The Naked Negotiator

In Shakespeare’s Hamlet, Polonius advises his son Laertes

“This above all, — to thine own self be true. And it must follow, as the night the day, Thou canst not then be false to any man.”

In one insightful quote, Shakespeare tells us what it is to be real — to be authentic. Shakespeare tells us there are two tests for authenticity

1. You have to be true to yourself
2. You must be what you say to others

Journalist Edward Murrow offered the same advice:

“To be persuasive we must be believable, to be believable we must be credible, to be credible, we must be truthful.”

When you lose your credibility everyone discounts what you say. The challenge is however, that lying in negotiation is widespread. One recent study found 28% of negotiators lied about a common interest during negotiations. Another study revealed that 100% of negotiators either failed to reveal a problem or actively lied about it during negotiations if they were not directly asked about the issue.

Omission or Commission

Lies of omission (not revealing information) are more common than lies of commission (actively misrepresenting information). Wharton researcher Maurice Schweitzer found negotiators lie about:

• Reservation prices. Virtually everyone lies when it comes to stating their bottomline or reservation price.
• Interests. Negotiators often mislead their counterparts over their real interests. For example, a negotiator may portray a common interest as a conflicting interest in order to win a concession.
• Intentions. Negotiators often try to bluff the other side by misrepresenting their intentions.
• Material facts. Intentional false statement about material facts can constitute fraud.

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“He has eyes to see and ears to hear may convince himself that no mortal can keep a secret. If his lips are silent, he chatters with his fingertips; betrayal oozes out of him at every pore.” -Sigmund Freud

The best was to curtail deception is to reduce the odds of it ever occurring in the first place.

Given lying in negotiation is endemic, how do you uncover lies and counter deceptive moves without compromising your credibility? Here are some practical tips:

• Guard against deception. The best way to curtail deception is to reduce the odds of it ever occurring in the first place.
• Ask direct questions. Research shows negotiators are much less likely to lie when faced with a direct question.
• Turn all your information gaps and assumptions into questions. Then test for consistency by asking multiple variations of the same question.
• Research the other party’s reputation. You need to protect yourself against negotiators who are prepared to lie and manipulate to gain an advantage.
• Keep a written record of all verbal claims and assurances. Negotiators are less likely to lie when written records are kept.
• Verify material information wherever possible. Negotiators are much more honest when they know you are prepared to check out any claims or representations.
• Ask for written representations and warranties. Don’t just take their word at face value. Ask them to write it down and warrant that it is true in a legally binding agreement.

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