Deal Architecture

• Business Evolution

• Business Development Overview

• Business Development Process

• Negotiation Types & Game Theory

• Negotiation Process

• Negotiation Tactics

• Resources

Agenda

CEO

CFOBusiness

DevelopmentCOO

Business/Corporates Evolution

CEO

CFOCommercial

Director

Business Development

Sales

COO HR Director


CEO

CFOCommercial

Director


Marketing

Sales

COO CTO HR Director


CEO

CFOCommercial

Director


Marketing

Sales

Trade Marketing

COO CTO HR Director


Business Development Need

What BD Really Is

Types of Deals:• M&A.• Pitching New Idea / Product.• Opening New Channels / Revenue Lines.• Supplier / Buyer.

Profiles of Business Development Professionals:• Deals Opener.• Deals Closer.• Deals Opener & Closer.

Partners Profiling:• Mavern: Focuses on Numbers.• Greedy: Wants to Always Win.• Connector: Win Him To Win Other Deals.• Celebrity: Ego Massaging.

Business Development Scope

Business Development Process

High Level Map:

Business Development Process

Prospecting Engaging Committing Closing Execution Analyzing

Detailed Process Map:• Network contacts ( attend conferences + use power to build more power + stay

in companies to create contacts).• Choose who to contact.• Choose when to go and if it is on ground or off ground or at their premises.• Start from bottoms up and place yourself in the other side's shoe.• Study the contract and revise.• Blend in with marketing and activations.• Make use of all dots to create lines.• See the impact and decide to duplicate it or not.

Prospecting / Scouting (100)

Cultivating / Engaging (60)

Positioning / Committing (15)

Closing / Capturing (3)

Funnel & Conversion Matrix

Conversion Ratio 60%



Key For Every Stage

• Prospecting = Awareness & Exposure.

• Engaging = Present-ability & Getting Out of Comfort Zone.

• Positioning = Persistence & Mastering Negotiation.

• Closing = Building Trust with Partner & Empowerment from Internal Stakeholders.

Type Everest Strategic Corporate Marketing PR Stunt

Example Vodafone Taxi Unilever Redbull Amr Adeeb Promo Codes

Outcome Revenue Lobbying Diversification Brand Equity Awareness Buzz

Effort 160 Hrs 80 Hrs 20 Hrs 30 Hrs 2 Hrs 30 Mins

Units with BD BD Board Sales Marketing PR Marketing

ConversionRatio

66% 60% 50% 40% 30% 30%

Deal Classification

Everest Strategic Corporate Marketing Stunt

Mavern 1 2 3 4 5

Greedy 1 1 1 3 3

Connector 3 4 3 4 5

Celebrity 1 1 2 5 5

Doubtful 5 5 5 2 2

Deal Classification & Partner Profile

• Probability of closing a deal according to deal classification & partner profile on a scale from 1 to 5 (1 Definitely Not & 5 Definitely Yes).

• Contacts Vs Partners

Influence / Interest High Low

High Ghabour Amr Adeeb

Low Bridgestone Promo Codes

Contacts Profiling

• Revenue/Users Growth

• Number of Deals / Partnerships

• Outcome of Partnerships Vs Assumptions

Business Development KPIs

3rd Phase: Negotiations

• Competitive:

• No information sharing.

• A zero sum game (what one party gains, the other loses).

• Interest Based:

• Limited information sharing.

• Focus on solving mutual problem.

• Requires long relationship between parties.

• Principled:

• No private information.

• Discuss different scenarios to reach both party objectives.

Negotiation Types

• Power Grid

• BATNA

• Shopping List

• Variables

• Negotiation Map

• Tactics

Negotiations Pillars

Buyer Power Supplier Power

Balance of Power What We Need To Do

Power Grid

• Best Alternative To Negotiated Agreement.

• Inability to Identify your BATNA = No Agreement.

BATNA

• Shopping List (Main Focus): Factors that you want to get out from a

negotiation process.

• Variables (Available Options): More variables lead to more win-win

situations.

Shopping List & Variables

The Negotiation Range

Best Case Scenario

Desirable

Worst Case Scenario (BATNA)

No Go Area

Negotiation Map

Worst Case Desirable Best Case

Cost 48 52 56

Payment Terms 75 60 45

Contract Duration 12 months 18 months 24 months

Your Negotiation Map

Worst Case Desirable Best Case

Cost 55 50 45

Payment Terms 60 75 90

Penalty on delays 3% 5% 10%

Other Party Negotiation Map

BuyerWorst Case

Desirable Best Case

Cost 55 50 45

SupplierWorst Case

Desirable Best Case

Cost 48 52 56

Deal between 48 and 55

BuyerWorst Case

Desirable Best Case

PT 60 75 90

SupplierWorst Case

Desirable Best Case

PT 75 60 45

Deal between 60 and 75

Maps Intersection

Messenger

• “It’s not my call”.

• Use when you want to use higher hierarchy without involving them, or when your rational is weak.

• Counter by elevating to the “responsible” person (all levels), or by using the messenger to neutralize.

Negotiation Tactics

Deadline

• “We only have till end of this week to finish”.

• Use when you have a realistic deadline, or need to create pressure.

• Counter by challenging the deadline, “ask why”, or by shifting the pressure of deadline to the other party.

Negotiation Tactics

Emotions

• “I can’t believe this is how you think of the topic!”.

• Use when only you have emotional bank account. Use to shift the topic from facts to emotions, and create pressure.

• Counter by reverting back to facts, or by “messenger”, emotions, take a break/recession till emotions cool down.

Negotiation Tactics

Back Burner

• “Lets leave this issue aside till we agree on other points first”.

• Use to avoid clashes, avoid discussing a weak point, or when you have a certain arrangement of topics that works best for you.

• Counter by insisting on the point, use deadline, or asking “why delay it?”

Negotiation Tactics

Problem Transfer

• “We have a saving target of XX, you need to help”.

• Use when you have good relations/high ownership from other party.

• Counter by refusing to commit to irrelevant targets (when applicable), use backburner, or by back firing “and what are YOU doing to get this target?”

Negotiation Tactics

Good Cop – Bad Cop

• Use only when you have solid coordination with your partner.

• Counter by “you both represent the company”, use emotions on the bad cop, go for a break/recession, focus on one person from the two.

Negotiation Tactics

• Silence.

• Stone Walls.

• Divide & Conquer.

• Inventing Problems.

• Salami.

• Add-ons.

• Change of Pace.

• Caucus.

• New Faces.

• Physical Unpredictability.

Negotiation Tactics

Classical Paradigm:• The 2 parties have interests to maximize their own share of the pie.• Accordingly, any party’s rational decision requires anticipating rivals’

action.

Nash Paradigm:• Game Theory introduced the concept that both parties have a common

interest to make the pie as large as possible.• Both parties can be better off if they reach a cooperative solution.

Game Theory & Negotiations

Skills

BD

Network Diversity

Presentable

Socially Intelligent

Deal Architect

Problem Solver

Understands Operations

Persistent

Readings:

• Crucial Conversations Tools for Talking When Stakes Are High, by Kerry Patterson and Joseph Grenny

• Getting to Yes: Negotiating Agreement Without Giving In by Roger Fisher and William L. Ury

• Trump: The Art of the Deal by Donald Trump

• Crucial Conversations: Tools for Talking When Stakes Are High by Kerry Patterson

• Influence: Science and Practice by Robert B. Cialdini

• The Tipping Point, by Malcolm Gladwell

• 48 Laws of Power, by Robert Greene

• Mostafa Mahmoud Books

To Check List:

• Techcrunch

• Flipboard

• Business Today

• Borsa Newspaper

• Enterprise Press

• LinkedIn

Resources

LinkedIn: Mohamed Aboulnaga

Email: [email protected]

Contact Details

mailto:[email protected]

Leadership & Management

Deal Architecture