Episode #441: Dr. Keld Jensen

Have you ever wondered what separates a successful negotiation from a failed one? Is it the strategy, the tactics, or perhaps something deeper? In this episode of Sales Reinvented, we dive into the art of negotiation with Dr. Keld Jensen, a globally recognized expert in the field. 

Keld shares his insights on how to craft the right strategy, implement effective tactics, and build trust in negotiations—helping you not only close deals but create lasting value. Whether you’re negotiating with a long-term partner or navigating a high-stakes deal, this episode is packed with valuable strategies that you can apply to your own negotiation process.

Outline of This Episode

• (0:00) Introduction of Dr. Keld Jensen and overview of the episode
• (1:00) Difference between negotiation Strategy and Tactics
• (2:42) Keld’s go-to negotiation strategy
• (4:38) The power of necroeconomics in negotiation
• (7:37) The role of planning in negotiation strategy
• (9:22) How to determine the most effective strategy
• (12:13) Countering aggressive negotiation tactics
• (16:43) Keld’s negotiation do’s and don’ts
• (20:38) Applying strategy and tactics to close a deal

Strategy vs. Tactics in Negotiation

Keld highlights the crucial difference between negotiation strategy and tactics. Strategy refers to the overarching plan or vision for reaching a desired outcome, such as deciding whether a negotiation should be collaborative or positional. 

Tactics, on the other hand, are the specific methods used to carry out the strategy, like uncovering hidden values or demonstrating savings to your counterpart. 

Keld explains that many organizations fail to develop a clear negotiation strategy, which can ultimately undermine their success. He stresses the importance of having both a strong strategy and a set of reliable tactics in place to navigate any negotiation effectively.

The Power of Necroeconomics

Keld introduces the concept of Necroeconomics, a powerful tool he developed to understand the asymmetric value between two negotiating parties. By exploring variables like cost of capital, payment terms, and delivery schedules, negotiators can create value that benefits both sides, often without the need for direct price reductions. 

Keld shares that this approach can uncover up to 42% more value in a negotiation. This is a game-changer for businesses, as it allows for more creative, mutually beneficial deals, avoiding the win-lose mindset that often dominates traditional negotiations. The concept challenges listeners to think beyond simple pricing and instead explore deeper, more impactful value opportunities.

Building Trust for Better Deals

Trust is one of the most vital factors in any negotiation. Keld emphasizes that trust is not just a “nice-to-have” element, but rather a valuable commodity with a tangible impact on deal outcomes. Studies show that high-trust negotiations can increase value by up to 32% and speed up the process by reducing the time it takes to reach an agreement. 

Keld explains how being transparent and open with counterparts builds trust, leading to better long-term relationships and more favorable deals. He argues that negotiators should focus on cultivating trust early on to lay a solid foundation for collaboration and avoid falling into adversarial tactics.

Countering Aggressive Tactics in Negotiation

Aggressive negotiation tactics, such as threats, ultimatums, and last-minute demands, are common challenges that many negotiators face. Keld provides actionable advice on how to remain calm and composed when dealing with these high-pressure situations. 

One key strategy is reframing the discussion to focus on collaborative solutions instead of directly engaging with the aggressive behavior. For instance, acknowledging the other party’s concerns without agreeing or disagreeing can help de-escalate tension. 

Keld also shares a personal anecdote where a combative buyer’s outbursts were diffused by staying calm and using empathy. By avoiding emotional reactions and staying focused on the bigger picture, negotiators can overcome aggressive tactics and steer the conversation toward productive outcomes.

Resources & People Mentioned

• The Elements of Negotiation 
• SMARTnership

Connect with Keld Jensen

• Connect on LinkedIn
• Follow on X

Connect With Paul Watts

• LinkedIn
• Twitter

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Learn More About Dr. Keld Jensen

What was a pivotal moment in your career that shaped your approach to negotiation, and how did it influence your strategy and tactics? Discovering the concept of NegoEconomics transformed my philosophy. A deal where we reduced our counterpart’s costs by $8M while increasing our profit margin showed me the power of uncovering asymmetric value. This moment solidified my focus on SMARTnership and collaboration.

Can you share a specific negotiation tactic that has consistently helped you close deals more effectively? Please provide an example where it worked. The ‘mutual value discovery’ tactic has closed countless deals. For instance, in a pharmaceutical negotiation, mapping supply-chain efficiencies for the counterpart reduced costs by 12%, securing an exclusive long-term partnership.

What is the most challenging negotiation you’ve ever faced, and what strategy or tactic helped you turn it into a win? A public-private partnership with political sensitivities required intense trust-building. Using pre-emptive transparency and active listening, we reframed the conflict, focusing on shared benefits. The resulting agreement became a case study in SMARTnership collaboration.

What are your top three must-have tools, frameworks, or resources that sales professionals should use to improve their negotiation skills?

1. NegoEconomics Framework for value discovery.
2. TrustCurrency Analysis to assess relational capital.
3. Scenario Mapping Tools for exploring outcomes.

With buyer behaviors evolving and AI playing a larger role in sales, how do you see negotiation strategies and tactics changing in the future? What should sales professionals do to stay ahead? AI will accelerate value mapping, but trust and human connection will remain central. Sales professionals should embrace technology to analyze data but lean on SMARTnership principles to sustain meaningful relationships.

What’s a simple but powerful negotiation tactic that most salespeople overlook? The power of silence. Pausing forces the counterpart to fill gaps, often revealing valuable insights. Silence in SMARTnership creates space for trust and collaboration.