The Hidden Challenge of Cross-Border Negotiations
Do cultural differences matter in business negotiations? How to anticipate and overcome possible barriers on the road to get an agreement at international scale? I will try to answer these questions in this post.
Each time sitting at the negotiation table, we need to be sure who are the players. Often, there are not only two companies making decision but other higher substances which have their own interests to the table, as well as varying abilities to block or foster negotiations. Once the players are identified, we should analyze who owns which decision rights. It is very important and in case of failure could conduct to very dramatic consequences. Moreover, we should take in consideration the fact that some countries have organisations which are more powerful than two parties making a deal. These organisations usually do not have the formal standing of government agencies but can control or affect business decision making (Italy has powerful families, Russia has mafias and very corrupt systems).
Thus, only when we know exactly who these players are, we can develop a strategy of making a deal at international scale.
During negotiations, we are seeking to influence the outcome of an organizational process which is different in different cultures. So we have to adapt to them considering several forms, two of which are:
* Top down: there are no delegates but direct interaction with the boss. It almost always results in bigger contracts, and negotiation process is more effective. Top down authority is at one end of the decision-making spectrum.
* Consensus: in my opinion, it is the best way as a bargaining strategy in order to establish compatible goals and to protect interests of each side. However, it may require more time, relationship building, and information than expected. It is also about recognizing what we can’t do and setting realistic expectations.
To conclude, I have to say that before bargaining with people from different cultures we need to study carefully every single nuance of their cultures. The key to cross cultural success is to develop an understanding of, and a deep respect for, cultural differences. We should also move beyond stereotypes. Then, we must design your strategy and tactics so that we are reaching the right people, with the right arguments, in a way that allows us maximum impact on the process to yield a sustainable deal.
Each time sitting at the negotiation table, we need to be sure who are the players. Often, there are not only two companies making decision but other higher substances which have their own interests to the table, as well as varying abilities to block or foster negotiations. Once the players are identified, we should analyze who owns which decision rights. It is very important and in case of failure could conduct to very dramatic consequences. Moreover, we should take in consideration the fact that some countries have organisations which are more powerful than two parties making a deal. These organisations usually do not have the formal standing of government agencies but can control or affect business decision making (Italy has powerful families, Russia has mafias and very corrupt systems).
Thus, only when we know exactly who these players are, we can develop a strategy of making a deal at international scale.
During negotiations, we are seeking to influence the outcome of an organizational process which is different in different cultures. So we have to adapt to them considering several forms, two of which are:
* Top down: there are no delegates but direct interaction with the boss. It almost always results in bigger contracts, and negotiation process is more effective. Top down authority is at one end of the decision-making spectrum.
* Consensus: in my opinion, it is the best way as a bargaining strategy in order to establish compatible goals and to protect interests of each side. However, it may require more time, relationship building, and information than expected. It is also about recognizing what we can’t do and setting realistic expectations.
To conclude, I have to say that before bargaining with people from different cultures we need to study carefully every single nuance of their cultures. The key to cross cultural success is to develop an understanding of, and a deep respect for, cultural differences. We should also move beyond stereotypes. Then, we must design your strategy and tactics so that we are reaching the right people, with the right arguments, in a way that allows us maximum impact on the process to yield a sustainable deal.
How to Say "This is crap" in different cultures
The last article was particularly interesting to me. It is about direct and indirect cultures regarding the manner of speaking to others. People with direct cultures like the Germans tend to be honest and to give the message straight in order to make sure the message registers clearly, while people with indirect culture tend to use words that soften the criticism like the British.
I am from Russia and even if I have been living in France for 6 years, many Russian cultural character traits stayed with me. Like all Russians I am very direct and prefer to be honest and say directly what I think about a situation or a person in front of me. It is foreign to me to soften words just to seem to be nice. Sometimes, people overestimate their capabilities and they need to be criticized to get back to earth. I, very down-to-earth person which other people often do not appreciate. Anyway, it is better to say directly that there is something wrong rather than hide it under beautiful words and make people think that everything is fine. Nobody likes being criticized, but sometimes it is necessary to understand mistakes and to try so to improve attitudes. If someone tells me that my work is total crap I would like him/her to deliver the message in direct form.
No comments:
Post a Comment