The Power of Reciprocity in Manufacturing Leadership and Negotiations
Key Insights for Manufacturing Owners and Executives:
Value Creation: When you provide value to others, they often feel compelled to reciprocate, benefiting both parties.
Proactive Support: Leaders in the manufacturing sector, much like the Super Rich, find success in actively seeking opportunities to assist others.
Negotiation Tactics: Aim high in negotiations (ask for the stars) to ultimately achieve your desired goals (the moon).
In the manufacturing industry, success isn't just about managing operations and finances; it's also about building strong relationships and maximizing your impact both within your company and in the broader business community. A significant element that might be limiting your potential is the underutilization of the reciprocity principle.
While you may already be contributing positively to those around you, there's a strategic way to do this that can significantly enhance the benefits you receive in return. This approach, commonly used by individuals with substantial net worth, is based on the concept of reciprocity. It involves proactively offering value to others, which often leads them to reciprocate.
Understanding the Law of Reciprocity:
When you do someone a favor, they naturally feel indebted and are inclined to return the favor. This principle, while not a strict rule, is a deeply ingrained cultural norm. It fosters interconnectedness and encourages a culture of sharing and collaboration, essential in the manufacturing sector.
Examples:
Free samples in stores prompt customers to make a purchase in gratitude.
Contributions to politicians are often made with the expectation of policy favors in return.
Failing to reciprocate can lead to social repercussions, such as being labeled negatively. Thus, reciprocity is a powerful tool in influencing others and achieving desired outcomes.
Applying Reciprocity in Manufacturing Leadership:
In the manufacturing industry, leaders can leverage this principle by proactively offering solutions and assistance without being prompted. This not only builds goodwill but also establishes a foundation for future support and collaboration.
Reciprocity in Negotiations:
In negotiations, whether for contracts, partnerships, or internal projects, using the reciprocity principle can lead to more favorable outcomes. For instance, starting with a high initial demand (the stars) makes your actual goal (the moon) seem more reasonable by comparison, encouraging the other party to make concessions.
Practical Tips:
Clearly define your negotiation goals (the moon).
Set ambitious targets (the stars) to create room for negotiation.
Make your concessions clear to emphasize your flexibility and reasonableness.
Conclusion:
For manufacturing owners and executives, adopting a reciprocity mindset can be a game changer in achieving business success. It enhances negotiations, strengthens relationships, and fosters a collaborative environment, crucial for growth in the manufacturing sector. By understanding and applying this principle, you can significantly advance your goals and contribute more effectively to the backbone of our economy – the manufacturing industry.
About the Author
Jason Glisczynski, CPWA®, CFP®, CAS®
CERTIFIED FINANCIAL PLANNER™ Professional
Jason specializes in helping individuals with planning for retirement and has nearly 20 years of advisory experience, is a Certified Private Wealth Advisor® professional, CERTIFIED FINANCIAL PLANNER™ professional, an Investment & Wealth Institute® member, and author of the International Best Selling Book Planning with Purpose: Solving Your Unique Retirement Puzzle.
Jason Glisczynski is co-owner and principal advisor for Silvertree, LLC. Investment Advisory Services are offered through Brookstone Capital Management (BCM) LLC, a Registered Investment Advisor. Silvertree, LLC and BCM are separate companies.