Effective Negotiation Training Can Prove That Failing Can Be More Effective Than Winning
People are not particularly fond of losing. Everyone really likes a winner and it is essential for us all to be on the winning side. In fact, it is so important for many people to be on the winning side that research demonstrates that normally we have a pretty an insightful method to dealing with possible dangers.
In an area of research referred to as Prospect Theory, Kahneman and Tversky looked into the likely anomalies and contradictions in individual attitude. They found that research individuals when given a choice introduced in one way might present cautious behaviour but when given fundamentally the same choice formulated in another way the same research subjects might show risk seeking behaviour.
An important result of the study performed by Kahneman and Tversky is that they discovered that people's behaviour towards threats associated with possible benefits can be very unlike their behaviour when it comes to risks associated with probable deficits.
For example, when people are presented a choice between getting $1000 with confidence or getting a 50% chance for getting $2500, they may well select the guaranteed $1000 in preference to the uncertain possibility of getting $2500 even though the analytical expectation of the uncertain option is $2500. This is a perfectly sensible mindset that is referred to as risk aversion.
But Kahneman and Tversky also discovered that the same individuals when presented with a certain loss of $1000 compared to a 50% possibility of no loss or a certain loss of $2500 do usually select the risky option. This is known as risk seeking behaviour.
Exactly what it implies for you in the context of your business negotiation or negotiation training is the fact that it is really a good idea to show your counterparts the things they bear to lose when they do not move the way that you are suggesting. It is definitely wise to tell your counterparts the things they stand to acquire by shifting in your direction but the strength of your stance will likely be enhanced if you could increase the advantages the specific things that they are going to fall short on if they do not shift in your direction.
This kind of loss framing is strongest when it is combined with the Scarcity concept of influence that states that we associate much more worth to those things which are less obtainable. We should thereby focus on those things that are specifically relevant to our own arguments and in addition to pointing out the advantages associated with going in our direction we should always also mention the particular, unique things that our counterpart may stand to lose when they do not move in our direction.
Using negotiation skills such as loss framing to your benefit is a sure way which you could use the concept of losing to support you to succeed.
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