Russians see negotiations as win-lose rather than win-win. They do not provide timelines and will back off if encountering strong resistance. Trust is important to establish initially before serious negotiations begin. Russians are often reluctant to take risks and prefer consensus decision making through consultation with superiors over individual decisions.
Investment in The Coconut Industry by Nancy Cheruiyot
12 Factors of Russian Negotiation Style
1. 12 VARIABLES OF RUSSIAN NEGOTIATION
1 # BASIC CONCEPT OF NEGOTIATION PROCESS
Russian show great emphasis on knowing their partners if their
counterpart are new to negotiation they can expect to be tested by them.
The Russian only negotiate when they know that other party is serious in
negotiation. They show a lot of patience in negotiation and look at the
whole situation rather than part of it.
Russians see negotiations as win-lose. They do not believe in win-win
scenarios.
Russian generally do not give timelines for delivery of a product or
completion of project. During negotiation when Russian confronts strong
resistance they will back off.
2 # NEGOTIATOR SELECTION CRITERIA
The Russian criteria for selecting the negotiation team include
negotiating experience seneriorty, political affiliation ethnic ties,
technical knowledge and personal attributes. The leader of the team
normally selected on the basis of specialization in a particular field and
his loyalty and trust worthiness.
3 # SIGNIFICANCE OF TYPE OF ISSUES
Defining the issue in negotiation is critical Russian are generally not
fluent in English. Normally services of interpreter are needed. Russian
2. expects that their counterpart will communicate with them. Keeping in
mind their handicap of English language.
Negotiations in Russian can be conducted by individual or team of
negotiators. Russian expects the meeting schedule to be finalized at least
2 to 3 weeks in advanced. The Russian would prefer to know the detail
about the negotiating team.
4 # CONCERN OF PROTOCOL
Protocol accepted practices of social behavior and interaction rules of
protocol can be formal or informal. Under formal protocols negotiations
stress adherence to strict and detailed rules that govern manner and
conduct .To the contrary under informal protocol, negotiators scarcely
adhere to rules that govern manner and conduct. Russian view compromise
as a weakness and will continue to negotiate until you offer concessions.
Russian may lose their temper, walk out of the meeting or threaten to
terminate the relationship in an attempt to coerce you to change your
position.
Russian expects that meetings are schedule into two to three weeks in
advanced. They want to know whom they will be meeting. It is unlikely
that top executive of an organization will meet the bargaining team. The
meeting schedule needs to be confirming several time. There meeting
canceled or postponed with little or no notice. Russians expect the
visitors to be punctual; being late by more than 10-15 min without having a
valid plausible excuse is considered an offense. However Russians could
be late by an hour or more without any remorse.
3. Russian negotiators may try to convince you that they have the background
and experience required to be successful, exaggerating their capabilities
.or making questionable promises in order to maintain foreign contacts
Presentations should be short and concise. Making a good first impression
is at least as important as coming with a compelling proposal. It is
characteristic of Russians to be pessimistic, so a lack of enthusiastic
responses should not discourage you. Your presentation materials should
be attractive, with good and clear visuals. Use diagrams and pictures
wherever feasible, cut down on words, and avoid complicated expressions.
Russians may expect to discuss many details, so bring enough background
information. Having your handout materials translated to Russian is not a
.must, but it helps in getting your messages across
5 # COMPLEXITY OF LANGUAGE
In addition to Russian, the country official language, the number of
minority languages exists. Not many business people speak English
fluently. In addition, Russians may insist that they understand everything
you say even when this is not really the case. It may be necessary to have
an interpreter. Ask beforehand whether an interpreter should be present
at a meeting. However, keep in mind that even some interpreters may not
speak and understand English at a fully proficient level. It may be in your
best interest to bring your own interpreter, rather than depending on one
provided by the Russians, to ensure an unbiased translation. When
communicating in English, speak in short, simple sentences and avoid using
slang and Jargon. It will help people with a limited command of English if
4. you speak slowly, summarize your key points often and pause frequently
to allow for interpretation
6 # NATURE OF PERSUASIVE ARGUMENTS
One way or the another negotiations involves attempts to influence the
other party.
In Russia the primary approach to negotiating is to employ is distributive
and contingency bargaining .The buyer is often in a strongly fairable
position and may try to push the responsibility to reach agreement to the
seller while quite a few Russian are highly skilled negotiator, the majority
of business people in the country have only limited experience in the
field.
Russians can be extremely patient, persistent and stubborn negotiators.
It can be very difficult to obtain concessions from them.
Russian may also claim limited authority, stating that they have to ask for
their manager's approval. More often than not this might be the truth.
However you may not always be able to force the true decision maker to
participate directly in the negotiation meaning that you may have accept
this indirect negotiation approach Russians are often reluctant to take
risk.
7 # ROLE OF INDIVIDUAL ASPIRATION
The emphasis negotiators place on their individual goals and needs for
recognition may also vary. In some cases the position of a negotiator may
reflect personnel goals to a greater extent than corporate goals. In
5. contrast negotiator may want to prove he or she is a hard bargainer and
compromise the goals of the corporation.
Russian often starts with extreme positions, ignored deadlines and due to
their limited authority frequently check backs with their headquarters.
8 # BASES OF TRUST
Every negotiator at some point must face the critical issue of trust .one
must eventually trust ones counterparts ,otherwise resolution would be
difficult .Trust can be based on the written laws of a particular country
or it can be based on friendship and mutual respect and esteem. Russians
like to establish on general principles first. The first meeting is normally
approached more as a formality. They try to establish the credibility of
negotiator in this meeting. Once the trust is established than the Russian
go for serious negotiating.
9 # RISK TAKING PROPENSITY
Negotiators can be perceived as either cautious (low risk takers)or
adventurous(high risk takers).If a negotiator selects a solution that has
lower rewards but higher probability of success, He or she is not a risk
taker. If the negotiator chooses higher rewards but a lower probability
of success then he or she is adventurous and a risk taker.
Russian often reluctant to take risk , If you expect them to support a
risky decision you may need to find ways for them. To become
comfortable with it first .You are much more likely to succeed. If the
relationship with your counterparts is strong and you managed win their
trust.
6. 10 # VALUE OF TIME
Each culture has a difference way of perceiving and acting upon time.
Monochronic cultures emphasize making agendas being on time for
appointment and generally seeing time as a quantity to be scheduled.
Polychronic cultures stress the involvement of people rather than preset
schedules. The future cannot be firm, so planning takes on little
consequence.
Negotiations with Russians could be very slow and protracted.Thsi is true
during the initial bargaining stages. Russian generally employs a ploy
chronic work style. It is not unusual for them to reopen a discussion over
items that had already been agreed upon. If the Russian appeared to be
stalling negotiation access carefully whether their slowly down the
process indicates that they are evaluating alternatives or that they are
not interested in doing business with you. More often then not this
behavior indicates attempt to create time pressure or wear you down in
order to obtain concessions.
11 # INTERNAL DECISION MAKING SYSTEM
Broadly understood, decision making systems can be authoritative or
consensual. In authoritative decision making individual makers the
decision without consulting with his or superiors. However, senior
executives may overturn the decision. In consensus decision making
negotiators do not have the authority to make decisions unless they
consult their superiors.
7. Russians expect to work within clearly established line of authority.
Openly disagree with or criticizing superior is unacceptable. Decision
makers are usually senior executive, who consider the best interest of
the group or the organization. They will likely consult with other before
making the call. Subordinates make reluctant to accept responsibility.
Decision makers also rarely delegate their authority .Decision can take a
long time and requires patience.
12 # FORM OF SATISFACTORY ARGUMENT
Generally there are two broad form of agreement. One is the written
contract that covers possible contingencies. The other is the broad oral
agreement that binds the negotiating parties through the quality of their
relationship.
Russian may insist on having a protocol (minutes of meeting) signed by
both parties at the end of the meeting. Its serves to record what was
discussed, is not a contract and should not be mistaken for final
argument. Written contract contract should be clear and concise without
too many detailed terms and conditions. Signing the contract is important
not only from the legal perspective but also as a strong confirmation of
your Russian partners commitments. The Russian may request that the
detailed of the contract may be kept secret.