Time - the Forgotten Factor

Time to contract refers to how long it takes to finalize a deal.  In some cases, like consumer sales, time to contract is considered in hours or even minutes (think about signing up for a cell phone service), but for more complex deals it can be counted in days, months or even years.  In any event, time to contract is a critical consideration in all deals.

What, How and When

Most negotiators are fixated on what they are negotiating (very important) or how they are negotiating (this can be a huge distraction, but more on this another time) but they don’t pay enough attention to the when of a deal.  Don’t forget the when – your clients, colleagues, counterparties and boss are thinking about it most of all.

When is When?

When is when?  What constitutes finalization of the deal?  Is the time you sign the contract, or is it when you receive the cash, or is it something else?  Start by defining your finish line and be sure it is understood by all relevant parties.

Plot a Course and Set Expectations

Once you know your finish line, plot your course and estimate how much time it should take to get there.  Have a realistic vision of the time you need before you accept timelines or make promises. 

Consider the external time pressures you face.  Time pressures will always be imposed upon you, so get ready to deal with it.  You will get unrealistic demands, but you need to avoid making promises you cannot fulfill.  If you are faced with a truly unreasonable time frame, be honest and say you will do the best you can.  This is a critical point for setting expectations. 

It is nearly always very useful to discuss and agree to the time frame plan with your counterpart.  They are likely also under time pressure and will appreciate setting reasonable expectations.  Avoid making empty threats, though.  Some negotiators seek an advantage by imposing artificial time pressure on counterparties. While this might work in some cases, my experience is that artificial time pressure is more often counterproductive.  Don’t play games with time.

Clients, colleagues, managers and even counterparties will understand when deals break for substantive reasons, but they really hate a broken timing promise.

Progress and the Appearance of Progress

Actual progress in clearing issues is obviously the most important consideration in closing a deal, but that progress needs to be seen.  Few things create more pressure on a deal team than the feeling that a negotiation is falling behind.

Here’s how to achieve the appearance of progress:

·      Set up a deal plan and timeline, then note progress through that plan.  Few negotiators do this and they run into trouble with expectations.

·      Set a meeting or discussion schedule.  This will depend upon the complexity of the deal, but setting a schedule for discussions will add structure and traceability for the process.

·      Use meeting agendas – send a written meeting agenda before each meeting to frame issues and track progress.  This alone makes your negotiation move along well.

·      Send follow up summaries after meetings or discussions so that you can confirm what was discussed and have a record of progress.

Transparency and tangibility are key elements to assuring your team of the progress being made in a transaction.

Going Forward

Time is of the essence in nearly every deal.  Understand your time frames.  Set achievable expectations.  Make and follow a plan to identify and clear deal issues.  Apply transparent and tangible indicators of your progress. Use these approaches and you will be managing time to contract to your advantage, not only closing deals, but building your authority along the way.