Leadership 7th Edition by Andrew DuBrin, Ann Fisher, Andrew DuBrin

Exercise 11

Heather Wyoming was feeling great because she believed that today would be a turning point. As the director of marketing for West Coast Wellness, she was to meet with the executive committee, which included her boss, the CEO. Heather's purpose was to get approval to hire three new sales and marketing representatives. The meeting to discuss her plans took place at 8:30 A.M. A partial transcript of the meeting follows:
Heather: Thanks so much for meeting with me this morning. In appreciation, you can see that we have snacks that will make you well. All the pastries, doughnuts, and bagels are made without trans-fats. And all the juices served are freshly squeezed.
I am glad to see that you are looking well, because today we are celebrating wellness. West Coast Wellness is on the go. We have signed up six new companies and three HMOs in the last few months to use our services. We have also broken the ground by offering individual memberships.
I need your approval to hire three new sales and marketing representatives so we can keep the momentum rolling on our expansion.
CEO: How much will these new hires cost West Coast?
Heather: No cost at all. We will be investing about $30,000 per year for each rep. They will be working on mostly commission. I estimate that each successful rep will bring in a net of about $200,000 in revenue. So there is really no cost involved.
Exec Committee Member 1: Yet, Heather, we cannot overlook the fact that you want to bring three new employees on board, a situation that creates an immediate financial liability for West Coast Wellness.
Heather: I understand your point of view. If the reps produce nothing, we lose a lot of money. However, by hiring the right reps we will turn this potential liability into a great asset. I understand the need for prudent financial management, but I think I am asking you to take a prudent risk.
Exec Committee Member 2: The regional economy has cooled down considerably, and there are many layoffs. Heather, what makes you so optimistic that we can expand the market for wellness services?
Heather: I share your concern about the economy. However, keeping employees well is a fabulous investment. We can demonstrate to potential clients that helping employees stay well increases productivity. When employees lose fewer days to absenteeism and less time to tardiness, they are more productive. Another great selling point we have is that when employers use our services, their medical insurance premiums typically go down.
Exec Committee Member 3: Heather, we all share your enthusiasm for wellness-otherwise, we wouldn't be members of the executive committee. But I am a little concerned that the market for our services is saturating. Hiring three more reps might be too optimistic.
Heather: You make a great point, yet awareness of wellness is on the rise. Companies are even giving workers financial rewards to get in shape. Obesity is being attacked on all fronts, and smokers are treated like criminals. Wellness is on the move, and we can get a bigger share of the market.
CEO: Heather, I am proposing to you and the committee that you begin by hiring one new sales and marketing rep. If that person proves to be a good investment, we will authorize you to hire another rep.
Heather: I can buy that logic. Just give me a chance to prove how much I can expand our market. I just want to get started on the path to success. One rep it is for now.
How successful has Heather been at negotiating her demands?