5 tips for successfully negotiating across borders

As business evolves, technology advances and new markets open up, it is clear for all to see that we are living and working in a global economy. As a result it is not uncommon for us to have to negotiate with people from different countries and continents. This might be negotiating with one of our colleagues from a regional office or negotiating a supply deal with a company on the other side of the world. The reality is for most of us, at some point in our career, negotiating across borders is something we will have to contend with.

‘Culture is the collective programming of the mind that distinguishes one category of people from another’ – Geert Hofstede

Awareness and knowledge equals power

My firm trains teams in large companies all over the world on how to negotiate effectively. We are regularly asked what impact culture can have on a negotiation. The short answer is that of course, culture can have a huge impact on the deals you do, but our advice is always to not become intimidated or too obsessed by it. As with everything in negotiation, awareness and knowledge equals power.

1. The process of negotiation is universal

It is worth remembering that negotiation as both a concept and a process is pretty universal. It acts as a social lubricant that allows relationships to grow, agreements to be made, goods to be traded, communities to function and countries to collaborate. The key elements of the process of negotiation (trading, persuading, influencing, seeking an agreement, securing an outcome) are consistent in countries and cultures around the world.

The point here is that the process of negotiation that you are about to embark on with someone on a different continent to you is not going to be radically different than if they were based down the street. So don’t panic. You will still need to do your research, make some proposals, hear their proposals, experience rejection and try and reach some kind of agreement. All of that stuff doesn’t fundamentally change. What might change though is some of the stuff around that process.

2. Do your research

Of course, having just said that negotiation is universal, the rituals and behaviours that different cultures bring to a negotiation can be quite different. Whilst this doesn’t impact the fundamental process of negotiation it will almost certainly impact your experience of a negotiation.

You have a duty to have researched the negotiation thoroughly

There are some pretty well established and understood differences that exist in relation to how different cultures approach the negotiation process. This might be in relation to the hierarchy required not to offend your counterparty, the length of time taken to consider your proposals, the level of toughness adopted, the offence that might be taken at an extreme offer, whether they wish to get to know you or just get straight down to business or whether or not women would be welcomed at the negotiation table. We call these cultural nuances. Nuances that might well impact your experience of deal making.

3. But that should always be the case

The point is that as a negotiator you have a duty to have researched the negotiation thoroughly, but this is actually the case whether you are negotiating at home or abroad. It should be standard that before any negotiation you have taken the time to explore anything that could impact how the deal unfolds. This could include market conditions, past performance, the balance of power, financial implications, reputational issues, corporate aspiration and potentially culture.

If you have identified that a difference in culture might impact your deal, then just as with any other influencing factor, you have a duty to research it thoroughly in order to mitigate its impact and ensure you are fully prepared. There are lots of places that you can gain information on cultural differences including speaking to colleagues based in or with experience of that region and researching online. I would also recommend the fabulous book ‘When Cultures Collide’ by Richard. D. Lewis as a useful reference, particularly in relation to some of the stereotypes of negotiators from different countries.

4. Don’t assume

People negotiate with people, and ultimately people are all different

Of course, whilst knowledge is power, it is also essential that we don’t fall into the trap of assuming that cultural stereotypes are universally true. My firm trains negotiators around the world and I can testify that I have met many people who certainly don’t fall into the prevalent stereotypes.

A clever negotiator should of course seek to understand what the stereotypes are so that they can prepare for them IF they are then presented with them. The danger is that we read the stereotype and then automatically assume that our counterparty will exhibit it or respond to it. Awareness rather than assumption has to be the key to effective preparation.

5. Remember people negotiate with people

Ultimately, this all boils down to the fact that people negotiate with people, and ultimately people are all different. It certainly pays to do your research and prepare yourself for the impact that a person’s culture might have on the deal you are about to do, but also be just as prepared for them to not live up to that stereotype or to adopt traditional cultural processes.

It is worth remembering that stereotypes exist for a reason. On a societal level they act as points of reference for interacting with strangers, but we must learn to manage them and utilize them correctly and not be led astray by laziness and assumptions.

So the next time you are tasked with negotiating with someone from a culture different to your own, remember that it is essential that you research and understand how culture could result in the negotiation being conducted differently or how they might behave as an individual because of where they come from, but it is just as important to remember that everyone is different. Treat each negotiation and each negotiator individually and be prepared for anything!