Preparation leads to confidence. Confidence leads to results
Negotiating can be a lot like taking a test. Have you ever spent a sleepless night worrying about a big exam the next day, where your worry stemmed from the fact you did not prepare enough? The next day, you begrudgingly take the exam, unprepared, and failed...hard. On the other hand, have you ever studied hard, worked through sample questions, known the information inside and out, and gone on to ace the exam?
There are a surprising number of similarities between test-taking and negotiating. Preparation and thoroughness are some of the best ways a negotiator can succeed. Preparation and practice build confidence, and confidence results in positive outcomes.
Global research conducted by Huthwaite International of over 1,300 professionals in 52 countries revealed that 62% of successful negotiators are very confident when entering negotiations.
The negotiation survey defined 'successful' negotiators as those who concluded 75% or more of their negotiations without going back to the table to renegotiate. Those defined as unsuccessful were negotiators who had to renegotiate more than 50% of their deals.
Based on the study, under-confident negotiators are successful in just one out of five negotiations they're involved in (19%). The survey also found that those who feel 'neutral' achieve an even lower rate of success in negotiations, with only 16% of them succeeding. Compared to the 75%+ success rate of confident negotiators, you can't help but wonder how to get a little more confidence!
According to the research, successful negotiators build confidence through preparation, planning, strategies, tactics, and behavioral skills. Going through the available information, formulating a plan, developing genuinely curious questions, building a framework and process, and anticipating the counterpart's interests are critical in the preparation process.
Confidence has a significant impact on how we behave and what we achieve. The first step for building confidence is by thoroughly assessing the strengths and weaknesses of each negotiation with a plan for how to best use the available information. I spend considerable time thinking (my wife calls it obsessing) about upcoming negotiations.
I don't want any surprises in a negotiation, and I truly want to empathize with my counterpart. What are their best and worst-case scenarios? What are their interests? What are engaging questions I can ask along the way? How do I want the process to flow? After answering these questions, I feel much more confident about starting a discussion.