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How to design, navigate
and negotiate complex deals
The dealmaking challenge
 60-70% of high-stakes complex deals fail even when managed by experienced
negotiators.
 Instead of achieving their Best Possible Agreement (BPA) dealmakers end up
settling for Barely Acceptable Deals (BAD).
 Poor deal management is a root cause of many project failures.
Deal NaviGater
Copyright 息 Aha! Advantage 2013 2
 Multiple parties
 Difficult personalities
 Competing interests
 Tight deadlines
 High costs of failure or delays
Big high-stakes negotiations are minefields of risk
Copyright 息 Aha! Advantage 2013 3
Poor deal design is compounded by counter productive face to
face tactics
 Negotiator ego and hubris
 Inappropriate style
 Positional bargaining
 Short term focus
 Ignored emotions
Copyright 息 Aha! Advantage 2013 4
 Tolerance for Barely Acceptable Deals (BAD)
 Wrong parties
 Misread interests
 Misjudged walkaways
 Incorrect deal sequence
 Misaligned relationship processes
Most deal killing mistakes are made away from the table
Copyright 息 Aha! Advantage 2013 5
To calculate your deal risk square the number
of parties you have to negotiate with
No of parties Deal Complexity
1 party Complexity 1
2 parties Complexity 4
3 parties Complexity 9
Deal risk increases exponentially as no of parties rises
Copyright 息 Aha! Advantage 2013 6
Big complex deals often fall victim to the Triangle of Doom
High value/
low cost changes
High cost/
low value changes
Lesson: Deal design and navigation are keys to big deal success
Time
Copyright 息 Aha! Advantage 2013 7
Use the Deal NaviGater management process to manage
large, complex deals
Copyright 息 Aha! Advantage 2013 8
Deal NaviGater relentlessly manages process from start to finish
Deal
Gate 1
Prototype
your best
possible
agreement
(BPA)
Deal
Gate 2
Sequence your
moves to
agreement
Deal
Gate 3
Design your
value-
optimizing
strategy
Deal
Gate 4
Align your
relationship
management
processes
Deal
Gate 5
Negotiate for
agreement
Identify the critical
stakeholders
Identify the best parties
to negotiate with
Complete a preliminary
deal
assessment
Identify BATNAs
Order and choose your
critical parties
Map decision-making
process
Build internal coalitions
of support within each
party
Manage information
flow
Develop timeline
Expand total net pie
Identify interests
Dovetail differences
Establish rules of
engagement
Fix dispute resolution
process
Establish
communication
protocols
Manage emotions
Sell your case
Use problem solving
tactics
Trade concessions
ESTABLISH GOAL SET DIRECTION DEFINE STRATEGY
OPTIMIZE
RELATIONSHIP
CHOOSE TACTICS
Deal Design and Navigation:
Away from the table
Deal execution:
At the table
Copyright 息 Aha! Advantage 2013 9
Deal NaviGater helps you navigate and manage your way through
the deal design and setup process, keeping you in control
Copyright 息 Aha! Advantage 2013 10
Deal NaviGater shows you how to:
 Identify critical stakeholders
 Identify the best parties to negotiate
with
 Analyze stakeholder interests
 Identify parties BATNAs (no-deal
options)
Deal
Gate 1
Prototype your
best possible
agreement
(BPA)
Deal NaviGater starts with the ideal deal in mind
Copyright 息 Aha! Advantage 2013 11
Deal NaviGater shows you how to:
 Choose and sequence your critical parties in
the order you need to negotiate
 Map each partys decision-making process
 Build internal coalition of supporters with
each party
 Manage your information flow
 Plot achievable timelines and milestones
Deal
Gate 2
Sequence your
moves to
agreement
Deal NaviGater sequences your forward moves to agreement
Copyright 息 Aha! Advantage 2013 12
Deal NaviGater shows you how to:
 Expand your total-net pie
 Probe behind positions to identify
interests
 Dovetail differences to unlock joint gains
 Different interests
 Different valuations
 Different attitudes towards risk
Deal
Gate 3
Design your
value-optimizing
strategy
Deal NaviGater expands the total-net pie before you
trade concessions
Copyright 息 Aha! Advantage 2013 13
Deal NaviGater:
 Establishes rules of engagement
 Sets up a dispute resolution process
 Formulates agendas
 Establishes external communication protocols
 Helps you manage emotions
Deal
Gate 4
Align your
relationship
management
processes
Deal NaviGater aligns your relationship processes to
your strategy
Copyright 息 Aha! Advantage 2013 14
When youre ready to negotiate face to face, Deal NaviGater gives
you a seven step disciplined process
Copyright 息 Aha! Advantage 2013 15
 Managing the process allows you
to shape the result.
Deal
Gate 5
Negotiate for
agreement
Respect Model
The RESPECT seven step bargaining sequence gives negotiators
control of the bargaining process
Copyright 息 Aha! Advantage 2013 16
Deal NaviGater incorporates traffic lights stage gate go/no go
decision points
Copyright 息 Aha! Advantage 2013 17
Go/no go decision points
Deal Gates Go/No Go Roadblocks Actions
1 Deal Structure
 Identified best parties
 Assessed interests
 Identified right BATNAs
 Mapped decision making process
2 Sequence Management
 Sequence choices
 Managed information flow
3 Deal Strategy
 Optimize total net-pie
 Satisfy interests
 Dovetail differences
4 Relationship Management
 Dispute resolution process
 Rules of engagement
5 Negotiating Tactics
 Persuasive skills
 Tactics
 Concession trading
Copyright 息 Aha! Advantage 2013 18
Failure is common even on well-run projects.
Deal NaviGater boosts the odds of project success where projects are characterized by:
 High Uncertainty - uncertainty is the amount we dont know at project initiation.
Deal NaviGater gives you the tools to cope with an uncertain future.
 High Complexity - Multiple parties with competing goals and/or multiple sub-systems.
Deal NaviGater aligns competing interests to the projects strategic goal.
 Time-Critical Goals - Time pressure accelerates the need for negotiation.
Deal NaviGater helps resolve deadline issues.
 Demanding Stakeholders - Little tolerance for projects that fail to meet the business case.
Deal NaviGater keeps the project focused on the business drivers.
Deal NaviGater complements and strengthens existing project
management systems
Copyright 息 Aha! Advantage 2013 19
Known
risks
Unknown
risks
(Uncertainty)
Deal NaviGater handles uncertainty
(unknown risks) much better than
traditional project management tools.
Deal NaviGater significantly improves a project managers
ability to manage uncertainty (unknown risks)
Copyright 息 Aha! Advantage 2013 20
Deal NaviGater comes as a complete deal design and
management suite
Copyright 息 Aha! Advantage 2013 21
1. Five Foundations Playbook 200 page strategic deal and relationship management guide
2. Five Foundations Toolbox 22 powerful deal-shaping tools
3. Deal Tracker Traffic lights deal management and audit process
4. StreetSmart Negotiator 196 page field guide for negotiating face-to-face
5. Web Platform Work on your deals anytime, anywhere
6. Customized Training Turn negotiation into a core competency
7. Deal-making Advice Coaching and support for specific negotiations
7 Value-Adding Components
The Deal NaviGater management suite
Copyright 息 Aha! Advantage 2013 22
 200 page accessible strategy and tactical playbook
 Forms the heart of Deal NaviGater System
Component 1: Dealmaking playbook
Copyright 息 Aha! Advantage 2013 23
 Includes 22 of deal-shaping, value-optimizing tools
 Tools developed and tested over 25 years with
clients such as Toyota, PwC, and Unilever
Component 2: Dealmaking toolbox
Copyright 息 Aha! Advantage 2013 24
 Allows senior executives to manage, track and
evaluate progress in high-stakes deals
 Allows delays, cost overviews and relationship
issues to be solved while small
Component 3: Traffic lights go/no go deal tracker
Copyright 息 Aha! Advantage 2013 25
 Harry Mills acclaimed field guide, The StreetSmart
Negotiator gives negotiators:
 The practical tips and tactics they need when
bargaining face-to-face
 A disciplined 7 step process which can be
actively managed and audited
Component 4: Tactical field guide
Copyright 息 Aha! Advantage 2013 26
 The Deal NaviGater Playbook and Toolbox is
accessible online through its own secure web portal
so your team can manage deals:
 Anytime
 Anywhere
Component 5: Online, on-demand web platform
Copyright 息 Aha! Advantage 2013 27
 Our experiential, simulation based training
upskills your team so they can negotiate with
skill and confidence
 Make negotiation skills a core competency
Component 6: Customized training
Copyright 息 Aha! Advantage 2013 28
 Our 25 years of practical deal-making experience
means we can advise and coach on:
 Resolving disputes
 Acquisitions and mergers
 Joint ventures and alliances
 Major sales
 Procurement and outsourcing deals
Component 7: Dealmaking coaching and advisory support
Copyright 息 Aha! Advantage 2013 29
 Harry Mills, the creator of Deal NaviGater, is the author of 26 books including 3 on
negotiation: Negotiate: the Seven Step Master Plan, The Dealmakers Handbook, and The
StreetSmart Negotiator
 Harry Mills is the mentor on persuasion for the Harvard Manage/Mentor Program
 Harrys thinking has been featured by Entrepreneur Magazine, Sales & Marketing Magazine,
Business Today, Selling Power, Bottomline Business and USA Today
 Underpinned by 25 years of practical deal making experience working with clients such as
Toyota, GE, PwC and Kimberly Clark
 Built on two decades of research on negotiation, persuasion and strategic deal management
Deal NaviGater program based on deep expertise
Copyright 息 Aha! Advantage 2013 30
 Minimizes risks inherent in difficult deals and projects
 Transparent phase gate go/no go process which can be actively
managed for risk by senior management
 Boosts odds of success in large, complex negotiations
 Process and tools used by whos who of global companies and
organizations such as Toyota, GE, and Ericsson
 Auditable, risk-managed, self-adjusting process
 Developed by Harry Mills, author of 3 books on negotiation and
Harvard Manage/Mentor on persuasion
 Underpinned by 25 years of practical deal-making experience and
breakthrough research
The benefits of Deal NaviGater
Copyright 息 Aha! Advantage 2013 31
Contact
For more information on DealNavigater
please contact:
Harry Mills
CEO, The Aha! Advantage
Phone: +64 4 499 6770
Mobile: +64 21 452 256
Email: harry.mills@ahaadvantage.com
www.ahaadvantage.com
Copyright 息 Aha! Advantage 2013 32

More Related Content

Big Deals

  • 1. How to design, navigate and negotiate complex deals
  • 2. The dealmaking challenge 60-70% of high-stakes complex deals fail even when managed by experienced negotiators. Instead of achieving their Best Possible Agreement (BPA) dealmakers end up settling for Barely Acceptable Deals (BAD). Poor deal management is a root cause of many project failures. Deal NaviGater Copyright 息 Aha! Advantage 2013 2
  • 3. Multiple parties Difficult personalities Competing interests Tight deadlines High costs of failure or delays Big high-stakes negotiations are minefields of risk Copyright 息 Aha! Advantage 2013 3
  • 4. Poor deal design is compounded by counter productive face to face tactics Negotiator ego and hubris Inappropriate style Positional bargaining Short term focus Ignored emotions Copyright 息 Aha! Advantage 2013 4
  • 5. Tolerance for Barely Acceptable Deals (BAD) Wrong parties Misread interests Misjudged walkaways Incorrect deal sequence Misaligned relationship processes Most deal killing mistakes are made away from the table Copyright 息 Aha! Advantage 2013 5
  • 6. To calculate your deal risk square the number of parties you have to negotiate with No of parties Deal Complexity 1 party Complexity 1 2 parties Complexity 4 3 parties Complexity 9 Deal risk increases exponentially as no of parties rises Copyright 息 Aha! Advantage 2013 6
  • 7. Big complex deals often fall victim to the Triangle of Doom High value/ low cost changes High cost/ low value changes Lesson: Deal design and navigation are keys to big deal success Time Copyright 息 Aha! Advantage 2013 7
  • 8. Use the Deal NaviGater management process to manage large, complex deals Copyright 息 Aha! Advantage 2013 8
  • 9. Deal NaviGater relentlessly manages process from start to finish Deal Gate 1 Prototype your best possible agreement (BPA) Deal Gate 2 Sequence your moves to agreement Deal Gate 3 Design your value- optimizing strategy Deal Gate 4 Align your relationship management processes Deal Gate 5 Negotiate for agreement Identify the critical stakeholders Identify the best parties to negotiate with Complete a preliminary deal assessment Identify BATNAs Order and choose your critical parties Map decision-making process Build internal coalitions of support within each party Manage information flow Develop timeline Expand total net pie Identify interests Dovetail differences Establish rules of engagement Fix dispute resolution process Establish communication protocols Manage emotions Sell your case Use problem solving tactics Trade concessions ESTABLISH GOAL SET DIRECTION DEFINE STRATEGY OPTIMIZE RELATIONSHIP CHOOSE TACTICS Deal Design and Navigation: Away from the table Deal execution: At the table Copyright 息 Aha! Advantage 2013 9
  • 10. Deal NaviGater helps you navigate and manage your way through the deal design and setup process, keeping you in control Copyright 息 Aha! Advantage 2013 10
  • 11. Deal NaviGater shows you how to: Identify critical stakeholders Identify the best parties to negotiate with Analyze stakeholder interests Identify parties BATNAs (no-deal options) Deal Gate 1 Prototype your best possible agreement (BPA) Deal NaviGater starts with the ideal deal in mind Copyright 息 Aha! Advantage 2013 11
  • 12. Deal NaviGater shows you how to: Choose and sequence your critical parties in the order you need to negotiate Map each partys decision-making process Build internal coalition of supporters with each party Manage your information flow Plot achievable timelines and milestones Deal Gate 2 Sequence your moves to agreement Deal NaviGater sequences your forward moves to agreement Copyright 息 Aha! Advantage 2013 12
  • 13. Deal NaviGater shows you how to: Expand your total-net pie Probe behind positions to identify interests Dovetail differences to unlock joint gains Different interests Different valuations Different attitudes towards risk Deal Gate 3 Design your value-optimizing strategy Deal NaviGater expands the total-net pie before you trade concessions Copyright 息 Aha! Advantage 2013 13
  • 14. Deal NaviGater: Establishes rules of engagement Sets up a dispute resolution process Formulates agendas Establishes external communication protocols Helps you manage emotions Deal Gate 4 Align your relationship management processes Deal NaviGater aligns your relationship processes to your strategy Copyright 息 Aha! Advantage 2013 14
  • 15. When youre ready to negotiate face to face, Deal NaviGater gives you a seven step disciplined process Copyright 息 Aha! Advantage 2013 15
  • 16. Managing the process allows you to shape the result. Deal Gate 5 Negotiate for agreement Respect Model The RESPECT seven step bargaining sequence gives negotiators control of the bargaining process Copyright 息 Aha! Advantage 2013 16
  • 17. Deal NaviGater incorporates traffic lights stage gate go/no go decision points Copyright 息 Aha! Advantage 2013 17
  • 18. Go/no go decision points Deal Gates Go/No Go Roadblocks Actions 1 Deal Structure Identified best parties Assessed interests Identified right BATNAs Mapped decision making process 2 Sequence Management Sequence choices Managed information flow 3 Deal Strategy Optimize total net-pie Satisfy interests Dovetail differences 4 Relationship Management Dispute resolution process Rules of engagement 5 Negotiating Tactics Persuasive skills Tactics Concession trading Copyright 息 Aha! Advantage 2013 18
  • 19. Failure is common even on well-run projects. Deal NaviGater boosts the odds of project success where projects are characterized by: High Uncertainty - uncertainty is the amount we dont know at project initiation. Deal NaviGater gives you the tools to cope with an uncertain future. High Complexity - Multiple parties with competing goals and/or multiple sub-systems. Deal NaviGater aligns competing interests to the projects strategic goal. Time-Critical Goals - Time pressure accelerates the need for negotiation. Deal NaviGater helps resolve deadline issues. Demanding Stakeholders - Little tolerance for projects that fail to meet the business case. Deal NaviGater keeps the project focused on the business drivers. Deal NaviGater complements and strengthens existing project management systems Copyright 息 Aha! Advantage 2013 19
  • 20. Known risks Unknown risks (Uncertainty) Deal NaviGater handles uncertainty (unknown risks) much better than traditional project management tools. Deal NaviGater significantly improves a project managers ability to manage uncertainty (unknown risks) Copyright 息 Aha! Advantage 2013 20
  • 21. Deal NaviGater comes as a complete deal design and management suite Copyright 息 Aha! Advantage 2013 21
  • 22. 1. Five Foundations Playbook 200 page strategic deal and relationship management guide 2. Five Foundations Toolbox 22 powerful deal-shaping tools 3. Deal Tracker Traffic lights deal management and audit process 4. StreetSmart Negotiator 196 page field guide for negotiating face-to-face 5. Web Platform Work on your deals anytime, anywhere 6. Customized Training Turn negotiation into a core competency 7. Deal-making Advice Coaching and support for specific negotiations 7 Value-Adding Components The Deal NaviGater management suite Copyright 息 Aha! Advantage 2013 22
  • 23. 200 page accessible strategy and tactical playbook Forms the heart of Deal NaviGater System Component 1: Dealmaking playbook Copyright 息 Aha! Advantage 2013 23
  • 24. Includes 22 of deal-shaping, value-optimizing tools Tools developed and tested over 25 years with clients such as Toyota, PwC, and Unilever Component 2: Dealmaking toolbox Copyright 息 Aha! Advantage 2013 24
  • 25. Allows senior executives to manage, track and evaluate progress in high-stakes deals Allows delays, cost overviews and relationship issues to be solved while small Component 3: Traffic lights go/no go deal tracker Copyright 息 Aha! Advantage 2013 25
  • 26. Harry Mills acclaimed field guide, The StreetSmart Negotiator gives negotiators: The practical tips and tactics they need when bargaining face-to-face A disciplined 7 step process which can be actively managed and audited Component 4: Tactical field guide Copyright 息 Aha! Advantage 2013 26
  • 27. The Deal NaviGater Playbook and Toolbox is accessible online through its own secure web portal so your team can manage deals: Anytime Anywhere Component 5: Online, on-demand web platform Copyright 息 Aha! Advantage 2013 27
  • 28. Our experiential, simulation based training upskills your team so they can negotiate with skill and confidence Make negotiation skills a core competency Component 6: Customized training Copyright 息 Aha! Advantage 2013 28
  • 29. Our 25 years of practical deal-making experience means we can advise and coach on: Resolving disputes Acquisitions and mergers Joint ventures and alliances Major sales Procurement and outsourcing deals Component 7: Dealmaking coaching and advisory support Copyright 息 Aha! Advantage 2013 29
  • 30. Harry Mills, the creator of Deal NaviGater, is the author of 26 books including 3 on negotiation: Negotiate: the Seven Step Master Plan, The Dealmakers Handbook, and The StreetSmart Negotiator Harry Mills is the mentor on persuasion for the Harvard Manage/Mentor Program Harrys thinking has been featured by Entrepreneur Magazine, Sales & Marketing Magazine, Business Today, Selling Power, Bottomline Business and USA Today Underpinned by 25 years of practical deal making experience working with clients such as Toyota, GE, PwC and Kimberly Clark Built on two decades of research on negotiation, persuasion and strategic deal management Deal NaviGater program based on deep expertise Copyright 息 Aha! Advantage 2013 30
  • 31. Minimizes risks inherent in difficult deals and projects Transparent phase gate go/no go process which can be actively managed for risk by senior management Boosts odds of success in large, complex negotiations Process and tools used by whos who of global companies and organizations such as Toyota, GE, and Ericsson Auditable, risk-managed, self-adjusting process Developed by Harry Mills, author of 3 books on negotiation and Harvard Manage/Mentor on persuasion Underpinned by 25 years of practical deal-making experience and breakthrough research The benefits of Deal NaviGater Copyright 息 Aha! Advantage 2013 31
  • 32. Contact For more information on DealNavigater please contact: Harry Mills CEO, The Aha! Advantage Phone: +64 4 499 6770 Mobile: +64 21 452 256 Email: harry.mills@ahaadvantage.com www.ahaadvantage.com Copyright 息 Aha! Advantage 2013 32