By Eugene le Roux, FSAIRAC, and Eamonn Ryan
Understanding the nature of negotiation.
A more effective approach is to shift the narrative: from winning against the other party to solving a shared problem.
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At its core, negotiation is often misunderstood as a contest – a process where one party wins and the other loses. In reality, negotiation is far closer to a principle we observe repeatedly in nature: equilibrium.
Consider a simple physical example. A boat floating on water is subject to two opposing forces: gravity pulling it downward and buoyant pressure pushing it upward. The boat does not sink endlessly, nor does it rise out of the water – it settles at a point where these forces balance. This is equilibrium.
Negotiation operates in much the same way.
When two parties come together – for instance, a seller (Person A) and a buyer (Person B) – each brings opposing objectives. The seller seeks the highest possible price, while the buyer aims for the lowest. If neither party adjusts their position, no agreement is reached. However, when both sides make measured concessions, a point of balance emerges: a deal.
This is a one-dimensional negotiation, where price is the only variable. It is straightforward, almost mechanical. Each concession nudges the parties closer to equilibrium until an acceptable midpoint is found.
But real-world negotiations are rarely this simple.
Most negotiations are multi-dimensional, involving not only financial considerations but also emotional, psychological and strategic factors. Trust, perception, timing, reputation and even personal pride can influence outcomes as much as – or more than – the numbers themselves.
This complexity introduces a fundamental challenge: negotiations are often framed as ‘A versus B’. In such a mindset, any concession can feel like defeat. This is particularly evident in high-stakes environments such as politics or corporate leadership, where individuals or representatives feel pressure to demonstrate strength and deliver visible ‘wins’.
However, this adversarial framing can be counterproductive. When both parties focus solely on winning, they may overlook opportunities for mutual gain. The negotiation becomes rigid and equilibrium becomes harder to reach.
A more effective approach is to shift the narrative: from winning against the other party to solving a shared problem.
If both sides can emerge from the negotiation feeling that they have contributed to a successful resolution – rather than surrendered ground – the outcome is not only more sustainable but also more valuable. In this sense, negotiation is not about compromise alone, but about constructing balance in a way that preserves dignity, relationships and future opportunity.
continued in part two…
