During a recent presentation on negotiation, a co-presenter shared a story about an executive he had worked with who, despite evidence to the contrary, claimed to be a great negotiator.
This executive referenced the negotiation training he had taken… 18 years ago. He had not had any training since, nor had he read any books on negotiation. But he once had “the training” so he claimed he knew what he was doing and could not be told differently.
You know when people say, “I don’t know a lot about this, but I know just enough to be dangerous”? Well, in negotiations these executives are dangerous, and cost companies millions in lost profits. (Look up “Dunning-Kruger Effect.”)
This is why negotiation training is bad. Many professionals treat half a day of discussion on negotiation concepts as if it’s an inoculation that protects them from making bad business decisions. And once they have had “training” they don’t ever take training again.
Recent studies show that over 70% of CEOs, CFOs and CIOs believe focusing on improving their own negotiation process is necessary to achieving their financial goals. They also show that a company which implements and closes deals using a disciplined negotiation process will improve revenue by as much as 39% and EBIT by at least 3%.
To achieve these goals, however, requires more than hiring someone to explain anchoring, discuss body language and tell colorful negotiation stories for a few hours. Up-skilling an organization’s negotiation acumen is an exercise in business transformation developed and delivered by the company’s leadership:
* establish a plan with a goal
* articulate that plan and goal
* execute the plan and provide training
* reinforce the training with thought leadership and practice
* measure outcomes on the basis of the plan and goal
Deal teams want to do better deals, and welcome training and learning on how they can improve their performance. Helping these teams with education and tools on selling, communicating and negotiating with greater discipline, coupled with an overall strategy on the company’s business philosophy, not only improves a company’s financial outcomes, it increases employee engagement and reduces costs of attrition. Professionals will always opt to stay at a company with visionary leadership that wants to help people grow and improve, and where those improved skills are valued.
The lack of disciplined deal making skills is causing many companies to literally leave millions of dollars in profit on the negotiation table. Leaders who take steps to bring change will see almost immediate, measurable results that bring a multiple return on investment, greater efficiency and employee engagement, and higher profitability. Negotiation training itself is not bad; but if done on an ad hoc basis instead of as part of a deliberate strategy, the company is leaving employees “knowing just enough to be dangerous.”
