Yes culture makes a huge difference when we talk about negotiation: If the cultu
ID: 353889 • Letter: Y
Question
Yes culture makes a huge difference when we talk about negotiation: If the culture in the organization is of win-lose then the negotiation can be stricter but if the culture is of win –win then a mid-way is usually found which is in favor of both the parties. Formal negotiation is done on mails and a particular language is used and it depends that if the culture is formal or informal in the organization. Empathy towards people is also a part of culture that directly affects negotiation. Hence culture has a huge impact in the way negotiation is done by both the parties. The negotiator should always chose win-win type of negotiation style because while working with a differing cultural style it becomes difficult to get your word across and if this is shown to the other party that there is something in it for them as well then it becomes easy to negotiate and get your work done. High intensity of emotions can be involved while working with a differing cultural style and the negotiation should be done on pre-defined guidelines so as to ensure that both the parties are on the same page during the negotiation. These are all excellent points. What type of assessment can be done in advance of the negotiation to understand more about the style of the parties involved as it might relate to culture?
Explanation / Answer
Organizational negotiations are activities that happen all across the globe. Organizations typically consume either materials or services from other third party providers, and in almost every case of sourcing, there is a negotiation which is involved.
As the article rightly states, if you can "determine" what kind of culture prevails in the other organization, you can decide your negotiation strategy accordingly. For instance, if both organizations hae a win-lose culture, then the negotiation is bound to be strict: That is, if your company strictly wants a 50% discount, and if the other company can only go up to 20%, then this deal will not go through - the negotiation will fail. However, if both the parties have a win-win attitude, then a mid way can be found.
In order to understand more about the style of the parties, it is important to do some prior ground work. Organizations typically do it by engaging with the other client through business development. They have force on the field who are skilled at talking to people, who are great at understanding people and their natures - these folks typically engage heavily with the other party to get a "feeler" about the type of work culture prevalent in the other party. This, of course, is not going to be a quick and smooth activity with a clear assessment. This is going to take some time to accomplish and to arrive at a proper result, however, it is important that this is done with the right set of people.
The key here is to have multiple engagements with the other party to understand what kind of a culture prevails in the other party - there is no substitute to talking to people. Meet people, talk, explore and understand. Take them out for a lunch or dinner - observe how they speak to you. Understand and empathise. This is key to unraveling the culture that prevails in the other party. If you have the right skill set, you will be able to figure out what kind of a person they are, and also what kind of an organization they work for - is it aggressive, relaxed, or half way in between.
Hence, the most effective way would be to send out an effective business development/pre-sales team to do the ground work and to get a feeler of the other party, which can then be further analyzed and brainstormed by the more experienced minds to come to a holistic conclusion.
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