I personally specialize in commercial negotiations, both in the business domain (procurement, pricing, contract terms) and in the personal domain (high-value purchases, particularly real estate and developer negotiations). In this article, we will explore the remarkable prevalence of negotiation in everyday life.
Most importantly, awareness of the diversity and variety of negotiation broadens your cognitive horizons, giving you access to a wider range of tools and styles you can adopt for your own negotiation challenges.
Broadly speaking, negotiations can be divided into three types: business, legal-diplomatic, and personal.
1. Business negotiations
Negotiations conducted on behalf of a commercial organization or among its members.
- Commercial — when a purchase or sale of goods or services takes place. Exceptionally valuable skills here are active listening and clear communication.
- Strategic — these typically last months or even years. Negotiation strategy plays a critical role. Building trust can determine success in mergers, acquisitions, and joint ventures.
- Internal — negotiations among employees of an organization. Managers aligning on strategy, employees negotiating compensation or contract terms. Social competencies are exceptionally valuable here.
Read also: Negotiation Basics
The 5 fundamental attitudes that form the foundation of every negotiation.
2. Legal-diplomatic negotiations
Negotiations characteristic of the governmental sector:
- Judicial — negotiations based on legal frameworks, within the legal system. Hard argumentation and logical reasoning skills are particularly useful.
- Crisis (law enforcement) — one party represents authority, and an element of threat is often present. A crisis negotiator must be well-versed in psychology. Composure under pressure and resilience are essential.
- Diplomatic — negotiations on behalf of nations, in multicultural, multilingual, and multi-faith environments. Diplomats must demonstrate openness to different ways of thinking.
- Political — one party is a politician, and the other may be a politician or a group of citizens. A particular challenge is reaching different social groups and adapting language to each audience.
3. Personal negotiations
We negotiate as private individuals:
- Purchasing or selling — for a private person, negotiation can result in significant savings when buying a home, a yacht, or a luxury car. Knowing the market for the particular asset is especially useful.
- Family — effective communication within a family can be challenging because this social group is governed by unique sociological dynamics. The ability to step outside the role typical of family relationships is particularly valuable.
- Among friends — we seek agreement within a group of people with informal relationships. Thanks to long-standing connections, we can learn how people operate in order to communicate more effectively with them.
Related article: What Is Negotiation?
The definition of negotiation and the three key elements of every negotiation process.
Summary
Negotiations are everywhere, from the conference room to the family dinner table. Familiarity with different types of negotiation allows you to draw inspiration from diverse styles and tools, making you a more versatile negotiator.
Quick win: Think about which type of negotiation you feel least confident in. Spend 15 minutes reading one article about that type. The knowledge may come in handy sooner than you expect.
