C-Suite Network™

Menu
Search
Close this search box.

Category: Industries

Categories
Accounting Economics Entrepreneurship Industries Investing Management Personal Development Taxes

Highlights of the 2017 Tax Cuts & Jobs Act

CHANGES TO INDIVIDUAL RATES AND BRACKETS– lowered top bracket from 39.6% to 37%

  • Married Individuals highest bracket starts at $600,000; Single Individual $500,000; Trust and estate $12,500
  • NEW-Dependent children aged 18-24 in school must use trust rates not Parent’s rate
  • Capital gains rates remain unchanged
  • NEW-three year holding period for carried interest distributions, sales or redemptions for Long-term capital gains
  • AMT thresholds increased

CHANGES TO INDIVIDUAL DEDUCTIONS

  • Only deductions available: medical expense, Interest expense, charitable deductions and tax expense and business casualty loss
    • Taxes limited to total of $10,000; Mortgage debt for existing loans limited to $1,000,000 and New home purchase $750,000.  Cash contributions limit increase from 50% to 60% of adjusted gross income
  • No longer deductible expenses-Alimony paid for and alimony received under divorce contracts entered after 2018, tax prep fees, employee business and investment expenses and other miscellaneous itemized deductions moving expenses; personal casualty theft loss except for federally declared disasters
  • New 529 plans for elementary or secondary public private or religious schools.
  • Like kind exchanges now limited only to Real property so fast-food restaurant franchise licenses and patents; aircraft, vehicles, machinery and equipment, railcars, boats, livestock, crypto-currency, artwork and collectibles are no longer eligible.
  • Current year business operating losses including passive losses limited to $500,000 joint and $250,000 for other filers.  Anything in excess cannot offset capital gain or investment income.
  • No carryback of Net operating business losses. Carryforward of future losses limited to 80% of taxable income.
  • Increased limits for expensing capital assets up to $1,000,000 for new & used property.
  • Non-owner of some private company employees may get up to 5 years to defer income on exercise of stock options or RSU’s.

CHANGES TO ESTATE TAX

  • Life time gift & GST exemption-2018 $11,200,000 single & $22,400,000 married couples.  Will be adjusted for inflation each year.  
  • Annual gift tax amount-2018 Increased to $15,000

CHANGES TO BUSINESS (SCHEUDLE C) AND PASS THRU ENTITIES

  • NEW- 20% deduction for pass thru or Schedule C qualified business income done at individual level
  • Limitation of business interest deduction limited to 30% of the business’s adjustable taxable income, exception for real estate companies who elect longer depreciable life for real estate.
  • NEW-Taxpayer’s average $25 million gross receipts- can use cash method of accounting and don’t have to use UNICAP rules for inventory capitalization.

At GROCO, we assist high net worth clients and their families with wealth creation, family transfers, taxes and charitable giving. Please give me a call at 510-797-8661 if you need assistance or have questions on these new rules or would like to know how to make, keep and/or transfer your wealth.

Categories
Accounting Best Practices Entrepreneurship Health and Wellness Human Resources Industries Management Marketing Skills Women In Business

Tips for Performing Under Pressure: The Resilient Mind

Over the past 35 years, I have worked with many high-achieving professionals – athletes, actors, dancers, speakers, and business leaders in a variety of fields. One of the common denominators that is true across the board, is as soon as we raise the stakes of the game and more is demanded of us, new skills and new perspectives are required.

It’s interesting to note that emotions are processed in the brain as predictions based on our past history. In other words, if we had a bad experience at an earlier time in our lives, our brain remembers that experience and expects the same result in the future. This is why telling ourselves to “just get over it,” doesn’t always work.

At the time of this writing, the Winter Olympics are just ending. What can we learn from these athletes about performing under pressure? A number of them have come back from heartbreaking defeats and devastating injuries. How do they work with their minds to overrule the brain’s natural tendency to avoid pain and danger?

There are many factors that go into that answer, but again, to play at a very high level, new skills and perspectives are required. We can summarize the needed qualities in one word: “Resiliency.” Some people are more naturally resilient than others. But resiliency can be learned and nurtured from a very early age.

Let’s look at three essential qualities of a resilient mind:

1. Attitude – Resilient people look back at difficult experiences as challenges to invent a new future. They see solutions, strength and inspiration. So, one’s attitude can mitigate the brain’s natural tendency to see the world as an unfriendly place. By changing your attitude, you are actually building new neural pathways, which now means you are writing a new story.

2. Positive Self-Image – Resilient people are constantly evaluating themselves from a NON-JUDGMENTAL perspective. What worked, what didn’t work? They are willing to make course corrections based on their objective analysis.

3. Sense of Purpose – in order to subject ourselves to the high demands and challenges that “going for it” requires, we need to have a powerful reason. Simon Sinek, in his Ted talk, called it “Your Why.”

When your attitude, your self-image and your purpose are in alignment, you have the magic ingredients to forge a new future. Even though your mind “remembers” past negative experiences, you are not destined to repeat them.

If you find that you “know” this information, but are still not able to let go of situations you feel are still holding you back, I invite you to take the Mastery Under Pressure quiz on your level of peak performance skills at www.masteryunderpressure.net.

And join our Facebook Community at Mastery Under Pressure Community, where you’ll learn more about strengthening those building blocks to greater resiliency and
peak performance.

Categories
Economics Entrepreneurship Human Resources Industries Investing Management Marketing Personal Development

The Long, Hard Road

I recently interviewed Rick Wartzman for my Business Builders Show podcast. Rick is the Director of The KH Moon Center for a Functioning Society at the Drucker Institute, a part of Claremont Graduate University. Rick has written a great book, The End of Loyalty, The Rise and Fall of Good Jobs in America.  This book has 363 pages and 25 pages of citations and sourcing. This is a very well -written, well documented account of the topic of the book. At the beginning of the interview I pointed out that he started the book in 2009 and it was not published until 2017. I asked him why did it take that long? After he made a joke about him being “slow”, he pointed out that it took that long to check on and validate all the information he wrote about in the book. It simply was the long, hard road to get the book done right.

Todays blog from Seth Godin is “Low & Slow (vs.fear)”. He talks about how he rushed the baking of sourdough rye bread. He did not let the dough ferment enough and he turned up the oven, so he could get it done faster so he could meet someone. It did not turn out well. Then he points out a flipside to the story – “Sometimes, we mistakenly believe that we’re building something that takes time, but what we’re really doing is hiding. We stall and digress and cause distractions, not because the work needs us to, but because we’re afraid to ship.”  BTW, remember that Seth Godin has been blogging for I’m not sure how long (a long time) and has not missed a day.

When do we decide to take the long and sometimes difficult road? I see the value in the long view. Just like baking bread correctly, getting a story (your work) right so you can share your insights usually takes time. Be patient. Stay focused. Believe the work you are doing is worthy of the time and effort. So, unless there is an immediate need for speed, consider the long term. Think of the lasting impact your work can have if you take the time to complete all the steps in the process. Those steps will include diligent study, bouncing ideas off family, friends and colleagues and being committed to producing work which will have a positive, lasting impact.

Rick Wartzman, congratulations on taking the time, the long, hard road, to write a terrific book. Seth Godin, slow down and better luck next time with the sourdough rye bread.

Categories
Best Practices Entrepreneurship Health and Wellness Human Resources Industries Management Marketing Skills Women In Business

Take the 5 Step Attention Challenge

You think you’re paying attention – you’re not. We live in an attention deficit society. Technology distracts us. Social Media overwhelms us.  Daily to-do lists leave us feeling exhausted. We are constantly being asked to do more with less, to the point we have lost sight of what is important as we race each day to cross off another meaningless task or chore.

I believe in order to be influential in the world, and make a true impact on it; we must give our undivided attention to people and things that matter most in our lives. Instead, we are allowing those that are most important to compete with all of our daily distractions. It’s time to commit to change.

Attention isn’t a little thing. It’s everything. What you focus on grows. What you don’t, goes. When you decide what gets your attention, that becomes your future. I challenge you to start turning your life into one of attention abundance instead of distractions in five steps. Are you up for the challenge? It won’t be easy. It will bring to light the aspects in your life that are worthy of your focus, your time and your undivided attention.

Step 1: Identify What Matters Most

Grab a piece of paper and write down three priorities that come to mind at home, at work and in your community. Perhaps it’s the name of people, or high-profile goals. Maybe it’s a charitable cause or public service. Either way, be specific in each of the three categories and limit yourself to no more than three priorities for each. This step is going to help you identify what matters most to you, the core of you. These are the priorities that get you out of bed each morning, and give you a sense of purpose. When we attempt to define too many priorities, we dilute the meaning of those that matter most.

Step 2: Be Accountable to the Calendar

With your limited priority list now identified, it’s time to get selective with your calendar of commitments. We only get 365 days each year to reach our goals and objectives. That’s a pretty tight calendar budget if it’s not managed wisely. Consider this, if you only had $365 dollars in the bank and were forced to choose between food and jewelry – you’d choose food, right? That’s easy. So why do we think of the days in a year any differently? We are all working from the same limited budget of days, yet some are too quick to spend their days on what doesn’t matter. It’s time to be accountable to our calendar.

First, go through your work calendar and identify two meetings this week that are not necessary. If you feel the objective of the meeting can be accomplished in a simple phone call or email, choose those options instead. If you have the meetings scheduled merely out of routine and habit, they aren’t needed. If you are attending meetings and feel they are not a valuable use of your time, decline them.

Second, for those meetings you choose to keep on your work calendar, email the host and request an agenda. Take a few moments to be certain your time will be respected and used wisely. If you are the host, give respects to the attendees by creating an agenda that you commit to using and sticking to. If you want others to respect your time, you must first start by respecting theirs.

Third, at home, review your personal commitments and obligations. Have you accepted a dinner invite you didn’t really desire to attend? Perhaps you have requests for lunch, parties and gatherings that you aren’t certain how you’ll fit into your already tight calendar of events. If any of these scenarios sound familiar, it’s time to employ the power of one simple word: “No.” That’s right, “no.” “No” is a complete sentence and doesn’t require explanation. Your time is your time, and only is gifted to others when their requests of it fall in line with the priorities you listed in step one. When you say “no” to some, you’re saying “yes” to whom and what matters most. Consider this – if there is a dinner invitation you’ve received that you’re not thrilled to attend, and you would rather stay home and watch a movie with your family, who is going to benefit the most from you saying “yes” to the dinner invite? You? Your family? No – the person with the invitation is the one that benefits. If they are not in your list of priorities, then you are allowing them to take time away from those truly deserving of your time.

Step 3: Be Accountable to the Clock

There are only 1,440 minutes in each day. Considering we sleep approximately 440 of those, we are left with only 1,000 minutes to accomplish what truly needs to be done each day. We are all gifted with the same amount of time in a day; how we choose to use it and prioritize it is solely up to us.

Have you ever stopped to consider the amount of time you spend each day on social media? What about watching television? How about checking email? Now, consider how much time you spend building relationships with family, friends, colleagues and clients? Who is winning your attention and what is stealing your time.

I want you to consider your day in 15 minute increments. Discipline yourself to limiting time on non-essential tasks for 15 minutes only. Dedicate at least 15 minutes of time to those that haven’t been getting it.

First, upon waking in the morning, take 15 minutes to check social media and read the news – then log off. Do not give into temptation to check it again until your next scheduled 15 minute window – either later that night or the next morning. Utilize apps that block alerts and notifications on your phone to avoid distractions they cause.

Second, review your daily calendar and challenge yourself and your team to cut back meetings to 15 minutes only. Require agendas and don’t permit devices that cause distractions. When you limit meetings to 15 minutes, you’ll reach agreements more quickly and be less likely to get lost on non-related topics.

Third, schedule 3 – 15 minutes increments time for checking email throughout your workday. When your 15 minutes is up, turn off your email and turn your attention to accomplishing projects, tasks and priorities. Move away from allowing email to run your day and dictate how your time is to be spent. Emails are just another person’s request for your time to do what they need to accomplish their tasks.

Fourth, dedicate 15 minutes each night to having one-on-one conversations with each person in your household. Give them a minimum of 15 minutes of your time without technology, tv or distractions. You’d be surprised how your relationships grow when you invest your undivided attention into them.

Fifth, allow yourself 15 minutes each day for decompression and quiet time. Give your body and your mind an opportunity to quiet and rest. Go for a walk. Take a hot bath. Get a stretch. Meditate. Either way, permit your mind to quiet down so it has an opportunity to recharge for the following day.

Step 4: Put Technology in its Place

By silencing distractions, such as smartphones, people begin to excel at their jobs, relationships and tasks. A cell phone is a crutch. It fools us into believing everything is an emergency, even when the situation is far from it. When people let go of the need to connect, they get better at sleeping, they come to work refreshed, they learn to trust their instincts, and they begin to rely on their skills and knowledge. In short, they become better leaders, better middle managers, and better employees. They also become better spouses, better parents and their quality of life grows.

First, use your Do Not Disturb function on your phone. Schedule it to turn on from 8pm to 8am each morning. This will ensure time each night is spent focused and dedicated on your personal well-being. In this time period, you can exercise, spend time in uninterrupted conversation with friends and family, sleeping and resting up for a more productive day following.

Second, do not permit technology in meetings. If you are hosting a meeting, make it known on the invite and in the agenda that your meeting is a no-phone zone. If you’re going to be cutting down meetings to 15-minute increments, every minute requires each participant’s undivided attention.

Third, make your dinner table a no-phone zone. If you are out to dinner with friends, make a deal that the first person to look at their phone has to buy dinner. If you are at dinner with your family, put all devices away and keep them off the table. Use that time to make genuine connections with those you are dining with.

Fourth, use smartphone apps to silence your phone throughout the day when you are otherwise committed to scheduled activities such as checking email, focusing on projects or accomplishing tasks. You will maximize your productivity when you keep your focus exclusively on one task as a time instead of allowing yourself to be distracted every few minutes.

Step 5: Gift Your Time

Our society depends on each of us to give the gift of our time to charitable causes and be purposeful in how we contribute to our community. Choose how you will contribute to causes that matter to you and your community. Be intentional in scheduling time to volunteer, donate and help others. Reflect back on Step 1 and what you listed as your priorities. Decide how you will contribute to aiding those causes and make the commitment to follow through.

Remember, Attention isn’t a little thing. It’s everything. What you focus on grows. What you don’t, goes. Decide what gets your attention, and allow that to become your future. Are you up to the challenge?

Categories
Accounting Economics Entrepreneurship Industries Investing Personal Development Taxes

Maximizing the Value of Your Carried Interest

After the passage of the 2017 Tax Cuts and Jobs Act (ACT), many people are wondering how to maximize the value of their carried interest. There are some changes in the ACT that might affect how you proceed when selling or transferring your carried interest to achieve long-term capital gain treatment. These rules apply to taxable years ending after December 31, 2017.

NEW THREE-YEAR HOLDING RULE

Perhaps you’ve heard of the new three-year holding rule but you’re not sure if it applies to you.

Distributions and gains passed thru to you because of your carried interest

To receive long term capital gain rates (20%) on gains or distributions associated with your carried interest from the fund, the underlying investment at the fund level must be held for more than three years.

Sale or redemption of your Carried interest

If you decide to redeem or sell a portion or all your carried interest, your interest must be held for more than three years to get the long-term capital gain rate treatment.

Additional guidance from the IRS is needed to see if the underlying investments at the fund level must also be considered when you sell or redeem your interest.

Planning Point: The good news is that if stock is distributed to you and it has not yet met the three-year requirement, you can use the fund’s purchase date of the stock and hold on to it until it satisfies the three-year requirement to achieve long-term capital gain rates.

TRANSFERS OF CARRIED INTEREST-HIDDEN TAXABLE EVENT

Prior to the ACT, when you gifted your carried interest to a non-charity, typically your accountant would inform you that you may incur some gift taxes or if the proper structure was in place, no gift taxes at all.

Now, with the passages of the new ACT, you may get a call from your accountant asking you to not only pay gift taxes, but income taxes as well.

What? Income taxes? Yes.

Now, when you sell, transfer or gift your carried interest to a person related to you, you may recognize a short-term capital gain.

How much? Well, it’s complicated. That’s tax simplification.

Who is this person related to you? Well, that’s changed too. Now it includes not only your relatives but your colleagues, vendors and current or former employees.

Planning Points: Make sure that you talk to your tax advisor before making the transfer. Try to do the transfer on January 1 or December 31 when the fund can value the fund assets.

ENTITIES SUBJECT TO THESE RULES

These rules apply to individuals, trusts and estates, but not corporations.

Planning Point: It may be possible to hold the carried interest in an S Corporation and avoid these rules.

TYPES OF BUSINESS SUBJECT TO THESE RULES

The ACT only applies to partnership interest (which may include limited liability companies) that hold entities that raise or return capital from investors (VC’s, PE’s and hedge fund managers), investing in, disposing of, or developing securities, commodities, cash options or derivatives, (investment fund managers) and real estate held for rental or investment.

Entities not subject to the ACT

Farmers that hold land in which they actively farm are not subject to these new rules. Additionally, these rules generally should not apply to “profit interest,” granted to service providers who are employed by a related but separate entity (e.g. a management company).

The rules also do not apply to gains attributable to any asset not held for portfolio investment on behalf of third-party investors. We will have to wait for more guidance for this definition.

There are still many unanswered questions regarding these new rules, with hopefully more guidance coming from the IRS and Congress. Practically speaking, if you’re involved in investments, and hold the assets for more than three years, then these new rules will not have much impact. Furthermore, California has not adopted these rules.

However, there are still numerous traps for the unwary. At GROCO, we assist high net worth clients and their families with wealth creation, family transfers, taxes and charitable giving. Please give me a call at 510-797-8661 if you need assistance or have questions on these new rules or would like to know how to make, keep and/or transfer your wealth.

Categories
Accounting Best Practices Entrepreneurship Health and Wellness Industries Management Marketing Skills Technology Women In Business

Maximize the First 30 Minutes of Each Day

How do you set the tone and maximize productivity at the beginning of each day? Do you give yourself space to map things out or are you more of a wing-it kind of person? I believe how you START your day, sets the intention and momentum for how the rest of the day’s will transpire. When you begin with 30-minutes of focused attention to what really matters most –  that time will pay generous dividends by the end of the day.

Here are strategies maximize productivity and ensure a successful day in the first 30 minutes:

  1. Turn OFF your phones. It’s all right. That magical device that is glued to hands seemingly every waking minute of the day, delivering phone calls, chats, text messages and emails at an often-alarming rate does turn off. So does the desk phone! Take 30 minutes to create space for focus. It will all be there when you turn it back on. It’s just an hour. And there’s voicemail! If it’s important, they’ll leave a message or call back.  If you want to maximize productivity – turn off your phones.
  2. Close your door. If you’ve got one. This sends a signal to your team (or your family if you are a work-from-home entrepreneur) that you are unavailable unless there is an emergency. If you are new to the practice, educate your team what procedures you want to have in place when your door is closed. Once everyone is on board that this is your time to create, get strategic, work a business plan, and map out your day, they’ll recognize the importance. Especially when they see the RESULTS.  If you are forced to work in an open environment, consider headphones. I used this technique in one organization, and people eventually got the idea that when your headphones are in, it’s the equivalent of a do-not-disturb sign.
  3. Use smart time-blocking. My recommendations? Book all meetings to start after 9.00 am. If you’ve always had early morning meetings, this might be a tough change, but if needed, can you start your “clock” an hour earlier to ensure that you have a full 30 minutes to complete your planning?
  4. Start off-site if possible.  Can you complete your 30-minute mindset and strategy session BEFORE you walk through your office doors? That way when you are actually in office – you hit the ground running. Once you’ve mastered this, teach your team. Once they’ve mastered it – your Key Performance Indicators (KPIs) will go through the roof. A study done by Ctrip shared that remote workers are able to complete 13.5% more than their comparable office workers. How’s that for food for thought.
  5. Quit the clutter. Seriously. Inboxes. Coffee cups. Paperwork piles. These distractions are stealing brain bandwidth and steering your attention away from streamlining your day. Out with them!  Maximize productivity by decreasing visual distractions.
  6. Check off that early morning workout. If you can muster it, get your exercise out of the way first thing. Start small if you have (15-30-minute increments) but do start. You’ll feel like you’ve already checked one big daily goal off your to-do list! Cheers!
  7. Nix the gossip in the bud. Honestly, gossip is one of the biggest time, energy, and productivity drains an organization can have. We Aussies call a gossip a “flibbertigibbet”. Studies show that 39% of workers admit that gossip and workplace chat are their biggest productivity killers. Another study conducted by Equisys also shared that the average employee spends 65 hours a year gossiping in the workplace! Cull this invasive “thief” from your company if you truly want to maximize productivity.

Starting your day in planning mode will help you stay focused, on track, and set the right tone for not just your day – but that of those around you. Lead by example. Pay ATTENTION to the INTENTION you set for each day. Your productivity, profitability, and bottom-line results will reflect your efforts!

Categories
Best Practices Entrepreneurship Human Resources Industries Management Marketing Personal Development Women In Business

Don’t Believe Distractions Cost? Think Again!

Did you know it takes, on average, 23 minutes to refocus your mental effort and energy on a task after being interrupted?

Have you ever considered how many times you’re interrupted in a day?

We all know interruptions hamper productivity and make trying to accomplish even the smallest of tasks frustrating, and seemingly endless.  Consider this – If you spend a total of 5 minutes, five times per day responding to text messages and reading social media, you’ve spent (maybe wasted!) 25 minutes of work time. Even still, when you consider it takes our brains 23 minutes to refocus on our tasks at hand for each interruption, you start to see those 5 simple tasks actually cost you almost 2.5 hours in lost concentrated focus and productivity.  How do I know this? Because I have been guilty of this too.

You see, a distraction costs more time than just the activity. It costs us mental space and time to refocus afterward.  This realization helps me to focus when I get off track.

A study was performed by info-tech researcher Basex and found distractions cost U.S. companies $588 billion per year in lost productivity. Imagine how much of that money could have been saved if employees were able to avoid distractions and stop interruptions.

Crazier still, a researcher of digital distraction at the University of California, Irvine found approximately 50% of the distractions were self-induced! Our curiosity to know what was going on in the world on the news, social media, emails, or other people’s lives are creating our productivity demise.

Attention is Key! Attention is vital. A few steps toward mindfulness can help you save time and boost productivity:

1. Count your interruptions. For two days, keep a running list of the distraction types and the number of times is occurs (you will be shocked!). Start proactively finding solutions to stop the self-induced time killers.

2. Master your schedule. Choose brief, 15 minute increments, within your calendar that permit you to take a break, respond to others and allow your mind the downtime it deserves (and craves).

3. Utilize technology to save you from technology. Use apps on smartphones to silence distractions. Better yet, turn them off or use the Do Not Disturb feature until a time you’ve chosen to take a scheduled recovery break. I love the Freedom App.

4. Prohibit devices. Create a no-phone policy for some meetings and important conversations.

5. Schedule. Schedule. Implement tools that manage your time spent online, such as the Freedom App.

6. Do Not Disturb. Allow employees to create Do Not Disturb work times on their calendar where they can truly unplug from email, visitors and disruptions.

7. Go public. Get accountability. We have conditioned ourselves to be available to others all day and every day. Stop. Send messages to your friends, family and colleagues sharing your commitment to productivity. Explain your new schedule has time allocated to respond to their needs. Reset their expectations for your return phone calls, text messages and mid-day visits.

8. Unplug from social media. Consider taking a social media detox to help clear your head of the need to be plugged in. If that seems too radical, consider establishing one or two 15 minute periods of time in the early morning or evening that allow you to log on and play.

9. Choose one day per week. We all want to personally check in with coworkers and establish relationships with our peers. So do it! Only, limit it to one day per week. For instance, Wednesdays allow you find out how their weekend was and hear about their upcoming plans.

10. Weekends are for fun. When you make focus and attention a priority during the workday, make fun and relaxation a priority on the weekend. This will give you the time needed to recalibrate and rest, which will improve your attention and focus throughout the week.

With a few changes and a commitment to focus, your productivity will soar as will the results of those efforts. When you choose to become the Attention Ambassador in your workplace, others will begin to see Attention Pays.

Categories
Accounting Best Practices Economics Entrepreneurship Health and Wellness Human Resources Industries Investing Management Marketing News and Politics Skills Taxes Technology Women In Business

Don’t Play With Your Emotions

“Exerting greater control over your emotions will allow you to exercise greater control of your life.” -Greg Williams, The Master Negotiator & Body Language Expert

 When you engage in life, don’t play with your emotions. Anytime you’re unsure of which path you should take, don’t play with your emotions. That doesn’t mean that you should consider options devoid of your emotions, it means, attempt to think of your options without the emotional attachment that might saddle itself to those options.

By eliminating the emotional aspect that might go into your decision-making process, you allow your thought process to be driven by logic. After you’ve assessed a situation from a purely logical perspective, you can test your sense of direction by considering the emotions that might be the co-pilot of your decision.

Sometimes people allow their emotions to lead their actions. They toss logic aside. Allowing your actions to be driven by emotions alone can lead you into dangerous situations; “I don’t know why I did it; I must have been temporarily insane.” Those may be the afterthoughts you have if you don’t control your emotions before delving into a situation.

To maintain greater control of your life and those that surround you, always seek to control your emotions. Don’t play with them! Once you learn to have greater control of your emotions, you’ll have greater control of the environments you engage in. You’ll also find that your emotions serve you better. So, always seek to keep your emotions in check … and everything will be right with the world.

What does this have to do with negotiations?

In every negotiation (you’re always negotiating), emotions dictate how you’ll engage in the negotiation. Thus, your emotions will drive your actions if you don’t curb them. It may not be very easy to control your emotions at times when negotiating, but if the opposing negotiator senses that he can control you by controlling your emotions, he’ll play you like a drum. You’ll dance to any tune he decides to play.

Before entering into a negotiation, know the hot points that may cause you to lose control of your emotions; your hot points are also called triggers. Being aware of the triggers that may provoke different emotional reactions in you, allows you to prepare the demeanor you wish to display, versus one that would hijack your real-time display of emotions. Such displays can cause you to lose control of the negotiation. By not displaying a demeanor the other negotiator expected, you’ll initiate doubt within him about the strategy he’s employing in invoking such triggers to maneuver you.

Suffice it to say, controlling your emotions allows you to have greater control of yourself and the other negotiator, and everyone knows, he who controls the negotiation has a greater chance of controlling the outcome of the negotiation.

 

What are you thinking? I’d really like to know. Reach me at Greg@TheMasterNegotiator.com

To receive Greg’s free 5-minute video on reading body language or to sign up for the “Negotiation Tip of the Week” and the “Sunday Negotiation Insight” click here http://www.themasternegotiator.com/greg-williams/

Remember, you’re always negotiating.

#HowToNegotiateBetter #CSuite #TheMasterNegotiator #ControlEmotions #Psychology

Categories
Accounting Best Practices Economics Entrepreneurship Human Resources Industries Investing Management Marketing News and Politics Skills Technology Women In Business

How to Use Reverse Questioning to Win More Negotiations

“The degree of success you experience in life and in negotiations is based to a degree on asking the right questions successfully.” -Greg Williams, The Master Negotiator & Body Language Expert

You no doubt know what reverse engineering is, right? Reverse questioning in a negotiation is the process of identifying the questions you need to ask in order to obtain the answers that will lead to a successful negotiation outcome. It’s also a way to identify how you’ll control the flow of the negotiation.

As a quick example, if you wanted to exit a negotiation paying $1,000 for a product you’d work from the outcome sought back to the beginning of the negotiation; you might also consider working back from that point to how you would position yourself prior to entering into the negotiation. To perform the latter, you’d assess the requirements needed (i.e. how you’d position yourself) to have your persona projected in a certain light/manner.

The following is what the step-by-step process would look like.

  1. Identify the most and least favorable outcome you’ll seek from the negotiation, along with why you’ve identified those points of juxtaposition. As a benefit, having that insight will help you identify exit points from the negotiation.
  2. Assemble a list of questions that might be asked of you as you would go through the negotiation.
  3. Create answers to the questions posed in step 2 that are needed to drive your efforts towards a winning negotiation outcome, while formulating questions you’ll ask to keep the negotiation on track; these will be your defensive questions. Identify points where you can answer a question with a question; remember, the person asking the questions is the person controlling the negotiation. That’s due to the fact, that person is gaining more information.
  4. Once you create and address step 3, create a list of questions that you might ask of the other negotiator that’s separate from the ones you might use to respond to his questions; these will become your offensive questions. Offensive questions are questions that move your negotiation efforts quicker towards the end of the negotiation; they are questions that the other negotiator has to agree with because they’re based on what he’s previously stated as his beliefs or truths; you’ll be weaponizing his thoughts and questions against him. Some of these questions will also come in the form of questions that answer questions.
  5. Assess how the opposing negotiator might respond to your scenario.
  6. Continue going over steps 1 through 5, in an attempt to uncover additional questions that you’d not considered that need to be included in the process.
  7. Once you feel you’ve honed the questions to a point that the other negotiator has to follow a prescribed path that you’ve created for the negotiation, test your hypothesis in a mock negotiation. This will allow your questioning process to become more refined and may uncover better/additional questions.
  8. Once you feel totally prepared to utilize your questions in a negotiation, do so. Engage with the confidence in knowing that you’ve created a stealthy way of capturing better information as you go throughout the negotiation.
  9. Save your questions in a repository to be used for comparison to past and future negotiation situations.

 

The wrong question asked at the right time in a negotiation may do incalculable harm. The wrong question asked at the wrong time in a negotiation may lead to a negotiation impasse. Create and test your questions before entering into a negotiation and you’ll have more of a chance to reach a successful negotiation outcome … and everything will be right with the world.

After reading this article, what are you thinking? I’d really like to know. Reach me at Greg@TheMasterNegotiator.com 

To receive Greg’s free 5-minute video on reading body language or to sign up for the “Negotiation Tip of the Week” and the “Sunday Negotiation Insight” click here http://www.themasternegotiator.com/greg-williams/

Remember, you’re always negotiating.

#HowToNegotiateBetter #CSuite #TheMasterNegotiator #Bully #Question

#psychology

Categories
Accounting Best Practices Economics Entrepreneurship Health and Wellness Human Resources Industries Investing Management Marketing News and Politics Skills Taxes Technology Women In Business

Don’t Hurt the Leader’s Position

“A leader is someone that possesses the ability to successfully lead others from the front or the rear. Always know the position of your leader.” -Greg Williams, The Master Negotiator & Body Language Expert

When someone is serving as the leader of your team and you’ve agreed to give them your support, follow their lead; don’t hurt them or your team by engaging in intended or unintended subterfuge.

In the daily activities of everyone’s life, everyone follows someone. Thus, those that you follow have influence by the fact that you anoint them as someone to lead you. You embolden them with that privilege by the fact that you follow their edict/mandate/suggestions. That being the case, don’t undermine the leader by:

  1. Going off-point per a strategy that has been discussed and agreed upon (e.g. going around the leader to gain attention for yourself, etc.)

 

  1. Engaging with outside sources that have not been agreed upon – make sure the leader knows what you’re planning to do

 

  1. Creating ad-hoc strategies when you’re in the midst of interactions with those that are not on your team/group

When you subvert the direction of the lead that you’ve granted to someone, you forgo potential opportunities, and diminish your team’s ability to implement the plan that’s been agreed upon; that can be costly in time and opportunities. You may also be cloaking into darkness the light of opportunities that may have shown themselves to you in the future (i.e. if you prove not to be a team player, no one will want you on their team.)

If you’re going to be a team player, play follow the leader by supporting the person that you’ve chosen to follow. Do so to the degree that such returns are beneficial to you and the team. Once you decide that you no longer wish to engage, inform the leader of your intent and disengage. Don’t just drop out without any communication. If you restrict the flow of communications, you don’t know what potential door(s) you’ll close that might have offered opportunities that could lead you to higher heights.

As long as you’ve decided to follow the leader, don’t hurt her. You’ve made a conscious decision to allow her to lead. So, follow her lead as long as it serves you and her … and everything will be right with the world.

What does this have to do with negotiations?

In a team negotiation environment, the leader of the team can position and pose as any of its members; it doesn’t have to be the person that projects the image of a leader at the negotiation table. Depending on the strategy chosen by the team, the leader may pose as someone that’s in a strategic position for a particular negotiation. He may also be positioned as someone that a senior person on the team can replace once the negotiation has reached a certain point.

The point is, once you have a strategy in place, don’t undermine it by undermining the person that’s the lead for the negotiation. Not only will you be weakening her, you’ll also be weakening your team’s negotiation position and the perspective beneficial outcome of the negotiation for all of you.

 

What are you thinking? I’d really like to know. Reach me at Greg@TheMasterNegotiator.com

To receive Greg’s free 5-minute video on reading body language or to  sign up for the “Negotiation Tip of the Week” and the “Sunday Negotiation Insight” click here http://www.themasternegotiator.com/greg-williams/

Remember, you’re always negotiating.

#HowToNegotiateBetter #CSuite #TheMasterNegotiator #Leadership