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Welcome to the International Right of Way

Association’s

Course 209Negotiating Effectively with

a Diverse Clientele

209-PT – Revision 2 – 03.24.09 INT

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Introduction

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Objectives (1)

At the conclusion of the two days, you will be able to...

• Learn practical skills to overcome “cultural roadblocks”

• Understand better major negotiation styles

• Learn approaches to minimize intercultural conflicts

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Objectives (2) At the conclusion of the two days,

you will be able to...

• Understand better intercultural negotiation strategies and principles

• Have improved communication skills

• Have a greater awareness of biases, which create negotiation roadblocks

• Increase your self-confidence to achieve “win-win” agreements

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Housekeeping

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ScheduleDay One (1)

8:00 - 8:30 Introductions, Etc.

8:30 - 12:00 A Foundation for Intercultural Negotiation

1:00 - 4:45 Intercultural Communication

4:45 - 5:00 Recap Day One

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ScheduleDay Two (2)

8:00 - 8:15 Recap Day One

Introduce Day Two

8:15 - 12:00 Building Cross-Cultural Relationships

1:00 - 3:45 Intercultural Competence

3:45 - 4:00 Summary and Review

4:00 - 5:00 Exam

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“A smaller world creates a bigger agenda for business. There are more cultures to understand, more social responsibilities to master, more time pressures to juggle, and more relationships to rethink.”

Rosabeth Moss KanterTranscending Business Boundaries

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Principles (1)

• Basic human needs are universal

• Generally, values and beliefs are non negotiable

• Cultural conditioning of “face” is a critical factor to resolve

• Negotiations simultaneously involve both, substantive variables and relationship vulnerabilities

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Principles (2)

• Different negotiation styles and multiple bargaining strategies

• Relational and goal-seeking cultural differences

• One’s experience of cultural difference is either ethno-centric or ethno-relative

• Intercultural communication competence and negotiation skills can be improved

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Introductions

• Name

• Employer

• Position and principal work function

• Main negotiation strengths

• Cultural background

• Anything else?

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A Negotiation Process

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Attitudinal FoundationEach party must approach the

negotiation with a willingness to…

• Trust the other party

• Share information

• Ask specific questions - including cultural protocol questions

• Open, positive attitude

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Behavioral Foundation Required repertoire of abilities to ...

• Separate the people from the problem

• Focus on interests rather than on positions

• Avoid making premature judgments

• Keep the acts of alternative creation separate from their evaluation

• Judge possible agreements on an objective set of criteria or standards

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Informational Foundation

Each party ...

• Is familiar with his/her BATNA (“best alternative to a negotiated agreement”)

• Understands his/her personal interests

• Knows what is really important

• Understands the relative importance of the other party’s interests

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Substance v. Relationship (1)

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Substance v. Relationship (2)

Substantive interests include:

liabilities

conditions

dates

numbers

terms

prices

Relationship interests include:

attitude of acceptance or rejection

degree of mutual understanding

degree of reliability and trust

balance of emotion and reason

relative emphasis on persuasion or coercion

ease of communication

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Face

Building face is essential

Saving face is essential

Causing a loss of face must be avoided

Giving face helps

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Cross-Cultural Variables

Cultural conditioning

Use of a “go-between”

Trust

Problem solving

Cultural protocol

Decision-making

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Tips (1)

• Preparation• Getting beyond self to the other person• Beginning small• Accepting silence• Being curious• Avoiding anger and threats

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Tips (2)

• Exploring alternative

• Planning activities

• Starting the negotiation session with pleasantries

• Showing personal interest in the other person

• Cultivating trust

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Negotiation Styles

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Negotiation Styles

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Approaches to Conflict (1)

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Approaches to Conflict (2)

What are the strengths of your conflict management style?

What are its weaknesses?

What do you do when the approach doesn’t seem to be working?

Do you have a fall back style?

Any other comments?

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Approaches to Conflict (3)

Pragmatic- direct- in control- results oriented

Energizer- enthusiastic- prefers interaction- likes recognition

Analytical- has own standards- expects quality, accuracy and logic

Balancer- supportive- cooperative- stable

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Pragmatic/EnergizerPRAGMATIC

– Refrain from win/losechallenges.

– Use reciprocity to calm fear of being taken advantage of.

ENERGIZER

– Refrain from avoiding or rejecting.

– Give “face”or favorable recognition to calm a fear of disapproval.

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Balancer/AnalyticANALYTIC

- Refrain from blunt and highly personal questions.

- Provide appropriate and sincere praise to calm a fear of criticism.

BALANCER- Establish a sound

relationship at the beginning.

- Promote teamwork and collaboration to calm a fear of competition and loss of security.

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The Orange (1)

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The Orange (2)

- What helped the negotiation?

-What hindered the negotiation?

- Were you aware of your counterpart’s approach?

- Was your counterpart awareof your approach?

- What was the outcome of the negotiation?

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Assessing...

“Is this person more outgoing and talkative or is he/she more reserved and a listener?”

“Does the person talk in ‘matter of fact’ or is this person more concerned with making an impression?”

“Does the person listen more empathetically for understanding or does the person listen to make critical judgments?”

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Pragmatic Style (1)

Refrain from win/lose challenges

Be precise in presenting facts

Avoid telling the other person what to do

Refer to what has worked previously

Highlight the bottom line and results

Never attack character

Be indicative (i.e., go from the facts to the principles)

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Pragmatic Style (2)

• Emphasize freedom from restraints

• Acknowledge the other person’s power and authority

• Calm the other person’s fear of being taken advantage of

• Document what is said

• Follow through and show support

• Negotiate workable procedures

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Energetic Style (1)

• Refrain from avoiding or rejecting theother person

• Focus on the situation, as a whole

• Project into the future; look for opportunities

• Do not deny the other person’s acceptanceand friendliness

• Avoid negativism and arguing

• Demonstrate friendliness

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Energetic Style (2)

• Emphasize prestige

• Quickly include the other person with others

• Calm the other person’s fear of social disapproval with recognition

• Share new trends

• Show priority and support

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Balancer Style (1)

• Establish a sound relationship as quickly as possible

• Refrain from overloading or confusing the other person

• Show interest in what the other person is communicating

• Avoid competition

• Identify the other person’s values and adjust to them

• Avoid sudden, unplanned risky challenges

• Emphasize collaboration

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Balancer Style (2)

• Demonstrate sincerity

• Be predictable

• Appeal to the other person’s feelings

• Calm the other person’s natural fear of loss of security

• Be ready to compromise

• Follow through

• Emphasize safety, direction and improvement

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Analytic Style (1)

• Refrain asking blunt, highly personal questions

• Never criticize• Avoid giving incomplete, inaccurate

information• Emphasize autonomy, professionalism,

freedom for personalization• Use logic• Calm the other person’s fear of criticism• with expressions of genuine praise

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Analytic Style (2)

• Look for causes and effects

• Be patient

• Be logical and acknowledge the other person’s contribution

• Analyze the relationships among the issues

• Analyze the pros and cons of the options

• Negotiate realistic effective trade-offsand planned options

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“We say of some people that they are transparent to

us. However, it is important as regards this

observation that one human being can be a

complete enigma to another. We learn this when we

come into a strange country with entirely strange

traditions; and what is more, even given a mastery

of the country’s language, we do not understand the

people. We cannot find our feet with them.”

Clifford Geertz,The Interpretation of Cultures

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“Culture is a set of mental formulae for survival and success that a particular group of peoplehas developed. These formulae are stored asa set of instructions in the unconscious mindand are sometimes heard as ‘conversationswith oneself’ in the conscious mind.”

George F. Simon, Carmen Vázquez, and Phillip R. HarrisTranscultural Leadership

Culture

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A team that has scored 100 runs and lost three wickets has a score of "a hundred for three", written 100-3. A team that is dismissed having scored 300 runs is said to have a score of "three hundred all out" or "all out for three hundred” rather than "three hundred for ten.”The score for the innings is then simply written 300. However, if a team declares their innings closed, the number of wickets is included in their score for the innings, for example 300-8d.

Huh?

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High-context/Low-context

People from high-context cultures communicate

primarily to establish and maintain relationships since

their energies are not spent in clarifying meanings.

People from low-context cultures communicate

primarily to exchange information that has to be

verified, clarified and assured that the meaning is

congruent.

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Communication

High-contextShared experiences

Indirect and implicit words

only part of the message

Many Asiansand Middle Easterners

Low-contextDirect and explicit

words convey most of the

message

Many Australians, Canadians,

Americans and other western

societies

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Contrasts

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Classification

High-context Cultures Asian African-American/Caribbean Hispanic/Latin American

Native-American/First Nation Middle Easterners

Southern Europeans Euro-North American Females

Euro-North American Males Northern Europeans

Low-context Cultures

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Non Verbal

Vocal38%

Verbal7%

Nonverbal55%

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Seven Dimensionsof Culture

Sense of self and space

Language and communication

Time orientation

Relationships

Values

Attitudes

Thinking

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Comparison

North American

Informal handshakeExplicit and directLinear consciousnessNuclear familySelf-sufficiencySequential anddeductive problem-solving

World

Formal bows, hugs

Implicit and indirect

Flexible consciousness

Extended family

Group conformity

Holistic and inductive

problem-solving

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Exercise No. 7

Colors: Blue, RedFlowers: Daisy, RoseFruits: Apple, OrangeTools: Wrench, HammerFurniture: Table, Chair

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Style of Communication

Directness

Explicitness

Personal

Problem-oriented

Informality

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Linear Worldview (1)

• The individual is separate from all that is outside self

• The individual is the master of his/her fate

• Organizations are hierarchical and often in conflict

• Dependency is viewed as a negative

• The past, present and future are separate from each other

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Linear Worldview (2)

• Time is important

• The past is unlikely to repeat itself

• Emphasis is on the present and, even more important, on the future

• There is a separation between the living and one’s ancestors and spirits

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Circular Worldview (1)

• All parts of reality are closely related

• There is a unity of all things, which fosters harmony

• The group is the basic unit of survival

• The focus is to maintain norms, attitudes and values

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Circular Worldview (2)

• All “things” are connected in a circle of life

• An interrelationship and high reliance on the group

• Decision-making is based on consensus

• Saving face and minimizing embarrassment are highly regarded

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Recap Day One

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Recap Day One

Introduce Day Two

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“If one’s kibun, (Korean for ‘mood’ )or inner feelings is good, then one functions smoothly and with ease, and feels like a million dollars.

If one’s kibun is upset or bad, then things may come to a complete halt, and one feels depressed.”

Simons, Vazquez and HarrisTranscultural Leadership

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L.E.N.A. (1)

• Listening

• Expressing

• Negotiating

• Accommodating

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L.E.N.A. (2)

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S.T.O.P.

• Step back from the situation

• Think the scenario through

• Organize thoughts and strategy

• Proceed with a fresh perspective

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The “5Rs”

• Recognize

• Retrace

• Reclaim

• Reframe

• Resurface

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“Negotiation is one of the single most important international business skills.

It is seeking to leverage culture and shape it into competitive advantage.”

T. Brake and D. and T. Walker

“Doing Business Internationally”

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Intercultural Competence (1)

Intercultural competence is the capacity to recognize

the primary cultural orientations of the negotiating

parties and to be conscious of the potential impact of

these differences on negotiating relationships.

Intercultural competence means going beyond the

explicit factors of a culture and working with the

implicit orientations that shape and motivate behavior.

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Intercultural Competence (2)

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Negotiation Strategies (1)

Avoidance: A situation in which neither the outcome nor the relationship matters. This is a lose-lose. When one choose this strategy, it is likely that both the relationship and the outcome will be lost.

Collaborative: A situation in which both the outcome and relationship are important. This is a win-win. When one chooses this strategy, it is likely that both the relationship and the outcome will succeed.

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Negotiation Strategies (2)

Accommodation: A situation in which the outcome is not important but the relationship is. This is a lose-win. When one chooses this strategy, it is likely that the outcome will be lost but the relationship will be won.

Competition: A situation in which the outcome is important but the relationship is not. This is a win-lose. When one chooses this strategy, it is likely that the outcome will be won but the relationship will be lost.

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Negotiation Strategies (3)

Compromise: A situation inwhich both the outcome and the relationship are somewhat important.

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80-20

“Assume that at least 80% of what you react to in others is cultural and that 20% or less is personality. Remembering this in times of friction may help you reduce negative feelings, blame and other destructive behaviors that may accompany cross-cultural conflict.”

Personal20%

Cultural80%

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Paradigm

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Objectives (1)

Now, you will be able to...

Utilize practical skills to overcome “cultural roadblocks”

Understand better major negotiation styles

Minimize intercultural conflicts

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Objectives (2)

Now, you will be able to...

Understand better interculturalnegotiation strategies and principles

Have improved communication skills

Have a greater awareness of biases, which create negotiation roadblocks

Have an increased self-confidence to achieve “win-win” agreements

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Thank you

209-PT – Revision 2 – 03.24.09 INT