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business negotiation, redefined

Brian Dietmeyer: "Business Negotiation Redefined -how to create joint value and divide it fairly"

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"Business Negotiation Redefined -how to create joint value and divide it fairly" - Negotiating beyond win-win

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Page 1: Brian Dietmeyer: "Business Negotiation Redefined -how to create joint value and divide it fairly"

business negotiation,

redefined

Page 2: Brian Dietmeyer: "Business Negotiation Redefined -how to create joint value and divide it fairly"

myth vs reality

myth negotiators are born “soft” skills ad hoc events complex individual skill sales tactical personality driven

reality negotiators are made analytical process 80% anticipated simple organization competency cross functional strategic data focused

Page 3: Brian Dietmeyer: "Business Negotiation Redefined -how to create joint value and divide it fairly"

no dialogue among bidders €1 increments can’t be first and second bidder high bidder gets the €20 for what

they bid 2nd highest pays and gets nothing

€20 auction

Page 4: Brian Dietmeyer: "Business Negotiation Redefined -how to create joint value and divide it fairly"

global negotiation peer benchmarking

external market forces market more professional buyers 92% increasing focus on price 91% increasing competitor irrationality 80% customer/competitor consolidation 90%/85% length of relationship longer term 89%

Page 5: Brian Dietmeyer: "Business Negotiation Redefined -how to create joint value and divide it fairly"

global negotiation peer benchmarking

internal strategy and tactics market extremely proactive planning for negotiation 11% informal or no negotiation strategy 83% centralized negotiation decision making 71% informal or no negotiation process 85% sales and negotiation integration 38% increased internal negotiation 81% not a high level of internal alignment 55% well defined competitive negotiation plan 9% not trading effectively for client demands 79% highly effective at negotiation 6.9%

Page 6: Brian Dietmeyer: "Business Negotiation Redefined -how to create joint value and divide it fairly"

redefining tactical negotiation

three things required to blueprint negotiation:

consequences of no agreementtradesanchors

Page 7: Brian Dietmeyer: "Business Negotiation Redefined -how to create joint value and divide it fairly"

blueprinting negotiation, a start

agreement zone

seller CNA

buyer CNA

Page 8: Brian Dietmeyer: "Business Negotiation Redefined -how to create joint value and divide it fairly"

common CNA tactics

“competition is better, faster,

cheaper…”

“you are way out of line with the

market”

Page 9: Brian Dietmeyer: "Business Negotiation Redefined -how to create joint value and divide it fairly"

what is being negotiated?

seller desire

d terms

buyer desire

d terms

Page 10: Brian Dietmeyer: "Business Negotiation Redefined -how to create joint value and divide it fairly"

common trade tactics

“i only want to talk about price”

“we need you to give us that option for free”

“sharpen your pencil”

Page 11: Brian Dietmeyer: "Business Negotiation Redefined -how to create joint value and divide it fairly"

blueprinting negotiation

seller CNA

buyer CNA

seller desire

d terms

buyer desire

d terms

Page 12: Brian Dietmeyer: "Business Negotiation Redefined -how to create joint value and divide it fairly"

tie it all together

seller CNA

buyer CNA

seller desire

d terms

buyer desire

d terms

anchor

seller CNA

buyer CNA

create joint value and divide it given concerns for the ongoing relationship

Page 13: Brian Dietmeyer: "Business Negotiation Redefined -how to create joint value and divide it fairly"

multiple equal offers (MEO)

we’re prepared to accept each titled to be meaningful to the customer

(CNA gap) custom built based on CNA/trades for

this deal result in a sensitivity analysis of their

interests

two or more bundled offers, approximately equal in value to us, but we believe they represent different value propositions to the other side

Page 14: Brian Dietmeyer: "Business Negotiation Redefined -how to create joint value and divide it fairly"

negotiation problem to be solved…

“I can get the same thing… from your competitor cheaper”

Page 15: Brian Dietmeyer: "Business Negotiation Redefined -how to create joint value and divide it fairly"

negotiation problem to be solved…

most negotiation problems are caused by one or both sides taking 1-2 aspects of

a very complicated business to business negotiation and focusing on them out of context

Page 16: Brian Dietmeyer: "Business Negotiation Redefined -how to create joint value and divide it fairly"

negotiation problem resolution

getting all aspects/facts of the deal on the table simultaneously

so more rational business decisions can be made

Page 17: Brian Dietmeyer: "Business Negotiation Redefined -how to create joint value and divide it fairly"

tactic process

negotiation tactics

rational response

anchor

CNA trade

Page 18: Brian Dietmeyer: "Business Negotiation Redefined -how to create joint value and divide it fairly"

the two key questions

what are the consequences to each

side if we do not reach agreement?

what items are likely to be included if

we do reach agreement?

Page 19: Brian Dietmeyer: "Business Negotiation Redefined -how to create joint value and divide it fairly"

key question #1

what are the consequences to each side if we do not reach agreement?

how we benefit… systematically take pressure of price compete rationally…value to value rational diagnosis of power fact based analysis

Page 20: Brian Dietmeyer: "Business Negotiation Redefined -how to create joint value and divide it fairly"

key question #2

how we benefit… systematically take pressure of price compete rationally…value to value trade vs. concede fact based analysis

what items are likely to be included for both sides if we do reach agreement?

Page 21: Brian Dietmeyer: "Business Negotiation Redefined -how to create joint value and divide it fairly"

redefining negotiation – tactics

three things required to blueprint negotiation:

consequences of no agreementtradesanchor on MEO

Page 22: Brian Dietmeyer: "Business Negotiation Redefined -how to create joint value and divide it fairly"

redefining negotiation - strategy

negotiation strategy:- what negotiation success looks like- what leads to negotiation success- trades and guardrails

Page 23: Brian Dietmeyer: "Business Negotiation Redefined -how to create joint value and divide it fairly"

world class negotiation standards

strategy and tactics target

extremely proactive planning for negotiation 75% formal negotiation strategy 75% centralized negotiation decision making 25% formal negotiation process 75% sales and negotiation integration 75% level of internal negotiation 25% high level of internal alignment 75% well defined competitive negotiation plan 75% trading effectively for client demands 75% highly effective at negotiation 75%

Page 24: Brian Dietmeyer: "Business Negotiation Redefined -how to create joint value and divide it fairly"

strategic negotiation alignment

Page 25: Brian Dietmeyer: "Business Negotiation Redefined -how to create joint value and divide it fairly"

strategic negotiation alignment

Page 26: Brian Dietmeyer: "Business Negotiation Redefined -how to create joint value and divide it fairly"

strategic negotiation alignment

Page 27: Brian Dietmeyer: "Business Negotiation Redefined -how to create joint value and divide it fairly"

strategic negotiation alignment

Page 28: Brian Dietmeyer: "Business Negotiation Redefined -how to create joint value and divide it fairly"

ryder align x-functionally on negotiation guidelines & outcome communicate to negotiators and use common process (+) (-) on key leading indicators measure lagging indicators

livingston align x-functionally on negotiation guidelines & outcome communicate to negotiators and use common process (+) (-) on key leading indicators measure lagging indicators

results

Page 29: Brian Dietmeyer: "Business Negotiation Redefined -how to create joint value and divide it fairly"

tie it all together

seller CNA

buyer CNA

seller desire

d terms

buyer desire

d terms

anchor

create joint value and divide it given concerns for the ongoing relationship