The Power Of The Self-Serving Memo

The self-serving memo is another “must do” habit. How often we find ourselves saying, “That’s not what we agreed to” or “That’s not what I said” and usually with great disappointment and probably at some significant cost or loss. Here is a strategy that will eliminate such a problem. After any important conversation–a handshake deal, a telephone agreement–where terms and conditions or even more basic agreements have been reached, a self-serving memo, outlining the agreement should be sent to the individual confirming what was agreed to in a written form. This could be by email, fax, or a letter (we do still use this format occasionally!). Save a copy, print it out, put it in your file and leave it there until the day you both disagree on what the deal or commitment was and, thankfully, you will have a reference to review. Such a simple strategy can ultimately save the day, preserving an agreement you are relying upon. Every deal does not have to have a written contract, but every deal should have some memo of understanding so the details can be referred to and not be purely a function of memory, worse yet, two memories that are bound to remember the facts differently.

This is a procedure you should make a consistent part of your business practice. It’s easy to do and can be completely informal and in conversational style. It becomes a record of the agreement. Even a saved email is adequate for these purposes. It actually takes on more power than is immediately obvious, because if written in a business setting, contemporaneously with the events and in the normal course of your doing business, and if sent to the individual making the deal with you, this memo becomes a virtual binding contact if the other party does not respond immediately rejecting or correcting. Is this sneaky? Absolutely not. Your partner in this deal has every opportunity to read and review your memo and correct or contradict it as narrowly or broadly as he may choose. He can easily respond back with a “This is not what we agreed to” message and reducing the effectiveness of your memo to zero. But if he chooses not to adjust it, and does not respond in any way, it is probably because he agrees with it and your memo then becomes an accurate reflection of the deal or agreement and he is considered as having accepted the terms as stated in the memo.

Another valuable use of the self-serving memo is in the sales process. We all know it frequently requires a number of pitches to close a deal. As the deal-making progresses, your soon-to-be customer begins to absorb and partially accept the notion of a sale or a deal slowly, each step of the way, as each call is made and the sale process progresses. Using the same self-serving memo has great power in accelerating the sales process and reaching a closing sooner. After each presentation, be it on the phone or in person, if you were to send a “memo” recapping what was discussed and said, you accomplish a few important steps. You can commit what was perhaps passively agreed to or said to a more substantial position as you structure your memo with wording that implies a slightly greater degree of understanding or acceptance, but does not misstate what was really accomplished. The idea is to use the memo to solidify the sometimes passive agreements and acceptance of important points that may have actually been intended.

Keep in mind, however, that if this is not effectively done it may cause a negative reaction, particularly if used to misstate or to overtly push the sale much further than anyone intended. But, it can be effectively utilized to help you hold the ground you gained and support the important points made and, yes, possibly restate the progress a little more firmly than it actually occurred, from your point of view, of course, but within a reasonable reach. If done respectfully, this process can move the ball, even if ever so slightly and preventing loss of ground, and bring you closer to the sale or agreement you want to achieve. Further, it also shakes out potential sales prospects that are misleading you and not truly interested in what you are selling but who, out of a false sense of courtesy, or an unwillingness to create a negative objection, are overstating their interest. The memo process flushes this behavior out more quickly, serving everyone’s needs in the end.

Try it. The self-serving business memo is a very powerful tool and will reap huge returns if properly and frequently used. It takes a little extra time and effort, but you will find it most useful and very valuable.