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NEGOTIATING STRATEGIES IN A GLOBAL CONTEXT
Negotiation is an integral part of our day-to-day living:
we negotiate with our families, co-workers, school teachers, bankers,
sales assistants,
neighbors, commuters. However, we don’t think about most of
these encounters as negotiation: we subconsciously expect predictable
responses within our familiar context.
Conducting business negotiations with our foreign counterparts tends
to be a more complex and challenging process. As we take a lot of
our own behavior for granted, we may automatically project our value
system on negotiators from other countries, expecting them to behave
in a certain way. This phenomenon is sometimes called “mirror
imaging”.
Understanding more about our own cultural conditioning and value
system is instrumental to analyzing the negotiating behavior of the
opposite side and working out strategies for effective communication
through contrasts and comparisons to our own cultural context.
We can only generalize certain negotiating behavior, as we are all
individuals and each of us has a unique makeup. However, cultural
generalizations have proven to be a useful reference point when dealing
with foreign negotiators.
For example, U.S. negotiators tend to move from specifics to a bigger
picture, favoring a linear approach. The goal is to open with sequential
moves to advance quickly in early stages and obtain tangible results.
In contrast, in a lot of other countries negotiators require time
to build trust, which tends to be reflected in the sometimes slow
negotiating process. A lot of effort may be dedicated to working
out a larger picture, which requires time and results in very little
initial progress.
These key differences in conceptualizing and planning negotiations
are also reflected in the approaches to time and relationship-building
during negotiating.
Adjusting our expectations and tactics allows us to minimize tension
and frustration, as well as improve mutual understanding and respect
during the negotiating process.
Practical recommendations for successful negotiations:
- Read and learn about your foreign counterparts’ culture
and tradition before you engage in a negotiating process. This
will provide you with valuable insights into social and negotiating
behavior.
- Adopt a long-term approach and commit to investing time in relationship
building.
- Explain your business model to your foreign counterparts. Do
not assume they are familiar with it.
- Ask a lot of probing questions.
- Become an active listener; observe non-verbal behavior.
- Maintain a firm and consistent position at all negotiating stages.
However, draw a fine line between a firm position and a position
of power. Avoid treating an opponent from a position of power or
in a condescending way. Such behavior causes “loss of face” for
both sides and may cause your opponent to walk out.
- Address politely issues of “stalling” and “going
in-circles.”
- Learn to be comfortable with “strategic” delays.
Do not show irritation or impatience.
- Avoid making quick concessions, particularly at the initial stages.
Your opponent may keep coming for more, and you won’t be
able to provide it.
- If you are not fluent in a target language and your foreign counterpart
provides translation services, consider bringing your own interpreter,
even if he/she sits there just listening and taking notes. This
allows for an extra cross-check to avoid misinterpretation or possible
misunderstanding.
- Always have a contingency plan. Business environments can turn
volatile depending on social, political and financial indicators.
Being aware of the current business climate and aligning your strategy
accordingly should protect your business from unexpected surprises.
Gaining awareness of your personal communication preferences and
learning about negotiating styles of your foreign counterparts are
essential to the success of a business venture. Understanding the
dual perspective enables businesspeople to negotiate with confidence
and gain an edge over the competition.
Natasha Crundwell
People Going Global, LLC
natasha@PeopleGoingGlobal.com
www.PeopleGoingGlobal.com
DISCLAIMER – The contents of this article are
intended to provide pertinent inform-ation for Beyond Virginia subscribers
interested
or already involved in international trade. While every effort is made
to convey accurate and timely information, the contents of this article
are not intended as specific advice to its readers. Our intent is solely
to convey information.
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