News & Insights | News | 19 November 2019

The issue was not the deal itself, but rather the follow-through. There was a failure to future-proof the agreement and what ultimately seemed like a gift was nothing more than a trojan horse.


A deeper dive into Future-Proofing Deals

At the beginning of last year, I was told by a client attending our The Complete Skilled Negotiator workshop that they had recently negotiated a revolutionary, business-changing contract with their counterparty through a joint business partnership contract. This was the type of deal that would allow them to exceed their revenue and market share objectives for the year and create a focus on their brands that would pay dividends for years in the future. The cost? Millions of dollars of trade spend and custom item development – worthy investments provided they receive execution on the commitments put in place. The level of excitement and confidence throughout the organization was palpable.

Six months later, that same individual approached me. Their business was performing worse than the year before. Program execution was not close to agreed targets and volume was well short of the levels needed to support the increased trade-spend investment the company provided. They were in a situation where they were overspent, underperforming and to add on top of all that, they needed to implement a price increase. They now needed help to try to fix this issue and make sure it never happens again.

The issue was not the deal itself, but rather the follow-through. There was a failure to future-proof the agreement and what ultimately seemed like a gift was nothing more than a trojan horse.

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