Amateurs view negotiation as a meeting. Professionals view it as a continuous operating cycle.
I often observe a fatal flaw in corporate deal-making: the „Event Mindset.” Teams mobilise for the RFP, fight hard at the table, sign the contract, and then disband. They treat the signature as the finish line. In reality, the signature is merely a milestone in an infinite loop.
If you treat negotiation as a linear event, you lose leverage. The Infinity Model treats it as a cyclical process where every outcome feeds the strategy for the next renewal.
Phase 1: The Audit (Preparation)
Negotiations are won before you enter the room. This is not about „rehearsing lines.” It is about Forensic Due Diligence.
- The Task: Map the spend, calculate the BATNA (Best Alternative to a Negotiated Agreement), and define the ZOPA (Zone of Possible Agreement).
- The Risk: If you skip this phase, you are not negotiating; you are gambling.
Phase 2: The Engagement (Execution)
This is the tactical interaction. It is where preparation meets reality.
- The Task: Deploy your anchors, frame the narrative, and trade concessions.
- The Discipline: This requires emotional control. It is not about „winning arguments”; it is about steering the counterparty into your settlement range.
Phase 3: The Settlement (Conclusion)
The deal is struck. But the work is not finished.
- The Task: Lock down the terms in a watertight contract. Ambiguity here destroys value later.
- The Warning: Do not relax. A signed contract is just a piece of paper until it is operationalised.
Phase 4: The Post-Mortem (Analysis)
This is where most organisations fail. Instead of „celebrating,” you must conduct a ruthless autopsy of the deal.
- The Task: Debrief the team. Did we hit the target margin? Did we concede too much on payment terms? What did we learn about the supplier’s cost structure?
- The Strategic Value: This data is not for history books. It is the Intelligence for the next round.
Why the Cycle Never Ends
In B2B supply chains, you rarely negotiate once. You negotiate renewals, scope changes, and price indexations with the same partners for years.
- The Loop: The performance data from Phase 3 becomes the leverage for Phase 1 of the next cycle.
- The Trap: If you neglect the relationship between deals, you start from zero every time. If you use the Infinity Model, you start every new negotiation with compounded intelligence.
The Directive
Stop looking for the „end” of the negotiation. It does not exist.
1. Preparation is King: The table does not create success – it merely reveals the quality of the work done in Phase 1.
2. Institutionalise the Review: Never close a project without a formal Post-Mortem.
3. Feed the Loop: Ensure the lessons from today are documented to inform the strategy for next year’s renewal.
