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by Neil Payne
Cross cultural negotiation is one of many specialized areas
within the wider field of cross cultural
communications. By taking
cross cultural negotiation training, negotiators and sales personnel
give themselves an advantage over competitors.
There is an argument that proposes that culture is
inconsequential to cross cultural negotiation. It maintains that as
long as a proposal is financially attractive it will succeed.
However, this is a naïve way of approaching international business.
Let us look at a brief example of how cross cultural negotiation
training can benefit the international business person:
There are two negotiators dealing with the same potential client
in the Middle East. Both have identical proposals and packages. One
ignores the importance of cross cultural negotiation training
believing the proposal will speak for itself. The other undertakes
some cross cultural training. He/she learns about the culture,
values, beliefs, etiquette and approaches to business, meetings and
negotiations. Nine times out of ten the latter will succeed over the
rival. This is because 1) it is likely they would have endeared
themselves more to the host negotiation team and 2) they would be
able to tailor their approach to the negotiations in a way that
maximises the potential of a positive outcome.
Cross cultural negotiations is about more than just how
foreigners close deals. It involves looking at all factors that can
influence the proceedings. By way of highlighting this, a few brief
examples of topics covered in cross cultural negotiation training
shall be offered.
Eye Contact : In the US, UK and much of northern Europe, strong,
direct eye contact conveys confidence and sincerity. In South
America it is a sign of trustworthiness. However, in some cultures
such as the Japanese, prolonged eye contact is considered rude and
is generally avoided.
Personal Space & Touch: In Europe and North America, business
people will usually leave a certain amount of distance between
themselves when interacting. Touching only takes place between
friends. In South America or the Middle East, business people are
tactile and like to get up close. In Japan or China, it is not
uncommon for people to leave a gap of four feet when conversing.
Touching only takes place between close friends and family members.
Time: Western societies are very ‘clock conscious’. Time is
money and punctuality is crucial. This is also the case in countries
such as Japan or China where being late would be taken as an insult.
However, in South America, southern Europe and the Middle East,
being on time for a meeting does not carry the same sense of
urgency.
Meeting & Greeting: most international business people meet
with a handshake. In some countries this is not appropriate between
genders. Some may view a weak handshake as sign of weakness whereas
others would perceive a firm handshake as aggressive. How should
people be addressed? Is it by first name, surname or title? Is small
talk part of the proceedings or not?
Gift-Giving: In Japan and China gift-giving is an integral part
of business protocol however in the US or UK, it has negative
connotations. Where gifts are exchanged should one give lavish
gifts? Are they always reciprocated? Should they be wrapped? Are
there numbers or colours that should be avoided?
All the above in one way or another will impact cross cultural
negotiation and can only be learnt through cross cultural training.
Doing or saying the wrong thing at the wrong time, poor
communication and cross cultural misunderstandings can all have
harmful consequences.
Cross cultural negotiation training builds its foundations upon
understanding etiquettes and approaches to business abroad before
focusing on cross cultural differences in negotiation styles and
techniques.
There are three interconnected aspects that need to be considered
before entering into cross cultural negotiation.
The Basis of the Relationship: in much of Europe and North
America, business is contractual in nature. Personal relationships
are seen as unhealthy as they can cloud objectivity and lead to
complications. In South America and much of Asia, business is
personal. Partnerships will only be made with those they know, trust
and feel comfortable with. It is therefore necessary to invest in
relationship building before conducting business.
Information at Negotiations: Western business culture places
emphasis on clearly presented and rationally argued business
proposals using statistics and facts. Other business cultures rely
on similar information but with differences. For example, visual and
oral communicators such as the South Americans may prefer
information presented through speech or using maps, graphs and
charts.
Negotiation Styles: the way in which we approach negotiation
differs across cultures. For example, in the Middle East rather than
approaching topics sequentially negotiators may discuss issues
simultaneously. South Americans can become quite vocal and animated.
The Japanese will negotiate in teams and decisions will be based
upon consensual agreement. In Asia, decisions are usually made by
the most senior figure or head of a family. In China, negotiators
are highly trained in the art of gaining concessions. In Germany,
decisions can take a long time due to the need to analyse
information and statistics in great depth. In the UK, pressure
tactics and imposing deadlines are ways of closing deals whilst in
Greece this would backfire.
Clearly there are many factors that need to be considered when
approaching cross cultural negotiation. Through cross cultural
negotiation training, business personnel are given the appropriate
knowledge that can help them prepare their presentations and sales
pitches effectively. By tailoring your behaviour and the way you
approach the negotiation you will succeed in maximising your
potential.
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