Often negotiators are in such a hurry that they forgo any relationship-building activities, jumping right into negotiations.  In cultures outside the United States, considerable time is spent building the relationship before any discussion of the business at hand.  Such relationship activities may include gatherings in informal settings where it is easier to discuss unrelated topics.  In many countries it is not uncommon to spend considerable time sightseeing and entertaining prior to discussing the potential deal.  Time so spent, rather than being “wasted,” is considered invaluable because it strengthens the understanding of each other’s values, priorities, and interests.  Although often viewed as less important by engineers, relationship building activities can lead to better outcomes than deal-focused approaches.  Once a negotiator feels comfortable with the other party, the dialogue tends to be more free-flowing.  Relationship building can be enhanced by interacting face to face rather than through phone, instant messaging or email.  The less rich the communication media the more difficult it is to establish trust (Wellens, 1989).  This is a challenge in high-tech when many teams are both virtual and global.  To overcome this barrier it is best to travel where necessary to build the relationship in person before using other forms of communication (see section on e-negotiations).  The effective negotiator must be willing to adapt to the location, time zones, etc. of others.

Most of us do business with people from other countries, or at least other cultures.   We all know that negotiation practices vary from country to country. So what should you do differently if your team is cross-cultural or you negotiate across borders?

First, understand the other party’s stereotype of you.  Check out globesmart.com and executiveplanet.com.

Secondly, avoid engaging in behaviors that reinforce these stereotypes.  For example, if you are of U.S. origin people may expect you to be arrogant, ethnocentric, pushy, impatient…  Knowing that your negotiating partners may expect this of you, you can temper your behavior.

Next, understand norms of the other culture.  Knowing, understanding, and demonstrating another culture’s norms can earn you a great deal of respect.   For example, if you hand someone of Japanese origin your business card with both hands, they will likely be impressed that you have taken the time to understand an easy to follow norm of their culture.  Likewise, in some cultures it is okay to address most people by their first name.  In some countries, such as Germany, it is more appropriate to initially address people by their title and last name.  To learn more about many cultural norms, I suggest reading: Kiss, Bow, or Shake Hands: How to Do Business in Sixty Countries.

Lastly, understand how decisions are made in other cultures.  For example, in most of the world, decisions take much more time than in the U.S.  Building relationships and brainstorming may be important precursors to decision making in many cultures.

As with most issues related to negotiations, research is the key.  The more informed you are about what people might think of you as well as what they may expect, the better perceived you will be in dealing with them.

The opportunity in the recession—
Protocol to make you feel comfortable negotiating for anything

30% off!, limited offer- 75% off!, everything must go!   These aren’t just signs on retail stores.  These are signs of the time in all businesses.  The current economy provides a great opportunity to position your business for future growth.  You can negotiate (or re-negotiate) better deals on almost everything right now—equipment, office space, employees, contractors, professional services.   Knowing how and when (always!) to negotiate, provides you this opportunity.  Below are some “Negotiation Protocols” that should help you feel comfortable negotiating for anything.

Negotiation Protocol

• Greetings; approach negotiations in a friendly manner and discuss common ground
• Share your own interests openly and inquire about the interests of others
• Share your own priorities and understand other’s priorities
• Summarize and clarify; ask questions
• Offer proposal/multiple proposals (it is often good to offer multiple proposals of equal value)
• Allow other to ask questions; give break-time before they counter propose
• Refocus on joint goals and problem solve together

Remember that a successful negotiation is one where both parties walk away satisfied with an agreement.  You should never feel “bad” about negotiating if you follow the above protocol.

Over the last three months, an average of 20,000 Americans have lost their job each day. In these times, if you are lucky enough to get a job offer, shouldn’t you just take what you are offered?

Absolutely not!  Even in tough times, most companies expect you to negotiate.  They won’t show their eagerness to negotiate.  After all, they are hoping that you will accept their first offer.  You need to watch for subtle signals that hiring managers are open to negotiation.  For example, many managers may say “why don’t you look over the offer and call me if you have any questions”.  This is an invitation to negotiate.  It is acceptable to ask the manager whether parts of the contract are negotiable.  They may not give a resounding “yes” but will ask you what you had in mind (another invitation) or state what isn’t negotiable “we don’t negotiate salary”.

Especially in hard times, negotiating non-salary compensation is a great way to increase the value of a compensation package.  Some items that employers may be particularly amenable to negotiating in tough times include:

• Vacation, sick days, personal days
• Maternity / family leave
• Flex-time
• Professional training
• Job sharing
• Start date
• Frequent flier miles
• Stock options
• Performance bonuses
• Accelerated review time with potential salary increase
• Job duties

The most important thing you can do prior to negotiating any part of your offered compensation package is research.  What you earned in your last job may no longer be relevant during a recession.  Visit salary.com to see how your offer compares with others in similar industries / positions.  Call competitor companies and ask about their salary structures and ranges.  Talk to friends and friends of friends.  Try to get a sense of how many people were vying for the position you are being offered.  Uncover what other recent offers have been made in similar industries / positions.  Knowing what you should realistically aim for is the most important starting point of any negotiation.

Some other resources on Negotiating in tough times:

• 7 Tips for Negotiating Your Salary in a Troubled Economy (PayScale for Yahoo)
• How to Handle Salary Requirements When Applying for a Job (The Salary Reporter)
• Does Your Salary History Really Matter to a Future Employer? (The Salary Reporter)

To learn more, we invite you to attend our two day UC Berkeley Center for Executive Education Negotiation program