A useful tool for profiling the strength of relationship and trust in a client account

1. The business of doing the
business
Devised by C Morris - www.evolve.ie
- April 2011

2. Customer Perception Ladder
Value
3 Partner
2 Value Adder
1 Commodity Broker
Cost

3. The Big 8 – P.A.R.T.N.E.R.
• Perception • Awareness
(supplier status) P (of their business) A
1. Commodity broker 1. Media / gossip
2. Value adder 2. SWOT - entry level
3. Partner 3. SWOT/Chart/Director
• Relationship • Them
(vertical) R (our perspective) T
1. Entry level 1. Once off
2. Middle management 2. Yearly commitment
3. Regular – Top brass 3. Strategic partnership

4. The Big 8 – P.A.R.T.N.E.R.S.
• Number of • Euro margin / profit
(products) N (of their business)
1. One 1. Low E
2. Two 2. Medium
3. Three plus 3. High
• Relationship • Spend
(horizontal) R (percentage of) S
1. Entry level 1. Ad hoc
2. Order taker & manager 2. Preferred supplier
3. Level two & 3. Total
Successor/Influencers

5. Account Management Wheel
1. Perception -Supplier Status
3
8. Spend 2. Awareness
Percentage of Of their biz.
2
1
7. Euro margin 3. Vertical
Relationship
4. Them – our
6. Horizontal Relationship perspective
5. Number of products

6. Account Management Wheel
1. Perception
Supplier Status
8. Spend 2. Awareness
Percentage of Of their biz.
7. Euro margin 3. Vertical
Relationship
4. Them – our
6. Horizontal Relationship perspective
5. Number of products

7. Account Management Wheel
1. Perception
Supplier Status
8. Spend 2. Awareness
Percentage of Of their biz.
7. Euro margin 3. Vertical
Relationship
4. Them – our
6. Horizontal Relationship perspective
5. Number of products

8. Account Management Wheel
1. Perception
Supplier Status
8. Spend 2. Awareness
Percentage of Of their biz.
7. Euro margin 3. Vertical
Relationship
4. Them – our
6. Horizontal Relationship perspective
5. Number of products

9. NEGOTIATION
Concede in areas of lesser importance to
gain in areas of greater importance

10. GREAT NEGOTIATORS
KNOW TWO THINGS
(1)THE VALUE OF THEIR PROPOSITION
Belief in their product or service
Ability to Communicate that Belief
Competitor Knowledge
Industry Knowledge
The benefit to the purchaser

11. (2)

12. 6 Principles Of Negotiation
Distinguish the issue from the personality
of the negotiator
Agree Objective Criteria
Innovative Option Creation
Be Specific
Interests versus Positions
Zonal Negotiation

13. Preparation for Negotiation

14. Preparation 1
• Prepare must have objectives and wish
lists
• Know what is out of bounds
• Get into their shoes – What are their
objectives

15. Preparation 2
• Decide Fallback Position (theirs and yours)

16. Preparation 3
• Prioritise Tradables
• Know what they are
– Price, Volume, Term, Payment, Delivery,
Warranties, Testimonials, Recommendations
• Construct the Value of the Tradable to
both parties

17. Preparation 4
• Construct best and worst trading limits

18. Preparation 5
• Plan What If’s

19. Top Tips for Negotiations
1) Give them what they want – On your terms
2) Avoid Dilution
3) Give nothing for nothing
4) Win-Win is better for long term business
5) Summarise very regularly
6) If you think you are far apart – propose first
7) Don’t just state grievance – propose a solution
8) Watch for signs of flexibility
9) Ring fence areas that you won’t budge in
10) Open realistically – move carefully

20. Top Tips for Negotiations
11) Always remember to be strong on the relationship
12) When you make a proposal – Shut Up (Invite response)
13) When you ask a question – Shut Up (Invite response)
14) Value your tradable on their terms
15) Slice up your tradable
16) Give them your specific conditions before your offer
17) Put a price on unreasonable demands
18) Use Trial Closes
19) Use Add Ons and Take Aways
20) Structure expectations between meetings
21) Summarise Your Agreement

21. The Stages of Negotiation
Stage 1 – Issues on the Table
• Get Issues on the Table (Broadly)
• Demonstrate Openness by starting the List
• Mix up your high priority and low priority
tradables

22. The Stages of Negotiation
Stage 2 – Get and Give Information
• Ask questions
• Seek first to understand – then to be understood
• Find out their Priorities – uncover their motives and
interests
• Review Issues
• Structure Expectations
• Test Assumptions (Why do you have no flexibility on that)
• Probe Motives
• Explore Priorities
• Identify interests and inhibitions
• Be constructive – avoid point scoring and sarcasm
• After Making a proposal – Invite a Response

23. Making Proposals
• Open realistically
• Credible – facts to support
• Address all key issues
• At other party’s limit
Intro-Propose-Explain-Summarise-Invite Response
(Don’t just state a grievance propose a remedy)

24. The Stages of Negotiation
Stage 3 – Get Clarity
• Understand their proposal
• Clarify – Paraphrase and Summarise
• Get and Give Information
• Get on the same page

25. The Stages of Negotiation
Stage 4 – Signal Flexibilities
• Signal – Watch and Listen
• Flag Flexibility (If it will make a difference)
• Indicate ‘out of bounds’
– `Just suppose ’

26. The Stages of Negotiation
Stage 5 – The Swapping of Concessing
• Trade Concessions
• Be clear / Be specific
• Be realistic – address their real concerns
• Don’t interrupt
• Understand their concessions
• If you do ..then I (conditions before
offers)

27. Receiving a Proposal
Option Yes/No
No – Leaves other party with initiative
Yes – Are you missing a chance of Wish List
Instant Counter Proposal – Leads to Haggle
Adjourn – Thinking and Consulting time
Detailed Response – Repackage to make more acceptable
Considered Counter Proposal – The circumstances that you will
agree to what they are proposing
(Give them what they want .on your terms)

28. The Stages of Negotiation
Stage 6 – Finalise the Deal
• Trail Closes – are you saying that if I ..
• Questions about minor details signal deal close
• If you agree to the proposal then .
• Don’t get greedy
• Conclude and Summarise
• Ambiguity is cleared up more easily at this point
• Agree implementation process
• Write it down

29. Questions
‘The wrong ones’
• Are you listening to me?
• Do you think I was born yesterday?
• Yeah, yeah, but what do you really want?
• Multiple

30. Questions
‘The right ones’
• Perhaps you could explain your reasons?
• Let me understand what your priorities are?
• Is there anything I can do for you?
• Why is that important?
• If I do that for you – what will you do for me?
• Under what circumstances would you do what I
want?
• Is there anything else it would be useful for me to
know?

31. Roadmap
• Prepare for Negotiation
• Introduction and Build Relationship
• Get a shared understanding of Issue
• Get and Give Information
• Summarise Understanding
• Signal Flexibility
• Make Proposals
• Bargain ‘Swap Concessions’
• Agree and Confirm Deal

32. NEVER
• SAY ‘IS THAT YOUR FINAL OFFER?’

33. QUESTIONS

34. THANKS
Conor Morris
www.evolve.ie