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Why assumption stands in the way of a good deal and can be costly



If you want to have a successful negotiation with a satisfied outcome you need to do the one and most important thing and that is preparing!

Most people fail to prepare adequately before a negotiation.  There are many reasons for that such as not having enough time, not knowing how to prepare or being too confident and thinking one knows it all already.

The truth is if you don’t prepare you will have a random approach and will leave yourself open to a terrible result. Benjamin Franklin, once said: “By failing to prepare, you are preparing to fail”.
The success of a negotiation depends on your preparation. The more energy and effort you put into a negotiation the more confident you will be during the negotiation.
The biggest mistake people make when preparing for a negotiation is making too many assumptions. Approach the preparation like a blank canvas as if you don’t know anything about the other party, the issues and the negotiation variables. We all have certain expectations and the problem with that is that we believe that we already know everything that we need to know. This is called confirmation bias.
We all like to think that our beliefs are objective, rational and logical; but we are all susceptible to the confirmation bias which is a type of reasoning that favors information that confirms our beliefs.
For example you believe that you never have the upper hand in a negotiation, you will then seek further evidence that supports your believe. Confirmation biases influences how information is interpreted and recalled, it fails to look at a situation objectively because at the same time information that is challenging to the existing belief is dismissed. Cognitive bias impacts on how people search for information and influences how people make decisions which can lead to poor outcomes.
The biggest problem when preparing for a negotiation is assumed knowledge about the other party from their perspective.

The issue is that people prepare from their perspective, analyzing the situation from their point of view which gives them no insight at all. People fail to understand the other party as confirmation bias takes over. What needs to happen is to get inside the head of the other party and understand their motivations, their goals, their pressures and issues. Only when I have enough information about the other party can I create a winning negotiation strategy.

How to overcome cognitive bias:

Firstly, be aware that cognitive bias exists and that most people have it. Become conscious of your cognitive bias and then use these measures to work against it.
Don’t jump straight to a conclusion. Look at the situation from different angles, take your time to think and reflect before making any decisions.
Reflect on the past; look back at how you prepared for the last negotiations and how the preparation affected the outcome. Think about what influenced your preparation at the time and whether or not you rushed your judgement.
Always challenge yourself. Challenge your thoughts and beliefs and let other people challenge your thoughts and beliefs. When preparing for a negotiation effectively prepare with someone who will challenge you making sure no confirmation bias will get in the way of effective preparation.

www.octalonegotiation.com

#negotiationskills #negotiation #negotiationtraining

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