Negotiating with Americans: The View From the Other Side
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This is a presentation I gave as part of a continuing legal education program on cross-cultural negotiation sponsored by the Association of Corporate Counsel's Colorado Chapter.
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Negotiating with Americans: The View From the Other Side
- 1. NEGOTIATING WITH AMERICANS: THE VIEW FROM THE OTHER SIDE
- 2. 1. They have a sense of time urgency • Time is money. • Want to get down to business quickly. • Intolerant of lengthy negotiations. • Time pressure can be used as leverage.
- 3. 2. Goal of Negotiation: signed contract • vs. creation of relationship. • Pleasantries are tolerated – as long as they don’t last too long. • Little emphasis on building personal relationships.
- 4. 3. Personal Style: Informal • Will address you by your first name (vs. formal titles). • Quickly seeks to develop personal, friendly relationships. • May ask questions about family/personal life. • May dress casually.
- 5. 4. Communication Style: Direct • Values directness. • Expects clear, definitive responses. Yes or No. • Views indirect or vague responses as lacking sincerity, and may react with frustration or impatience. • Not afraid of conflict.
- 6. 5. Form of Agreement: Detailed • Prefer very detailed contracts vs only general principles. • Attempt to anticipate every possible circumstance, no matter how unlikely.
- 7. 6. Team Structure: Leader with Authority • Negotiating team will have clear leader. • Typically has broad authority to decide most matters. • May be frustrated by consensus process or need to seek approval from HQ.
- 8. A parting thought: “Perhaps travel cannot prevent bigotry, but by demonstrating that all people cry, laugh, eat, worry, and die, it can introduce the idea that if we try and understand each other, we may even become friends.” -- Maya Angelou
Notes de l'éditeur
- We laugh at this picture, but I can tell you that almost every foreign counterpart that I’ve negotiated with believes that all American own at least one gun!
- Americans it seems are always in a rush. [CLICK] This characteristic seems to be pervasive. [CLICK] They want to fly into town, sit down and negotiate, and fly back home to work on the next deal. [CLICK] As an American, I look at these traits, and see nothing wrong with them. It is good to be productive and use time efficiently. But our counterparts view taking time to get to know each other as an essential part of the process. And Americans’ unwillingness to spend sufficient time on the negotiation may be seen as a lack of commitment to the relationship or as an attempt to hide something. The Americans’ drive to get a deal done quickly can be used as leverage against them. Several years ago, I was in Kuala Lumpur trying to negotiate an acquisition. By the end of day four we had not really resolved any of the outstanding issues. I recalled that during dinner at the end of the first day of negotiations, I had mentioned to my counterpart that I planned to fly to Thailand for the weekend. Suspecting that he might be trying to use that deadline to get me to concede on the outstanding issues, the next morning I told him that in light of our lack of progress, I had cancelled my flight to Thailand so that we could continue our negotiations the following week. His negotiating posture changed almost immediately; two hours later, we had resolved all of the outstanding issues, and I spent that weekend on a beach in Thailand. I’ve found it best for my counterparts to believe that I am in no hurry and can take as much time as necessary.
- For Americans, the goal of a negotiation is to get to a signed contract. (You may be thinking to yourself . . “Of course, why else would you negotiate?”) [CLICK] For some cultures, the goal of negotiation is to form a relationship. The contract is not the end game; it is just the beginning, and may in fact be viewed as just a guideline. After all, it’s the relationship that is most important. So, for example, you wouldn’t use a contractual provision to take advantage of your partner when his economic circumstances change, would you? [CLICK] Because Americans’ goal is a contract, any activities that don’t directly support that objective will only be tolerated for a little while. [CLICK] And Americans do not want the negotiations to take too long. (See #1)
- [CLICK] In one of my first cross-cultural negotiations, I was in Frankfurt negotiating with a bunch of German engineers. About mid-way through the first morning of discussions, I suddenly realized that I was the only person that was addressing my German counterparts by their first names, rather than by their titles: “Herr Doktor Schonewald”. So when we resumed the meeting, I apologized to my counterparts, assuring them that I meant no disrespect by addressing them so informally. Luckily, they were gracious about it and admitted that they enjoyed the informality of Americans and that they found it “refreshing”. So there is an example of what NOT to do. To avoid causing an offense, it is better to begin with formal titles, until you are invited to be less formal. [CLICK] [CLICK] [CLICK] Despite having just met you, Americans may ask questions about your personal life, as if they were close friends. This should not be viewed as an invasion of privacy; it is part of their friendly, informal style. And depending on their corporate culture, they may dress casually. This too should not be taken as a sign of disrespect. Americans believe that being informal helps foster an environment that helps build relationships.
- Americans do not typically use subtleties or nonverbal communication in a business negotiation. [CLICK] They value open, frank discussions. [CLICK] Americans prefer direct answers, even if the answer is “No”. If you use silence or vague responses out of politeness or to avoid conflict, Americans may believe that you are not being honest. [CLICK] And if there is disagreement, they want to address it head-on. Americans do not view such directness as being rude or socially inappropriate; in fact, they believe that open, frank communication fosters the relationship. So if my cultural norm is to avoid direct conflict, then your direct approach may cause me extreme discomfort.
- [CLICK] Americans prefer very detailed contracts. They are uncomfortable with agreements containing only general principles. [CLICK] They want to provide for every possible circumstance and have the outcome predetermined, rather than addressing the issue when it arises, based on the relationship. This does not reflect a lack of trust; rather it is an attempt to avoid uncertainty.
- [CLICK] Your American counterparts will have a clear leader. [CLICK] Who has authority to decide most matters. As a result, your American counterparts may be frustrated if your team’s decisions are made by building consensus, or if your company’s hierarchical structure requires you to obtain approval from a senior manager back at headquarters.
- I’ve been fortunate to travel to many countries and meet many people. What I have found is that we are more alike than we are different. We all want to enjoy good health, provide education for our children, do meaningful work, and be reasonably prosperous. [CLICK]