By immersing ourselves in the values of the other party and ‘getting inside’ them, we have a better chance of understanding what makes them tick. This can help us prepare for surprises and modify our own approach accordingly. To really appreciate US frontier spirit and how it is at the root of the American character will explain and predict much of their behaviour – such as their impatience to act, drive, risk-taking and individualism.
Rule 2 is that it is equally important to attempt to search for common ground. The horizons of any two cultures can be quite different, but it is usually possible to find commonalities – and these are a good way to start building liking and trust.
Here is some common ground (in the middle) between the English and Arabs:
Rule 3 is to understand what cultural type we are dealing with and ‘change cultural gear’.
Independent research and experiments by Dr. Ursula Ott, using game theory, have shown there is a high correlation between the three types and how they negotiate with regard to price and time, as follows:
Linear cultures (e.g. Americans)
Time is money and they tend to want to complete negotiations quickly (Germans are an exception to this) and factually.
When linear people are negotiating together the difference between the initial offer and the final negotiated price tends to be around 5%.
Multi-active cultures (e.g. Arabs, Emirati, Brazilians)
Negotiation is an art to be enjoyed and human force and relationships play a big role. It takes rather longer than for linear cultures. The difference between the initial offer and final negotiated price can be as much as 40-50%. Linear-actives be prepared!
Reactive cultures (e.g. Chinese, Japanese, Koreans)
Building up trust is key, and this takes time. So do indirect communication, face-saving issues, and hierarchical concerns. Patience is a virtue when negotiating with this cultural type. Typical difference between the initial offer and the final negotiated price is 10-15%.
Rule 4 is to take differences in communication patterns during negotiation into account. Just compare the German and Russian styles:
For Germans context and thoroughness are key, as are structure, facts and honesty.
A sure way to build trust is to be open about potential problems that are not in your favour – as long as you show what your plan B is if things do indeed go wrong.