CROSS CULTURAL NEGOTIATIONS

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CROSS CULTURAL NEGOTIATIONS
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CROSS CULTURE NEGOTIATIONS COULD BE

• NEGOTIATING W/ PARTNERS IN DIFFERENT CULTURES
  COUNTRIES
• NEGOTIATING WITH PARTNERS W/ DIVERSE CULTURES
  DOMESTICALLY

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MAIN POINTS

• CULTURAL CONTEXT INFLUENCES
• PREPERATIONS
• STRATEGIES
• TACTICS
• SELECTION OF TARGETS TO INFLUENCE
• SELECTION OF PERSUATION MESSAGES
• SELECTION OF STYLE OF BARGAINING

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CULTURES DIFFER IN

• HOW THEY NEGOTIATE (PROCESS)
• -WIN-WIN OR WIN-LOSE
• HOW THEY COME TO AGREEMENT
• GENERAL TO SPECIFIC OR SPECIFIC TO GENERAL
• HOW THEY COMMUNICATE DISAGREEMENT
• EXPLICIT/ VAGUE
• WHAT IS NEGOTIABLE
• PRINCIPLES/DETAILED ARTICLES CONTINGENCIES
• RITUALS OF NEGOTIATIONS
• PROTOCOL OF NEGOTIATIONS

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TOO MANY CULTURE CONTACTS ARE INVOLVED

• TOO DIFFICULT TO CATALOG AND LEARN EACH
• IGNORING THE DIVERSITY LEADS TO DISASTER
• CULTURALLY AWARE BARGAINERS GET BETTER RESULTS
• GENERIC QUESTIONS TO BE ANSWERED IN
  CROSS-CULTURAL NEGOTIATIONS ARE MOST USEFUL

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GENERIC QUESTIONS FOR CROSS CULTURAL NEGOTIATIONS

• WHO ARE THE PLAYERS?
• WHO DECIDES WHAT?
• WHAT ARE THE INFORMAL BUT CRITICAL INFLUENCES

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1. WHO ARE THE PLAYERS?

• DONT FOCUS ON ONLY THE BARGAINING PARTNER
• SEARCH THE EXTRA PLAYERS
• NOT SAME AS USA
• OFTEN NOT OBVIOUS
• SOMETIMES OUTSIDE OF FORMAL FRAMEWORKS
• THE SEARCH FOR PLAYERS MAKES PLANNING POSSIBLE

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2. WHO DECIDES WHAT?

• PLAYERS SPHERE OF INFLUENCE/POWER
• E.G GERMAN FIRMS
• DIVERSE CORPORATE GOVERNANCE STRUCTURES
• DIVERSE GOVERNMENTAL INVOLVEMENT SCHEMAS
• OUR CULTURAL ASSUMPTIONS OF WHO CONTROLS MAY
  MISLEAD
• MINEFIELD FOR EVEN THE MOST ASTUTE NEGOTIATORS

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PREPARING FOR NEGOTIATION PROTOCOL

• HOW TO GREET
• HOW FORMAL/INFORMAL
• GIFTING?
• TOUCHING
• EYE CONTACT
• EMOTIONS?
• SILENCE?
• FOOD/EATING?
• BODY LANGUAGE/ GESTURES
• PUNCTUALITY/ TIME ORIENTATION

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3. WHO HAS INFORMAL INFLUENCE?

• WEBS OF INFLUENCE MAY BE MORE POWERFUL THAN THE
  OTHER NEGOTIATOR.
• JAPAN-KEIRETSU
• KOREA-CHEBULS
• ITALY-POWERFUL FAMILIES
• THE INFLUENCE WEBS MAY BE EMERGENT/ SUBTLE
• GAP B/W WHAT IS ON THE BOOKS VS HOW THINGS REALLY
  WORK
• SO, DISCARD HOME MARKET ASSUMPTIONS. BE READY FOR
  REALITY CHECKS.

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BE READY TO ADAPT YOUR APPROACH

• TOP DOWN PROCESS
• CONSENSUS APPROACH
• COALITION MANAGEMENT

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CROSS CULTURAL NEGOTIATION PROTOCOL

• TOO DIVERSE, SO CHECK OUT THE FOLLOWING
• GREETINGS
• DEGREE OF FORMALITY
• GIFT GIVING
• TOUCHING/TACTILE BEHAVIOR
• EYE CONTACT
• DEPORTMENT
• EMOTIONS
• SILENCE
• EATING/DRINKING
• BODY LANGUAGE
• PUNCTUALITY

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1.PARTNER IS TOP DOWN NEGOTIATOR

• WHO HAS THE FINAL AUTHORITY
• DIVULGE INFO AND MAKE CONCESSIONS ONLY TO THE
  BOSS
• FIND OUTSIDERS WHO CAN LEAN ON THE BOSS
• GO TO THE BOSS (FIRST) EVEN IF S/HE DELEGATES, IT
  MAY BE GOOD FORM
• DONT IMPUTE OMNIPOTENCE TO THE BOSS. CHECK FIRST
• CHECK OUT THE LIMITS TO THE BOSS POWER

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2. PARTNER USES CONSENSUS

• COMMON IN ASIA
• FOCUS IS ON THE RELATIONSHIPS AND NOT ON DEALS
• SLOW, LENGHTY PROCESS W/ PARALLEL SESSIONS
• EVERYBODY ON THE OTHER SIDE WANT INFO
• DOUBTERS MUST BE CONVINCED. YOU/OR THEM
• REQUIRES EXTENSIVE INTERACTION BEFORE ACTUAL
  NEGOTIATIONS
• FORMAL NEGOTIATION IS A FORMALITY.
• DEAL IS STABLE AND ENDURING IN IMPLEMENTATION

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3. COALITION MANAGEMENT

• IN B/W TOP DOWN AND CONSENSUS BUILDING
• A WINNING COALITION MAY BE BUILT
• A BLOCKING COALITION MAY HAVE TO BE MOVED
• A VERY POLITICAL PROCESS
• OFTEN FLUID AND NOT WELL DEFINED
• COALITIONS ARE NOT ALWAYS STABLE
• COALITIONS CAN BE ALTERED