Big Deals

How to design, navigate

and negotiate complex deals

The dealmaking challenge

60-70% of high-stakes complex deals fail even when managed by experienced

negotiators.

Instead of achieving their Best Possible Agreement (BPA) dealmakers end up settling for Barely Acceptable Deals (BAD).

Poor deal management is a root cause of many project failures.

Deal NaviGater Copyright © Aha! Advantage 2013 2

Multiple parties

Difficult personalities

Competing interests

Tight deadlines

High costs of failure or delays

Big high-stakes negotiations are minefields of risk

Copyright © Aha! Advantage 2013 3

Poor deal design is compounded by counter productive face to

face tactics

Negotiator ego and hubris

Inappropriate style

Positional bargaining

Short term focus

Ignored emotions


Tolerance for Barely Acceptable Deals (BAD)

Wrong parties

Misread interests

Misjudged walkaways

Incorrect deal sequence

Misaligned relationship processes

Most deal killing mistakes are made away from the table


To calculate your deal risk square the number

of parties you have to negotiate with

No of parties Deal Complexity

1 party Complexity 1

2 parties Complexity 4

3 parties Complexity 9

Deal risk increases exponentially as no of parties rises


Big complex deals often fall victim to the Triangle of Doom

High value/ low cost changes

High cost/ low value changes

Lesson: Deal design and navigation are keys to big deal success

Time


Use the Deal NaviGater management process to manage

large, complex deals


Deal NaviGater relentlessly manages process from start to finish

Deal

Gate 1

Prototype your best

possible agreement

(BPA)

Deal

Gate 2

Sequence your moves to

agreement

Deal

Gate 3

Design your value-

optimizing strategy

Deal

Gate 4

Align your relationship

management processes

Deal

Gate 5

Negotiate for agreement

Identify the critical stakeholders Identify the best parties to negotiate with Complete a preliminary deal assessment Identify BATNAs

Order and choose your critical parties Map decision-making process Build internal coalitions of support within each party Manage information flow Develop timeline

Expand total net pie Identify interests Dovetail differences

Establish rules of engagement Fix dispute resolution process Establish communication protocols Manage emotions

Sell your case Use problem solving tactics Trade concessions

ESTABLISH GOAL SET DIRECTION DEFINE STRATEGY OPTIMIZE

RELATIONSHIP CHOOSE TACTICS

Deal Design and Navigation: Away from the table

Deal execution: At the table


Deal NaviGater helps you navigate and manage your way through

the deal design and setup process, keeping you in control


Deal NaviGater shows you how to:

Identify critical stakeholders

Identify the best parties to negotiate with

Analyze stakeholder interests

Identify parties BATNAs (no-deal options)

Deal

Gate 1

Prototype your

best possible

agreement

(BPA)

Deal NaviGater starts with the ideal deal in mind



Choose and sequence your critical parties in the order you need to negotiate

Map each party’s decision-making process

Build internal coalition of supporters with each party

Manage your information flow

Plot achievable timelines and milestones

Deal

Gate 2

Sequence your

moves to

agreement

Deal NaviGater sequences your forward moves to agreement



Expand your total-net pie

Probe behind positions to identify

interests

Dovetail differences to unlock joint gains

Different interests

Different valuations

Different attitudes towards risk

Deal

Gate 3

Design your

value-optimizing

strategy

Deal NaviGater expands the total-net pie before you

trade concessions


Deal NaviGater:

Establishes rules of engagement

Sets up a dispute resolution process

Formulates agendas

Establishes external communication protocols

Helps you manage emotions

Deal

Gate 4

Align your

relationship

management

processes

Deal NaviGater aligns your relationship processes to

your strategy


When you’re ready to negotiate face to face, Deal NaviGater gives

you a seven step disciplined process


Managing the process allows you to shape the result.

Deal

Gate 5

Negotiate for

agreement

Respect Model

The RESPECT seven step bargaining sequence gives negotiators

control of the bargaining process


Deal NaviGater incorporates “traffic lights” stage gate go/no go

decision points


Go/no go decision points

Deal Gates Go/No Go Roadblocks Actions

1 Deal Structure

Identified best parties

Assessed interests

Identified right BATNAs

Mapped decision making process

2 Sequence Management

Sequence choices

Managed information flow

3 Deal Strategy

Optimize total net-pie

Satisfy interests

Dovetail differences

4 Relationship Management

Dispute resolution process

Rules of engagement

5 Negotiating Tactics

Persuasive skills

Tactics

Concession trading


Failure is common even on well-run projects.

Deal NaviGater boosts the odds of project success where projects are characterized by:

High Uncertainty - uncertainty is the amount we don’t know at project initiation. Deal NaviGater gives you the tools to cope with an uncertain future.

High Complexity - Multiple parties with competing goals and/or multiple sub-systems. Deal NaviGater aligns competing interests to the project’s strategic goal.

Time-Critical Goals - Time pressure accelerates the need for negotiation. Deal NaviGater helps resolve deadline issues.

Demanding Stakeholders - Little tolerance for projects that fail to meet the business case. Deal NaviGater keeps the project focused on the business drivers.

Deal NaviGater complements and strengthens existing project

management systems


Known

risks

Unknown

risks

(Uncertainty)

Deal NaviGater handles uncertainty (unknown risks) much better than traditional project management tools.

Deal NaviGater significantly improves a project manager’s

ability to manage uncertainty (unknown risks)


Deal NaviGater comes as a complete deal design and

management suite


1. Five Foundations Playbook 200 page strategic deal and relationship management guide

2. Five Foundations Toolbox 22 powerful deal-shaping tools

3. Deal Tracker “Traffic lights” deal management and audit process

4. StreetSmart Negotiator 196 page field guide for negotiating face-to-face

5. Web Platform Work on your deals anytime, anywhere

6. Customized Training Turn negotiation into a core competency

7. Deal-making Advice Coaching and support for specific negotiations

7 Value-Adding Components

The Deal NaviGater management suite


200 page accessible strategy and tactical playbook

Forms the heart of Deal NaviGater System

Component 1: Dealmaking playbook


Includes 22 of deal-shaping, value-optimizing tools

Tools developed and tested over 25 years with clients such as Toyota, PwC, and Unilever

Component 2: Dealmaking toolbox


Allows senior executives to manage, track and evaluate progress in high-stakes deals

Allows delays, cost overviews and relationship issues to be solved while small

Component 3: “Traffic lights” go/no go deal tracker


Harry Mills’ acclaimed field guide, The StreetSmart Negotiator gives negotiators:

The practical tips and tactics they need when bargaining face-to-face

A disciplined 7 step process which can be actively managed and audited

Component 4: Tactical field guide


The Deal NaviGater Playbook and Toolbox is accessible online through its own secure web portal so your team can manage deals:

Anytime

Anywhere

Component 5: Online, on-demand web platform


Our experiential, simulation based training upskills your team so they can negotiate with skill and confidence

Make negotiation skills a core competency

Component 6: Customized training


Our 25 years of practical deal-making experience means we can advise and coach on:

Resolving disputes

Acquisitions and mergers

Joint ventures and alliances

Major sales

Procurement and outsourcing deals

Component 7: Dealmaking coaching and advisory support


Harry Mills, the creator of Deal NaviGater, is the author of 26 books including 3 on

negotiation: Negotiate: the Seven Step Master Plan, The Dealmaker’s Handbook, and The

StreetSmart Negotiator

Harry Mills is the mentor on persuasion for the Harvard Manage/Mentor Program

Harry’s thinking has been featured by Entrepreneur Magazine, Sales & Marketing Magazine,

Business Today, Selling Power, Bottomline Business and USA Today

Underpinned by 25 years of practical deal making experience working with clients such as

Toyota, GE, PwC and Kimberly Clark

Built on two decades of research on negotiation, persuasion and strategic deal management

Deal NaviGater program based on deep expertise


Minimizes risks inherent in difficult deals and projects

Transparent phase gate go/no go process which can be actively

managed for risk by senior management

Boosts odds of success in large, complex negotiations

Process and tools used by who’s who of global companies and

organizations such as Toyota, GE, and Ericsson

Auditable, risk-managed, self-adjusting process

Developed by Harry Mills, author of 3 books on negotiation and

Harvard Manage/Mentor on persuasion

Underpinned by 25 years of practical deal-making experience and

breakthrough research

The benefits of Deal NaviGater


Contact

For more information on DealNavigater

please contact:

Harry Mills

CEO, The Aha! Advantage

Phone: +64 4 499 6770

Mobile: +64 21 452 256 Email: [email protected]

www.ahaadvantage.com


mailto:[email protected]

Date post:	27-Jun-2015
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