WHAT TO CONSIDER WHEN NEGOTIATING INTERNATIONALLY AND ACROSS CULTURES

Is it dishonest when a street vendor in country charges a foreigner more than she would a local? How about when key points of a contract are stated not in the main part, but in the fine print? Is it unscrupulous to “exaggerate” or say you are “the best”? Cultures may view these actions differently. Value judgments result in emotional reactions, which block unearthing the facts and cultural realities. Consequently, decisions may be misaligned and valuable partnering opportunities are passed up. You may determine that this is not the right collaboration, but what we want is a decision based on objective analysis and not only emotion.

2. WIN-WIN or WIN-LOSE?

There is no right or wrong with either attitude, but learn about how the various players view negotiations. This can also impact how much is disclosed. A senior Chinese manager recently told me, “We will never tell you everything.” To some cultures it is unwise to share too much, while to others this is seen as being honest.

3. WHO ATTENDS THE MEETING?

Some cultures are more equality driven and individualistic. Hence a single individual may have the power to make a decision. In such cases only one or two people may attend a negotiation. In more hierarchical or group cultures, such as parts of Asia or Africa, a larger delegation may attend. You may not need to change the numbers, but do your cultural homework so that there are no surprises.

4. HOW FORMAL?

Hierarchical cultures are more formal in meeting protocol including dress, seating arrangements, order of introduction, exchange of business cards, and who speaks or does not during the meeting. Other countries are much more informal and equality driven. Educate yourself so that you do not cause offense, or do not feel offended.

5. HOW DO YOU COMMUNICATE?

The Japanese have a concept of honne and tatemae, which roughly means that true feelings are not visibly or verbally expressed. In contrast, Latin cultures can be expressive. “Face”, indirectness and harmony are vital to many cultures. This means that during negotiations there may be head nodding and “yes” being said, but this may not truly mean agreement. Many “Western” cultures can be direct and open with disagreement, and this is viewed as positive. Learn about the communication styles of the cultures involved.

6. WHEN IS A DECISION MADE?

In cultures where an individual is empowered to make a decision, the process is quicker. Be patient with cultures where inclusion and escalation is required, as this means the decision may not be made at the initial meeting. Further, some cultures prefer to invest time in building trust and relationship. This could mean an initial part of a meeting or one or two initial meetings are dedicated to strengthening the relationship. Other cultures prefer “getting down to business” right away. Gather cultural know-how about this and clarify expectations.

7. WHEN DO YOU INVOLVE LEGAL COUNSEL?

In some countries, like the United States, adherence to governmental and corporate regulations is important, and there may be legal presence even at the first meeting. Relationship focused cultures may view this with distrust and an impediment to relationship building. Either way, it is productive to explain the presence and role of each team member.

8. EXPAND THE OUTCOME OPTIONS.

Avoid focusing on position. Cultural, political, economic and other aspects differ across countries. This means that the goals, needs and interests of the parties involved may vary. Explore and broaden the available possibilities and outcomes.

9. WHAT IS THE MEANING OF A CONTRACT?

For some countries, the signed contract is strictly to be abided, and trust is gained or lost on this basis. For others, the contract is a firming up of the relationship, with some flexibility to “revisit” the terms. Understand this, and explain your viewpoint.

10. ENGAGE IN CULTURAL DIALOGUE and BE FLEXIBLE.

The most productive way to avoid misunderstandings and clarify expectations is to ask questions and share your perspectives. This also means that flexibility and a non-judgmental approach are essential.

“For me, relationship is very important. I can lose money, but not a relationship. The test is, at the end of a negotiation, both must smile.” — Sunil Mittal

For over 25 years, Susan Gandhi Schultz has been helping organizations like Chevron be more culturally and globally inclusive and successful. She is a cross-cultural consultant who has lived and worked internationally, with graduate degrees in Intercultural Studies and Business Administration.

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