International Negotiations
Cross-cultural success
In Germany, you absolutely must be over-punctual, in France, you definitely cannot talk business over a meal, and in England, you can offend your English counterparts by making demands that are too clearly formulated – these are all familiar clichés. But is there really anything behind these stereotypes when it comes to international negotiations?
Negotiations with people from other nations are part of everyday life in most procurement departments. Intercultural competence is especially important. Some of our expats report on their personal experience negotiating in their chosen home country.
There is no uniform negotiation style in China. Instead, the industry, region, company size and international experience of the contact persons shape the way they deal with foreign procurement teams. However, there are a few basics: In my experience, the Chinese are open and direct in negotiations and know what they want. They are usually very entrepreneurial, want to
Often, deals are only concluded after the official meeting, for example through a personal telephone conversation and a compromise between the parties. China trips should therefore be planned with some time between appointments to allow room for informal discussions. Negotiations with international stakeholders are different from negotiations between Chinese compatriots. However, if possible, expats should also seal a successful conclusion over dinner with a good rice liquor “baijiu”.
Christopher Gaede is a Project Manager at Inverto in Cologne. As part of an extensive automotive project, he was in Shenyang for an extended period of time, where he worked with our Chinese project team and the client on site.
Although I come from the Romanian city of Timisoara, which was part of the Habsburg Empire and is also called Little Vienna in my home country, I was surprised by the cultural peculiarities I discovered when I moved to Vienna. One difference I noticed very early on was the attitude toward preparing for a
task – whether it was a professional or personal activity.
I was surprisedIulia Pop has been a Consultant in our Vienna office since January 2022. She studied in Vienna and Milan, speaks five languages and also completed an internship in Munich before choosing Vienna as her adopted home.
Scandinavia is often seen as a single entity from the outside. Many thereby often have images in their heads of very friendly blond people, genuine equality and a relaxed basic attitude. In fact, these are unifying elements that I have encountered in all Scandinavian countries. However, there are also clear differences between the nationalities, for example between Denmark
This is particularly noticeable in negotiations: Danes usually express their demands and opinions quite directly and bluntly. In Sweden, on the other hand, the opposite is true. It is important to make small talk at the beginning of every meeting. Demands should not be made too directly; Swedish interlocutors are more likely to be offended by this. Confrontation is considered impolite; consensus in the group is important when making decisions.Both ways of interacting have advantages and disadvantages. Foreign negotiation teams should be aware of the differences and take them into account in their strategies if they want to be successful.
Marcus Schwarz is Managing Director of Inverto in Denmark. Born in Cologne, he opened the Copenhagen office in January 2018, thus launching our activities in Scandinavia.
Before even sitting down at a negotiation table, the French are used to building strong relationships with their suppliers. It is commonplace to hold non-related work lunches and engage in small talk to establish trust between all parties. Despite this quirk, French negotiations tend to be more formal than in other countries that I have worked in. Particularly during the early stages of the negotiation Being prepared is vital. French suppliers particularly appreciate when clients base their requests on sound data analysis. The French legal framework also strongly influences what can and cannot be negotiated with suppliers. Any economic dependencies from your suppliers need to be jointly assessed, with no immediate opportunity for contract termination. Overseas negotiators need to be prepared to be patient. They should expect any negotiation running during the summer, to be delayed in one way or another due to the fixed vacation season. Businesses should therefore plan ahead to avoid any urgent requests during this period.Juan Felipe González is a Project Manager in our Paris office. Born in Colombia, Juan completed his studies in France and the US before beginning his career in New York and London. He returned to France to join Inverto in Paris.
Personal connections are essential to get in touch with new negotiation partners. In the UK, being introduced through a trusted third party will help in establishing a reliable relationship. For this reason, some organizations are even willing to pay for the right personal introductions. Communication with British stakeholders can prove tricky for expats. It is important to be clear but not too British people often like to speak in riddles, including lots of cultural or ironic references when communicating and do not always appreciate that their “British” English can be hard to understand for that reason. When negotiating, ask counterparts to be clear about what they mean as they will generally be happy to adjust to a more straightforward communication style when asked. UK stakeholders tend to be happy to have robust negotiations but do not respond well to surprises deemed as being designed to trap either side or generally trick them somehow. There is an expectation on each side to remain fair and truthful in negotiations at all times. Lina Tilley is a Principal in our London office. Born in Germany, she completed her studies at the Alliance Manchester Business School and has since made the UK her home.
In my experience, face to face meetings still play a key role in relationship building in Germany. Kick-starting a relationship with a meeting to discuss business performance and aspirations to evaluate the ‘business fit’ is an important first step for any negotiation. These sessions are quite formal with emphasis on job titles, hiearchy and business turnover projections. TakingTheo Mizzi is a Project Manager in our London office. Since graduating in 2015, he has experience working in procurement in the food industry in Germany and the UK.