All posts by Aleksej Heinze

About Aleksej Heinze

Passport to Trade 2.0 project leader. My research interests are in the area of disruptive innovation using information technology (IT) and the use of IT in business management. Topics include: enterprise 2.0; web 2.0, international business culture, search engine optimisation, and social media marketing.

Tips on managing confrontational international negotiations

Conflict
Internal Conflict Image (CC) by Simon de Bakker

Successful negotiations, conflict resolutions and disagreements demand preparation. Comprehensive planning can be seen as undesirable and unnecessary for trivial conflicts; on the other hand, major conflicts require goal establishment, listing alternatives, and trade-off identification that will help negotiators fix the issue in a timely manner.

International negotiations are challenging due to various factors such as: cultural aspects, religion, traditions, character and personality and entire postgraduate courses are created to learn about international management. When dealing with individuals from other countries, confrontational situations may emerge. It can happen, especially if you share different opinions. Here are some tips to help you deal with conflict when bargaining internationally.

1 – Recognise Conflict Management as an important skill to develop

Learning about efficient negotiations to minimize confrontational situations and resolve conflict helps business people manage stressful scenarios a lot better. Exposure to constructive behaviours, positive mind-sets and well-thought strategies are often linked to successful negotiations.

Depending on the situation, you can avoid, confront, accommodate, collaborate or compromise – it’s up to you to choose and make the most of that choice. Find a way to build confidence, and use the most creative approaches to make others relate to whatever you have to say.

There are a number of conflict resolution styles which you can develop and customise to your needs. Conflict resolution techniques as those developed for your own team can also help you to think about international negotiations, such as the Interest-Based Relational Approach: 

 

2 – Preparation is key when dealing with international negotiations

Preparation: a woman focuses on her workout Image (CC) by Nathan Rupert
Preparation: a woman focuses on her workout
Image (CC) by Nathan Rupert

In some cultures, the actual negotiation comes at the end of a business meeting. Not knowing that will cost you. Time is flexible in many cultures, so it’s important to remain calm and be prepared. Here’s what you need to do:

  • Know more about the negotiation style of your opponents from a cultural point of view – link negotiations to that country’s history and background (never forget that history makes the people)
  • Are your opponents laid-back and relaxed, or do they seem tense? – don’t play with fire and try not to use humor if opponents are overly formal
  • Showcase your curiosity – If you’re negotiating in a country you’ve never been before, highlight that aspect. Ask about places of interest, restaurants, accommodation. This will cool the atmosphere and everyone will feel more relaxed

3 – Patience is paramount when dealing with tense international negotiations

Business talk, Image (CC) by  Wolfgang Lonien
Business talk, Image (CC) by Wolfgang Lonien

Typical business people from the US are used to flying across the world with a sole intention in mind – to sign a deal. That’s not always a good business attitude. Flexibility and patience are paramount.

Rushing things and persuading opponents to sign a contract may trigger redundant reactions from the opposition. Deals that may usually take 2 days to close in the US, may take up to 10 days to close in Asian or Arab countries.

4 – Anger should be used constructively

Controlling anger before it controls you... Image (CC) by Min-Yoon Cheah
Controlling anger before it controls you… Image (CC) by Min-Yoon Cheah

Anger is an extremely common feeling in the business environment, and that’s mainly because people don’t always share the same opinions. Not everyone can use anger constructively though, and in many cases the end result is not positive at all. Efficient bargaining skills can help curtail the impact of a confrontational situation.

First, you must identify what exactly triggered your anger; next, you must assess personal biases and view things from an objective perspective.

In order to function well in tough scenarios, you must find a way to diffuse anger and focus on a beneficial outcome.

5 – Define your negotiation style

Negotiation Cartoons: Positions Vs. Interests Image (CC) by  jonny goldstein
Negotiation Cartoons: Positions Vs. Interests Image (CC) by jonny goldstein

Prior to starting a negotiation, it’s important that you define your negotiation style. Know your BATNA and settle on a plan that can help you close the best deal. It’s equally important to get to know your opponents as well.

While business individuals from Asian and Arab countries can be extremely patient, we can’t say the same thing about people from the US and Canada. Your style should define your business personality. Some things to keep in mind:

  • Know your numbers – for a business negotiation to succeed, it must be backed up by solid information. Know the ins and outs of your company, and be ready to answer questions. Since you’re dealing with international negotiations, conflict may arise. You can always avoid such situations as long as you hold solid information.
  • Know the competition – it can be tough to “read” foreign negotiators. Their ideas, principles and main beliefs may be completely different from yours.
  • Know when to back off – just because you flew 20 hours to get to get to a business meeting in Tokyo, it doesn’t mean that a deal will be closed. There are chances for negotiations to fail. If an offer can’t bring enough benefits to your company, it’s best to say “no” and walk away.

Managing confrontational negotiations is tough. Beginners may require negotiation training to help them surpass dreadful circumstances. Whatever happens, it’s vital that you stay calm.

Never lose your temper, and never allow an opponent (foreign or not) get under your skin. Stay professional and don’t hesitate to reject a deal if it doesn’t benefit your business.

By Davis Miller and TheGapPartnership.com!

Business Meeting Protocol and Etiquette in Russia

Moscow-Russia

Image (CC) by Rufus Walabee – One night in Moscow

Key values in your Russian business meeting

Russia is a country of cultural contradictions. Not only is it a very big country, covering nine time zones, the upheavals of the 1990s have created a very pronounced generational gap. Generally, the older generations are marked by a tendency towards conservatism and have a group mentality. The younger generations are much more dynamic and progressive, with a more individualist approach.

There is a general sense of pessimism not only about the future but also about the present as well. Russia is a country that considers itself isolated from the rest of the world, surrounded by neighbours who want to take advantage of it. This has created a fortress mentality – outsiders are not trusted. This is in contrast to the extensive hospitality normally shown to visitors.

Russians are often very closed and formal in public, but open, warm and informal in private. In communication, Russians tend to be direct and do not avoid confrontation. They can be extremely emotional and yet reserved in the same meeting.

Russians generally consider themselves to be culturally rich in terms of art and literature. Dusha (soul) is an important consideration – this means that intellectual, abstract discussions are common. Knowledge of “high culture” is valued, and the ability to talk about works of art and literature is appreciated.

Russia is a meeting of Europe and Asia, and their cultural portrait reflects this.

Time, ‘before and after’ your business meeting

russian-airplain

Image (CC) by Aleksander Markin – Russia State Transport Company Ilyushin Il-96-300PU RA-96016

Russians are traditionally very punctual, especially when meeting foreigners. This is beginning to change, especially among senior directors in new businesses who like to demonstrate their power by keeping visitors waiting. For a meeting of equals expect punctuality: meetings will start on time but will continue until all points are covered.

If you have meetings with local officials you will wait a long time, even if you have an appointment: processes are slow so it may not be a deliberate ploy. You should expect meetings to take up more of your time than planned.

Before a meeting you should re-confirm by phone, both with the person and with his/her secretary. Russians prefer direct contact to emails or letters – the postal service is famously unreliable, so make sure you speak in person. Russians do not generally adhere to formal agendas, as the most senior person will dictate the topics and length of discussions. It is worth clarifying who will be present in advance if possible and ensuring that your party contains people of equivalent status. This will increase the chances of you being able to influence the meeting.

When you are considered an “honoured guest” it is very common to combine meetings with food and drink. Russians can be very hospitable and are keen to demonstrate their generosity. They are aware of their reputation for heavy drinking and may use that to gain advantage.

business-relationship

Image (CC) by marsmettt tallahassee

“Banquets” can last late into the night – you should expect to stay late as well. It is worth noting that the next day will start at the usual time, regardless of when the banquet finished.

Hierarchy and status in a business meeting

Konstantin Zamkov - business meeting Russia

Ironically the ideologically egalitarian policies of communism have bred an extremely hierarchical structure in private and public organisations in Russia.

The boss is a very distant, powerful figure, and is surrounded by visible demonstrations of his/her position. Wealth and status are demonstrated openly and emphasise the difference in authority. Promotions are rewarded not just financially but with a bigger office, better car and other visible privileges. Junior team members are expected to respond immediately to any request by their boss, regardless of any other duties they may have to perform.

It is also expected that those in authority will be obvious in their exercise of power. Russian managers are comfortable criticising openly and making impulsive decisions. In the same way, rewards and positive feedback are given publicly. This can mean that the boss may use a meeting as an opportunity to address an individual’s performance. This is uncommon when outsiders are present, but not unheard of.

Decisions, discussions and disagreeing

As is expected in hierarchical societies, decisions are usually made at the most senior level. The boss is advised by heads of department, but will make the final decision alone, although s/he may not heed the advice given. Decision-making can therefore take a long time as each “boss” at each stage will decide whether or not to pass the recommendation up to the next level.

Individuals may be invited to contribute to decisions, but these are not discussions or debates. In meetings which involve negotiations, Russians will often withdraw from the meeting to consult, allowing the senior person to make the decision alone. Disagreement with a senior person is very rarely expressed in public.

It is not uncommon for the senior person to be quite confrontational in a meeting if s/he is not getting their own way. It is appropriate to ask for a break to reconsider your position before continuing the meeting.

Task vs. Relationship

Russians consider both relationship and task to be important. They traditionally have extensive networks and rely on mutual influence to bypass bureaucracy. They are more comfortable doing business with people they know well. However, business relationships are measured by the success of a task – the relationship may not survive a bad experience or a failure.

Loyalty is to a person rather than an organisation and you must re-establish a relationship each time your contact moves on. When a team leader is promoted, it is common for him/her to promote members of the old team as a reward for their support.

Among younger leaders and businesses the balance is tending towards a greater focus on task, and business relationships are increasingly transactional. When making proposals it may be beneficial to demonstrate the ways this will improve a person’s standing in their organisation and how they will benefit individually.

Key values

  • Emotional
  • Fatalistic
  • Pessimistic
  • Inward facing
  • Fortress mentality
  • Direct
  • Dusha (soul)

Time, “before and after”

  • Punctuality valued
  • New businesses and bureaucrats may keep you waiting longer
  • Business entertainment can be very long
  • Meetings continue to a decision

Hierarchy and status

  • Steep hierarchy
  • Visible demonstrations of status
  • Power is emphasised and used

 Structure and formality

  • Meetings are always formal
  • Structure of meetings is dependent on the host/senior person present
  • Communication is formal at meetings, even if less formal before and after
  • Use professional/academic titles and surname or name and patronymic

Decisions, discussions and disagreeing

  • Decisions made by boss alone
  • Discussions done in private not at meetings
  • Disagreeing with the senior person is done in private if at all

Task vs. relationship

  • Relationships and “blat’” (network) are crucial
  • Loyalty to a person rather than organisation
  • Task is still very important – Russians want actions

This blog post is written by Declan Mulkeen is Marketing Director at Communicaid a culture and business communication skills consultancy which offers cultural awareness training.

10 things that US businesses need to be aware of when developing business in Europe

Negotiations happen around the world. The basics of the process are the same. The parties each have something they want to accomplish, and work together to reach a deal that everyone agrees to. The general phases of a negotiation are the same, whether you are in the US or Europe. 

What are the key differences between America and Europe that you need to be aware of ? Here are some tips for international business negotiations.

Business culture

Image: Daniel Shapiro – World Economic Forum on the Middle East and North Africa Marrakech, Morocco, 26 October 2010. Copyright World Economic Forum (www.weforum.org)/Photo by Oussama Rhaleb/still-images.net

1.  Using international English

English is the most widely spoken language for business transactions, and for most international negotiations, the standard is to use “international English.” This is just a simplified form of the language that is easier to understand. Avoid slang expressions, local idioms, and complex sentence structures. To avoid misunderstandings, it is also helpful to rephrase an important point a few different ways, to be sure everyone understands.

2.  Working with an interpreter

If your counterpart does not have a good command of English, they may choose to use an interpreter. When using an interpreter, be sure not to look at the interpreter when you speak, but look directly at the other party in the negotiation. If you speak to the interpreter instead, it can show a lack of respect.

3.  Breaking the ice

At the beginning of a negotiation, it is helpful to learn a bit about each other to break the ice and establish the start of a relationship. Famous local sights, sporting events, or art festivals are good topics for discussion. Any sort of shared experience can be very helpful. Always avoid subjects like politics and religion, and avoid making any negative or judgemental statements about their location or culture. Humour can be dangerous, since it sometimes does not translate well for different cultures.

the UK business culture

Source: The PM has hosted a meeting of business ambassadors in Downing Street with Trade and Investment Minister Lord Green to discuss how the government can boost Britain’s export market. Crown copyright.

4.  Addressing people appropriately

In some countries, such as The Netherlands and Germany, it is important to address people using their academic title. For instance, someone with a PhD should be addressed as Doctor in those countries. Americans are often far more casual and familiar, and the British are tending in that direction too. If a man and woman are being introduced, it is polite to let the woman initiate a handshake.

5.  Socializing along with business

Americans tend to keep business and social events separate. Negotiations take place in a meeting room, and socializing happens at a different time and place. British and Scandinavian negotiators follow the same approach. Some other cultures, however, especially the French, view negotiation and socializing as part of the same ceremonial process. If working in France, the discussions could continue over lunch at a nice restaurant, while sandwiches at the negotiation table would be frowned on.

6.  Attitudes toward time

People from the US, Britain, Scandinavia, Switzerland and Germany tend to favour strict scheduling. Meetings have fixed start and end times, and follow a set agenda. It is considered rude or disrespectful to arrive late. People from Southern European countries like Italy, Spain and Greece have a different view. They view the schedule as fluid, and they may arrive late for meetings. They may also carry on several conversations at a time. This can lead to friction and frustration unless you are aware of this cultural difference.

The PM has hosted a meeting of business ambassadors in Downing Street with Trade and Investment Minister Lord Green to discuss how the government can boost Britain’s export market. Crown copyright.

Source: PM at low carbon business reception: The PM addresses a Downing Street reception for businesses providing low carbon goods and services; Crown copyright

7.  Have patience

Americans assume that just because they’re bargaining in Spain or Italy the deal will be signed as soon as they get there. Travelling to a foreign country to negotiate doesn’t mean the contract is yours. Be patient and flexible if you want to succeed. There’s no reason to rush things, and enjoy your business trip as it may take weeks.

8.   Long-term relations

In some cultures, people like to negotiate long-term deals. They want to build connections for future endeavours, so you should be open to their propositions. Create relations, let opponents meet the person behind the company, and you have great chances of helping your business thrive.

9. Know some things about Europe before the meeting starts

If you’re travelling to Europe for business purposes, you have to know at least some basic things about this continent first. Find out more about the countries, main cities, and cultures, just to have the courage to break the ice and not embarrass yourself when an opponent ask you where’s France on the map.

10. Be respectful

Europeans are not like the American people. They’re more creative, more patient, and a lot calmer. Walk into a negotiation with a clear goal in mind. Be respectful with opponents, make concessions, and find a way to reach mutual ground. Even if you can’t reach an agreement and you’d like to walk away, do it respectfully.

By Davis Miller and TheGapPartnership.com!