Reconsideration is an inevitable fact of commercial life right now. Instead of being afraid, confront them with confidence, first knowing yourself and then refreshing yourself on some key discussion principle.
We do not need to say that the world is changing. The global epidemic, which has been going on for the best part of two years, is serving to change, and its close relative uncertainty lies in the spade. It’s easy to see that as our new reality, our response to the commercial challenge may default as a basic, combative “you vs. mine”. Problems become antagonistic, barriers continue to grow, and our unconscious response is to tie the hatches.
But understandably, it will not pay the best price or yield the most fruitful and creative long-term partnership. Cooperation and renegotiation are now much needed. And so the question we’re asking our clients is, how do you transition from this “you vs. me” mentality to “you and I vs. problem”? The immediate answer is to be aware of the problem. Only when we are “consciously capable” (in the words of The Gap Partnership) can we change our behavior and move to a more constructive, mutually beneficial place. But where to start?
The first step is to identify the core type of your underlying discussion – your personality, if you will, that shapes your own, unique approach and style.
Archetypes of discussion
We have identified three types of discussions: The Architect, The Diplomat and The Deal Make
The architect resolves the issue by reshaping, reframing, and approaching it from a different angle. Expressing your architect’s personality means understanding priorities and analyzing the “value” for both sides of the table analytically.
Architects use creativity and mathematical reasoning to create sequential propositions that either create values, or trade long-term, low-value prices with short-term distributive variables to overcome stagnation.
Beware of losses … a strong architect can:
- Be anal, or extra ready
- Get caught up in specific issues
- Underestimate the importance of relationships
- Separated from the team
- Contract overcomplicate
The diplomat manages the people on the other side of the table. They have a high level of mental intelligence and perception and good instincts. They stroke the arrogance and provide a symbol of success by providing plenty of satisfaction to achieve the contract.
Diplomacy is sensitive to the climate and maintains warmth without being distorted. They have a gift to oil the wheel of discussion and they trade information seamlessly through sophisticated open questions. They fluidly use reciprocity to the point where the other party is not aware that they are in discussion.
Harmful to caution … a strong diplomat can:
- To be very fair
- Give away too much information and so energy
- I want to be liked more than respect
- Go to “Native” and embed the other party’s perspective
- Driven by consensus
3. Deal Maker
Deal makers are firm and determined, controlling their thinking and focusing on the potential for a deal. They are key craftsmen, a craftsman who understands the effects of anchoring, actively adopts analytical recipes created during planning, and articulates proposals that inspire acceptance by listening and questioning for priority.
They will have a lot of proposals ready in advance to find a way out of the reluctance and laziness, confusion and stagnation for the deal.
Beware of losses … a powerful deal maker can:
- Say too much
- Shut down too soon
- Will be considered as manipulative and competitive
- Have an unhelpfully big ego
- Driven by the need to win
Once you’ve identified which archetype – or a combination of archetypes – best presents your style of discussion, and you’re aware of the strengths as well as the disadvantages, you’re ready to tackle the need for commercial, epidemiological revision.
Principles of restructuring
Successful reconsideration uses many of these principles.
The first of these is activism – which means thinking ahead, planning and adapting to behavior. Look for any instances that might be set. How did you behave when the change was in your favor and how could your opponent react when the shoe is on the other foot? Be like a diplomat and think about the behaviors you want to display considering the law of reciprocity – and don’t be surprised how your opponent behaves when the balance of power is in your favor in your previous way.
Second, you need to find the confidence to renegotiate. It has to do with power; When we realize that we are capable of our own power, our self-confidence rises to the top. Since information can carry energy, the more you know about your competitors, your contracts, your market and your economy, the more powerful you will be as a negotiator.
Channel your internal architect and use the research to build perseverance and confidence before reconsidering by gathering information about the situation involved and key stakeholders.
3. Dealing with risk
The third principle revolves around your approach to risk. You can’t prepare for every event but, like an experienced deal maker, you can create a deal that strikes the right balance between security and flexibility.
Think carefully about the risks involved in the structure of the contract and evaluate whether it meets its purpose. If you could predict your current situation, what would you do differently?
Consider everything challenging: rules, procedures, approval levels, and considered variables. Understand that everything is ready for renegotiation, even if the agreement was signed three months ago.
4. Total value
Last but not least is the principle that any redistribution should underpin: Total value. In fact, you will probably return to the table because of one or possibly two variables, but the reality is that all variables are likely to return to the game. The answer to your review may therefore be in a separate area of the price offer, perhaps something that was not even in the original deal.
This is where the architect can shine, go back to the drawing board and launch new value opportunities if appropriate.
So, when it comes to the inevitability of re-negotiation, resist the urge to retreat and withdraw or avoid and enter. Instead, be aware of the archetype of your discussion. Then use it to your advantage – or at least be aware that it’s a hassle – and follow our simple five-principle guidelines for reviewing for success.
Change and uncertainty? Bring them. We are ready.