#1 Problem with Business Negotiations Today

Everything is negotiable. Whether or not the negotiation is easy is another thing. — Carrie Fisher, “Princess Leia”, Star Wars

Businesses are rational while humans are emotional. That’s it. Let me elaborate.

It seems logical to make rational decisions in business. It makes sense to conduct all areas of our business rationally. So when it comes to negotiating a business contract, resolving industrial dispute or conflict, or even laying off the employee who served the company for 35 years, we do the same thing: approach rationally. And, we fail miserably in most situations.

Stating “I can prove with numbers and facts that you are wrong and I am right,” would work if people were completely rational. But that is not the case. Roughly 70% of our decision making is influenced by our emotional side and only 30% by rational side. It gets even worse when we are filled with emotions. The rational side is completely shutoff and our decision making is entirely based on emotions.

Moreover, owing to the existence of legal system and case law, and an easy alternative to “just fucking turn this over to the lawyers,” most business negotiations…