How Myopic Preparation Can Leave You Blindsided Negotiations

Whenever we prepare for negotiations, we assume that at least one thing is self-evident: the party we are negotiating with. After all, without the counterpart and their interests, there would be no negotiation. However, a closer look often reveals that the issue of stakeholders is far from clear.

Setting up the negotiation process with the right stakeholders in the right sequence can make or break a deal. In our consulting practice, we map all stakeholders using a simple stakeholder matrix—a tool so straightforward that the risks for the unwary can be overlooked. This technique, along with other crucial negotiation skills, is often taught in professional negotiation training programs, such as those offered by The Gap Partnership, a leading provider in negotiation.

The Danger of Overlooking Stakeholders

One client recounted a recent negotiation where they had identified two stakeholders on each side: the supplier and the buying department of their international retail customer. The customer manager and international key account director were the only ones involved in the negotiations.

Then, things got complicated. During the talks, the retailer used a social media platform to learn about the international key account director's boss—the European commercial director. They contacted him directly about contentious issues, catching him unprepared and causing him to improvise. This is every negotiator's nightmare, akin to being hit by "friendly fire."

Unfortunately, this scenario is common. How often does a deal, initiated at the employee level, end up being closed by a sales director who was "dragged into" the negotiations by the other party? To avoid this, it's critical to involve a broader set of stakeholders from the start. Map not only external but also internal stakeholders, keeping them informed and aligned, and agree on how to respond when approached by the other side.

Anticipating Stakeholder Moves

This strategy also applies when a supplier attempts to bypass procurement to engage directly with the originating department. Anticipate such moves and include them in your planning. If you have a history with the negotiation partner, past negotiation records can be invaluable in preparing for upcoming talks.

In another case, a supplier was negotiating with a retail buyer and pushing for a price increase. With time running out, the buyer planned to use the expiring contract as leverage. However, the assistant secretaries had already exchanged the new pricing information, and it was entered into the retailer's system to prevent delays once the deal closed. This misalignment allowed the supplier to recognize the buyer's rejection as a bluff, resulting in a stronger negotiation position.

The Importance of Comprehensive Stakeholder Mapping

These examples highlight the importance of mapping all relevant stakeholders, as omitting them can have serious consequences. It's essential to consider both external and internal stakeholders, those directly involved and those potentially involved. Map stakeholders across all levels and anticipate potential escalation or bypassing tactics.

By adopting a comprehensive stakeholder strategy, what once seemed unclear can become as clear as day. This approach, along with other advanced negotiation techniques, forms a core part of the curriculum in most of negotiation training programmes. 

Hrvoje Zaric combines over 20 years of experience in the services industry with over 10 years in executive coaching and team development. His main responsibilities and focus areas were strategy development, project management, and leadership.

Patric Müller has 25 years of experience in various commercial leadership roles with leading players of the FMCG industry. His responsibilities have included negotiating with global customers as well as capability development.