EV, Expectation Value, Negotiations, Relationships
Do you value all relationships equally for the Asia-Pacific markets?
Your answer should be no. We may all have a sense and have been told that relationships dealing with Confucian cultures are important. But the better question is, “Why do place value on relationships?” It is generally for the expected value (EV) derived or desired relating to a particular relationship where negotiation, persuasion, and influence may be needed. Your relationship calculation is based on all the information available to you (both public and non-public).
Thus prioritize the relationships into the following matrix:
Y axis (Time): Short-term, Medium-term, and Long-term
X axis (EV): Low, Medium, and High
The strategic question is thus, “Which matrix box does your relationship fit in?”
The higher your EV, the more resources in terms of time, energy, and economics should be invested into the relationship. Conversely, if your relationship EV is low, then you should strategically minimize your exposure for the sake of the relationship.
Your family will likely have a high relationship EV. The person selling you a used hat at the local flea market will likely have a low relationship EV. Your relationship EV calculation should be done in the preparation (pre-negotiation) stage. This is then constantly calibrated as more information and details become available and are incorporated into your EV matrix.
This strategy in effect reverse engineers your desired relationship outcome. You first decide what you expect and/or aspire towards in the relationship, and then work backwards to step one.
Your relationship EV calculation will clarify exactly what relationship you want, incorporating why you want such relationship level.