The Negotiator's Guide

THE
NEGOTIATOR’S
GUIDE
From Planning To Execution

INTRODUCTION
CONTENTS
As we all know, planning is the key to success in many business
processes, but the impacts and benefits are far more acutely felt
in negotiation than in any other discipline.
The minutes, hours and days can be measured in payback in
tens, thousands and millions of dollars, or equivalent in your
negotiating currency. Planning, however, is not the act of
putting words, actions and timescales on a piece of paper; in this
case, planning entails deep understanding of the other party’s
motives, examining the worst as well as planning for the best,
and ensuring that we know the “how?” as well as the “what?”.
05 Scoping
11 Stakeholder Management
17 The Impact of Power
23 Tactical Plan Development
29 Executing with Confidence
35 Completion Review
The following series of articles is designed to bring to life each
stage of negotiation planning – to demystify, if you will – using
examples, case studies and live situations.
If you would like to know more, once you have read these
articles, please get in touch. We would be pleased to discover
with you how they apply in your specific negotiation situation.
Chris Atkins
Head of Global Consulting
THE NEGOTIATOR’S GUIDE

Give me six hours to chop down
a tree and I will spend the first
four sharpening the axe.
ABRAHAM LINCOLN
PART 1
SCOPING
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06 | PART 1 – SCOPING
PART 1 – SCOPING | 07
WHY IS SCOPING IMPORTANT?
We all run the risk of falling into habit and bad-practice traps when
we prepare for a negotiation – perhaps because we are busy, or because we
are experienced, or even because we believe that this negotiation will be
sufficiently like the last that it is not necessary to spend the time to consider
if there is a different, or better, way.
Effective scoping of our negotiation enables us to consider new or different
perspectives, introduce and understand the impact of external changes on
our negotiation and ensure that all interested parties are aligned on the
preferred outcome, as well as the possible alternative results.
It is vital that we identify the “real” objective and properly challenge this;
that we write it down in as few words as possible and gain everyone’s
alignment to it. Scoping allows us to prioritize our actions and sequence
our negotiations to achieve this agreed objective and optimize the
final outcome.
Scoping in practice
We were working with a client to develop a price increase strategy. They
were operating in a duopoly market in which it was the received wisdom
that the retailers held all the power. As we developed the scoping for the
negotiation and analyzed the reality of the situation, it became clear that
this misperception had driven supplier negotiation behavior for many
years. In fact, both retailers were obsessed by the activities of the other.
Realizing this, we developed a plan which played to the strengths of the
supplier and allowed us to influence the retailers to accept a significant,
but critical price increase.
CASE STUDY:
IMPLEMENTING A COST PRICE DECREASE
The director of procurement was presented with a
challenging directive from his board. The commercial
and trading conditions were such that the business was
required to implement a significant cost cutting exercise
with its suppliers.
With a savings target of more than
$13 million and a supplier base
running into the hundreds, this
project required an exceptionally
high degree of proficiency and
rigor throughout.
Of three cost reduction projects
planned, the first two ran
concurrently – one focused on a
single buying category, the other on
indirect procurement. The biggest
potential uplift was however
identified as being with the direct
suppliers, which was why, six
months later, the third project
targeted the entire supplier base.
This third initiative presented
significant risks. The buyers had
recently gone through challenging
negotiations with the suppliers;
they were now being asked to do so
again within a short timeframe.
As such there were legitimate
concerns around whether any
more value could be realized while
maintaining healthy business
relationships with the supplier base.
SCOPING: LAYING FIRM
FOUNDATIONS
In order to address these risks, it
was critical that they got internal
stakeholder buy-in to ensure a
strong and consolidated approach.
To do this they ran a project
scoping day with the entire buying
team to explain the project drivers
and projected uplift that success
would bring. Making the objectives
and rationale clear equipped buyers
with the belief and resilience to go
back for the second round.
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08 | PART 1 – SCOPING
PART 1 – SCOPING | 09
BUSINESS STRATEGY
AND OBJECTIVES
It is surprising how many
negotiations are initiated without
a clear alignment of leadership
requirements. These can be
incomplete or worse, contradictory,
so a negotiating team is risking
failure, or finding themselves
spending more time negotiating
internally than with their external
counterparties. The team worked
to establish a clear understanding
and prioritization of all the issues
that needed to be addressed
so that they could develop a
comprehensive negotiation plan.
TIMEFRAMES AND KEY
MILESTONES
As we all know, time is power in our
negotiations, so the team created
a timeline which maximized their
opportunities to influence the
outcome. The timetable ignored
traditional but artificial deadlines
which are so often driven by
the corporate financial calendar,
because the long-term prize was
sufficiently valuable to extend the
negotiation sequence beyond their
financial year end.
IDENTIFY ALL
AVAILABLE OPTIONS
It would have been convenient and
comfortable to operate within the
boundaries that they had always
set and the variables that they had
always used when they embarked
on this negotiation. Instead they
chose to explore possibilities
created by re-baselining, instead of
incrementing from previous deals.
“That’s non-negotiable” is a
phrase that is regularly used in
negotiation, but is it really? If the
alternative is no deal or loss of a
critical partner, it is helpful to
think again and consider what
you would need in return to
make that variable negotiable.
ASSESS RISK – FINANCIAL,
OPERATIONAL, COMMERCIAL
Risk, like power, is perceived.
We all have different attitudes
to risk, both individually and
organizationally. We also have a
tendency to incorrectly assess real
risk and this significantly changes
our behavior. Consider air travel
– a source of significant fear for
many individuals. The data shows
that commercial flying is nineteen
times safer than traveling by road,
but we still fear flying, while most
of us happily jump into our cars.
In order to manage risk, we need to
assess it objectively and understand
how that affects our approach to
negotiations.The buyers performed
a thorough, objective risk
assessment and mitigation exercise,
which enabled them to better plan
the approach that they were going
to take with each supplier group.
The next phase ascertained relative
importance and level of spend
per supplier, allowing them to
group suppliers into one of four
segments e.g. high risk/high spend
meant a supplier was business
critical. For each segment they
were then able to build specific
negotiation strategies based on their
importance to the business.
DATA AND FINANCIAL
MODELING REQUIREMENTS
They needed to understand the
financial impact of every element
that they were to negotiate and
the interdependencies between the
variables. Data analysis uncovered
some surprising options, which
they were able to utilize to further
optimize their approach and
engage the suppliers in a more
creative discussion of options.
IDENTIFY TEAM ROLES
AND RESPONSIBILITIES,
INCLUDING PROJECT
MANAGEMENT
An expertly planned and managed
negotiation is much like a business
project in its approach and
composition, so they assigned
a project manager. They also
assigned, and stuck to, team roles.
They developed messaging before
and during the negotiation phases,
ensuring that everyone was clear
how the messaging would play out.
THE RESULT
The plan had been to achieve $13m of cost reductions. The result was cost
efficiencies totalling $26m. Furthermore, the company divested one of its
business units for a significantly higher value than originally envisaged.
Scoping “sharpens the axe” and prepares
your organization for the stresses of the
negotiation to come. It is often overlooked
in our rush to get things done. Taking more
time at the beginning saves us time…and
money at the end.
What’s more important?
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I can’t change the direction
of the wind, but I can
adjust my sails to always
reach my destination.
JIMMY DEAN
PART 2
STAKEHOLDER
MANAGEMENT
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THE IMPORTANCE OF
STAKEHOLDER MANAGEMENT
In our negotiations, we often focus on the person sitting across the table
from us rather than identifying and addressing the real “power behind
the throne”. Equally, we drive toward what we perceive to be the key
outcomes, without engaging our own critical (sometimes very critical…)
stakeholders throughout the process.
If we can influence the most important stakeholders within our, and
our counterparty’s organization, we can positively affect their impact
on our negotiation. But, in order for this to be effective, the influencing
needs to be planned, needs to start early and needs to be consistent in all
communications, without appearing contrived.
CASE STUDY:
RESISTING THE ASK
While working on a trade terms implementation project,
the account manager of a major retail customer received an
email requesting a meeting. Probing further, they realized
this was the initiation of a big “Ask” – the retailer planned
to make a unilateral demand on its vendors as a way of
generating extra margin without giving anything away.
Stakeholder management in practice
It is astonishing that knowledge gleaned at lower levels can often hold
more weight than direct communications top-to-top. For example,
board-level conversations can be vulnerable to the influence of nuggets
of “intelligence” – often little more than rumors – that permeate up the
organization. Subsequent decisions may then be swayed as a result of these
pieces of information – which may or may not be genuine.
In most instances, vendors
take a reactive approach and
determine their course of action
depending on the outcome of the
first meeting. But this is a missed
opportunity. This supplier built
a proactive strategy to counter
the Ask and turn the “nonnegotiable”
unilateral demand into
a collaborative trading opportunity
– all before they walked into
the meeting.
ESTABLISHING THE
MOTIVATIONS
They began with comprehensive
research into the retailer. They
studied their historical strategies
and tactical moves, as well as their
recent behavior in the marketplace.
They also reached out to other
organizations who had already
had their meeting to ascertain
the approach taken and tactics
deployed. Most critically, they
researched the key players within
the retailer: the category director,
CFO and merchandizing director.
They mapped the relationships
between the two organizations
to identify who could be utilized,
first to ascertain the true position
and motivations of the retailer
and then to deliver influential
positioning statements.
It became clear that as our client
had demands of the retailer that
they were willing to pay for, they
should take the opportunity to
bring variables into the negotiation
that would benefit them – such
as new items, more promotional
support, and a private label project.
These were each introduced as
important opportunities for value
during casual conversations or
discussion on other non-related
subjects between the two parties.
As the retailer had a limited
number of assets to give vendors,
the supplier decided it was in their
interest to accelerate and push the
agenda, rather than delay it.
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DETERMINING
GUIDING PRINCIPLES
Recognizing the importance of
internal alignment to the strategy,
they spent time understanding and
devizing key operating principles
to help lay behavioral foundations
and guide the negotiation. For
example: we will be aligned as
a team; we will not give money
away for free; we will only trade
for value. It was important at this
stage to ensure that these principles
were discussed and agreed among
all of the stakeholders within the
supplier organization. It would
have been very easy to leave
this to assumption, only for a
stakeholder to lose confidence
later in the negotiation, exposing
the negotiating team. They also
investigated both their own and
the retailer’s objectives, to begin to
identify the opportunities to build
value into the negotiation.
They analyzed the balance of
power; once they understood that
this lay with them, they were able
to shift the mindset of the whole
team, from top to bottom, moving
them from negotiating from a
position of weakness to one of
strength.
CREATING
OPTIMUM VALUE
Having identified the objectives,
they then took time to develop a
detailed tactical plan to proactively
drive a positive, collaborative
negotiation. They calculated the
values of the trades, and how
they could creatively propose
and repackage them to get the
best value. They carried out a full
stakeholder alignment program
to ensure the strategic and tactical
plans were fully understood,
supported and approved by
the president and other senior
level people. Additionally, they
agreed a communication protocol
throughout the negotiation to
ensure that there was continuing
support and confidence in the
execution of the strategy as the
negotiation unfolded.
PREPARATION IS KEY
Armed with a robust strategy,
the supplier was fully prepared
and confident to drive the
agenda of the first meeting.
During the meeting they made
clear their intentions and the
conditions they were willing to
trade, and laid the foundations
for a collaborative negotiation.
DEFYING
EXPECTATIONS
The result was a big win for the supplier; within a short period of time,
they were able to move into a highly collaborative trading position with
the retailer by positively responding to their Ask. At the same time they
were able to secure themselves a huge amount of value in the deal. What
began with a $20m Ask resulted in $40m top-line gain, all within the
company’s investment guidelines.
Stakeholders – ours and theirs – have
the ability to drive success or derail any
negotiation. Communication, alignment,
influence and confidence have greater
impact on negotiated outcomes than
numbers. Make sure you consider where
the real success factors lie.
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The measure of a man is
what he does with power.
PLATO
PART 3
THE IMPACT
OF POWER
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HOW TO ASSESS AND
MANAGE POWER
Power is often misperceived in our negotiations, leading to poor choices
and misdirected energy. In simple terms, power provides us with options;
the more power that you possess – real or perceived – the more options
you have in pursuing your negotiation.
Power is not static. It changes with time and can be influenced by external
events, so it is important to consider the power balance in this negotiation
situation, at this time, in this set of unique external circumstances.
Power in practice
Sometimes the perception of power is not as it appears, as the general
manager of a strongly branded, highly profitable organization discovered.
He found himself under pressure from the board to fund the investment
in overseas technology by the business’s sister company. As a result, he
could not afford to take the decisions he would normally take, and his
options were limited. His negotiation counterparties did not correctly
analyze the situation however; had they done so they would have
negotiated with him very differently.
CASE STUDY:
IMPROVE RETURN ON INVESTMENT
ON TRADE SPEND
A multinational consumer goods company wanted to
dramatically change their trade spending program to gain
more value and a better ROI from their spend with each
retailer. Funding would be determined strictly by growth,
not size; as such, retailers with stagnant or declining
growth would face major funding withdrawals. In many
cases, these were the retailers with the most power.
Generating greater ROI on
trade spend will involve, on a
fundamental level, negotiation.
Their trade spend program
represented a radical and
contentious change, one involving
a complete shift in belief, attitude
and behavior. The remit was
simple: implement the entire
program and do so before their
deadline 11 months later. To
achieve this, they worked on a
range of factors, from relationship
mapping and communication
planning, to the creation of
a negotiation strategy and
contingency plans.
THE FIRST STEP
To begin, they segmented the
market into three groups based
on size of account, importance to
the business and balance of power.
Due to the nature of trade spend
programs, there would be clear
winners and losers.
By identifying the true power
balance with each of their
retail partners, they were able
to ensure that the negotiation
approach would take account of
the existing power and, where
necessary, put steps in place at
the beginning of the process to
improve their power through
communicating their position and
influencing perceptions in their
counterparty organizations.
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PART 3 – THE IMPACT OF POWER | 21
SEGMENTATION
• With the retailers who were
low impact or low power, they
chose to impose the new funding
regime and accept any negative
impact that may ensue.
• For the second group, who
were more important, or who
carried greater perceived
power, they developed a
communication strategy and
a series of compromise moves
to achieve their goals while
providing a level of satisfaction
to their counterparties.
• The third, strongest and highest
risk group were influenced
through a series of top-totop
meetings well ahead of
the formal negotiation. The
negotiation plan involved
more detailed contingency and
communication planning in
order to ensure success.
They then designed the toplevel
strategies for the entire
organization. They identified what
they were going to do, how they
were going to do it, and made
sure there was complete internal
stakeholder alignment. They
cascaded the strategies down to
the regional teams, helping them
develop account-specific strategies,
as well as tactical moves and
contingency plans.
NURTURING CAPABILITY
They ensured that experienced
advisors were available to coach
and mentor the teams throughout
the project – specifically on some
of the larger accounts presenting
radical change and significant
conflict. These instances, where
the company lacked the power
to dictate terms, required a more
creative approach and necessitated
some multi-layer negotiation.
THE RESULTS
As they had the time to build a robust plan, the client achieved
implementation of the program with 100% commitment from the
retailers, including those with significant funding loss; and did so within
the set time frame. All the agreements were signed and implemented by
the start date; there was nothing outstanding.
Power fundamentally affects our
negotiation approach. By asking a series
of simple questions of your organization,
by understanding the reality behind your
counterparty’s position, by “getting inside
their head” and looking at the world from
their point of view, and by spending time
to influence the balance of power before
the negotiation meetings, you can not only
improve your negotiating position but,
perhaps more importantly, avoid making
very costly mistakes.
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Planning is bringing the
future into the present so
that you can do something
about it now.
ALAN LAKEIN
PART 4
TACTICAL PLAN
DEVELOPMENT
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TACTICAL PLANNING –
ISN’T STRATEGY ENOUGH?
Negotiations rarely fall down at the strategic planning stage. They fail
because we have not considered all possible outcomes, because not all of
the players in the negotiating team understand how it is designed to play
out, or because we have failed to sequence our actions effectively. If we
plan for every eventuality, then the decisions we make are considered
and unemotional, contingency actions are understood and problems can
be mitigated.
Confidence affects the execution of negotiation and planning builds
confidence. Working through and developing solutions to the smaller
concerns as well as the more strategic goals develops understanding
throughout the team.
CASE STUDY:
ASSET DISPOSAL
A major energy company needed to manage the sale of a
key asset in their portfolio. The sale had become necessary
following a shift in investment strategy and the deal
that would result was complex, involving multi-party
negotiations within a compressed timeframe. A less than
optimum result would potentially affect their share price.
Building detailed plans, in which every action has an owner, a timing
and a success measure means that complex, multi-party negotiations can
progress in concert, mitigating risk and making reporting simpler.
Tactical planning in practice
We were advising a client on their trade union negotiation, and had
together drawn up a very detailed action plan which considered and
dealt with every possible scenario that could arise. The client called us
up when they heard the concerning news that strike action had started,
which was making the headlines. They wanted our counsel on what
they should do. We asked them, “What does it say in the plan?” “Do
nothing”, replied the client. We advised that in that case they should
indeed do nothing.
The objective was clear: to close
the transaction on acceptable
terms to their leadership team by
the end of the calendar year. The
question was how to do it. The lead
commercial contract negotiator
organized a planning session.
He was an advocate of strategic
planning and wanted to apply it to
structure his team’s thinking. The
aim was to develop a consolidated
and robust plan to take back to the
leadership team.
GAINING CLARITY AND
DIRECTION
Working with representatives
from head office and the
geographic region, they set the
agenda. First, it was vital to
clarify the internal objective and
outcome. When there was a clear
alignment in place, they moved
forward to define the strategy.
MANAGING COMPLEX
RELATIONSHIPS
They developed two strategies:
one for the relationship with the
buyer – another major energy
company – which proved to be
relatively straightforward. The
other was for the relationship with
senior politicians. This was more
complicated.
What quickly became obvious
was that governments do not
behave with a purely commercial
mindset; they are also motivated
by political and diplomatic forces,
introducing even more complexity
into the negotiation. As such, they
developed five options, each with
a clear tactical direction. The
first was to let the buyer declare
their initial position. They then
introduced some suggestions to
create mutual value, with options
ready to execute dependent upon
how the government responded to
the first.
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ALLEVIATING
COMPLICATIONS
There were several complications
to work through during the project.
The first was the requirement to
plan and prepare for an imminent
and pivotal meeting between the
oil minister of the government and
senior executives from our client.
This additional time pressure
reinforced to everyone the need for
effective and efficient preparation.
As well as internal stakeholders,
there were external stakeholders
to manage, so they had to carefully
craft external messaging to allay
market fears of the company’s
capabilities and commitments.
MITIGATING RISK
One of the main risks to the
negotiation was that the buyer
would insist on an asset swap,
rather than agree to a cash
transaction. Although our client
was still marketing the asset to
other potential buyers, this could
have led to further complications
and unwanted delays in the sale.
STICKING TO
THE PLAN
They worked to reevaluate some
of their preconceptions about the
balance of power between the
negotiation parties and concluded
that the power that they held
had, in fact, been underestimated,
enabling them to have confidence
in taking a different approach.
At the end of the project, they
had developed a clearly aligned
strategy, set relationship goals and
tactical responses for the buyer and
the government, and created an
external communication plan with
key positioning statements
for the market. The leadership
team bought into this strategy
without question. They remained
close to the transaction even
after the initial negotiation had
concluded. They were delighted
that, despite the complexity of this
negotiation with multiple parties,
the transaction ran precisely to the
plan created at the outset.
SETTING A PRECEDENT
Later the same year, they closed the deal, with a signed share purchase
agreement to sell the asset for the asking price to the buyer.
There are many trite phrases which are
trotted out when it comes to planning –
“failing to plan is planning to fail” – but
the commercial risk associated with poorly
detailed planning is too great to ignore.
“Just do it” may work for Nike, but it is not
a recommended approach in negotiation.
Complex negotiations rely on everyone
understanding the whole of the plan and
their part in making it successful.
Being prepared to work through the detail
with more junior members of the team
increases their sense of value and enhances
the contribution that they can make to the
success of the negotiation. Demonstrating
that all bases have been covered will
increase leadership confidence and increase
team empowerment.
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Without execution, “vision”
is just another word for
hallucination.
MARK V. HURD
PART 5
EXECUTING WITH
CONFIDENCE
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WHAT DOES “EXECUTION” MEAN
IN NEGOTIATION?
Execution can be considered the behavior behind the strategy and tactical
planning. How are we going to conduct the meeting? What will the
agenda comprise of? What will we say, how will we say it and what will
we avoid discussing?
Effective execution in negotiation comes from confidence; understanding
the plan and knowing how to conduct the negotiation, be it in person, by
telephone or through other electronic means. In our planning, we may have
agreed where our “red lines” are, but if we have not agreed how we are to
communicate them, or avoid them, we leave ourselves open to chance.
It is important to avoid a scenario in which the plan runs out before the
negotiation is complete, just because stakeholders did not want to consider the
consequences of being taken to their breakpoint. So, when planning variables,
plan to the breakpoint and understand the value of all of the variables.
CASE STUDY:
TRADE TERMS HARMONIZATION
Before merging, two retailers had each negotiated terms
with a multinational CPG company. However, once
merged, the combined organization sought to leverage
their larger scale to cherry-pick the most advantageous
terms from each entity’s existing agreements.
The company needed to resist the full demand from the
retailer and overcome complex challenges.
“What is the trickiest question they could ask you?”. Instead of hoping
that they won’t ask, let’s assume that they will and practice our response.
Anyone who has read a prewritten speech will know how clumsy our
words can sound when we read them out loud, so choosing natural
phraseology and practicing is critical. Take the time to find words that
work for you.
If we are managing multiple negotiations simultaneously, the negotiating
team need to meet regularly to align, or adjust their plan according to
the prevailing situation. Eisenhower said, “In preparing for battle I have
always found that plans are useless, but planning is indispensable.” It is
rarely this extreme in negotiation, but regular review during the execution
will ensure that the negotiation stays on the rails.
Execution in practice
We were working with a team negotiating a new contract; we knew it was
going to be difficult and that our counterparties would use every trick in
the book to gain the advantage. Before each meeting or telephone call, we
identified the statements that they would make and how we would counter
them. Together, we analyzed the meaning behind each email communication.
The team became extremely adept at this and, as a result, the sting was taken
out of their counterparty’s most aggressive power statements, enabling our
team to remain unemotional and focused on the messaging that they wanted
to deliver, leading to a great negotiated outcome.
A UNITED FRONT
This challenge affected two
separate European operations
within our client’s business
that had, until this point, acted
independently of each other. To
that end, our first task was to bring
together the key decision makers
across these operations to identify
and agree what they each wanted
to achieve, what would be their
aggregate net overall position, and
the terms they would be willing to
trade. With complete stakeholder
alignment achieved and objectives
crystallized, the sales teams were
ready to work out how they could
meet these objectives.
STRATEGIC
COLLABORATION
Due to the “silos” that existed
between the two client operations,
the next phase of the process was
to develop a united strategy that
leveraged their joint power but also
allowed for both teams to execute
negotiations independently. We
built a governance process whereby
the senior stakeholders would have
full visibility of the negotiations as
they unfolded, a collective overview
of the aggregate net position,
and the ability to make informed
decisions if and when required.
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TACTICAL APPROACH
We began the methodical process
of identifying all the trading
variables, generating value
propositions and aligning them
to the objectives. By the end of
this process, the teams knew
exactly what moves and counter
proposals they would make, from
the very first meeting and beyond.
The teams had all attended The
Complete Skilled Negotiator
workshop and critically, had the
negotiation capability required to
execute this rigorous plan.
RESTORING BALANCE
With the full backing of the senior stakeholder team, a newly formed
strategy and a strong negotiation skillset, the teams confidently and
competently negotiated with the newly merged entity. Both teams
individually grew the value of their business through improved range,
SKU margin and a range of other value-enhancing trading variables,
achieving a better net position than their target.
During the execution of the negotiation,
make time and develop mechanisms to
maintain communication and confidence
within the team. Share information,
successes and support the negotiation team
by role-playing critical set piece meetings.
Expect – and plan for – the worst, then the
reality will rarely be as bad.
As human beings, we are remarkably
predictable in our methods, preferences and
reactions. This is where “getting inside the
other party’s head” really comes into its own.
Having a dynamic plan which considers
every eventuality but can flex when
required, builds confidence – and
confidence breeds success.
THE NEGOTIATOR’S GUIDE
THE GAP PARTNERSHIP

Learn from the mistakes
of others. You can’t live
long enough to make
them all yourself.
MATTHEW SYED
PART 6
COMPLETION
REVIEW
THE NEGOTIATOR’S GUIDE
THE NEGOTIATOR’S GUIDE

36 | PART 6 – COMPLETION REVIEW
PART 6 – COMPLETION REVIEW | 37
REVIEW? WE HAVEN’T GOT TIME.
An important but often overlooked part of the negotiation process is to
review how it went – not just “high five” a positive result or consign a failure
to the trash can of learning. It is the detail of what went right, or wrong –
and why – which builds a stronger capability and culture in negotiation.
HOW SHOULD WE CONDUCT THE COMPLETION REVIEW?
Ideally this will have the same importance as and similar attendance to the
scoping session from chapter 1. There is a strong probability that there will
be opportunities for change identified as part of the review process which
will require senior management sponsorship to be implemented.
It is important, however, to understand the sensitivities involved in such
a process; it will involve trust and a demonstrable lack of intention to
blame. We naturally protect ourselves in such situations, particularly if
the outcome was sub-optimal. Even in the best negotiations, there will be
interactions that didn’t go so well or planning that was missed. Culturally,
the more the completion review process is seen as positive learning, the
greater the opportunities to learn will become.
WHAT DOES IT INVOLVE?
Typically, the review process will include structured interviews of key
members of the negotiating team, followed by a concluding meeting.
Topics to consider
• Summary of the negotiation
• Objectives Review
– How did we do?
• Learning
– What went well?
– What could have gone better?
– What will we do differently
next time?
• Internal Communications
– Project team alignment
– Stakeholder access and support
• Tools and Processes
– Variable valuation and analysis
– Access to key internal
departments for guidance or
information
• Strategy Planning
– What did we miss?
– How closely did it materialize
into reality?
• Tactical Planning
– Was our planning robust?
– Did we follow the plan?
This is not exhaustive, but it can
form a framework which can
flex according to the scale and
complexity of the negotiation.
CASE STUDY:
KOREAN AIR
During the ‘80s and ‘90s, Korean Air had a number of
crashes which could have led to the collapse of the airline.
It resulted in a series of investigations, analyzing pilot
behavior, crew deference, training and safety protocols.
As a result of this approach, changes were put in place
which turned the fortunes of Korean Air around; since
1999 they have a perfect safety record.
In chapter 7 of his book “Outliers”,
Malcolm Gladwell dramatically
introduces us to the doomed Korean
Air Flight 801. He describes the
landing approach in which the
pilot and co-pilot cannot see the
runway, with ground-proximity
alarms sounding to indicate the
danger they were facing. The
flight engineer suggests that the
captain should abort and try again,
but is ignored. When he suggests
this again, the captain agrees, but
three seconds later the plane hits
the side of the mountain, with
catastrophic consequences.
Most telling is that the issues
for Korean Air were not created
by poor maintenance or old
aircraft, but by a combination
of human factors - tired pilots,
unfamiliarity with airports and
crew relationships; as Gladwell
concludes: “The typical accident
involves seven human errors”.
The consequences of commercial
negotiation are not in the same
league as incidents such as this,
but if we review our negotiations
with similar rigor and “no
blame” culture, then we can
consistently learn and improve our
organizational capability.
Completion review in practice
We were involved in a negotiation
between a large multinational and
a major services supplier. Beyond
the negotiated outcome, during
the review step, it was recognized
that the scale of the negotiation
required board level review
which was normally confined to
their customer negotiations. As
a consequence a governance
process, presentation template and
assessment criteria were developed
for consistency of decision making
in all future negotiations.
THE NEGOTIATOR’S GUIDE
THE GAP PARTNERSHIP

38 | PART 6 – COMPLETION REVIEW
SUMMARY
The completion review often gets lost in our operational absorption in
the next big challenge. We gain our wings through our ability to think
quickly, but finding the time to take stock is an equally important skill
that will reap rewards.
Annual contract negotiations are often
considered to be a build on the previous
agreement. Mistakes made or poor
agreements are perpetuated into the
future unless learning is captured at the
point of finalization.
It is therefore critical to avoid making the
same mistakes in a continuous loop. With
the increasing influence of millennials in
the work force, with shorter timespans in
any single organization, we can no longer
rely on individual experience, so we need
to be more willing to build a corporate
memory bank.
The completion review is a vital step
toward this.
THE NEGOTIATOR’S GUIDE
THE GAP PARTNERSHIP

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