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Cross-Cultural Negotiation

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Matt Diederichs

on 30 March 2011

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Transcript of Cross-Cultural Negotiation

The Job You Never Thought You'd Get:
Designated Drinker Cross-Cultural NEgotiation and
Decision Making Matt Diederichs / Gareth Elias Madison Avenue Detour Indian Negotiators Not afraid of speaking up, “no fear”
Seeking solutions that are best for all parties involved, look for the “greater good”
Humble and trusts their opponent, willing to change perspectives with an open mind
Avoids use of secrets
Chinese Negotiators Begins with socializing and initiation of personal “guanxi”
Respect, friendship, group goals
Often have little authority as decision makers aRAB Negotiators Honor, self-respect, dignity, and trust between all parties
Disregard for time
Resistant to pressure
Understand the impact of the Islamic “Right Path” and how that might affect judgment
Use mediators to avoid direct confrontation Straightforward approach, straight to business
Extremely mannerly, but informal
Non-emotional sWEDISH Negotiators iTALIAN Negotiators Dramatic and emotional, to the point of acting
Read non-verbal communication well
Emphasis on soft-skills
Strive to gain the trust of their opposition without giving anything away
aMERICAN Negotiators Firm stand with no concessions at the beginning
Make the other party reveal their position first while keeping theirs hidden
“Alpha Dog” negotiation
http://dai.ly/oneseriousnegosh The Process of "the negosh" Stage 1: Prep Full background and context of negotiators and issues
Major stumbling blocks: culture, language, environment
1st understand your own style
Possible demands, structure of teams, and relative authority Stage 2: People, people, people. Get to know one's contacts in host country and build mutual trust
Could involve social events, tours, ceremonies, small talk
Use of intermediary "relationship bridge" Stage 3: Task Info Exchange Each side makes a presentation and states position
Q&A usually follows
Alternatives are discussed
Cultural differences dictate this stage: Americans straightforward, other cultures may not be
Focus on not only your situation, but show an understanding of opponent's viewpoint Stage 4: Persuasion Both parties try to persuade the other to give up some of their position and adopt some of their own
Many will use confusing or ambiguous information deliberately, requires follow-up
Practices seen as "dirty tricks" in our society may be common Stage 5: Concession and Agreement Tactics vary greatly across cultures
Prep your own concession strategy prior, be aware of others
Ex: Russians and Chinese open with more than what they'll accept, Swedes might open with final
Legal contracts seen differently: Russians renege, Japanese might be insulted
Piece by piece vs. Holistic
Speed of Agreement can change deal E-Negotiations: Good or bad? Conflict. Uh oh. Scenario: Sterling (agency owner) comes to meeting late and drunk, uses sterotypical rude remarks to abuse Japanese businessmen during negotiation process.

You've managed to procure another meeting. What do you do? +
- Cost
Time Time zones
No relationships
Can kill a deal Current: Blackberry in India Questions. Go.
Full transcript