Page 54 - engage workbook

Self-serving bias

The tendency for people to attribute positive outcomes and events to their own character,
efforts and behavior, while attributing negative events to external factors.

For instance, when people win new business they credit this to the strong relationships they
have built, the amazing proposal document they created, or the engaging presentation
they gave.

Contrast this to when they lose - they blame it on being undercut by a competitor,
believing that price alone was the cause. Or, more insidiously, a suggestion that the
buyer didn’t know that they wanted. This second bias cheerfully ignores the fact that a key
responsibility of a consultant or salesperson is to help the buyer envision and articulate
what they want.

Similarly, while price is a factor in most purchasing decisions, it is seldom the overriding
one. It is however, a convenient excuse that confers limited or no blame on the person or
team responsible for the loss.

Self-serving bias can be very destructive, preventing you from learning from experience
– in particular from failure.

What you can do

• When conversations or situations do not work out the way that you want, look
beyond your immediate reactions and snap judgments on the reasons.

• Seek input from others on situations where you think your objectivity may be
compromised.

• When you lose or win work, analyze carefully the reasons why. When you lose, do
not accept the “Great Price Lie”. Probe further.

The "Great Price Lie" is the often encountered explanation for failure to make
a sale, win an account, or a piece of work.

"The customer or client said that our presentation or proposal was very good,
but unfortunately we missed out because of the price."

Typically this is not the full story, it is simply the easiest response for the
customer or client to give. Much easier than saying that they did not like you,
or your team, or your product/service! Better also for you, because you can
attribute blame to the price rather than your own failings.

Our advice? The next time you encounter the "Great Price Lie", politely
acknowledge that price is always an important factor and then ask what other
factors influenced their decision.

49 engage-universe.com