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

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The document discusses strategies for effective business negotiations. It outlines that negotiations are often more analytical processes than personality-driven events. It provides statistics showing most companies have informal negotiation strategies and processes. The document recommends that to improve negotiations, companies should identify the consequences of no agreement, potential trade-offs, and anchor points. It also stresses the importance of understanding all aspects of a deal and taking a strategic rather than purely tactical approach to negotiations.

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business negotiation, redefined
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
no dialogue among bidders € 1 increments can¡¯t be first and second bidder high bidder gets the €20 for what they bid 2 nd highest pays and gets nothing €20 auction
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%
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%
redefining tactical negotiation three things required to blueprint negotiation: consequences of no agreement trades anchors
blueprinting negotiation, a start agreement zone seller CNA buyer CNA
common CNA tactics ¡° competition is better, faster, cheaper¡­¡± ¡° you are way out of line with the market¡±
what is being negotiated? seller desired terms buyer desired terms
common trade tactics ¡° i only want to talk about price¡± ¡° we need you to give us that option for free¡± ¡° sharpen your pencil¡±
blueprinting negotiation seller CNA buyer CNA seller desired terms buyer desired terms
tie it all together c reate joint value and divide it given concerns for the ongoing relationship seller CNA buyer CNA seller desired terms buyer desired terms anchor seller CNA buyer CNA
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
negotiation problem to be solved¡­ ¡° I can get the same thing¡­ from your competitor cheaper¡±
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
negotiation problem resolution getting all aspects/facts of the deal on the table simultaneously so more rational business decisions can be made
tactic process negotiation tactics rational response anchor CNA trade
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?
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
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?
redefining negotiation ¨C tactics three things required to blueprint negotiation: consequences of no agreement trades anchor on MEO
redefining negotiation - strategy negotiation strategy: what negotiation success looks like what leads to negotiation success trades and guardrails
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%
strategic negotiation alignment
strategic negotiation alignment
strategic negotiation alignment
strategic negotiation alignment
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
tie it all together c reate joint value and divide it given concerns for the ongoing relationship seller CNA buyer CNA seller desired terms buyer desired terms anchor

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

  • 2. 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
  • 3. no dialogue among bidders € 1 increments can¡¯t be first and second bidder high bidder gets the €20 for what they bid 2 nd highest pays and gets nothing €20 auction
  • 4. 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%
  • 5. 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%
  • 6. redefining tactical negotiation three things required to blueprint negotiation: consequences of no agreement trades anchors
  • 7. blueprinting negotiation, a start agreement zone seller CNA buyer CNA
  • 8. common CNA tactics ¡° competition is better, faster, cheaper¡­¡± ¡° you are way out of line with the market¡±
  • 9. what is being negotiated? seller desired terms buyer desired terms
  • 10. common trade tactics ¡° i only want to talk about price¡± ¡° we need you to give us that option for free¡± ¡° sharpen your pencil¡±
  • 11. blueprinting negotiation seller CNA buyer CNA seller desired terms buyer desired terms
  • 12. tie it all together c reate joint value and divide it given concerns for the ongoing relationship seller CNA buyer CNA seller desired terms buyer desired terms anchor seller CNA buyer CNA
  • 13. 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
  • 14. negotiation problem to be solved¡­ ¡° I can get the same thing¡­ from your competitor cheaper¡±
  • 15. 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
  • 16. negotiation problem resolution getting all aspects/facts of the deal on the table simultaneously so more rational business decisions can be made
  • 17. tactic process negotiation tactics rational response anchor CNA trade
  • 18. 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?
  • 19. 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
  • 20. 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?
  • 21. redefining negotiation ¨C tactics three things required to blueprint negotiation: consequences of no agreement trades anchor on MEO
  • 22. redefining negotiation - strategy negotiation strategy: what negotiation success looks like what leads to negotiation success trades and guardrails
  • 23. 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%
  • 28. 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
  • 29. tie it all together c reate joint value and divide it given concerns for the ongoing relationship seller CNA buyer CNA seller desired terms buyer desired terms anchor