NEGOTIATION

AS AN ENABLER
OF STRATEGY

What are key strategic initiative/goals

for 2019?
 O
PT
IO
N
3
Knowledge Base

THINK!
DIFFERENTIATION
Enablement Technology
DRIVING ORGANIZATIONAL
NEGOTIATION COMPETENCY
ALIGN EXECUTE RESULTS

Negotiation Strategy
Seller Seller
Seller Buyer
Desired Desired
CNA Terms Terms CNA ROI
Pricing

Legal

Product
Sales

Mgt.

Negotiation Strategy

Sales

Legal
Product
Pricing

Mgt.
Deals
Needs
Analysis
 1 2 3
3 PHASE Leader Team Sales Team Leader Team
DIAGNOSTIC Benchmarking Negotiation Success

PROCESS
Effectiveness Metrics

Current State Desire State

 LEADER
BENCHMARKING
METHOD
e-survey sent to cross-functional leaders

Comparative data Benchmarks

originates from research negotiation effectiveness
performed with the Strategic from sales leaders @ 450+
Account Management global corporations
Association (SAMA)
 Market S&C Electric
S
e
EXTERNAL Customer relationships are long term ri 89%
MARKET e
Facing more professional buyers s 92%
FACTORS 1
IMPACTING Customers are more price conscious & demanding concessions 91%
NEGOTIATION More irrational competitive behaviors 80%

Alignment on sales strategy 55%

STRATEGIC
REACTION Alignment on negotiation strategy 17%
TO MARKET
Negotiation decision-making authority more centralized 71%

High level of negotiation collaboration with x-functional people 50%

Alignment on sales process 55%

TACTICAL
REACTION Alignment on negotiation process 15%
TO MARKET Well defined strategy for irrational competitive behavior 9%

Always trade in exchange for customer demands 21%

Consistently plan for negotiations 59%

Highly effective at negotiation 5%

 SALES
EFFECTIVENESS
METHOD
e-survey your field sales team

Self assessment of Effectiveness of sales Most difficult and important

negotiation process and coaching variables negotiated
skills and factors
 27 YEARS
46 COUNTRIES
40K DEALS
 CURRENT NEGOTIATION
SKILLS, FACTORS & COACHING
Extremely effective at negotiating
Professional buyer emergence and pressure
Difficult internal negotiation
Competitors give away more than we’d like
NEGOTIATION Buyers care mostly about price vs. full/cost benefit
SKILL & Most difficult products and service to negotiate

FACTORS Most difficult T&Cs to negotiation

EFFECTIVENES Management proactively coaches to new skills

Formal review to see if new skills are used
S OF COACHING Requests for more coaching
& SALES Sales process is always used

PROCESS Executing skills is tied to performance metrics

Get rewarded
 SUCCESS METRICS
METHOD
phone calls with cross functional thought leaders

Metrics
Negotiation
Associated with
Desired State
Desired State
MEASURING SUCCESS:
DRAFT
LAGGING INDICATORS LEADING INDICATORS

Typically ‘output’ oriented Typically ‘input’ oriented

tangible more behavioral

Easy to measure Easy to improve or influence

 NEGOTIATION MYTHS
Primary research conducted by think! Inc.
Proves that 97% of verbal buyer tactics are not random
and can be anticipated and fall into two categories:

The buyer’s alternative to

Price (or something else
you (most often your
for free or discounted)
nearest competitor)
 DISSECT IT
NEGOTIATION
MYTHS Same thing Alternative

Cheaper Concession

ANTICIPATE
I can get the 97%
same thing cheaper
NEGOTIATING RATIONALLY
NEGOTIATION TACTICS

ONE OR BOTH
Alternative Concession
/CNA /Trade

Anticipate, categorize, then respond rationally

 WHAT SUCCESS LOOKS LIKE
Sales training
as enabler of
corporate growth
strategies
Rather than executing
sales/negotiating training simply
for the sake of training, they
recognized that training can and
should be used to strengthen
core sales competencies that
directly enable key aspects of
growth strategy
Strong Executive Coaches Who
Sponsorship Measure and Are
Measured
Senior executives in sales
as well as other functions
Field sales management
sponsored and got directly
not only formally measured
involved not only in funding
those who reported to them
the initiatives but attending
but were, in turn, formally
workshops and using the
measured by those to
methodologies
whom they reported
 COACHING BEST
PRACTICES

organizations with
dynamic coaching
achieved a 29.6% sales leaders
win rate advantage, deliver use virtual coach in leverage
yet only 11% coaching tool to target need customized cloud
exceed cadence and areas & enable reps technology to
expectations deal approval to develop skills vs. capture best
*CSO Insights governance doing it for them practices real time
DESIRED STATE: VALUE BLUEPRINT CLOUD TECHNOLOGY
ENABLES A CONNECTED PROCESS
CURRENT STATE: A NEGOTIATION STRATEGY AND
DEAL EXECUTION DISCONNECT
CREATING AN ORGANIZATIONAL
NEGOTIATION COMPETENCY
ALIGN EXECUTE RESULTS
Negotiation Strategy
Seller Seller
Seller Buyer
CNA
Desired
Terms
Desired
Terms
CNA ROI
Pricing

Legal

Product Mgt.
Sales

Negotiation Strategy

Sales

Legal
Product Mgt.
Pricing
Dea
ls

Diagnostic
Negotiation strategy development
ALIGN
1-day F2F session with Negotiation Strategy

cross-functional leader input

and buy-in

Pricing

Legal

Product Mgt.
Leading and lagging indicators finalized

Sales
Customized knowledgebase created
Diagnostic
Negotiation (2-day) workshop,
with live deal planning, for team
EXECUTE
Negotiation blueprint software application
Seller Seller
Seller Buyer
Desired Desired
CNA CNA
Follow up Coaching/Implementation Terms Terms

program
• 1-day coach the coach session for
leaders

Sales

Legal
Product Mgt.
• Key deal reviews with Think! Inc

Pricing
• One-on-one coaching calls
• Customer Win/Loss reviews
 RESULTS

ROI
LEADING AND LAGGING
INDICATORS MEASURED
Negotiation Strategy

Deals
TRADITIONAL STEPS FOR BUILDING A NEGOTIATION
STRATEGY AND KNOWLEDGE BASE
Month 1 Month 1-2 Month 2-3

Determine Negotiation Strategy

Conduct Kick-off Meeting Development
Scope(s)
(1 day)
First
Assign Roles & Distribute & Complete Surveys Agree on Deal Build Knowledge Base Validate Workshop
Responsibilities (4 hours) Governance Knowledge Base

Schedule Kick- Complete 1:1 Interviews Load Knowledge

off Meeting (1 hour) Base into Tool

4-8 hours per knowledge area (market trends, core

Prepare for
messaging, terms & trades etc.), per relevant
Typical participants: Workshop
participant, not all participants review every item
except for the project owner/approver
• Project owner/approver – requires largest time
commitment
• Subject matter experts: solution & cross-functional roles
(marketing, sales, legal, finance, technical, etc.), these
participants often bring in members of their teams to
participate and then aggregate and validate