1. Copyright Juan I. Sanchez 2007, All Rights Reserved 1 Cross-Cultural Negotiation: Lessons Learned Juan I. Sanchez, Ph.D. Florida International University

2. Differences at the five stages of negotiation Preparation Relationship-building Information-exchange Persuasion Agreement

3. Stage 1: Preparation Adjust your expectations regarding the timeframe: it may take longer than you think. Get ready to show patience and control! Research/profile the culture along cultural dimensions (e.g., Globe). Develop culture-based hypothesis about how the negotiation will proceed, and run your hypothesis by others familiar with the culture.

4. Stage 2: Relationship-Building Consider the extent to which trust needs to be developed before you move on with the negotiation (typically, the weaker the rule of law, the more time is needed). Try to establish a personal bond by being genuine, disclose personal aspects & show interest in the other side’s personal aspects. Show curiosity and interest in the culture (foods, history, traditions); read about their history; learn latest local “pop culture” events and gossip! Adjust your role of host/guest according to cultural usages.

5. Stage 3: Information Exchange Choose setting carefully: consider conducting negotiation in a typically social setting. Carefully calculate the timing of your “bottom-line” discussion; “hitting” them with numbers too soon (or not soon enough!) may be the kiss of death. Consider quid-pro-quo concessions and the impact of not making them on trust. Show measure in “flinching” at unreasonable offers; consider letting them save face at all times. Learn cultural norms regarding “first offer inflation” and treat them accordingly.

6. Stage 4: Persuasion Consider the impact of hard-selling on trust. Consider paying attention to context and implicit messages –what they don’t say- to diagnose the other side’s needs and wants. Consider appealing to collective reasons - group/team/relationship- to gain acceptance for your offers. Pay attention to power issues and power hierarchies; direct your offer to “proper” authority, but use influential others to gain acceptance.

7. Stage 5: Agreement Consider “agreement celebration” events as additional opportunities for building trust. Consider continuity of relationships already formed in future negotiations. Consider singling out agreement as first step in a long, win-win relationship. Learn cultural usages regarding gratitude (e.g., thank you notes) and act accordingly. Calculate the frequency and duration of necessary post-agreement contacts so that you don’t lose trust and/or create the impression of opportunism.