In this episode of the CQ for Global Leaders Podcast, Tom discusses negotiating across cultures and how leaders can effectively address the challenges around that.
Negotiating Across Cultures
- The better prepared you are, the better your options are going to be.
- Highlight the things that you are negotiating about.
- A successful negotiation is where both parties walk away with a sense of satisfaction.
- Know when you need to walk away. When entering into a negotiation, you need to be prepared with some points and ideas on when you have to walk away so that you don’t give away things without realizing it.
- Be really clear about the outcome that you want. At the same time, understand what the outcome is for the person you are negotiating with regardless of culture.
- Negotiating is part of doing business.
- Just as every culture has a model for leadership, every culture has a model for negotiating. It is always useful to understand these different models for every culture.
Other things to keep in mind when negotiating across cultures
- Objective and Subjective Pricing – In a lot of cultures, particularly developed countries, pricing is objective wherein you are expected to pay the price that is indicated. Whereas in other parts of the world, it is much more subjective and there are a lot of variables that impact the price.
- The Dimension of Power – In hierarchical cultures, customers have a tremendous amount of power whereas in egalitarian cultures negotiation is more around peers and is mutually beneficial to both parties.
- Relationship vs Task – In many cultures, building a relationship first is important before entering a negotiation.
- Pricing – some cultures like to start the price really high so that there is a buffer. Other cultures don’t do that.
Today’s Take-away Action
- What’s your view around negotiation and how do you negotiate?
- When negotiating across cultures, how do you go about resolving it in a way that is useful for both parties?