Sat, 19 Dec 2009

Vested Interest . . .

We all approach life with a vested interest -- a special interest in an existing system, arrangement, or institution for particular personal reasons [source]. Because the term has a negative connotation, we want to blame the other guy -- the lobbyist -- for having a vested interest, while we see our point of view as, somehow, pristine. But the truth is, lobbyists are little different than the rest of us, they just get paid to represent some group's point of view. Our vested interests arise from elements which benefit our goals. For everyone, their goals can be reduced to a simple statement

maximize profit.

Anything which increases profit is good. Anything which decreases profit, not so good. So how do you deal with someone with a vested interest -- which we have said is everyone?

The first step in dealing with anyone with a vested interest is to figure out what the profit is. For a business, or anyone representing a (group of) business(es) it's pretty simple, profit is the money which goes to the owners of the business. In general, the formula is pretty simple too:

profit = revenue - expenses

Anything which increases revenue and/or decreases expenses is good. Anything which decreases revenue and/or increases expenses, not so good.

For nonprofit organizations, profit can be a bit more nebulous. (By the way, just because the enterprise is nonprofit, doesn't mean that someone isn't making a great deal of money from that enterprise. Remember, individual salaries, bonuses and benefits are part of expenses in an organization.) Generally, a profit is anything which benefits the cause for which the organization was formed. Nonprofit organizations can also represent profit-making enterprises. In this case, anything which benefits the bottom line of those enterprises is a profit.

For a politician, the profit can be even more nebulous. It generally involves getting reelected. Anything which helps get the politician reelected. -- good. Anything which contributes to a lost election, not so good. The vested interests are usually displaced as they are the interests of the individuals and groups which help get the politician reelected. and are thus displaced by some degree from the actual politician themselves. The interests are as diverse as the people who support a politician, but are generally loosely focused around the politicians political leaning and the area which they are elected to represent. Thus, you might see a conservative politician being reelected to congress, just because he is successful at bringing the pork back to their district, even though they may not represent the overall political leaning of the people of the district. To find the vested interests of a politician, you usually have to follow the money which helps elect them back to the contributors and, thus, to their interests.

Individuals have vested interests, also. They generally are the same as anyone else. Those things which benefit me -- increase my salary, assure my employment, support my lifestyle, protect my family -- are good. Things which harm me either directly or indirectly, not so good. Because individuals are usually part of some other group -- business owners, unions, religious groups -- their interests sometimes become part of that larger universe.

So, how do you deal with someone with a vested interest -- which is everyone? The first thing is to figure out what their goal -- their profit --actually is. In many cases, it may not be what they have stated. In any interaction, each side takes a position. This is something which supports their interest. Generally, they are willing to change their position, but not their underlying interest. The key is to make YOUR position seem like it benefits THEIR interest in some way so they will come at least part way to meet your position and thus benefit YOUR interest.

The first thing you have to do is to try to fully understand their interest. You need to get into what their profit is and how it is derived. To know this, you have to understand their sources of "revenue" and their "expenses". Once you understand this, you can look at your interests and position and find where they align with the other party's. You can adjust your position, even if only slightly, and tailor your message to (seem to) benefit the other party's interest. This will allow the other party to see that your position and interests are of some benefit to them and, hopefully, come more toward your position and interests.

Seem simple? It's not. It's probably one of the most difficult things we have to do in life. But, we need to work at it -- all of us, all the time.

posted 09:17 [/Economy] permanent link