In terms of executing strategy and generating maximum value, the
success of any negotiation relies on three key elements:
- Effective and well defined planning and
- Clear strategy and escalation
- Stakeholder alignment
Why negotiations fail
A lack of appropriate planning, process or project management
will inevitably have a detrimental effect on any aspect of the
negotiation. For example:
- Timeframes can move and deadlines will not be met,
resulting in value reduction.
- If no strategy, negotiators will be unaware of the
commercial variables, the best approach to maximise the deal, the
strategic options, or the triggers.
- Without pre-determined parameters and an escalation or
decision-making plan, negotiations can lose impetus, be delayed and
potentially conclude with unauthorised concessions.
We operate a five-stage consultancy model:
Scoping - research, analysis,
recommendation, skills analysis.
Strategy - strategy development, tactical
plans, segmentation, communications planning, pre-conditioning,
risk analysis & mitigation.
Tactical - tactical plans, potential
problem analysis, triggers, coaching, phase flow.
Execution - advisor service and
Completion - review, assessment, ROI,
cost/benefit analysis, recommendations, best practice.
Effective management of the implementation (or execution) phase
is core to generating the maximum value of any negotiation. A lack
of management at this stage will result in time delays, reduced
value gain, project slip and potential relationship management
Identifying elements at risk
For negotiations to be a success, it is necessary to identify
the key elements at risk. These include everything from commercial
variables, un-authorised concessions and contractual compliance, to
brand position, supplier relations and timeframes.
There are also a number of specific risks to consider, in terms
of management alignment and commitment, as well as the skillset and
execution team's capability to deliver maximum value - without
training and coaching, there is the risk of early concession
trading, not maximising value, and damage to the relationship.