International Negotiations: Cultural Nuance
Businesses are made up of people and people are different, even within the same culture. The deal is made by negotiating with the person (s). However, you should first understand the culture to do cross-cultural business.
When I think of how to begin the negotiation of a contract in a different culture, I first want to make sure that I know something about the culture. Generally, how 85% of the people act, think, and behave. "What is important to them? " I ask myself. Inevitably, I read about the culture, the history, talk to people who have done business in the culture and most definitely go to visit the place when possible. Here are some things I have learned:
1. Managing Misunderstanding. The possibility of misunderstandings is inevitable, but try to avoid it. You have to know with whom you are negotiating, but you also should make sure the counter knows a bit about you too. Begin with the language. If you do not know the language, and they bring an interpreter, I say hire your own. A person that you trust. Depending on whom you meet first, In certain cultures, there is a specific level of respect for each person. You will have to know if the culture emphasis individuality or group involvement if more than one person sits down to the negotiation. This is helpful and will guide you on where or to whom you look at as you are presenting. Err on the side of respecting everyone.
2. Initial Meeting Space. Do not think the first meeting is actually a meeting. It may be lunch. In certain cultures, people truly only want to do business with people they like. Sometimes they don’t like you if you use the wrong fork or eat using the wrong hand. Know the cultural nuances for eating and drinking.
3. Formality. When negotiating, some cultures prefer formal styles with titles, dress and interactions being extremely formal. In other cultures, you can relax, wear jeans and call each other by the first name. If in France you want to begin with a French sentence or at least a French word, “Bonjour” or the deal may be lost. The language is very important. In Germany, you do not want to start by taking off a jacket as it may signal a lack of seriousness. Formality may also mean knowing when to actually engage in small talk and when to be direct. In many African and Asian cultures, you develop relationships first, while Australians are direct.
4 Memorializing the contract itself. There are different timings to approach the agreement, depending on the culture. Some may begin with general principles and proceed to specific items. The principles may be so important that once agreed "the lawyers can figure out all the details." Other cultures are different and want to have all the specifics of date-time delivery price figured out first and build up to the principles. However it is being done, you never want to rush the negotiating process. Though some cultures may get impatient with too slow of a process.
5. Enjoy the Process. Culture is interesting as are other people. If the business is to be successful, it first begins with the negotiation. Understanding others always takes time and patience and has some give and take. Hopefully, within the process, you learn about the people, more about their culture and the business deals as much as they learn about you along with making money.