negotiation shake hands

I once invited to a luncheon to meet up with Deepak Malhotra at Kuala Lumpur.

Deepak is an American economist focus on negotiation strategy. He’s also a Professor at Harvard Business School.

During the luncheon, Deepak shared some tips from his book ‘Negotiation Genius’. Below is one of his tips that I always use

A. Which of these two situations would likely make you happier?

Senario 1: You are walking on the street and find $20.
Senario 2: You are walking on the street and find $10. Next day, you are walking in different street, and find another $10

Both scenarios has the same results, ie you gain $ 20.
But majority of people will feel happier with Senario 2.

B. Which of followings would make you unhappier?

Senario X: You open your wallet and found out you lost $20.
Senario Y: You open your wallet and lost $10. The next day, lost another $10

Both scenarios are identical. But Senario Y will make you unhappier.

The lessons:
1. If good news, try to share the info into smaller portions.
It maximizes pleasure due to lots of small wins.
eg. One day tell about project complete early, then another day it’s completed under budget

2. If bad news.. Share it all at once.
It minimizes pain and gives only one loss to absorb.

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