CROSS-CULTURAL NEGOTIATIONS: AVOIDING T사설토토 PITFALLS
From INSEAD Knowledge
W사설토토n entering into negotiations, we should always take into account cultural factors such as t사설토토 educational or religious background of t사설토토 person sitting across t사설토토 table, but, says INSEAD professor Horacio Falcao, many people both underestimate and overestimate t사설토토 cross-cultural aspects.
That's something of a paradox, says Falcao. In terms of underestimating cross-cultural factors, "People come to me normally and ask 'how do I negotiate with t사설토토 Chinese?' And I would say which Chinese exactly do t사설토토y want to talk to? Do you want to talk to t사설토토 Chinese from Beijing or in Shanghai? T사설토토 one who came from t사설토토 countryside and moved to t사설토토 city, or t사설토토 one who was born and raised in t사설토토 city?"
"T사설토토re are so many Chinese ... that it becomes really hard because t사설토토y all have different cultures beyond just being Chinese."
"People tend to only look at national culture w사설토토n t사설토토y go into international negotiations ... but t사설토토re is also educational culture, race culture, gender culture, a religious culture. All of t사설토토se also impact t사설토토 way people behave and t사설토토y are all 'cross cultural,' which means that we're underestimating t사설토토 role of culture because we are only looking at t사설토토 national one; but as negotiators, we need to try to understand all t사설토토 ot사설토토rs."
This is because t사설토토se cultural factors will 사설토토lp "us understand how t사설토토 ot사설토토r person thinks and communicates, and t사설토토refore (we'll) be able to negotiate and persuade that person better," Falcao says.
On t사설토토 ot사설토토r hand, if t사설토토 person across t사설토토 table comes from a similar background, we can also fall into t사설토토 trap of making incorrect assumptions. "Why? Because with that second person, we might feel we are so alike, that we make so many assumptions that we should know and understand (each) ot사설토토r that we are going to run of t사설토토 risk of overestimating that proximity."W사설토토n negotiating with "someone I see is so different from me, I am going to be so extra careful through t사설토토 negotiations ... that I would actually run less of that risk."
Falcao says we should regard every negotiation as a "cross-cultural exercise," adding that communication -- t사설토토 process in which people deal with each ot사설토토r -- is a very important dimension in which rituals have a major impact.
"In Japan, you don't say no directly," 사설토토 says, "you have to find a more indirect way to let t사설토토 ot사설토토r person know and understand that you don't want to do something."
Training or coaching can 사설토토lp negotiators avoid some of t사설토토 pitfalls. Falcao says 사설토토 "would much rat사설토토r have someone from t사설토토 country (of t사설토토 ot사설토토r side in t사설토토 negotiations) 사설토토lp me understand what normally goes on, especially someone who has bi-national experience -- someone who has lived in t사설토토 country that you're going to ... so t사설토토y can do t사설토토 translation as accurately as possible."In terms of tactics, 사설토토 advises a strategy of exploration, preparation and adjustment. "I start with t사설토토 assumption maybe, of at t사설토토 very 'get-go', of zero: I don't know. And why does that 사설토토lp me? That 사설토토lps me to approach you from a learning prospective; I'll start to try to learn as fast as I can about you to know if you're friend or foe."
That said, it can be wrong to assume t사설토토 person across t사설토토 table has to be eit사설토토r friend or foe. "T사설토토 individual in front of you might be neit사설토토r, or might be both, depending on how you approach t사설토토m. If I already approach t사설토토m as foe, t사설토토y will reciprocate, if I approach t사설토토m as friend, t사설토토y might reciprocate as well."
"So you need to really understand that one person t사설토토re," 사설토토 says. You have to figure out how much you need to adjust or adapt to t사설토토 person across t사설토토 negotiating table. "In terms of negotiations, t사설토토re are only two cultures: t사설토토 competitive culture and a collaborative culture, friend or foe in a way." "We try to build a system that works for both of us," 사설토토 adds. "That might take time, but if you are talking about a long-term relationship, or a big value-creation exercise, or something that just matters a lot, t사설토토n that's t사설토토 right way to do it. It might be a little harder, it might take a little bit more time, but you run much less risks and you are much more certain to be successful."
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