Feature

Negotiating abroad: the cultural aspects

Sudipta Dev focusses on the intercultural complexities of international business negotiations.

The art of negotiation is critical for any organisation—it can make or break a deal and can significantly impact the business. In a global business environment, the negotiation process becomes more complex on account of intercultural influences that come into play. People from different countries carry their own divergent perceptions and cultural baggages which can lead to complications while talking business. Organisations today realise the need to train their personnel in international negotiation skills as a large percentage of the success of their global business depends on it.

International negotiations are affected by cultural factors at every stage of the interface—from the beginning to the end. The negotiators have to constantly learn through their experience and master the art. Tapan Bhat, Vice-president, Human Resource, Wipro Infotech, lists what he believes are the most important elements of a negotiation:

• Understanding the concept of negotiation
• Appreciating the importance of win-win approach
• Understanding the stages of negotiation
• Demonstrating appropriate behaviours, strategies and tactics
• Being able to plan your negotiation
• Being able to close the deal

Impact of different cultures

"The most essential factor would be to remember that for you to win someone must lose and in a successful negotiation there should be no winners or losers" - Vishal Mehra VP-Human Resources (APAC) OfficeTiger

Vishal Mehra, VP-Human Resources (Asia Pacific), OfficeTiger, points out that the impact of cross-cultures in the negotiation process is a whole separate subject of study by researchers, “The cultural dimension of the negotiation process is referred to as “individualism-collectivism.” In layman terms, it is the attempt to understand the dynamics of two individuals who are dancing together where each one is doing a different dance form so everyone is dancing but to a different tune.” He asserts that negotiation must be viewed as the process of reaching an agreement of mutual accord.

“No one gets into a negotiation completely blind. Everyone at the negotiation table already holds a fairly strong preconception of how it will go. Being aware that those you who are negotiating with will possess preconceptions—or what researchers call “mental models”—as strong as our own actually control the outcome of a negotiation,” adds Mehra.

The pre-negotiation stage is of critical importance. Pre-planning is necessary for achieving business aims. Following practical negotiation tips can ensure the success of the interaction. However, it is important to be aware of the differences brought about by the divergent cultural influences before approaching the negotiation table. Understanding and assimilating these variant influences through out the negotiation process is necessary.

Mehra reminds it is frequently observed that negotiators from certain cultures like the US and UK, etc, seem more concerned with maintaining individual rights, while others from nations like India, Colombia, Pakistan and Taiwan are more focussed on preserving relationships. “The first group is more likely to resort to competition and problem-solving in the negotiation, while the second prefers more indirect means of arriving at a solution. The most essential do, in my book, would be to remember that for you to win someone must lose and in a successful negotiation there should be no winners or losers. If there are, you haven’t negotiated at all but competed.”

Essential do’s and don’ts

The flow of the negotiation process is a determinant of its success. According to Bhat some of the critical factors while negotiating with people from different countries are: pace of the negotiation, negotiating strategies, personal relationships, emotional aspects, decision-making, contractual and administrative factors, pattern of communication, etc. Bhat points out the essential do’s and don’ts:

What is must:

• Plan the negotiation
• Maintain high aspirations
• Adopt a win-win approach
• Use language that is simple and accessible (specially with non-English speaking people)
• Ask lot of questions then listen with your eyes and ears open
• Build rock-solid relationships
• Maintain unyielding integrity
• Conserve concessions, give in small amounts and add great value to it
• Enormous patience
• Be culturally literate and adapt negotiating strategies to the host country’s environment

What to avoid:

• Don’t rush the other side if they don’t speak English, give them adequate time to think and answer
• Don’t take positions, try to focus on the interests of both the parties
• Don’t get into a deadlock situation
• Don’t counter propose
• Don’t use “argument diluters” and “irritators”

The question is: Does the role make a difference to the negotiation process—a customer/a buyer/business partner? “It should. Any negotiation is an endeavour to arrive at a mutually acceptable solution. If even one of the negotiators isn’t in the process to attain a specific objective, the process will fail,” answers Mehra.

Negotiation training

IT organisations understand the significance of sensitising their people to intercultural factors while doing business. Cultural sensitivity is the foundation of any global business interaction. But it is important that the training in international negotiation skills should also focus on understanding one’s own culture before trying to unravel another’s. One should be cautious towards common cultural misconceptions.

The training ranges from business etiquette to negotiation strategies to making effective presentations. The participants need to be also skilled in crisis management and bring the negotiation process to an amicable end. In fact, they need the do-or-die drive to succeed.

ec@expresscomputeronline.com