Do you have a negotiation strategy? Through studies we have identified that the 1000 biggest US companies are losing more than 3000 billion annually because of a lack of negotiation understanding, and in particular, the lack of understanding of neuro economics. You probably have a sales strategy if you're in sales, or a management strategy if you're an executive. So why do we often find that a negotiation strategy is not existed? Being unconsciously incompetent is better than being consciously incompetent. Some executives today are unaware that they don't know how to negotiate and even worse, some of the belief that they are superior negotiators.
Through a study of more than 5500 executives, we asked them to rate their negotiation ability on a one to 10 scale 87% answered above eight on the scale. Then after a two day workshop, we repeated the question and with the new knowledge, the original 87% said that their original score should have been below five. There are four major things that are missing in companies with less success. They have no negotiations. strategy. They lack trust currency, the ability to create deep trust.
They don't understand the rules of the game. They lack understanding of how to identify and create Neko economics. Let's look into these four major areas further, they have no strategy in a negotiation. Examples are a zero sum, strategy, partnership, strategy, or partnership strategy. For example, in a zero sum, you win at the expense of the counterpart or vice versa. A winning organization has defined a clear negotiation strategy.
They lack trust currency, the ability to create and keep trust. A level of trust in a relationship reduces transactional costs and increases profit. In fact, trust in the Western world has dropped by more than 46% in the last 10 years. A successful organization is able to create and maintain trust. They don't understand the rules of the game. Imagine negotiation being like a tennis game, you turn up With a racket ready to play, but your counterpart is ready to play chess, different people and organizations use negotiations differently.
Before we begin, we have to negotiate how to negotiate. They lack understanding of how to identify and create negative economics. Through research we have discovered that up to 42% additional free value can be created between parties in most negotiations. successful organizations are aware of the concept of negative economics and actively search for this value. Cal Jensen is a world known expert in negotiation, Game Theory, behavioral economics and trust, as well as being a professor at numerous prestigious universities. He is a celebrated author, talented public speaker and business adviser to companies such as Microsoft and Ernst and Young visit Cal Jenson calm today.