As part of our series on internationally relevant topics by our author Sergey Frank, we are devoting a 3-part article to the extremely important question of how to conduct successful negotiations on the international stage.
Negotiations play an important role in any business, including at international level, and are rarely uniform. Internationally, complex situations often arise, for example due to the different language levels of the negotiating parties or divergent cultural and value views. Talks are usually held in English or in third languages, often with the help of interpreters, as described above. In addition, there are differing priorities and ideas about time.
These aspects are complex and harbor considerable risks that can result in misunderstandings, loss of time and frustration. In order to prevent this and at the same time improve communication and understanding between the negotiating partners, certain rules of the game must be observed.
These rules include a clear negotiation process in four steps: opening and defining the key milestones (part 1), communication and exploring the interests of the other party (part 2), the actual negotiation (part 3) and agreement and ideally conclusion of the contract (part 4). The result of a negotiation can initially only be a partial agreement before the other issues are negotiated in a further round. The process of understanding, listening and negotiating can also be repeated several times. Particularly in people-oriented cultures, such as in the Middle East, Asia or Russia, negotiations can drag on over a longer period of time.
In many countries, the personal level is perhaps even more important than the factual level. In order to avoid serious conflicts, it is therefore important to keep the two levels separate. The partner is often not seen as a representative of a company, but as a person. Displeasure over an unpleasant situation can therefore lead to anger being taken out on the other person. To avoid this, it is better to separate relationship elements such as understanding, respect, affection, fear and anger on the one hand and factual elements such as prices, specifications, competitive advantages, payment and delivery terms on the other. You can always negotiate your interests consistently, but at the same time treat your partner politely.
The goal
Personal appreciation and integrity are essential components of any business relationship, whether national or international. In this context, it is impossible to provide a patent recipe for successful negotiation at international level. Furthermore, it is not the intention to teach rhetorical tricks that may "trick" or "bamboozle" the other party. The following is about conscious negotiation, i.e. how to act objectively, rationally and structurally. It is in the negotiator's primary interest to
- negotiate effectively and professionally
- avoid ineffective conflicts
- to achieve appropriate results as quickly as possible
- to achieve commitment in an intercultural context.
After thorough preparation, including a clear definition of what you want, the actual negotiations can begin. In principle, negotiations follow the pattern shown in the diagram below, whereby the process of understanding, listening and negotiating can be repeated several times. The final contract is often reached in the form of partial agreements.
The figure above clearly shows the overall constellation and also the dynamics of contract negotiations. In principle, these are based on good preparation for negotiations, the achievement of partial agreements and the subsequent continuation of negotiations. In the end, the overall contract is concluded (or not).
The following considerations can be made regarding the individual steps:
Preparation
Before the actual negotiations begin, you should try to familiarize yourself with the respective partner. The more you know about them, both professionally and personally, the better. It is therefore very important to create a positive atmosphere at the start of a negotiation.
Courtesy and hospitality are self-evident in this context. In addition, interest in the person of the partner, open communication, friendly eye contact and, last but not least, a sense of humor. National customs also play a very important role in international negotiations.
It is generally advisable to allow sufficient time for negotiations. Many negative results are achieved under time pressure. The lack of time often becomes a means of exerting pressure, especially in international negotiations.
If you precisely define the topic for a negotiation in advance, you can be sure that the negotiation will proceed according to plan and not get out of hand. This can be achieved by dividing the negotiation into main topic, secondary topics, main arguments and secondary arguments. An issue that initially appears complex is thus structured and comprehensible, both in itself and for the partner. The following points should be noted:
- Agenda - structure the negotiation topic
- Definition of key terms, as it is often important to define terms precisely, ideally together with the other side
- Developing a negotiation strategy and preparing for your own goals, but also reflecting on the priorities of the other side
- Flexibility - looking for options and considering possible concessions
- A step-by-step approach - from small to large in the course of negotiations
The argumentation
In addition to personal aspects, the procedural approach is also relevant and a clear structure for the discussion is essential. With regard to the argumentation, care should be taken not to start the negotiation too coldly and too soberly. This form of negotiation with high starting positions and negative stipulations such as "this far and no further" is seen as far too demanding in many countries. You also run the risk of losing face if you give in to expectations during the course of the talks.
It is therefore important not to establish positions that are too high from the outset, but rather appropriate ones. Factors such as saving face and interest in the other person's culture and personality are generally of great importance. Therefore, negotiate less about positions and more about upstream interests. If you can successfully summarize the other party's position and then explain your own point of view, you will significantly improve your own chances of success.
A clear and consistent argument should be well prepared. This usually takes some time to prepare. It is advisable to check your own point of view and any changes to it for consistency. At the same time, as many options as possible for the negotiation objective and strategy should be developed in advance.
It is no less important to consider the other party's objections, insofar as they are foreseeable, in order to be able to respond to them quickly and appropriately.
In reality, there is often a lack of such preparation, particularly due to time constraints. The parties usually go into the negotiation unprepared and with what they believe to be the correct and therefore infallible solution; conflicts are then inevitable.
Please bear this in mind: In few other areas can so much be gained, but also lost, as quickly as in international negotiations. In the next part, we will look at the right structure and show how helpful a change of perspective can be here.
To the article Rules for conducting international negotiations (Part 2)
To the Article Rules of the game for conducting international negotiations (Part 3)
