Stephen H Baum Leadership

Inside the CEO – Insights into Negotiating with Customer

One of my clients who is a global service provider described a negotiation he just had with a long-standing customer who is experiencing financial difficulties. These difficulties potentially represent an opportunity for my client to take the relationship to a new level (co-investment in a project? Longer term contracts? Preferential treatment?). Or lose the client.

One of his people suggested a frontal approach to the horse-trading that would surely take place.

My client took a different approach:

– When he showed up, he met first with the customer CEO privately

– He said his intent was to solve their problem and be with them for the long term

– He described a variety of resources that might be called upon to solve the problem

– He suggested a path of addressing the least difficult parameters first, leaving those more challenging to the end

– The two crafted an outline of the deal

– A much larger meeting then pretty much followed the conversation and path above

– The initial reaction of the customer people was one of relief and increased openness

– The outcome is not yet final, but the mutual expectation and intent is to close the deal.

Stay tuned and I will tell you the outcome. But consider the premise: put yourself in the shoes of the other side before you pursue your own desires.

That’s just my view. What’s yours?

If you like this post, send it to a friend. If not, leave a comment and tell me.

And a kindred spirit writes about CEO insights: Adam Bryant. As an example, visit his article on effective habits of successful CEOs of April 7, 2011.

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