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Proper Negotiation Training Can Illustrate That Failing Can Be Better Than Succeeding
People are not particularly fond of losing. Everyone likes a winner and it is essential for us all to be on the winning side. In fact, it is so important for people to be on the winning side that research signifies that typically we have a pretty a fascinating approach to dealing with likely threats.
In an area of research called Prospect Theory, Kahneman and Tversky looked into the likely anomalies and contradictions in individual habits. They found that research individuals when presented a choice prepared in one way might present cautious behaviour but when given basically the same choice formulated in another way the same research subjects might exhibit risk seeking behaviour.
A key result of the analysis performed by Kahneman and Tversky is that they found that people's behaviour towards challenges associated with prospective benefits can be very different from their behaviour when it comes to risks associated with probable losses.
For example, when people are presented a choice between getting $1000 with certainty or getting a 50% chance for getting $2500, they may well select the certain $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 reasonable mindset that is referred to as risk aversion.
But Kahneman and Tversky also found that the same individuals when challenged with a certain loss of $1000 as opposed to a 50% possibility of no loss or a certain loss of $2500 do often select the risky option. This is called risk seeking behaviour.
Exactly what this means for you in the context of your business negotiation or negotiation training is the fact that it is really a good idea to tell your counterparts the things they bear to lose when they do not move in the direction that you are suggesting. It is definitely best if you tell your counterparts what they stand to achieve by shifting in your direction but the strength of your reason will be enhanced if you could increase the advantages the specific things that they will fall short on if they do not shift in your direction.
This kind of loss framing is strongest if it is combined with the Scarcity concept of influence that states that we associate more worth to those things which are less obtainable. We should therefore focus on those things that are specifically relevant to our own arguments and in addition to pointing out the benefits associated with going in our direction we should always also point out the particular, unique things that our counterpart might stand to lose when they do not move in our direction.
Using negotiation skills such as loss framing to your advantage is an excellent method which you could use the concept of losing to support you to win.
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