WORKDAY NEGOTIATIONS OVERVIEW
It’s often said that negotiating without leverage is another form of begging, yet we commonly observe enterprise buyers approaching Workday purchases with little time to execute a deal, no Workday alternatives, and no valid reasons for the sales rep to offer a better, more competitive Workday price. Workday’s sales teams are masters at executing their “T Minus 36” strategy, which involves a 36-month run-up to your next deal. The purpose of this activity, which begins before the ink is dry on your last Workday deal, is to eliminate any and all sources of leverage you may have.
This Workday negotiations report will focus on these key categories specific to deal execution to maximize leverage in your next Workday deal:
1. Developing a Favorable Workday Deal Timeline
The average Workday deal requires 9-15 months of prep work in order to achieve a competitive outcome and Workday price. This section details all the Workday deal activities and best Workday practices that need to be taken to create and preserve negotiation leverage. With an organized strategy around each of these activities, buyers can approach Workday negotiations from a position of power.
2. Creating Workday Deal Options and Alternatives
There are many alternatives and deal options available for buyers aside from Workday competitors. We dive into all Workday motivations and how each can be utilized by the buyer to improve their Workday price. Workday alternatives and options discussed in this section include:
Cloud vs. On-Prem: Workday purchases containing cloud versus on-prem products have varying commission benefits for sales reps. Learn what the motivating factors are for Workday sales reps and how you can adapt them into your Workday negotiation strategy.
Ramped Workday Pricing: Workday reps have compensation benefits tied to the consumption of their software. Understand how multiple Workday proposal options and ramped Workday pricing plans can put the customer in the driver’s seat when dictating Workday price and cost.
Workday Deal Timing: Workday is driven by key fiscal year dates. Learn how to manipulate Workday deal timing through acceleration or deceleration of execution dates to motivate your sales rep to provide the best Workday deal outcome for your organization.
Workday Deal Structure Alternatives: Certain Workday deal structures have a higher emphasis placed on them by sales reps due to commission and revenue allocation benefits. We detail what deal structures motivate Workday and how you can leverage them to improve your Workday price.
Workday Competition Matrix: Competition is a useful negotiation tactic when competing new Workday purchases. We detail competitive product offerings from the closest Workday competitors across the Productivity, Communications, Database, Analytics, CRM, Identity & Access, and Mobile Device Management Workday product families.
3. Controlling Workday Deal Information
Like most major vendors, Workday’s sales teams are experts at obtaining information which eliminates their uncertainty around the deal and destroys buyer leverage. The close relationship between Workday and your internal business users can begin before your first purchase and strengthen over time. Workday information leaks can occur anywhere - on the phone, via email, in your office, at lunch or at a Workday conference or event. This section highlights how to proactively plan and raise awareness with business stakeholders on what information is important to protect in any Workday deal. An aligned organization is necessary to minimize Workday cost and continually control the tone of a Workday negotiation.
4. Workday Negotiation Messaging Development
In the last section of this Workday Negotiations report, we detail the four key features all effective Workday negotiation messaging has. Workday sales reps are built to test the buyer’s story for potential inconsistencies up to the customer’s C-Suite. When in a Workday negotiation, it’s important to present a unified message across any groups who interface with the Workday sales team, and that message must be credible, consistent, and positively impact your leverage in the Workday deal. This section also includes popular tactics Workday sales rep use to deflect common negotiation tactics and examples of messages that work effectively in a Workday negotiation.
To achieve a competitive Workday deal, you must align around a comprehensive plan to build deal leverage, protect information and deliver a credible story in the Workday negotiation. By following the Leverage Management Maturity Model (LM3) introduced in this document, buyers can approach their Workday negotiations from a position of strength and achieve best-in-class results. For additional assistance on your Workday purchase, review some of the other ClearEdge resources listed below to help plan your strategy and mitigate risk.