Conflict Resolution Retail
Joseph Pangilinan, Turnaround Manager, Philippines, Member
Apply the 4 Steps of the
Evaporating Clouds Technique, which identifies conflict elements and generates win-win strategies:
(1) What are the conflicting demands? E.g. "to discount or not to discount."
(2) What are legitimate reasons behind each demand? For example, customer wants a "discount" mainly to reduce cash disbursement. Retailer does not want to give a "discount" say, to increase retailer's profit margins. There may be other reasons.
(3) What is the common goal of both parties? E.g.: long term, mutually profitable relations.
(4) What innovative ways, win-win strategies, may we apply to satisfy the legitimate reasons, without necessarily having to comply with the conflicting demands? So in this case: in what ways may we lower customers' cash out, besides having to give up a discount? Also, in what ways may we increase retailer's profits, besides withholding discounts? Some ideas: easier payment terms, faster delivery, improve product or service specs, try third party financiers, lease/ rent, etc.
