Industry: Automotive Industry Manufacturer
The transaction: Large multi-year software and software support sale
Revenue forecast before attending the K&R Workshop: Zero
Expected transaction close timeframe before attending the K&R Workshop: Year-end
Narrative: The client’s customer was facing a requirement for more software functionality and deployment of additional software licenses in future years. The automotive industry was and is experiencing a major economic downturn (as are others), and everyone anticipated that future spending would be curtailed. The client’s customer planned to release an RFI to get bids from multiple software providers to address their needs. The RFI process would have delayed the decision, and it is likely that nothing would be done in the new year.
Actual results: 6.7M€ plus follow-on revenue of 60.2M€ within two years.
Actual closing timeframe: November
K&R Tools and Techniques: We used the K&R Macro Agenda as a guide for orchestrating the various parts of the negotiation and for coordinating our team members’ activities. The K&R instruction on teamwork helped us to maintain the unity of our team, and to build stronger team relationships with our customer. We knew that waiting for the RFI would probably destroy any chance of getting a favorable decision. The K&R teaching on using compelling events helped us to encourage our client to forego the RFI and act earlier to avoid a possible freeze in funding. We used the K&R Value Matrix™ to focus our client’s attention on the value of implementing our solution versus any alternatives. To capitalize on the compelling event (possible freeze in spending), we made a Principled Concession™ reducing the solution content to set the final pricing for the multi-year commitment.