Mind The GAP: my views on negotiation strategy.

What is your negotiation strategy?

Do you wish you could more swiftly conclude cost price negotiations? Do you feel fatigued and drained the longer these negotiations continue?

Due to the adverse economic impacts of COVID and the War in Ukraine, the trading landscape has changed for Account Managers.  Prior to COVID, cost price increase negotiations would commonly occur once every 12- to 18-months. 

However, in the last few years with record-breaking rates of inflation, many FMCG businesses have had to implement multiple annual cost price increases.  As a result of this Sales Leaders are having to formally negotiate with their customers more than ever before. 

Sales negotiation training is pivotal for any Account Manager.  Being armed with the right tools to negotiate can give salespeople the confidence to navigate any challenging customer discussion.

The training course which had the biggest impact on me was the GAP Partnership’s 4-day Complete Skilled Negotiator programme.  I did the programme in 2015 and I loved every second of it!

I applied its core principles in every single important customer negotiation thereafter.  I even used its techniques in negotiating the purchase of my wife’s engagement ring and our current house in Marlow!

However, as much as I loved the GAP Partnership’s programme, in the last couple years of doing coaching certifications, I’ve altered some of my views on negotiation strategy.  In this article I will share my thoughts on what I think is still relevant and what is perhaps the weakness in GAP’s training. 

No spoilers!

Before I outline my pros and cons of GAP, I just wanted to state that I’m not going to divulge any spoilers for their programme.  At the conclusion of the course, the trainer instructs you not to reveal any of the principles and techniques, since this will diminish the impact of the training for someone who may take it in future.

I completely agree with this sentiment, and therefore I’ll only discuss broader principles without going into specific details.

I also wholeheartedly recommend the GAP programme and if you’re fortunate enough to get the opportunity to attend it, grasp it with both hands! You won’t regret it!

What I loved about GAP Negotiation Training.

Perhaps the thing that I loved most about the Complete Skilled Negotiator programme was its commitment to practice.  It is not a course for faint-hearted and there was ample opportunity to test learnings in roleplay scenarios.  This created short-feedback loops which was ideal for sharpening the techniques.  The trainer continually pushed me beyond my comfort zone.

I was also a big fan of the tools provided to monitor the steps of a negotiation.  In complex negotiations like annual customer JBPs (Joint Business Plans) I’ve seen 20+ variables which needed to be tracked.  GAP provides ways to help an Account Manager stay on top of the all-important details which facilitate progress to the end goal. 

Emphasis on different approaches dependent on the type of customer relationship was also very useful.  The way you would negotiate with a market-trader in Marrakesh is very different to the Buyer of a customer with whom your business has a long-standing relationship.

What I perceive to be the key weakness in GAP.

However, whilst I am by no means an expert in negotiation, I do feel that there is a key weakness in GAP’s training. 

Firstly, I found that GAP doesn’t necessarily put emphasis on reading the energy, tone and body language of one’s counterpart(s) in the communication.  What do I mean by this?

In Positive Intelligence, this distinction is defined as the difference between the brain’s Data Channel and PQ Channel.  When communicating via the Data Channel our soul focus is on numbers and logic in the conversation.  Therefore, when the commercials cannot be reconciled this results in stalemate in the negotiation.

We also run the risk of offending our customer if we nonchalantly or rudely dismiss what could be serious offers from them.  I feel that GAP tactics potentially falls short in this regard.

However, when we communicate via the PQ Channel, we are more highly attuned to emotions and feelings.  This can reveal unknown roadblocks in the negotiation.  In Chris Voss’ excellent book “Never Split The Difference: Negotiating As If Your Life Depended On It” he refers to these unknowns as “Black Swans”.   

Voss was a former FBI hostage negotiator, and he talks about approaching these meetings or interactions with the expectation that Black Swans will inevitably reveal themselves.

Through deeper and more probing questioning we become more empathetic, which can allow us to uncover the Black Swans prohibit the negotiation from progressing.  The good news is that when we communicate via the PQ Channel this also gives our brains access to greater creativity, which can help to find new opportunities and routes forward to mutually benefit us and our customer’s business too.

Perhaps the sticking point on margin can be overcome by creating different SRP or a new pack format? Perhaps a key dispute over exclusivity on a new product launch could be overcome by mapping out a unique In-Store and Digital activation plan? This type of collaboration can grease the wheels in the negotiation and hopefully prevent long drawn-out stonewalling on both sides.

How building Mental Fitness can help to improve your negotiation skills.

Building your Mental Fitness is essential to being able to communicate via the PQ Channel.  It will help you to actively listen and find opportunities to progress your negotiations even when all seems lost.

As is true of any lasting habit change, this takes at least 6-weeks of intense work.  If you are interested in this game-changing program then take the Positive Intelligence Saboteur Assessment https://www.positiveintelligence.com/saboteurs/ and then book a free 30-minute coaching call with me at https://calendly.com/chris-exp to find out more!