Any process of developing a positive business relationship means bridging a cultural barrier of some kind or another. Even a person-to-person relationship between individuals from the same community or country implies bridging a cultural barrier, because everyone carries a 'microculture' around in his or her head.
But when it comes to dealing or negotiating with people from another continent or another country, the cultural barriers are much greater, though not always more evident (what Edward Hall calls 'the hidden differences').
The most evident difference is language. The solution is simple - you either hire interpreters, or you all speak English (dommage, mes amis francophones, mais c'est comme ça). But the outcome is not guaranteed. It depends who's hiring the interpreters, and sometimes it also depends how good the interpreters are. Moreover interpretation involves an inevitable time lag, so it's best not to tell jokes because the reaction to your joke is likely to come when you've changed to something serious. In fact, avoid humour in any case until you can be sure the relationship you are developing is a positive one.
On the other hand if you decide all to speak English, then those of you who are non-English-mother-tongue have both a problem and an opportunity. The problem is that you may not entirely understand what the other side is saying, you may hesitate to express an opinion and, quite understandably, you will feel frustrated. But the opportunity is that you can quite reasonably claim you have not understood what has been said (when in reality you have!) and ask the other side to explain themselves more fully. You then use that 'extra time' to decide how you are going to respond.
In fact, if you feel frustrated, things are not going to work out - so the other side is ultimately going to feel frustrated too. Negotiations have to be 'win-win', if not the deal won't work.
So much for language, but what about silence? This is also a negotiating technique - and a very powerful one at that. Some people like Finns and Russians are comfortable with silence, others like the French, the Italians and even the English find it positively unnerving (I recently heard of a French salesman who made a presentation to a Finnish board and, confronted with total silence at the end of his presentation, started all over again...). Silence can be a great negotiating technique and, used intelligently, can even bridge cultural barriers - provided both sides play the game.
So much for language and non-language. But then there's body language. Photographs pulled from the front pages of various newspapers show that what is normal for people from one culture may be abnormal for people from another. Even within Europe, personal 'bubbles of space' (technically what is called 'the intimate zone') range from minimal with the Spanish and the Russians to significant with the English and enormous with the Norwegians. Gestures and sign language also convey different things to different people: avoid them if you can!
So much for the superficial. What is going on deeper down? For a start, the way we tend to approach negotiations. Western Europeans - and their descendants in the United States and other predominantly Anglo-Saxon countries like Canada and Australia – are generally individualist in spirit. Go further east into the Orthodox countries and beyond, and the spirit is increasingly collectivist.
Individualist people tend to be task- or issue-oriented and also dependent on written contractual relationships: the relationship develops through the common experience rather than preceding it. Collectivist people by comparison tend to be relationship-oriented and, for them, personal trust is more important than a written contract: they develop the relationship before embarking on the task. Even in Europe there are differences: Latins and French people in particular want to 'check out' a person before buying his or her products. Even the English allow the personal relationship to influence their decision on whether to buy a product or not. With the Germans on the other hand, business is business - and that's that!
We even tend to reason differently. The French prefer to work conceptually in a cartesian spirit ("OK, it works in practice, but will it work in theory?"), the English think pragmatically ("what if?"), and the Germans have a legalistic frame of mind ("what's the precedent?"). Attitudes to time also differ. Americans and Anglo-Saxons generally think that "time is money". Germans, Swedes - and particularly the Japanese - consider that time has no value unless it is put to work in the right way: they are prepared to take longer deliberating in order to come up with the right decision first time.
Sense of punctuality varies too. It is very precise in the Nordic countries - where people set and respect both the starting times and the finishing times for meetings. It is less precise in Mediterranean countries, where the significance of a meeting depends as much on the quality of the company and the conversation. For similar reasons, northerners tend to tackle their agendas in a predetermined sequence ('monochronic'), whereas southerners are much more flexible in attitude and prepared to jump around from one point to another ('polychronic').
To bridge the cultural barriers means being aware of all these things. It also means being aware of the protocol (often unspelled-out) of the other side, in particular the hierarchy, the management styles and the attitudes to authority of the people you are dealing with, the way they share or do not share information, and how they communicate. It is also important to know when and how to introduce personal matters to your professional relationship, if at all: wait for your host to take the first step in bridging between the two.
The most important aspect of international business is how people behave when they come to the negotiation table. One extreme in negotiating techniques is well expressed in the advice to a young European planning to do business in a Middle East market: "If he asks for ten, he means eight and he wants six. So it's worth four. Offer two."
Called positional bargaining, this typically 'southern' approach damages relationships, destroys credibility, is inefficient, and often produces unwise agreements. Yet it is no worse than the other extreme, the 'northern' approach which baldly states the terms at the outset - "take it or leave it" - and provides no room for negotiating manoeuvre.
A Finnish representative to the European Union acknowledges his typically Nordic attitude when he talks about Brussels: "There's a bazaar culture here and we're not really good at playing it. We're much more realistic in negotiations, and it doesn't always help us. If our bottom line is 100, we start bidding at 120 and the other countries start at 200."
At the European level, there are two traditional bargaining styles: integrative bargaining, where the two sides try to build bridges between their relative standpoints, and distributive bargaining, where they progress stepwise using a 'carrot-and-stick' approach (i.e. concession-appeal-concession-appeal).
Various cultural constraints influence these negotiating styles. One of them is varying attitudes to time (Anglo-Saxons should on no account pressure Mediterraneans with remarks like: "remember I have a plane to catch at 1700 hours!"). Others are relative readiness to take risks, different bases of trust, and the various types of argument that may be used (logic, experience, tradition, dogma, intuition, emotion, etc).
Principled Negotiation is the recommended approach that bridges cultural barriers in international business dealings. Using this approach, the effective negotiator learns to listen and watch carefully, to represent his or her needs clearly at the same time as understanding the other party's needs, to explore mutual interests and develop multiple options, to adopt a flexible approach to dealing with the various issues, to be prepared to ask questions, to test both sides' understanding regularly, and to summarise frequently.
© Richard Hill
rhill@europublic.com