WOMEN’S INITIATIVE TEAM | issue Twenty-Six

©2015. Produced by Andrews Kurth’s Women’s Initiative Team.

Welcome

Letting someone “sleep on it” allows them to reconsider...

Continued on page 2

We’re all salespeople. Our job titles may not have anything to do with sales, but in just about every relationship in our lives—from bosses and customers to friends and family—we’re at least occasionally selling something. Very rarely are we trying to sell a product, however. Most of the time, we’re simply trying to delegate a task, coax a toddler to eat or convince a hostess to give us a table even though the rest of our party hasn’t arrived.

Regardless of whether money changes hands, though, it’s all sales. Salesmanship, after all, is simply persuading someone to spend money. The rest of the time, we’re simply selling our point of view, our desires or our convictions. Being persuasive is more art than science, however—although there has been a fair amount of science on what works and what doesn’t. For this issue of Straightline, we’ve compiled some of the best tips for being persuasive at work, at home and everywhere in between.

YOU CAN’T HACK IT

Ultimately, our most persuasive trait is our character, as revealed over months and years of getting to know another person. Assuming we have proven ourselves as someone whose

Illinois University found that the simple addition of the phrase “but you are free” doubles the chances of someone agreeing to a request. The researchers found that subjects were more likely to donate to a charity, agree to take a survey or give money to a stranger asking for bus fare if the request is followed up with “but you are free not to” or “but obviously don’t feel obliged.” The success of the phrase appears to be that the sentiment reaffirms the listener’s freedom of choice. The two most important elements of success, researchers found, were the immediacy of “but you are free” (it must be stated as soon as possible after the request) and the fact that the request is made face-to-face. The technique doesn’t work as well over the phone or in a letter/email.

‘BECAUSE’

Another technique that increases com-pliance is the use of “because.” Even if the

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you’ve worked on. If you suspect your boss will ask how you can take on the project on top of your current workload, be ready with a solution. Reciprocity is another powerful persuasion tool. In politics, it’s known as logrolling— voting for another legislator’s bill in exchange for their support for yours. Sure, it’s how we’ve achieved a multi-trillion dollar deficit and a tax code the size of Montana, but it’s also how dams are built and political careers are made. When it comes to persuasion, reciprocity often has more currency than actual currency. Recall that the Godfather, Don Vito Corleone, traded in favors as often as he did cash. Your favors don’t need to be as life or death as Corleone’s, or as expensive as a new weapons system, to be valuable to the person you’re seeking to persuade. It could be as simple as an offer to recommend a co-worker for an assignment in exchange for their support for your proposal, or even “I’m happy to pick your kids up from softball practice if you can drive mine over there.” Particularly when a person’s time is just as valuable as their money, the simple act of reciprocity can be key to making a deal happen.

SLEEP ON IT

Patience is another underrated persuasion tool. Letting someone “sleep on it” allows them to reconsider what may have been an initial rejection. Sometimes they may come up with reasons to accept your proposal on their own, but sometimes all that’s needed is for you to plant the seed of an idea and allow the other person to let it sprout into something more fully fleshed-out and acceptable. If your proposal is initially met with ambivalence or even rejection, it’s possible that they will change their mind over time. So it’s wise to stay in touch and make sure they know your offer still stands.

‘BUT YOU ARE FREE’

A 2012 study by researchers at Western

word can be trusted, we’re most persuasive with those we know the best. No amount of persuasion “hacks” or psychological tricks, however, can overcome a track record of missed deadlines, tardiness or general lack of integrity. So to set yourself up for optimal persuasiveness, having a reputation for being trustworthy is the best sales tip around. But how can we win over relative strangers or the difficult to persuade (e.g., an irate customer)? An ability to build rapport with others is key, and is the centerpiece of persuasion tactics espoused by the popular sales bible, How to Win Friends and Influence People, by Dale Carnegie. Sincerity is tough to fake, though. If your goal is to improve your ability to win others over to your way of thinking, there’s no substitute for having a genuine interest in and respect for them and their point of view. At a minimum, learn their names. But asking questions about them and paying full attention to their answers (a difficult task in the pres-ence of our omnipresent electronic toys) can help establish camaraderie with even a passing acquaintance. When appropriate, a sincere compliment can go a long way. But wield this tool delicately, as an insincere compliment can do more harm than good. As a general rule, if you find yourself looking for something to compliment just so you can say something nice to the person, it’s probably a gratuitous compliment and should be avoided. But if you truly love the other person’s work—or just their earrings—make a point of mentioning it.

PREPARATION

As important as it is to have credibility and rapport with the target of your persuasion, it’s just as important to be meticulously prepared with facts to back up your position and responses to their potential questions or objections. If you’re trying to convince a supervisor to give you a particular project, be prepared to cite examples of similar projects

THE Art OF PERSUASION

The DOs & DON’Ts of Compliance with Anti-Corruption Laws

H O L I DAY I S S U E

Continued from page 1

PERSUASION

Certainly, capturing happy moments has value. And sharing them on social media can add to the experience. But when too much of your time at a special event is spent recording the moment for “later” and sharing it with people who aren’t there, you’re removing yourself from that moment and giving it only a fraction of your attention. Worse, you’re spending more energy on those who aren’t with you than on those who took the effort to accompany you.

But it’s not just social media taking us away from the things that matter (don’t even get us started on the rabbit hole called Pinterest). Media of all kinds are overwhelming us. Magazines, podcasts, books, newspapers, movies and TV (broadcast, cable and streaming) give us a never-ending flood of information and entertainment, much of it extraordinarily good and worthy of our time. Of course, staying up on current events and developments in our profession is important. And, for those of us who love to read, books and magazines keep our mind sharp and our conversation interesting. But there’s a limit to how much we can read, listen to and watch. To maintain your sanity, and maximize the time you spend consuming media that reflects your values, make your media consumption mindful. That doesn’t mean no Facebook or Real Housewives. After all, Facebook can help us stay abreast of our friends’ and families’ major life developments. And Real Housewives, well, everybody deserves a bit of junk food now and then. The key is making sure your media diet feeds all your needs—professional, literary, news, social and mindless—and deciding what proportion of your time needs to be spent in those various pursuits. Face it: Unless you do nothing else, you will probably never read all the news and professional journals you should be reading, and you’ll never make it through all the books on your Goodreads “to read” list. There will be entire TV series you’ve never seen a minute of and classic movies whose references you’ll never comprehend. And that’s OK. Just as with all your other obligations, decide what’s non-negotiable, what feeds your soul and what you can live without, and consume your media accordingly.

LIVING LIFE IN THE SIMPLE LANE

Living the simple life is definitely not a one-size-fits-all journey. But nobody ever achieved happiness by living according to someone else’s standards, so live mindfully, and make sure your calendar reflects your values.

...make your media consumption mindful.

simplicity your wayreason you’re citing doesn’t make much sense, if the favor is small enough, “because” seems to do the trick, according to Harvard psychology professor Ellen Langer. In her study, subjects asked to jump ahead of a line of people waiting to use a copy machine. Some asked to skip ahead and didn’t give a reason, some justified their request with the seemingly nonsensical “because I have to make copies” (not much of a justification for jumping ahead of others), and the final group asked to jump in line “because I’m in a rush.” Half the subjects asked to make 5 copies and half 20 copies. For those seeking to make just 5 copies, 93 percent of them were successful when they used “because,” even the “because I have to make copies” group. The 20-copy group was much less successful, only jumping ahead 24 percent of the time, even when they used “because.” The lesson, the researchers concluded, is that small requests are often granted mindlessly because the listener isn’t necessarily processing the information fully. They hear “because” and assume a sufficient reason for the request was given, so they go on a sort of autopilot and grant the request. Larger favors, however, don’t seem to be subject to the charms of “because.” For that, there are two final techniques.

FOOT IN THE DOOR

If you have a bigger favor to ask, first ask for a small, easy-to-grant favor; people are more likely to say yes to a bigger request if they’ve granted a smaller one first. In one study, a man asked 360 women he met on the street to go on a date. When he simply asked them out, he was only successful 3 percent of the time. When he first asked for directions or for a light for his cigarette (the foot in the door), he got the date 15 percent of the time.

DOOR IN THE FACE

The corollary to “foot in the door” is “door in the face.” In this technique, the asker first requests some-thing they know won’t be granted (and that they don’t even really want). Once that request has been rejected, they then ask for what they really want. One study that tested this approach involved a woman at a bar asking other patrons for money. In some cases, however, she would ask the patrons to buy her drink because her boyfriend had left without paying the bill. After the person refused, she would then ask for a much smaller sum of money. She received the smaller sum of money far more often when she first asked the other person to buy her drink than when she just asked for the small sum of money.

PERSUASION IS ALL AROUND US

The good news about persuasion is that, whether we realize it or not, we’re engaged in it on a daily basis in multiple parts of our lives. Whether we’re negotiating with co-workers, asking for a promotion or just getting our teenagers to clean their rooms, we’re all our own personal sales managers. Being more mindful of the techniques we use successfully in one part of our “sales job” can make us more effective at it in others.

If reading is your priority, grab one of these four titles to inspire ways to scale back, declutter and focus on adding value at home and work.

The Life-Changing Magic of Tidying Up | Marie Kondo

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L E A D

All the books, magazines and articles aimed at exhorting us to simplify our lives have, for the most part, only served to overwhelm those of us looking to live life in the simple lane. After all, if you’re already too busy, who has time to read an entire book, or even a magazine, telling us how to simplify? Besides, the definition of simple is different for each of us. An acceptable level of unscheduled time for one person may be soul-crushingly busy (or dreadfully dull) for another. To simplify the sometimes complex goal of simplicity, it helps to boil it down to one concept: ensuring that the bulk of your time and energy are spent, first and foremost, on activities that reflect your values and feed your soul. What “matters,” however, is different for everybody. For some people, building a business or enhancing a career is the main objective; for others it could be maximizing time in nature. Of course, time and energy spent nurturing our most important relationships are always worthwhile, as are investments in our health. But there are countless other possibilities, including volunteering, worship, music and hobbies. Each of us has the same 24 hours every day. Granted, many of the activities that fill our days are just the cost of being human. But not all of them are non-negotiable. If your workdays are filled with meeting other people’s goals, decide on one or two of your own (a promotion, a new job, etc.) and carve out some time each week to make progress on them. Whether it’s attending a networking event, polishing your LinkedIn profile or taking a prospective client to lunch, find time to make your goals a priority. As for your non-work hours, treat them as the precious commodity they are. Decide which activities most nourish you and actively seek them out. That could mean casting off or reducing some volunteer obligations (unless they align with your personal priorities) and delegating or outsourcing some chores. Most important, it means prioritizing those “important but not urgent” activities that you never seem to find time for but that—if you could make them happen—would dramatically improve your life. That could be as simple as a weekly lunch with a friend or as complex as planning the backpacking trip on your bucket list.

BE WHERE YOU ARE

Sometimes, our problem isn’t a lack of fulfilling activities. Rather, it’s that we aren’t fully present when we’re supposed to be enjoying them. Social media, not surprisingly, has worsened this problem. Attend any party, concert or festival and you’re likely to see a substantial portion of those in attendance posing for selfies, recording the show and posting their whereabouts on Twitter (or Facebook, Snapchat, etc.).

FRESH FACELeslie Ritchie Robnett Associate | Litigation | Austin Leslie handles complex regulatory and administrative matters thatfrequently span from administrative litigation to the appellate level.

Her clients are commercial businesses or state and national trade groups in regulated industries seeking representation before Texas governmental entities. Leslie earned her J.D. in 2008, with honors, from The University of Texas School of Law. She received her B.A., with highest honors, from The University of Texas at Austin in 2004.

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The Foreign Corrupt Practices Act (FCPA) strictly prohibits the payment of bribes to foreign government officials for the purposes of obtaining or retaining business or securing an improper business advantage. Enforcement of the FCPA has been a priority for both the U.S. Department of Justice (DOJ) and the Securities and Exchange Commission (SEC) in recent years and will continue to be in the near future. Other countries, including the U.K., have adopted similar anti-corruption laws and enforcement worldwide is gaining momentum. The costs associated with anti-corruption investigations, whether internal or government initiated, vastly exceed any cost of compliance. Adopting and implementing an effective anti-corruption policy is more important than ever.

Companies that make a good-faith effort and implement an effective anti-corruption compliance program are more likely to receive leniency from the U.S. and U.K. govern-ments if a violation should occur at some point. An effective program includes diligent implementation, ongoing monitoring, testing and auditing to evaluate your company’s program—both of the company’s own employees and all third-party aff iliations—as well as continual improvement of your anti-corruption compliance program. Following the compliance steps the DOJ, SEC and U.K.’s Serious Fraud Office (SFO) have identified is the best way to establish a good-faith effort at compliance.

Top-Level Commitment

DO: Set the right tone at the top. DON’T: Create a culture that ignores anti-corruption compliance.

Clear Policies and Procedures

DO: Adopt a written compliance policy as part of the company’s Code of Business Conduct. DON’T: Adopt a policy and then ignore it.

Compliance Responsibility Rests with a Senior Executive with Autonomy

DO: Appoint a member of senior management to oversee anti-corruption compliance and ensure that the organization has an effective compliance program. DON’T: Entrust compliance to a low-level employee without access to the board or resources to implement the program.

Performance of Risk Assessments and Triage as Appropriate

DO: Include risk assessment as part of the program, including

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EDITOR IN CHIEF Kathleen Wu, kwu@andrewskurth.com

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Women’s Initiative Team About the Firm

600 Travis, Suite 4200 | Houston, Texas 77002 | p: 713.220.4200 | f: 713.220.4285 | andrewskurth.com Andrews Kurth provides this newsletter for general informational purposes only; content does not constitute legal advice.

Since 1902, Andrews Kurth has built its practice on the belief that “straight talk is good business.” Real answers, clear vision and mutual respect define the firm’s relationships with clients, colleagues, communities and employees. With more than 400 lawyers across 10 offices worldwide, Andrews Kurth represents a wide array of clients in multiple industries.

Adopting and implementing an effective anti-corruption policy is more important than ever.

for conducting enhanced review of high-risk transactions and identifying red flags related to corruption, including those on the DOJ’s red flag list. DO: Document the company’s compliance program, including plans, implementation, monitoring, testing and auditing of compliance and effectiveness. DON’T: Fail to conduct training when needed to correct any deficiencies and identify new or updated controls and procedures.

CONCLUSION

The U.S. government has declined to prosecute companies that have successfully implemented effective compliance programs in the past (e.g., PetroTiger, Morgan Stanley and Global Industries) and has indicated that it will continue to do so in the future. The U.K. government also has provided a defense to companies with an adequate compliance program. An anti-corruption program that implements the 10 steps above should provide your company with proof it has an adequate and effective program and will increase the likelihood of satisfying both the U.S. and U.K. governments in the event of a government investigation.

DENA PALERMO Andrews Kurth LLP, Partner and Co-Chair White Collar and Regulatory Enforcement Houston

Guest Writer STEPHANIE ANDERSON AlixPartners, LLP, Managing Director Dallas

Dena’s litigation practice focuses on commercial cases and corporate investigations. Her experience in corporate investigations has included the representation of individuals, corporations and audit committees in investigations and disclosures to the SEC and DOJ of transactions pertaining to the Foreign Corrupt Practices Act. Dena also counsels U.S. companies with foreign operations regarding compliance with anti-corruption laws, including the FCPA and the U.K. Bribery Act. Stephanie is an expert in accounting, corporate governance, business valuation and compliance, and leads teams that assist companies in developing and remediating financial accounting processes to reduce costs, improve the efficiencies and the quality of financial reporting, and provide better corporate governance and compliance. She also assists clients and counsel in responding to changes in accounting policies and to fraud incidents, including investigations commenced by and reported to the SEC’s Enforcement Division, the DOJ and foreign regulatory entities.

For more information, please email straightline@andrewskurth.com

a review of operational realities and the risks attendant to the company’s business; work with in-house counsel and outside counsel, if appropriate, to prepare a confidential assessment report. DON’T: Miss a major issue as a result of undue emphasis on less risky areas.

Communication of Policies; Training and Advice

DO: Adopt explicit written policies regarding anti-corruption in an easily understandable format for all employees and conduct training and education for the board, high level persons, employees and, as appropriate, agents. DON’T: Adopt a one-size-fits-all approach. Training should be tailored to meet the risk profile of the specific group being trained.

Incentives for Good Behavior and Disciplinary Measures for Bad Behavior

DO: Explain incentives and disciplinary consequences for anti-corruption violations. DON’T: Ignore violations by senior employees while disciplining more junior ones.

Maintenance of Due Diligence Programs for Business Partners and Merger/Acquisition Targets

DO: Conduct due diligence of all third parties, including agents, joint venture partners, international sales representatives, international logistics agents, distributors, resellers/traders and international non-U.S. governmental representatives. DON’T: Overlook merger or acquisition targets—remember that the acquiring company assumes all legal and business risks. Before closing the deal, the acquiring company should perform detailed due diligence to ensure anti-corruption compliance.

Mechanism for Reporting Conf identially/Anonymously

DO: Institute a hotline for employees to ask questions or report suspected wrongdoing on a confidential and/or anonymous basis. DON’T: Give senior or top-producing employees the benefit of the doubt—investigate reported or suspected violations.

Mechanism for Investigating Reports of Misconduct

DO: Have a process to investigate allegations of criminal conduct and suspected violations of the anti-corruption laws and company policies “at the direction of counsel.” DON’T: Fail to modify the program, including policies, training and communications, after detection of misconduct or lapses to prevent future violations.

Periodic Testing and Review of the Compliance Program

DO: Take reasonable steps to regularly monitor, evaluate (test), audit and update the company’s program to ensure ongoing compliance. DON’T: Fail to train accounting staff on the best practices

Robin Russell Kelly Sandill Lisa Shelton Kathy Strahan Kathleen Wu

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The DOs & DON’Ts of Compliance with Anti-Corruption Laws

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