The deal strategy is one of the most important and significant parts of the firm’s success, and it’s not only limited to the deals they do. Deal strategy is not merely a set of blueprints that tell how to do things in different situations, it’s also about how decisions are made, what data are seen as important, and who holds power. Deals are all about trade-offs so there’s always some downside that needs to be weighed against an upside. Deal strategists have to make trade-off decisions every day as they try to juggle competing priorities and interests so this is definitely an art form. A deep understanding of deal making fundamentals will serve you well no matter where your career path leads you in future.
Implications for managing and leadership
If you’re a manager, or if you want to be one someday, then it helps to understand the deal strategy, so that you can build a robust organisation that can cope with major changes in how deals are done – both within the firm and in the industry. A good deal strategist operates with decentralisation and delegation, but at the same time they have the clout to make sure that decisions are made expeditiously when they need to be made. If what I think is right is right (and it usually is), this is definitely a good quality to have as a manager.
5 points that every dealmaker should consider in their deals strategy.
- Deal strategies are not only to ensure the success of a deal but also to help improve organizational effectiveness, increase employee motivation, and reduce risk for the firm.
- The question that comes into mind for every business strategist is “What are we trying to accomplish?”
- It is imperative to raise all parties’ awareness about what they do and how it translates into vision, values, or goals for the organization as well as how it fits with the corporate culture overall policies and decisions on managing deals
- In fact, it is important for dealmakers to lead by example so that their team members know the importance of deal execution. The best way to do this is to include deals in one’s agenda and be willing to take on the responsibilities of dealing both internally and with external parties.
- Dealmaking strategies should encompass the following elements:
a. Accountable – It has been conceived as a systematic approach , which facilitates learning through experience and promotes growth in dealing capability of all its participators involved, as well as provide them with professional standards to conduct successful transactions beyond just selling or acquiring products or services
b. Organizational – Dealmakers should strengthen their internal capabilities and use their financial strength to help them grow and develop, not just in the area of deals but also in other aspects of the business
c. Communication – Dealmakers must communicate effectively with other stakeholders to develop a culture where all opinions are taken into consideration, which will help to create an environment where collaboration is expected.
d. Leadership – This is an essential part of dealmaking strategy that requires the adequate involvement of company leaders in the process of bringing about changes so that they can appreciate the effects and implications of their decisions (Hofer & Atero, 2011).
e. Risk – Dealmakers must be able to take risks when they are necessary but not to the point that their business, employees and stakeholders will be affected. It is also essential to ensure that these risks are understood by the firm.