You can only grow profit rapidly by taking big, bold strides - making big asks of your trading partners and yourselves and getting them delivered. But sometimes they won’t play ball and you need to push your proposal through. If that’s likely, you may need to plan the Perfect Storm, using Preconditions, Pinch-points and Power-plays.
Preconditions:
Creating the right set of conditions is essential with any difficult deal. What mindset will they need to even consider your proposal? Preconditioning could be a continual drip of information to create a particular set of beliefs, or it may be a highly visible display to demonstrate potential value or consequences. Above all it sets an early expectation that a new deal is inevitable.
Pinch-points:
A pinch-point is a time-bound event where power temporarily swings towards one party or the other. It could be a major launch, seasonal change, a high profile venture or investment. At a pinch-point, stability is highly prized and competitor, internal and stakeholder pressures can be powerfully brought to bear on a negotiating team. Power-plays work best when there are pinch-points that can be used to your advantage.
Power-plays:
A power-play is a negotiation that includes a sequence of pre-planned events, designed to increase the pressure on the other team. An event could be as simple as a big competitor promotion timed for when a stop-supply is most likely. The fact it was pre-planned allows dialogue to continue whilst drawing the other party back to the negotiating table.
PERFECT STORM: When the value is big enough to justify straining the relationship; when you have alternatives ready if things go wrong
KEEP IT CALM: When there is a bigger opportunity on the horizon; when you don’t have the right preconditions