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CROSS CULTURAL NEGOTIATIONS

CROSS CULTURAL NEGOTIATIONS. CROSS CULTURE NEGOTIATIONS COULD BE. NEGOTIATING W/ PARTNERS IN DIFFERENT CULTURES &COUNTRIES NEGOTIATING WITH PARTNERS W/ DIVERSE CULTURES DOMESTICALLY. M AIN POINTS. CULTURAL CONTEXT INFLUENCES PREPERATIONS STRATEGIES TACTICS

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CROSS CULTURAL NEGOTIATIONS

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  1. CROSS CULTURAL NEGOTIATIONS

  2. CROSS CULTURE NEGOTIATIONS COULD BE • NEGOTIATING W/ PARTNERS IN DIFFERENT CULTURES &COUNTRIES • NEGOTIATING WITH PARTNERS W/ DIVERSE CULTURES DOMESTICALLY

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

  4. 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

  5. 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

  6. GENERIC QUESTIONS FOR CROSS CULTURAL NEGOTIATIONS • WHO ARE THE PLAYERS? • WHO DECIDES WHAT? • WHAT ARE THE INFORMAL BUT CRITICAL INFLUENCES

  7. 1. WHO ARE THE PLAYERS? • DON’T FOCUS ON ONLY THEBARGAININGPARTNER • SEARCH THE EXTRA PLAYERS • NOT SAME AS USA • OFTEN NOT OBVIOUS • SOMETIMES OUTSIDE OF FORMAL FRAMEWORKS • THE SEARCH FOR PLAYERS MAKES PLANNING POSSIBLE

  8. 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

  9. PREPARING FOR NEGOTIATION PROTOCOL • HOW TO GREET • HOW FORMAL/INFORMAL • GIFTING? • TOUCHING • EYE CONTACT • EMOTIONS? • SILENCE? • FOOD/EATING? • BODY LANGUAGE/ GESTURES • PUNCTUALITY/ TIME ORIENTATION

  10. 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.

  11. BE READY TO ADAPT YOUR APPROACH • TOP DOWNPROCESS • CONSENSUS APPROACH • COALITION MANAGEMENT

  12. 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

  13. 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 • DON’T IMPUTE OMNIPOTENCE TO THE BOSS. CHECK FIRST • CHECK OUT THE LIMITS TO THE BOSS’ POWER

  14. 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

  15. 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

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