Cross Cultural Negotiation FOS National Conference 2011 Michelle Sindler, CEO Australian International Disputes Centre

Negotiation “ To confer with another for the purpose of arranging some matter by mutual agreement” “ To confer with another for the purpose of arranging some matter by mutual agreement” Oxford Dictionary  Outcome sought  Relationships to be established or maintained  2 aspects: (i) creation and fostering of business (ii) dispute resolution 2

 How does style influence a negotiation? - collaborative or co-operative - competitive or positional - compromise - submissive - avoidance  What is effective in a negotiation? Negotiation is always a delicate business. 3

Culture “the ideas, customs, and social behaviour of a particular people or society; the attitudes and behaviour characteristic of a particular social group” “the ideas, customs, and social behaviour of a particular people or society; the attitudes and behaviour characteristic of a particular social group” Oxford Dictionary 4

Every negotiation is a cross-cultural exercise Concept of “Culture” is extremely complex 5

A single person may carry several different cultures, eg: ethnic national religious gender age occupational Eve ry interaction (including negotiation) is likely to be multicultural on several levels 6

 Cultural factors affecting negotiations  Pitfalls  Understand the individual  Find ways to bridge gaps  Effective communication and interaction  Trust: Relationships 7

 Identify any cultural differences or issues in play and then address them  Work to bridge cultural issues - internal skills: curiosity, concentration, authenticity - external skills: paraphrasing, enquiry, acknowledgement  Achieving effective communication  Self-awareness as well as awareness of others  Be prepared for the unexpected 8

Approaches to negotiation 1.Position-based - competitive, distributive - value claiming 2.Interest-based - collaborative - value-creating (Fisher and Ury, Getting to Yes, 1983) 9

4 Basic Principles for Negotiation  Separate the people from the problem  Focus on interests, not positions  Generate a variety of possibilities (options) before deciding what to do  Make sure that results are based on objective standards 10

Some tips for cross-cultural negotiations  Prepare, Prepare, Prepare  Be aware of potential tricky issues  Understand and manage expectations  Beware of assumptions – stereotypes, a cross-cultural no-no  Establish common ground and choose your style (in an informed way)  Manage yourself and the process – don’t lose sight of people as individuals  Active listening 11

“As for the future, your task is not to face it, but to enable it” Antoine de Saint-Exupéry  There are and will continue to be cross-cultural negotiations in all aspects of business, in relationship creation and in the resolution of disputes  They can be managed – the potential for them to blow out can be minimized  Knowledge, understanding and preparation are important  Trust, respect, patience and flexibility are key 12