Planning Canvas

3D NEGOTIATING CLIENT VALUETM

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PLANNING
Identify and improve BATNA
Profile counterparts
Commit
ENGAGING
Anchor & Frame

Instructions
Refresh your knowledge about the key frameworks and tools in this module, by reviewing the information on Page 2. Use
the editable tools on page 3 to prepare for live negotiations, only completing the sections that are relevant in each scenario.
Finally, use the last page to enter any additional notes.
Planning Canvas
YOUR BATNA (Best Alternative To a Negotiated Agreement) YOUR CUSTOMER’S BATNA
A strong alternative to doing a deal gives you the confidence to do a better deal. As a salesperson, you have The customer’s BATNA is usually another supplier,
three main types of BATNA: a different use of budget, doing it internally (DIY),
or doing nothing. Buyers will often try to make their
The Kraljic Matrix
• O
 ther alternatives with this customer (e.g. a pilot Emphasise
BATNA look strong by keeping other competitors the positive

High
to show value, a cut down deal or part of the deal) in the running. Form your own view of how impact of your
Seller solution
• O
 ther alternatives away from this customer BATNA Seller’s price range differentiated your solution is and how much they
(e.g. working on your pipeline or another account) would lose by not working with you. Leverage Partner

PROFIT IMPACT
Increase your
• I ncreased profit on other deals by setting a Customers use the Kraljic Matrix to segment scope and value
ZOPA suppliers. If you’re in the lower left quadrant to a complete
minimum profit margin across the board solution
(“SHOP”), the customer has a very strong BATNA,
You can signal a strong BATNA by simulating the
Buyer so try to move up and right by: Emphasise
confidence it gives you, and making fewer, smaller Buyer’s price range They want
BATNA you to think your unique
concessions. Defend your BATNA by managing buyer • Emphasising the positive impact of your solution
tactics like time pressure and linking deals.
you’re here
Manage Risk value;
Leverage
PRICE • Emphasising your unique value stakeholder

Low
Anchor Maximum CHILL
Plausible support
too low EFFECT • Expanding the scope and value of your solution
Position Low DIFFICULTY OF SUBSTITUTION High

ANCHORING AND FRAMING PROFILING YOUR COUNTERPARTS

Anchoring is the tendency to rely too heavily, or ‘anchor’, on one trait or piece of information when making decisions.
You should usually aim to make the opening offer, so that you – not the customer – set the anchor on price and terms.
Aim to be slightly ‘worse’ than their BATNA, with a price that is still justifiable. If you aim too high, you’ll create a chill
effect that damages trust and is difficult to recover from.
If the customer does drop an anchor first, there are several strategies you can use to lift it.
Framing offers a perspective on an issue that is helpful to you, e.g. framing a request as a way for them to avoid a loss,
using standards or of fairness, or focusing on the number of concessions you have made, rather than their size.
Check that your negotiation counterpart has the mandate to engage with you and make decisions on behalf of the customer. It’s
helpful to profile them against the three dimensions of INSIGHT, INFLUENCE and TRUST, to help develop strategies
to deal with them during the coming discussions. Although there are eight different types of negotiator, all you really need to do is
understand where your counterpart sits on each dimension.
Insightful Outsider
lose-WIN

INSIGHT
Balanced Dealmaker
CUSTOMER ANCHORS ON YOUR STRATEGY? Relationship Builder win-win
Your competitors’ prices. Focus on the value created by your points of win-WIN
differentiation. Use social proof – who else has paid this? 3D
Negotiator
WIN-win
Pre-allocated budget or spending authority. Show the value created and coach them to secure more
internal funding. Order-taker
Similar types of products and services (e.g. other types of Use a statement of your benefits to show the value your lose-win INFL
UEN
CE
similar technology). specific product or service is creating in this instance. T
US
TR
Your variable costs (“that costs nothing to make – how can Explain that fixed costs (e.g. R&D) are high and must Friendly Helper Aggressive Negotiator
you charge X?!”). be covered. lose-WIN win-lose
Their standard contract terms. Don’t give in! Assert to your own contract. If necessary, go Compromiser
through line by line. win-win
Planning Canvas COUNTERPART PROFILE
COUNTERPART NAMES
BATNA Name Name Name
BATNA ISSUE COMMENTS

INSIGHT
• Open about their interests?
What is your BATNA and walk-away • Actively curious about yours? Score 1 (low) to 10 (high)
point, and how can you improve it? • Creative and collaborative?

UNDERLYING NEEDS
INFLUENCE
• Aggressive opening positions?
How will you signal your BATNA?
• Focus on their alternatives?
Score 1 (low) to 10 (high)
• Limited or no
How can you defend against
concessions made?
the customer trying to weaken your
BATNA? • Credible claims & statements?
• Long-term, partnership

TRUST
Where would the customer place you
approach? Score 1 (low) to 10 (high)
on the Kraljic Matrix?
• Care about your success
as well?
What is the buyer’s likely BATNA and
Which of the eight types
walk-away point?
are they?

TYPE
How can you reduce the relative
attractiveness of their BATNA?
Manage your response
What’s the Zone of Potential
Agreement (ZOPA)?

ANCHORING AND FRAMING

Create the right environment
ANCHORING ISSUE COMMENTS

How and when should we anchor?

What will the customer anchor

Encourage balanced behaviour

YOUR STRATEGY
on (e.g. competitor prices; similar
products; budget; our cost structure;
their standard contract terms)?

Given that, how can we lift their

anchor?

Build trust

What frame is the customer likely to

be using in the negotiation?

What frame would we like to shift

them to? Ultimately…

How can we frame what we’re

looking for from the customer as a
way for them to avoid loss?

DEALING WITH LOW INSIGHT
Manage your response
• Focus on the value of the deal and
emphasise the desire for win-win.
• De-stress yourself (prepare; treat
as a challenge; listen; take time out;
focus on people not problem).
Role-model insightful behaviour
• Explain that there may be trade-offs
that will benefit both parties.
• Ask questions about their
underlying interests and areas that
are a lower priority for them.
• Put out some options to encourage
a more insight-based approach.
Build trust
• Reveal your interests for 10%
better outcomes.
• Demonstrate a focus on their
success as well as yours.
DEALING WITH HIGH INFLUENCE
Manage your response
• Recognise the techniques they
are using.
• De-stress yourself (prepare; treat as a
challenge; listen; take time out; focus
on people not problem).
• Know your BATNA and don’t give in.
Change the physical setup
• Arrange to eat together. The matched
behaviour builds rapport, and glucose
reduces aggression.
• Split the negotiation up; people are
less aggressive when they will be
interacting multiple times.
• Move the meeting to an online one –
the research shows meeting in person
favours the stronger negotiator.
Encourage more balanced behaviour
• Build trust and insight by asking
questions about their interests and
why they are taking their position.
• Put out some options to encourage a
more insight-based approach.
• Ultimately – fall back to your BATNA
and withdraw your offer. The shock
may change the dynamic.
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THE 3D ADVANTAGE ®
DEALING WITH LOW TRUSTWORTHINESS NOTES
Create a trusting environment
• Don’t react by being untrustworthy
yourself. That will create a vicious cycle.
• Build rapport by mirroring language, body
language and energy levels.
• Ask questions to understand their
perspective better.
Address your concerns directly, calmly
and professionally
• Identify your issue with them. Is it low
credibility, low reliability, low intimacy or
high self-orientation?
• Isolate the specific behaviours that are
driving your perception around that issue.
• Give them feedback:
· The specific behaviours you’ve
observed
· The impact they have had on you
· A question or suggestion to help
address the issue
Ultimately, disengage and escalate
your concerns
if they continue to seem untrustworthy.