Three More Strategies for Cross-Cultural Negotiations
Notes on Negotiation Written by Marty Latz, Latz Negotiation Institute
Several recent negotiation training attendees asked me how negotiations differ when you’re across the table from a company or individual based in another country or culture. I pointed them to a 2004 column I wrote entitled “Cross-Cultural Negotiations Present Special Challenges.” In it, I suggested:
Learn the fundamental strategies of effective negotiations – they apply in all cultural contexts;
Implement these strategies in different ways with different cultures; and
Exercise patience and understanding.
These still apply. Given our increasingly cross-cultural world, however, here are three more suggestions. Each will help you in these often-challenging negotiations.
1. Evaluate your counterpart’s individual reputation – and beware of stereotypes.
“This company almost always takes a super aggressive strategy in its negotiations with us even though it’s a long-time joint venture partner.”
This comment, from an international corporate client, reflects a crucial element in all cross-cultural negotiations: companies and individuals enjoy specific reputations that may or may not be consistent with how others in their culture act or react.
What should you do? As noted in my previous column, research their negotiation-related cultural norms and tendencies. PLUS, find those with whom they have previously negotiated and research their specific negotiation reputation.
I know this is easier said than done. But it will be well worth your time and effort, especially for significant deals.
You may also be tempted to rely on general cultural stereotypes about different nationalities. Don’t. Nationality-related stereotypes are notoriously inaccurate. And it may prove offensive to your counterpart if you’re perceived to be doing this.
2. Focus intently on your offer-concession strategies.
Should you make a first offer? When, how far, and how aggressively should you move?
Offer-concession strategies represent crucial elements in almost all negotiations (here is an 8-minute video describing my Golden Rule 4: Design an Offer-Concession Strategy). The most important strategy here is to figure out how those in your negotiation environment generally answer these questions.
If you’re a new plaintiffs’ personal injury lawyer, find out who usually starts and how the parties typically go back-and-forth with insurance adjusters. Once you know the pattern, you know what most lawyers and insurance adjusters expect to do – and that is almost always what they subsequently do. The pattern differs, of course, if you’re in software sales.
Crucially, these patterns vary by culture. Your offer-concession aggressiveness should thus differ if you’re in a Mexico City open marketplace versus a high-end Beverly Hills art gallery.
So find the cultural offer-concession patterns, then design your own accordingly.
3. Take your planning and research to the next level.
I’m sometimes asked to consult on cross-cultural negotiations. I usually respond by saying I’m happy to consult on the negotiation elements, but I’m not an expert in other cultures. I then recommend they also find an expert in their counterpart’s culture.
By the way, a good reference for how various cultures generally engage is Kiss, Bow or Shake Hands: The Bestselling Guide to Doing Business in More Than 60 Countries.
Cross-cultural negotiations can be extremely complicated and require specialized knowledge. Do your homework.
Finally, for those interested in a deeper dive into this subject, I would recommend Jeanne Brett's book Negotiating Globally: How to Negotiate Deals, Resolve Disputes, and Make Decisions Across Cultural Boundaries (Jeanne is the DeWitt W. Buchanan, Jr. Professor Emerita of Dispute Resolution and Organizations at Northwestern’s Kellogg School of Management).
Latz’s Lesson: Cross-cultural negotiations present unique challenges, so check out your counterpart’s individual reputation without relying on stereotypes, design a culture-specific offer-concession strategy, and take your planning to the next level.
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Marty Latz is the founder of Latz Negotiation Institute, a national negotiation training and consulting company, and ExpertNegotiator, a Web-based software company that helps managers and negotiators more effectively negotiate and implement best practices based on the experts' proven research. He is also the author of Gain the Edge! Negotiating to Get What You Want (St. Martin’s Press 2004). He can be reached at 480-951-3222 or Latz@ExpertNegotiator.com
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