Multi-million value created in annual negotiations

Context  

In March’21, the global travel industry was in the largest period of change since the Oil Crisis of 1973, in addition, our client had just recruited a new Global Head of Travel Retail. 

Our client had too much reliance on the senior account managers to negotiate. A change in direction and a large improvement in negotiation capability and devolved accountability were required.  

The purpose of the capability training was to build the necessary skills to allow our client to take on more negotiations at every level, allowing the senior team to concentrate on more strategic discussions.  

Our client had global teams and global customers; there were significant cultural differences and challenges to be addressed within customer and negotiation styles. The planned timescales were tight; with the planned relaxation of travel rules, these opportunities needed to be realised quickly before the balance of power moved back in favour of the largest international travel retailers.  

Using a capability framework, we were able to work with our client to identify specific training requirements.  

Approach

After an in-depth discovery phase we were able to develop and implement a multi-year commercial academy that built and improved core commercial capability areas. 

Outcomes  

A tailored capability development structure was implemented with Experienced and Essential Negotiation workshops as well as a one-off SCAP (Strategic Customer Account Planning) workshop.  

Annual plans were agreed in shorter timescales than previously, allowing the commercial teams to focus on business development activities and the return to growth of the travel retail channel.  

The customers now view the client through a different lens; the client and the commercial managers are seen as commercially adept, aware of the true balance of power and are open for investment in mutual more-for-more deals. All targeted customers achieved change from fixed to variable investment.  

Multi-million-pound commercial gains were annualised through more targeted and more conditional investments. In addition, customer relationships have been re-set with the balance of power changes being both understood and developed for the return of the international traveller.  

Objectives 

• A coordinated, structured capability development programme over 2 years was created to equip the global commercial team with approach, skills, structure, processes and confidence
• Develop a consistent and robust approach for managing and negotiating with customers  
• Support building progressive account plans to counter very strong and assertive buying functions in large customers with high market share and drive the change from fixed to variable investments  
• Build the capabilities of managers to lead & complete more negotiations with less close-cover support  

Thanks TNG for the hard work on our customer preparation and negotiation this year, it is one of the items that the business would highlight as a real success for us and a great building block for the development of the GTR team over the next few years.