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The Big Idea Blog


Current DateTime: 09:04:22 16 Nov 2009
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Expiration DateTime: 11/16/2009 9:06:12 AM

THE BIG IDEA: VIDEO


Current DateTime: 09:04:22 16 Nov 2009
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    • A Secondary Financial System?  11 Nov 2008

        America speaks out with their solutions to the country's economic crisis and Jeremy from New York offers an unconventional, although historically relevant solution.

    • The Need for Transparency  05 Nov 2008

        Donny Deutsch, Jim Cramer and Dylan Ratigan debate the possibilities for transparency and suggest solutions for the country's struggling housing market and unprecedented government actions.

    • Senator John Kerry  23 Oct 2008

        Donny Deutsch and Larry Kudlow question Senator John Kerry (D-MA) Chairman of the Senate Committee on Small Business and Entrepreneurship, on the state of the economy and the outlook for small businesses.

THE BIG RECAP


Current DateTime: 09:04:22 16 Nov 2009
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Jul.01
5:23 PM ET
Tuesday, 1 Jul 2008
Read a Chapter: The Contrarian Effect

Ignorance, Error, and Immediate Interest

According to the Law of Unintended Consequences, an idea first introduced during the Scottish Enlightenment and later developed by twentieth - century sociologist, Robert K. Merton, almost every action generates at least one unintended consequence. In other words, each cause will likely produce more than one effect, one of which may be unforeseen or unintended. And, depending on the action, that additional consequence may be a good thing or a bad thing. While there are positive outcomes, most unforeseen consequences are negative or perverse in nature.

According to Merton, good intentions are not enough to predict or prevent unintended consequences. As part of his research, he identifi ed fi ve potential causes of unintended consequences:

Ignorance
Error
Immediacy of interest
Basic values
Self - defeating prophecy

The first three causes, in particular, are relevant to sales and sales professionals in the following ways.

Ignorance. Given that it is nearly impossible to know everything about every subject, lack of knowledge or understanding or interpretation can lead to unforeseen consequences. In other words, even the best intentions can result in negative outcomes. So the sales professional with the noblest of intentions can still produce unintended negative outcomes as a result of using the typical tactics.

Error. Incorrect analysis of a problem often leads to negative outcomes, as does adopting habits or behaviors that may have worked in the past but may not apply to the current situation or be the best way to achieve the intended result. As Neil Rackham discovered during his research for Spin Selling, many sales professionals incorrectly conclude that closing tactics are the reasons for sales success when in fact they do more harm than good.

Immediacy of interest. In a Web article describing Merton ’ s work, economist Rob Norton explains that Merton ’ s third reason refers “ to instances in which an individual wants the intended consequence of an action so much that he purposefully chooses to ignore any unintended effects. ” This includes acting for self - serving reasons or acting with the immediate payoff in mind rather than the long - term interests. As Norton explains, “ That type of willful ignorance is very different from true ignorance. ” This describes what happened to Fred, the financial advisor, who chose to ignore the possible implications of speeding up the sale with Natasha in order to achieve immediate results.

Even in the most ideal circumstances, it is clear that the typical tactics produce one or more negative unintended consequences. They create consequences that impact sales, reduce repeat business, discourage referrals, and affect company reputations. They create consequences that incur time, money, and energy above and beyond the original scope and budget. They create consequences that often detract signifi cantly from sales results, so much so that the time, money, and energy needed to combat the unforeseen side effects outweighs the original benefits of  using the tactics.

Here’s the rub. Whether the negative unintended consequences come as a result of ignorance and error, as with Mr. Popcorn, or immediate interest, as with the salesperson who wants instant results so much that he ignores the potential negative long - term effects, these u ndesirable consequences cannot always be controlled and certainly cannot be eliminated entirely.

Thankfully, knowledge, awareness, and experience can help reduce the negative effects created by true ignorance, lack of experience, incomplete data, or incorrect assumptions.

After observing thousands of sales interactions over a 10 - year period as part of his research for Spin Selling,

Rackham is no longer an advocate of closing techniques as a way to increase sales success. He chooses better and more effective ways to serve his clients and allow them to buy.

CONTINUED
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