Negotiating Process Outside the Boardroom
Negotiating Process Outside the Boardroom
Use soft words and hard arguments.
– English Proverb
Introduction
There are many settings in which negotiations can take place; they are not limited to conference rooms with powerful forces seated on opposite sides of a table. Every day, people engage in ad hoc negotiations with a variety of parties, including their co-workers, merchants, and even members of their own families.
Adapting Procedure for More Intimate Negotiations
Every day life can benefit from adopting some of the negotiating strategies that are available to us. Take, for instance:
- Make your positions less important than your interests. Take into account the wants and needs of both parties. You shouldn’t let your adherence to a particular position limit the options that you are willing to consider.
- Enlarge the variety of available choices. To break a stalemate in a negotiation, broadening the scope of the conversation is one strategy that can be used.
- Provide the particulars of an arrangement in language that is easily understood. Even if you are not in a position to engage in a traditional negotiation, it is still to your advantage to familiarize yourself with the core concepts of negotiation because doing so can help you achieve positive results in your day-to-day life. If you use these principles when making decisions in the home, you will discover that it is possible to arrive at outcomes that are to the advantage of all parties involved. It should be noted that it would be unwise to use these principles for every decision; however, when there is some difficulty in reaching a decision, you can reach a positive outcome by taking into consideration some sound, decent principles that have been used for many years to reach positive decisions. This is something that should be mentioned.
Brief check
Keep the people involved separate from the issue. When negotiating, you shouldn't let people's personalities get in the way.
Negotiating Via Telephone
When two parties find it difficult to meet face to face, the phone can be a useful tool for conducting negotiations because it allows them to do so remotely. However, there are many situations in which a verbal agreement reached over the phone needs to be verified using another approach.
Take for instance a conversation you had over the phone with a co-worker in which you both agreed to complete a number of tasks within the following seven days. After a week has passed, the other person still has not carried out what they had agreed to do. When you call him up, he says in response, “I didn’t agree to that.” It would have been more effective to follow up the initial phone call with an email message that began with the phrase “I just want to confirm what we agreed to do in our phone conversation.” Even if you have recorded the call, an unscrupulous counterpart may try to back out of a deal if they believe they have plausible deniability if the negotiation over the phone results in a positive conclusion for them. It can be tempting to just hold on to your belief that you have gotten the right result when the negotiation over the phone results in a positive conclusion for you. You will be able to write the deal into the record books once you have followed up and ensured that everything has been finalized. Keeping everything regulated in order to avoid any difficulties further down the line is something that should come naturally. To be able to negotiate successfully over the phone, we need to keep in mind a few guidelines that are also relevant to negotiations that take place in person:
- It is important to focus on specific aspects.
- Make sure you pay attention. Do not interrupt the other party, and do not spend your “listening time” planning out what you will say in response to them once they have finished talking. The more attentively you listen, the more you will be able to learn, and the greater the likelihood that you will be able to respond in a way that will improve the outcome of the negotiation.
- Don’t let the immediacy of a phone call pressure you into making hasty, rash choices. There is nothing inappropriate about requesting additional time to reflect on the conditions that have been discussed.
Negotiating Via Email
Although email has the potential to be an efficient mode of communication, it does come with a number of drawbacks. In general, it is appropriate to use email in a negotiation:
- When the parameters of the discussion are well-defined.
- When the subject matter does not call for a comprehensive discussion.
- When there is a low likelihood that someone will misunderstand you
- When the response that is anticipated is fairly straightforward It is inappropriate to use email in the following situations:
- When the subject matter is difficult to understand;
- When the subject matter calls for an extensive conversation;
- When the subject matter has a great deal of personal significance for the parties involved;
- When the subject matter is likely to arouse strong feelings.
Brief check
E-mail has quickly become one of the most common methods used, not only in professional but also in personal communication, for keeping conversations uncomplicated and to the point. However, it is important to be aware of its limitations, and it is important that these limitations be considered.
Keeping communications straightforward and at least somewhat casual can be beneficial; however, it is important to keep in mind that waiting for an e-mail can be extremely frustrating. When there is a need for multiple communications, it is best to keep things as face-to-face as possible. In the context of a negotiation, one of the benefits of using email is that it maintains a record of every email that is sent and received, along with the dates and times at which the messages were sent and received. This makes it possible to make everything official. E-mail is an acceptable form of communication to use when you need to settle a couple of relatively straightforward particulars. E-mail should only be used as a preparation aid and as a formal confirmation of things decided in a full face-to-face negotiation if you are in a situation that calls for a full negotiation.
It is rare for negotiations to go smoothly, and the primary reason for this is that both parties typically go into them with the intention of “beating” the other.
Negotiating, however, can be significantly more challenging if you ever find yourself working in a cross-cultural or international setting. Why? Cultural differences.
There are a variety of factors that can influence the outcome of your negotiations, including language barriers, body language, and how you initially meet and greet each other. There is the possibility for things to go awry in the event that the two parties get off on the wrong foot or are operating from two completely different cultural premises.
Because of this, it is essential to go into such negotiations with a certain amount of knowledge and preparation under your belt before you start talking to people. If you go into it with the mind-set that you can successfully employ strategies that are unique to your nation or culture, then you are probably going to be given a dose of cold, hard reality.
The Challenges That Language Presents
The language barrier is, of course, the most obvious obstacle to overcome when attempting to negotiate between different cultures.
In a lot of situations, neither you nor the person sitting on the other side of the table will be able to understand the other person directly, and vice versa. You will have to communicate with one another through the use of interpreters, which is, to put it mildly, a laborious process.
It is essential that you consider your interpreter to be an extension of either yourself or your team. They should be on your side and do their best to assist you in overcoming any cultural barriers that may exist.
Even in places where people speak the same language—typically English—this does not guarantee that you won’t run into any difficulties. People speak a variety of English dialects, each with their own vocabulary, and those who are not native speakers of the language typically have difficulty understanding everything that is being said. It is imperative that you steer clear of using colloquialisms or technical jargon because doing so can cause people to become confused.
When you speak, you should make an effort to ensure that you use language that is uncomplicated and direct, and that gets your point across in a clear and concise manner.
Physical Indications
Eye contact is seen as a powerful and confident gesture in the United States, the United Kingdom, and much of Europe. In some parts of the world, such as South America, it is a sign that one can be trusted. On the other hand, maintaining eye contact for an extended period of time is considered rude in Japan. In the Arab world, it is awkward, and you should take extra precautions if you are working with people of different genders.
Actual physical contact is something that parties involved in negotiations in the Western world and Asia try to avoid as much as possible. Because of this, it is considered to be a private matter that does not belong at the business table. However, in cultures that place a high value on interpersonal connections or that are more tactile, like those found in the Middle East or South America, being touchy-feely is an essential part of social interaction because it is an integral part of the process of establishing trustworthy relationships. If you react negatively to someone sitting too close to you or patting you on the shoulder, it may be interpreted as a sign that you don’t like them.
In various cultures, the location of your seat in the room can also convey a great deal of information. In societies with less emphasis on hierarchy, such as those found in Canada, Sweden, or the United Kingdom, there is typically no formal protocol dictating who should sit where in public spaces. When you travel to countries such as Japan, China, Korea, or India, you will notice that the culture is very different. Who you are and what you do are determined by your seat in the room. It’s possible that misunderstanding these signals due to a lack of cultural awareness could end up embarrassing both parties.
Brief check
If you arrive late, your professional credibility may be called into question.
Punctuality
Time is typically regarded very highly in Western cultures. “Time is money” is a well-known American expression that encapsulates the significance that the culture of the United States places on the passage of time. As a direct consequence of this, being on time is essential. In a similar vein, punctuality is practically considered a religion in German culture.
Imagine then what happens when a culture such as this collaborates with a culture that places a much lower premium on the passage of time, like that of the Arabs, the Spanish, or the Nigerians. When in fact, both parties are just acting normally, but one considers the other to be acting in an unprofessional manner. Any negativity that is conveyed to the late party may be construed as being excessively uptight, unprofessional, unkind, and downright rude. This is especially true if the negativity is directed toward the host. All due to a different approach to time.
Various Approaches to the Art of Bargaining
Every culture has its own unique perspective on the world, and as a result, every culture has its own approach to negotiating.
There are some societies that prefer to have a group of negotiators rather than just one individual present at the bargaining table.
The people of these other cultures are eager to establish cordial ties. That is to say, they might be interested in learning more about the individual with whom they are conducting business.
Others could care less about the people involved and are more focused on getting the contract signed or the price agreed upon.
There are some societies that prefer to keep their mouths shut, while others have a reputation for walking out on negotiations at the first opportunity.
The negotiation is seen as a battle that needs to be won by some cultures, while other cultures want a win-win outcome.
It is absolutely necessary, in order to be successful in global markets, to have the knowledge of how to correctly integrate your own personal negotiation style into a cross-cultural setting.
Before negotiating with someone who comes from a different culture, it is imperative that you first conduct the necessary research.
Resolution of Conflicts and Mediation of Disputes
Learn more about how to mediate personal relationships at home, in the workplace, and in social settings so that conflicts can be effectively resolved.
Before engaging in any future negotiations involving multiple cultures, you may find the following advice helpful:
1) Do some research on the culture of the people with whom you will be negotiating; you can do this online, in books, or even better, by speaking with a member of that culture who is willing to answer your questions.
2) Get an understanding of what they anticipate gaining from the negotiation process. Before the meeting, pick up the phone or send an email with an agenda and some ideas on what you hope to accomplish in order to elicit preferences of a similar nature from the other side.
3) Be clear with yourself about the stance and strategy you are going to take. If you feel as though you need to adopt a new strategy, such as being more relationship focused rather than business oriented or listening more than talking, then make sure that you take some time to sit down and think it all the way through.
4) Refrain from making hasty judgments and leaping to conclusions during the course of the negotiation process; if someone says or does something that appears extremely strange, there is a good chance that it is not. Consider the possibility that the behaviour is due to cultural influences, and make an effort to refrain from rationalizing the behavior based on your own perspective of the world.
5) When you can’t figure out what’s going on, put the brakes on and ask. If you sense that there may be some confusion, make sure to clarify the situation and double-check that you understand it. Simply showing that you are sensitive to others’ needs or that you are willing to learn can pave the way for positive outcomes.
6) Always, always, always temper your language. Speak more slowly, avoid using fancy language, and keep things as simple as possible. Think about how you would feel if you were in another country and had to negotiate in a language that you didn’t know.
7) Practice your active listening skills; it’s always a good idea to ask questions, then wait quietly in silence while you listen to the responses. When you give the other side more opportunities to speak, you will have access to more information that can be used to your advantage.
8) Explain the decision-making process from your side and ask them to clarify theirs; the people who make the decisions in a culture tend to vary from one to the next. In societies with a stronger emphasis on hierarchies, the person at the top of the organizational chart almost always gets the final say. Outline how it works on your end and ask them to do the same. This will allow you to fill any potential informational or procedural gaps that may exist.
9) Be aware of the potential gender dynamics at play; if you are working with people of different cultures and genders, it is imperative that you are fully conscious of any sensitivities that may exist. For instance, it is common practice for some Muslims to avoid shaking hands with people of the opposite gender. In some societies, people may have the misconception that a woman’s presence does not carry much weight, even though in reality she may be the one making the decisions.
10) Remain professional no matter how difficult the situation may become. Even if the negotiations are putting a strain on your patience, you should always be courteous and stick to the topic at hand, which is business. In certain cultures, it is common practice to probe and test the other party in order to determine how trustworthy they are. Others might interpret a loss of cool as a sign of disrespect, which would quickly put an end to any further conversations.
Practical Application
John and Sandra were supposed to meet a new client from overseas to negotiate terms of cooperation with him. He was their third potential associate, the previous two meetings did not really go well. John wanted to make sure this meeting is successful so he decided to meet the client in their own office. Sandra was keen on going over to the fancy hotel boardroom where the client had offered to meet. John being a very senior executive with more business negotiation experience decided to give Sandra a short lecture about the advantages of holding negotiation meetings in your own environment even of it is outside the boardroom. Here what he had to say –
Most people, like athletes seeking a home-field advantage, prefer to negotiate on their own turf. Meeting in your own comfortable environment has many advantages. First, you benefit from familiarity with the negotiating environment. You know where everything is, your counterpart, on the other hand, risks being unfamiliar.
You can also control the negotiation environment by choosing and arranging the meeting room, seating participants at the bargaining table, and the nature and timing of hospitality and social events when you negotiate at home. Playing host allows you to impress the opposing team with your company’s resources. Finally, negotiating at home is less expensive, as it eliminates travel expenses and saves executives time.
A visiting negotiator cannot continue to handle other job demands while participating in talks, whereas a host negotiator can. Negotiating at home also relieves the stress of being away from family, friends, and daily routines. Visiting executives may make a deal or break off talks faster than if they were negotiating on their home turf—often to their detriment.
