Cross-cultural negotiation is now a key component of international business. With companies going global and diverse teams collaborating with each other through the world, cross-cultural negotiation skills are crucial in business settings. It takes effort to understand differences and adapt, but successful cross-cultural negotiation involves bridging differences and building trust to reach an agreement that meets the needs of all parties.
Understanding Cross-Cultural Considerations
Culture shapes the way we think, communicate, and resolve disputes. For example, Western cultures value directness, individualistic orientation to an agenda, and it is highly task-oriented, while many Asian cultures value harmony, indirect communication, and group resolution. Latin American and Middle Eastern cultures may exhibit more informal relationships and a more fluid approach to time, in contrast to the rigid punctuality of German or American cultures.
These cultural distinctions can influence negotiation styles. In some cultures, a firm handshake and direct eye contact may suggest confidence and sincerity; in other cultures, these considerations can communicate aggression or a lack of respect. Silence can be a powerful tool in negotiations in Japan, where silence may be more respectful and significant than continued discussion—silence might indicate thoughtful consideration of an issue rather than disinterest. In other cultures with more animated communication, silence may seem uncomfortable or even awkward.
The Importance of Preparation
Preparation is essential for any negotiation, but in the context of cross-cultural negotiations, it is much more than just understanding the product, prices, or terms. At its deepest level, preparation describes looking deeply into your counterparty’s cultural usage of norms, values, and communication.
Key steps include:
- Learn the Culture – Read about the history, customs, and values of the other party’s country or region. Consider how hierarchy, status, and decision-making work.docx in the other culture.
- Establishing Shared Goals – Look for shared ground that is bigger than cultural differences. Think about shared interests, not positions.
- Recognizing Style of Communication – Find out whether the culture tends to use direct or indirect communication style and adapt their communication style.
- Increasing Cultural Intelligence (CQ) – CQ is the ability to relate to, and effectively work across cultures. This means self-awareness, openness, and ability to adopt within a new environment
Building Relationships and Trust
In many cultures trust is a precondition to business conversation. Rapport building may include informal meetings, sharing personal stories, and demonstrating an appreciation for cultural symbols and practices.
For example, in China the idea of “guanxi” (personal relationships and networks) and trust is paramount. Before the parties discussing the business details, they often like to first focus on the social side and build relationships. In Latin America, trust may relate to how warm or friendly the negotiator is, rather than the consequences of the interaction, before moving onto serious negotiations.
Taking the time to build these relationships demonstrates patience and respect which can be very advantageous in the negotiation.
Flexibility and Adaptability
Flexibility is one of the most important cross-cultural negotiation skills. Negotiators should not have rigid strategies and should be able to modify it on the behalf of the negotiation and the negotiation process itself. Cultural similarities and differences can lead to unexpected twists in negotiations, and even requiring quick thinking and an open mind.
For example, some cultures expect more lengthy and detailed discussion before contract signing, while others want immediate and decisive action. It is equally critical to adapt to these possible characteristics while still pursuing your goals.
Handling Conflict and Misunderstandings
Even with all the right intentions, conflicts and misunderstandings can still occur in cross-cultural negotiations. There could be language interpretations, the use of non-verbal communication, and cognitive or group decision making.
To manage these challenges:
- Request Clarification – Do not make assumptions about the understanding between you and the other party; verify the meanings and intentions.
- Engage in Active Listening – Demonstrate that you genuinely want to know the viewpoint of the other party. Reflect back on what you hear to verify accuracy.
- Be Patient – Even if you would have ordinarily been able to negotiate a contract more quickly because you are experience and it appeared relatively straightforward, negotiating with a colleague from another culture may take longer, even if just to adhere to cultural protocols or processes.
- Avoid Loaded Language – Do not use slang, idioms or words and phrases that have loaded cultural meanings that might not have reasonable equivalents in the other person’s language.
Ethical Issues in Cross-Cultural Negotiations
Ethics can be perceived differently across cultures. While some cultures may consider being aggressive in bargaining to be part of the game, it may be considered unethical in others. Similarly, while some countries may consider offering gifts to establish rapport, this could be considered bribery in other countries.
Global negotiators should carefully tread political cultural differences, navigating them methodically and with due regard to their own ethics. By consulting local experts and sensitively observing cultural differences, negotiators can stay accountable to their integrity while also being appreciative of the other culture.
Enhancing Cross-Cultural Negotiation Skills
Developing cross-cultural negotiation skills takes work limitless learning and self-reflection. Here are actionable steps to develop this skill set:
- Engage in Cultural Training – Many organizations have formal cultural training programs to increase cultural awareness and sensitivity.
- Seek Mentors – Learning from seasoned international negotiators can be an impactful learning experience; you could get real insights and learn proven strategies.
- Contemplate Your Prior Experiences – After your negotiations, contemplate what engaged you well, could have been more successful, or could be developed better. Evaluate the extent to which cultural aspects and communications shaped the outcomes.
- Be Curious and Open-Minded – Be sincere in your curiosity about variance in cultures, and a willingness to learn from them.
Utilizing Technology in Cross-Cultural Negotiation
In our digital world, many negotiations across cultures take place virtually, whether that’s through video calls or collaborative platforms. This also adds a new consideration when negotiating, such as time zones and digital communication that may be misinterpreted.
When engaging in your negotiations in a virtual world here are some things to remember:
- Be aware of time zones: Schedule meetings at times that are convenient for both parties out of respect for each other.
- Ensure you clarify your visual cues: Video calls mean you will have to rely heavily on facial expressions and tone of voice even more so than in real life. Ensure that your non-verbal body language is in alignment with the words you are using.
- Use clear visual aids: Use visuals (pictures, slides, diagrams) to clarify points, and to help with overcoming language differences.
Conclusion:
Cross-cultural negotiation is more than language or etiquette. It is about developing the capacity for empathy, patience, and curiosity. It involves looking beyond the immediate business deal to appreciate the values and world views of your partners in business. By fostering cultural intelligence, focusing on relationships, and adopting a flexible way of operating, global negotiators can cope with the complexities of the negotiation process, resolve differences, and generate successful partnerships.