use and direction: Type Use Direction Timeline Encourages the creation of a forward vision. Future positive Legacy A longer timeline, aiming to understand what Future positive really drives a person at a deep level. No Creates an ideal, typically unrealistic, future Future positive barriers vision that encourages radical thought. Stretch Takes a current situation and stretches it beyond Future positive what is reasonable, to create \"stretch goals\". Positive / First discusses positives, leading to permission Future positive / Negative and balance when asking for negatives. Current negative Shock To jolt someone’s thinking and challenge Future positive complacency. Non-stick To ask about a sensitive topic without the Current negative question appearing as your question. and sensitive Like spices, do not throw them all in to the mix at the same time. Use selectively to add a little spice, if needed. Your skill lies in knowing which question to ask at what point in the discussion. © engage universe limited 90

Timeline A simple way of getting the buyer to map out how they would like to see things progress. “What do you think will be different in three years' time?” “What would you want to be doing in two years' time that you’re not able to do now?” “How would you like to see things progress over the short, medium and long term?” “What are the key strategies for the next 1, 3 and 5 years?” For big picture thinkers set a longer timeframe. For cautious or detail oriented buyers, start with near-term goals. For organized thinkers ask about milestones. Better to ask rather than assume you know how things will look in the future (availability bias; confirmation bias) Legacy A longer timeline question that encourages thinking about what is left behind. Targets the things that people hold most important. “Your face is on the cover of xxxx magazine. What does the headline say?” “You’re retiring after a successful career, what will you say in your leaving speech?” “You’re being thanked for your contribution to the organization – what is being said?” “What do you want to be famous for?” A good question for those who score high in Feelings / Facts. Think longer term to surface broader implications and mitigate groupthink and narrow thinking. 91 engage-universe.com

No barriers 12 spicy questions Useful where your buyer cannot see beyond making small improvements to the current situation. This will help them see that there is potential for a significant improvement in the situation, albeit that the initial response to the question is unlikely to be realistic. Can also be helpful in uncovering the other person’s deeper desires. “If cost was not a factor, how would you approach this?” “If you were given all the time and resources you needed, what could you achieve?” “If you could relocate to any place, where would you choose?” “If you could choose your working hours, what would they be?” No barriers questions do not tend to work well with people who score ow in Big Picture / Detail and Opportunity / Fear. Their response to such a question is likely to be along the lines of “That’s totally unrealistic” and they may not engage in the discussion any further. Mitigates confirmation bias and groupthink as seeks “out-of-the-box” alternatives where otherwise you may just go with the obvious line of thought. Stretch 92 Stretch takes an existing situation or target and stretches it – beyond the point of reason, to encourage new perspectives. It is typically a positive outcome for the buyer. You paint a picture of an extremely positive outcome, so positive that it is unrealistic. You are doing this to generate a shift in thinking from someone who cannot see past the current situation. The buyer is unlikely to agree to your suggestion, but may move their thinking. When they disagree with your suggestion you back-track to a more realistic, but still further advanced position. “Suppose you doubled everyone’s sales targets, what do you think would happen?” “So would you like to have a machine that never needs to be shut down for maintenance?” “Could you achieve five days from order to delivery?” “What would happen if we cut next year’s training budget by 90%?” Works well with opportunistic people and not so well with those who are risk averse. Works to counter groupthink and confirmation bias, as pushes you to stretch and not accept the obvious. © engage universe limited

Positive / Negative This question works by engaging the buyer by asking them to discuss positive aspects of a topic, thus gaining permission and building the environment for asking about potential negative aspects. Particularly helpful for consultants / salespeople who sometimes focus too much on “problems”. Simple Positive / Negative questions are a gentle way to Hunt. For example: “I understand business is going well – what do you see as the biggest achievements of the last year?” followed by “and what do you need to do to ensure continued growth?” Or “Selecting a service provider is a big decision – what do you see as the most important criteria?” followed by “and what sort of things would disqualify a provider in your mind?” To add a bit of rigor, ask for three positive and three negative responses. This encourages the buyer to think more deeply leading to better insights. After each response you may have to gently nudge for the next. Your skill comes in knowing when and how far to push! “What are your three biggest hopes for this project, and your three biggest fears?” “What is the worst-case result?” followed by “and what would be the best-case?” For people who score low on Big picture / Detail and Opportunity / Fear, consider reversing the question and asking a Negative / Positive. Works well to counter confirmation bias and groupthink as it demands a look at the other side. If the accepted view is negative, let us consider the positives and vice-versa. 93 engage-universe.com

12 spicy questions Shock This is very useful where you are trying to help a buyer who only looks at positives, or who is satisfied with the status quo. You paint an extreme and unlikely scenario that is beyond the control of the buyer. If it was to happen though, it would have a major impact - and almost certainly a negative impact. “If consumers switched to primarily buy on-line, how would you respond?” “If there was a major flood or other natural disaster, how would you continue operating?” “If regulations changed and outlawed cold-calling, what would that mean to your business?” “If the price of fuel doubled, what would that mean for the way your company operates?” “If one of your competitors decided to offer their core product totally free - what would that mean for you?” Enjoyed by cautious people, but more powerful with opportunistic people. Shock questions are the most extreme of Spicy Questions and target uncontrollable and often negative possibilities, to shake complacency and narrow thinking driven by confirmation bias, availability bias and groupthink. © engage universe limited 94

Non-stick Broad - the origin of the story This is a useful approach where the subject you want to know more about is potentially sensitive. It also demonstrates that Narrow - the topic you have some knowledge and insights. Broad - the application The idea is to tell a story about something you have read, to a place or industry heard of, or seen elsewhere, and ask the buyer’s views on the broad topic - as opposed to suggesting that the scenario applies to them. “I read an article last week that under-the-table inducements are increasing as competition intensifies. Is that a feature of this market / industry / territory?” “When I was in the US recently there seemed to be a lot in the press about how it is becoming increasingly hard for businesses to win new work. Is that a trend that is happening here [in your country]?” “I was at a meeting last week and someone made the comment that many companies are exploiting loopholes in regulations to increase profitability. Is that happening in your industry?” Beware of focusing the final part of the question on to the buyer or their organization. “I read an article last week that under-the-table inducements are increasing as the competition intensifies. Is that a problem for your company?” “When I was in the US recently there seemed to be a lot in the press about how it is becoming increasingly hard for businesses to win new customers. Is that something that concerns you?” If you find yourself in a situation where 'groupthink' is taking over, and speaking against the tide would not be welcomed, a non-stick question provides the opportunity to question the herd's thinking without the question appearing to come from you. 95 engage-universe.com