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Deal Architecture

  1. 1. • Business Evolution • Business Development Overview • Business Development Process • Negotiation Types & Game Theory • Negotiation Process • Negotiation Tactics • Resources Agenda
  2. 2. CEO CFO Business Development COO Business/Corporates Evolution
  3. 3. CEO CFO Commercial Director Business Development Sales COO HR Director Business/Corporates Evolution
  4. 4. CEO CFO Commercial Director Business Development Marketing Sales COO CTO HR Director Business/Corporates Evolution
  5. 5. CEO CFO Commercial Director Business Development Marketing Sales Trade Marketing COO CTO HR Director Business/Corporates Evolution
  6. 6. Business Development Need
  7. 7. What BD Really Is
  8. 8. Types of Deals: • M&A. • Pitching New Idea / Product. • Opening New Channels / Revenue Lines. • Supplier / Buyer. Profiles of Business Development Professionals: • Deals Opener. • Deals Closer. • Deals Opener & Closer. Partners Profiling: • Mavern: Focuses on Numbers. • Greedy: Wants to Always Win. • Connector: Win Him To Win Other Deals. • Celebrity: Ego Massaging. Business Development Scope
  9. 9. Business Development Process
  10. 10. High Level Map: Business Development Process Prospecting Engaging Committing Closing Execution Analyzing Detailed Process Map: • Network contacts ( attend conferences + use power to build more power + stay in companies to create contacts). • Choose who to contact. • Choose when to go and if it is on ground or off ground or at their premises. • Start from bottoms up and place yourself in the other side's shoe. • Study the contract and revise. • Blend in with marketing and activations. • Make use of all dots to create lines. • See the impact and decide to duplicate it or not.
  11. 11. Prospecting / Scouting (100) Cultivating / Engaging (60) Positioning / Committing (15) Closing / Capturing (3) Funnel & Conversion Matrix Conversion Ratio 60% Conversion Ratio 25% Conversion Ratio 20%
  12. 12. Key For Every Stage • Prospecting = Awareness & Exposure. • Engaging = Present-ability & Getting Out of Comfort Zone. • Positioning = Persistence & Mastering Negotiation. • Closing = Building Trust with Partner & Empowerment from Internal Stakeholders.
  13. 13. Type Everest Strategic Corporate Marketing PR Stunt Example Vodafone Taxi Unilever Redbull Amr Adeeb Promo Codes Outcome Revenue Lobbying Diversification Brand Equity Awareness Buzz Effort 160 Hrs 80 Hrs 20 Hrs 30 Hrs 2 Hrs 30 Mins Units with BD BD Board Sales Marketing PR Marketing Conversion Ratio 66% 60% 50% 40% 30% 30% Deal Classification
  14. 14. Everest Strategic Corporate Marketing Stunt Mavern 1 2 3 4 5 Greedy 1 1 1 3 3 Connector 3 4 3 4 5 Celebrity 1 1 2 5 5 Doubtful 5 5 5 2 2 Deal Classification & Partner Profile • Probability of closing a deal according to deal classification & partner profile on a scale from 1 to 5 (1 Definitely Not & 5 Definitely Yes).
  15. 15. • Contacts Vs Partners Influence / Interest High Low High Ghabour Amr Adeeb Low Bridgestone Promo Codes Contacts Profiling
  16. 16. • Revenue/Users Growth • Number of Deals / Partnerships • Outcome of Partnerships Vs Assumptions Business Development KPIs
  17. 17. 3rd Phase: Negotiations
  18. 18. • Competitive: • No information sharing. • A zero sum game (what one party gains, the other loses). • Interest Based: • Limited information sharing. • Focus on solving mutual problem. • Requires long relationship between parties. • Principled: • No private information. • Discuss different scenarios to reach both party objectives. Negotiation Types
  19. 19. • Power Grid • BATNA • Shopping List • Variables • Negotiation Map • Tactics Negotiations Pillars
  20. 20. Buyer Power Supplier Power Balance of Power What We Need To Do Power Grid
  21. 21. • Best Alternative To Negotiated Agreement. • Inability to Identify your BATNA = No Agreement. BATNA
  22. 22. • Shopping List (Main Focus): Factors that you want to get out from a negotiation process. • Variables (Available Options): More variables lead to more win-win situations. Shopping List & Variables
  23. 23. The Negotiation Range Best Case Scenario Desirable Worst Case Scenario (BATNA) No Go Area Negotiation Map
  24. 24. Worst Case Desirable Best Case Cost 48 52 56 Payment Terms 75 60 45 Contract Duration 12 months 18 months 24 months Your Negotiation Map
  25. 25. Worst Case Desirable Best Case Cost 55 50 45 Payment Terms 60 75 90 Penalty on delays 3% 5% 10% Other Party Negotiation Map
  26. 26. Buyer Worst Case Desirable Best Case Cost 55 50 45 Supplier Worst Case Desirable Best Case Cost 48 52 56 Deal between 48 and 55 Buyer Worst Case Desirable Best Case PT 60 75 90 Supplier Worst Case Desirable Best Case PT 75 60 45 Deal between 60 and 75 Maps Intersection
  27. 27. Messenger • “It’s not my call”. • Use when you want to use higher hierarchy without involving them, or when your rational is weak. • Counter by elevating to the “responsible” person (all levels), or by using the messenger to neutralize. Negotiation Tactics
  28. 28. Deadline • “We only have till end of this week to finish”. • Use when you have a realistic deadline, or need to create pressure. • Counter by challenging the deadline, “ask why”, or by shifting the pressure of deadline to the other party. Negotiation Tactics
  29. 29. Emotions • “I can’t believe this is how you think of the topic!”. • Use when only you have emotional bank account. Use to shift the topic from facts to emotions, and create pressure. • Counter by reverting back to facts, or by “messenger”, emotions, take a break/recession till emotions cool down. Negotiation Tactics
  30. 30. Back Burner • “Lets leave this issue aside till we agree on other points first”. • Use to avoid clashes, avoid discussing a weak point, or when you have a certain arrangement of topics that works best for you. • Counter by insisting on the point, use deadline, or asking “why delay it?” Negotiation Tactics
  31. 31. Problem Transfer • “We have a saving target of XX, you need to help”. • Use when you have good relations/high ownership from other party. • Counter by refusing to commit to irrelevant targets (when applicable), use backburner, or by back firing “and what are YOU doing to get this target?” Negotiation Tactics
  32. 32. Good Cop – Bad Cop • Use only when you have solid coordination with your partner. • Counter by “you both represent the company”, use emotions on the bad cop, go for a break/recession, focus on one person from the two. Negotiation Tactics
  33. 33. • Silence. • Stone Walls. • Divide & Conquer. • Inventing Problems. • Salami. • Add-ons. • Change of Pace. • Caucus. • New Faces. • Physical Unpredictability. Negotiation Tactics
  34. 34. Classical Paradigm: • The 2 parties have interests to maximize their own share of the pie. • Accordingly, any party’s rational decision requires anticipating rivals’ action. Nash Paradigm: • Game Theory introduced the concept that both parties have a common interest to make the pie as large as possible. • Both parties can be better off if they reach a cooperative solution. Game Theory & Negotiations
  35. 35. Skills BD Network Diversity Presentable Socially Intelligent Deal Architect Problem Solver Understands Operations Persistent
  36. 36. Readings: • Crucial Conversations Tools for Talking When Stakes Are High, by Kerry Patterson and Joseph Grenny • Getting to Yes: Negotiating Agreement Without Giving In by Roger Fisher and William L. Ury • Trump: The Art of the Deal by Donald Trump • Crucial Conversations: Tools for Talking When Stakes Are High by Kerry Patterson • Influence: Science and Practice by Robert B. Cialdini • The Tipping Point, by Malcolm Gladwell • 48 Laws of Power, by Robert Greene • Mostafa Mahmoud Books To Check List: • Techcrunch • Flipboard • Business Today • Borsa Newspaper • Enterprise Press • LinkedIn Resources
  37. 37. LinkedIn: Mohamed Aboulnaga Email: maboulnaga@gmail.com Contact Details

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