Cross-Cultural Negotiation

The Business Case for Cross-

Cultural Negotiation

A common scenario:

Two negotiators are dealing with the same potential client (or supplier) in the Middle East. They have comparable proposals, and their solutions are highly competitive. One ignores the importance of cross-cultural negotiation training believing the proposal and a strong reputation will speak for themselves. The other undertakes some cross-cultural training. He/She learns about:• The organizational norms of the customer/supplier and how to adapt his/her own behavior and style appropriately• The agenda of each stakeholder group, taking a more holistic view of the situation and focusing on each group’s

need to build credibility• Their customer/supplier, and becomes familiar with the relevant cultures and norms, as well as how they view the

relationship• Not only the individuals directly involved in the negotiation but also who in the larger organization is involved and

what role they play• Who decides what, who owns which decisions, and what influence they are exerting behind the scenes• Their values, beliefs, etiquette, and approaches to doing business, conducting meetings, and negotiating.

Nine times out of ten, the latter will succeed over their rival. This is because it is more likely they will have endeared themselves more to the host negotiation team, understood how they conduct business, and in doing so, be able to tailor their approach to the negotiation in a way that maximizes the potential of a positive outcome.

Why does this happen?

Cultural differences can influence business negotiations in significant and unexpected ways as even the best deal makers have learned. In some instances, it’s a matter of ignorance or blatant disrespect. More often than not though, the differences can be more subtle, arising from deep-seated cultural tendencies that influence how people interact—everything from how people view the role of the individual versus the group to their attitudes toward the importance of time or relationships. Perhaps the biggest challenge to an effective outcome during an international negotiation is understanding the way in which people from different regions come to an agreement, or the processes used in negotiations. Failing to understand decision-making and governance processes that determine a “yes” or a “no” can vary from culture to culture. When they are not clearly understood and addressed, promising deals can fail because the people involved ignored or underestimated the powerful differences in processes across cultures. Given this complex environment, it raises the question….

What can be done?: Introducing Cross-Cultural Negotiation (CCN)

Cross-Cultural Negotiation (CCN) is a one-day, highly interactive development program that provides participants with the skills, tools, and behaviors they need to negotiate better agreements in cross-cultural business deals and build productive relationships with internal partners and external customers or suppliers—especially when those relationships involve others from different cultures.

Over the course of the CCN program, participants learn that there are three interconnected aspects that need to be considered before entering into any cross-cultural negotiation. CCN teaches participants new insights and practical tools that help them understand and navigate these three aspects to improve multicultural interactions. During the program, participants are taken through a series of engaging simulations, application discussions, personal feedback reporting, and team exercises. These activities are designed to build a new awareness of their natural tendencies when working in a cross-cultural business situation and teach guidelines and practical strategies for engaging and negotiating successfully in current cross-cultural situations, avoiding the pitfalls that can derail even the best business opportunities.

Cross-Cultural Negotiation: Key Concepts and Tools

Cultural Profile – a personalized profile (Aperian GlobeSmart Profile) comparing your results with data from other countries in five validated areas in which cultural preferences create negotiation challenges and opportunities

Guidelines – for approaching cross-cultural negotiations

Practical strategies – for applying negotiation concepts successfully in current cross-cultural negotiations

Insights – into how to address language issues that typically arise during cross-cultural negotiations

Planning – tool that helps anticipate likely cross-cultural negotiation challenges, identify culture-based needs of other parties, and establish a more favorable environment for successful cross-cultural agreementsModel – focus on a practical, actionable model vs. “tips and techniques”

CCN Learning Objectives

New awareness of the challenges of negotiating with people from other cultures, and how our intuitive reactions can create problemsGuidelines for approaching cross-cultural negotiations that help you conduct them with the most productive mindset possibleA planning approach to help you develop strategies for addressing the most important challenges you will face when negotiating with people from other cultures Practical strategies for applying fundamental negotiation concepts successfully in current cross-cultural negotiations

Discovery learning. Participants learn by doing. More than two-thirds of the program is spent in actual simulations, followed by structured debriefings in which skill-building needs are identified and addressed.

Extensive feedback. During the program, participants receive personal feedback on their use of workshop behaviors, tools, and concepts from peers and their instructor. This feedback is obtained through the use of a Workshop Materials package consisting of surveys that the participant completes. The surveys are self-scored providing immediate insights that can be applied to learnings throughout the program.

Application planning. Participants periodically pause during the program to document how they plan to apply what they have learned to actual real-world cross-cultural business situations.

The Learning Approach

Cross-Cultural Workshop Agenda

DAY 1 – Cross-Cultural Negotiation

• Introduction: Objectives and Agenda

• The CCN process• BaFa ‘BaFa’ Simulation

• Dealing with language issues—in a virtual negotiation

environment

• Application to your negotiation

LUNCH BREAK (45 min)

• Tool: Aperian GlobeSmart Profile (GSP)

- Understanding cultural preferences and their impact

• Using cultural insights to improve your negotiation strategy- Tool: The CCN Planner

• Exercise: “Cultural Constraints”

- Recognizing cultural gaps

- Adjusting your strategy

• Discussion: How this applies inside your company• Application to your negotiation

• Wrap-Up and Adjourn

About RED BEAR Negotiation CompanyRED BEAR Negotiation Company is a global performance improvement firm dedicated to maximizing the profitability of the agreements negotiated with customers, suppliers, partners, and colleagues. Our work helps your organization drive more competitive wins, reduce discounts, shorten sales cycles, ensure supplier quality, reduce costs, protect against margin erosion, manage risk, increase internal alignment, and support achievement of other critical corporate goals. Our proven approach helps our clients achieve desired business results, and significant improvements in human performance. Visit us at: www.redbearnegotiation.com.