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The Art of the Deal

Partnering with overseas companies makes sense. Cultural issues and differences can be effectively bridged in the often frustrating — and sometimes painful — process of negotiating a contract. Understanding the negotiation process from the perspective of the American partner will give you an advantage in crossing the cultural gap.

See the View from the States archive for Mark Dollinger's view on aspects of doing business in the United States.

Americans are unfailingly polite and will usually express interest, even during the early stages of negotiations. Some believe that Americans simply do not know how to say no — until there's serious interest in closing the deal.

What are some of the ways to overcome the potential barriers in the negotiation process to help move the process forward to achieve successful results and foster better cross-cultural understanding? Here are my top six pointers.

		Be prepared. Do not go into negotiations thinking you'll figure things out along the way. This strategy guarantees surprises, misunderstandings, and confrontation, the very things you want to avoid. The most important thing you can do in preparing for negotiations is to understand the other side — their needs, wants, and red lines (barriers). If you act with understanding, the entire negotiating process changes. Working from the "other side" of the table allows for greater understanding and makes you a better negotiator as you will get more of what there is for you.
		Mean what you say and say what you mean. When it comes to reaching an agreement and closing a deal, Americans are sticklers for clear, well-written language. Make sure the language in your contract is carefully written and reviewed (hire a lawyer, if necessary) and it accurately reflects your capabilities and position.
		Negotiate hard but be fair. It is best to begin from a reasonable position because Americans have no trouble identifying and saying no to deals they feel are unfair or unbalanced. Remember, too, that with the exception of negotiating on the price of a car, Americans don't have the same "bargaining" mentality so often seen in Israel. They will walk away from the table if there are too many surprises.
		Defend your position. Americans are good listeners. If your position makes sense it will receive a proper audience.
		Keep your sense of humor. Americans much prefer laughter to screaming. Keep the face-to-face negotiations positive and accommodating. Avoid direct conflict whenever possible. Refer to the documents you prepared (and distributed or sent ahead) for the negotiating table to ensure that you and your negotiating partner are "on the same page."
		Commit only to what you can do. Don't agree to meet a condition you know is unreasonable. Don't promise to deliver a quantity that is unrealistic or claim to adhere to standards that you have no experience with or don't understand. While the negotiation stage might be a dream come true for you and your company or technology or product, it might quickly turn into a nightmare if you agree to unrealistic expectations, be they in terms of time, money, or strategy. You are much better off addressing these issues during the negotiating sessions not after the contract is signed.