3 Ways to Overcome Time Constraints and Plan Successful Commercial Negotiations: A Guide for FMCG Leaders

Planning commercial negotiations is a crucial part of doing business in the fast-moving consumer goods (FMCG) industry. Yet, it can be a daunting task, especially for those who are time-poor.

In this article, we will discuss the three key challenges that FMCG business leaders face when planning commercial negotiations and provide some solutions to help overcome them.

Challenge #1 - They are a victim in 'HAVE DO BE' thinking

"When I HAVE enough time, I'll DO more planning for my negotiations and I'll BE more successful in the outcomes I get.

Why Victim? Because these leaders are waiting for their external environment to change so that they HAVE more time. They think "if I had the time that person had, I'd do what they'd do and then of course I'd be as successful."

But rarely, in the FMCG world, does the pace in the business environment slow to create an abundance of time to do all the things that are desired for exceptional negotiation outcomes.

Solution #1 - Be an exceptional negotiator with 'BE DO HAVE' thinking

The best negotiators don't wait to have the ideal conditions in their environment in order to do the things necessary for exceptional outcomes. They focus on who they need to BE, above everything.

They think "if I want exceptional negotiation outcomes, who do I need to BE to get those outcomes. If I was being that person, what would I be DOING?".

For starters, you'd BE a leader who believed that you need to spend more time planning your negotiation strategy, approach and designing the deal, than you do executing it. You would DO planning by creating time in your calendar as a non-negotiable activity, free of distractions and excuses and by getting the right people involved upfront and early.

The HAVE then becomes the exceptional negotiation outcomes you get as a result of BEING & then DOING what the best negotiators do.

Challenge #2 - They Lack Coordination

In large FMCG businesses negotiations often involve multiple teams and departments, each with their own goals and priorities. Without effective coordination and communication, it's easy for negotiations to become derailed or for teams to work at cross-purposes. Without a clear understanding of where power lies and how that impacts decision making, leaders fail to strategically set the table internally which impacts negotiation performance externally.

Solution #2 - Align on the primary objective with key stakeholders and establish decision hierarchy and power structures

To overcome this challenge, leaders need to align on the primary objective of the negotiation so that all teams with a critical stake at play can commit their efforts and energy towards it. By establishing clear lines of communication and a structured decision-making process with a clearly identified core negotiation team, leaders can avoid the pitfalls of working at cross purposes and ensure that the decision-making hierarchy and the power structures within the business serve the ultimate business objective. On a practical level using collaboration tools and structured planning resources to facilitate communication and information-sharing across teams and departments can reduce time and engage the right people with the right information across multiple geographic locations.

Challenge #3 - Competitive Pressure

In an FMCG environment, businesses face intense competitive pressure. With so many players in the market vying for market share, the pressure on prices leads to many price wars. Additionally, the continued impact of Covid-19, the Russia/Ukraine War, and the knock-on effect on geopolitics increases supply chain vulnerability, making it critical to develop effective negotiation strategies that can help the business stand out from the competition.

Solution #3 - Adapt negotiation strategies to competitive pressures

To overcome this challenge, FMCG businesses need to have leaders that make time for understanding the competitive landscape and the influence of it on their negotiations, not just at the time of negotiating but months in advance. Being able to narrate what they understand about the market, they can strategically influence the perception of their value and power in the eyes of their counterpart, long before they sit across the table in a formal negotiation.

Being able to adapt negotiation strategies in response to competitive pressures, and make moves before you're at the table requires leaders to be up-to-date on the latest negotiation techniques and tactics. Often it's not what you know, it's knowing how to use what you know in the most strategic and powerful way.

In conclusion, while time constraints can be a significant challenge when it comes to planning commercial negotiations, FMCG business leaders can overcome them by using the right solutions.

Orienting individual and collective focus on BE DO HAVE rather than HAVE DO BE will create a winning negotiation team. Leveraging technology, establishing and aligning on negotiation objectives and clear lines of communication will ensure internal operations don't undermine external negotiation engagements. And finally by developing the right negotiation skills and capabilities leaders can more effectively adapt negotiation strategies in response to competitive pressures and plan effective negotiations that drive exceptional outcomes.

Happy Negotiating from The Value Negotiator!

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