Joe and Sharon were at loggerheads with each other and neither would budge from their stance.
Joe was the general manager his company’s southern territory and Sharon managed the northern territory. They both reported to Phil, the marketing director.
The fight was over sales staff numbers and advertising spend. Joe’s territory had traditionally generated the most revenue and had 20% more sales reps and advertising budget.
Sharon argued that her territory had grown tremendously over the last four years and she needed more reps and advertising budget to capture the revenue opportunity.
Phil put the business case to the CFO and couldn’t get the extra resources for Sharon. Instead he asked Joe and Sharon to negotiate with each other to see if they could share the department’s total allowance in a way that might optimise the situation.
Phil wanted to see what values and skills both Joe and Sharon exhibited in this negotiation. So far all he had seen was inflexibility and emotion from both.
Phil called them both into his office.
“I wanted to see whether you could step up and look at the bigger departmental picture. I wanted to see how you’d go resolving this challenge. What do you think I’ve been witnessing from you both?”
Silence answered Phil.
“OK, Joe what’s your position?” asked Phil.
“I need all the reps and advertising I’ve got to keep the revenue from falling” answered Joe.
“And Sharon, what’s your position?” Phil asked.
“I need more reps and advertising to capture the growth in the territory” shot back Sharon.
“OK, forget your current role and imagine you are in my position. Given the arguments you’ve both presented, what would you do?” Phil queried. “Remember we can’t get any more reps or advertising budget for the department.”
Joe remained silent and Sharon spoke up and said “Well, I can prove a return on investment by borrowing reps and budget from Joe.”
Joe piped in and said “But that will be offset by me losing revenue in my territory”
Phil said “OK now look at it from the department’s position – what would be best for the department, longer term?”
Joe then said “That’s fine but my performance bonus will be affected now.”
Phil asked “Sharon, what do you have to say about that?”
Sharon thought for a moment then said “Let me borrow two reps and 10% of Joe’s budget and share our performance bonuses proportionally for the period and prove to the company that we need to retain Joe’s staff and budget and grow mine to cope with the market opportunity?”
Phil looked at Joe who thoughtfully nodded.
Later Phil knew the adjustment he’d have to make to the succession plan.
What are the lessons from this experience?
