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The hidden challenge of cross-cultural negotiations


Cultural differences can influence negotiations. We’ve seen in a class called “Cross Cultural Management” with Mrs. Cohen-Cheminet that culture influences the way we act.

It is important to map the players and the process:

Who are the players?
Sometimes there are more players than the ones at the negotiation table (for example in governments or big organizations).

Who decides what?
It is essential to identify it and it can change with the countries (and cultures).  

What are the informal influences that can make or break a deal?
It can be government agencies, keiretsu in Japan (industrial groups linked by a web of business ties), in Germany there are powerful insurance companies, in Italy there are powerful families, in Russia the mafia etc.Dispute resolutions are also very different: in Japan they rely on relationships, in Russia there is almost no legal system.

Then you have to adapt your approach to:

Top Down
We talk about that when the “real boss” is someone who won’t delegate much and will make the ultimate decision. In situations like that there is no need to waste time speaking to middle-men.

Consensus
Consensus is at the other end of the spectrum of decision-making.
It can be found in Asian countries with more of less variations.
Consensus cultures often focus on relationships rather than deals and that explains why relationship building is essential.




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