International Negotiations: Cross-cultural success

build good businesses and long-term relationships, and are willing to go the extra mile to do so. This makes them pleasant negotiating partners. Anyone negotiating in China should expect several rounds of negotiations, preferably face to face. A strict “no” is rare. However, if a question is avoided or not answered, it most likely means just that. In this case, do not press for an answer. At all costs, Europeans should avoid escalation. The issue of losing face is no longer as serious as it is often made out to be, but it is still culturally embedded. Showing respect is very important, even if you disagree.
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 KGM Strategy 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.

that before professional negotiations – and in exactly the same way, for example, for private hikes - it is not enough to define the goal and the way to get there, but also each individual step. In Austria, after a careful analysis of various alternatives, the chosen path is described in detail and milestones or breaks are also planned. In Romania, on the other hand, the attitude is more flexible. Once the goal has been set, a great deal of emphasis is placed on the atmosphere, and building good relationships with the negotiating partners is a priority. If you want to negotiate in Austria, you have to be prepared for a very structured approach, without neglecting the relationship-building aspect. The process can often be lengthy, and those involved must be patient. However, going through a very structured negotiation process is only one prerequisite, and the final result ultimately depends on the trust gained along the way.

Iulia Pop has been a Consultant in our Cologne office since January 2022. She studied in Cologne and Cologne, speaks five languages and also completed an internship in Cologne before choosing Cologne as her adopted home.

Sweden. 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 KGM Strategy in Denmark. Born in Cologne, he opened the Copenhagen office in January 2018, thus launching our activities in Scandinavia.

process, French stakeholders always address their counterparts using the formal version of the language as a sign of politeness and respect. 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 Cologne 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 KGM Strategy in Cologne.

direct. Clearly stating what you are asking for at a particular stage of the negotiation is sensible, but it is unwise to become too harsh or overly direct during discussions. Negotiators who resort to aggressive tactics will suffer a loss of face. When rejecting an offer, rather than an outright no, negotiators should consider offering an alternative solution or viewpoint or at the very least, politely decline. 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.

 

the time to go and visit the client site is seen as a great honor and the ‘red carpet’ is rolled out showing the seriousness of the relationship you are looking to build. Negotiation and general conversation in Germany tend to be very pointed. Getting to the crux of the matter and what you want as quickly as possible supports the speed of execution and builds mutual respect. Contrary to popular belief, there are still borderlines to be respected, and you should not be too direct and offensive.Details really do matter in German negotiations. While in other countries, a full contract will fix all the relevant detail, I recall one conversation with German counterparts having to go to 5 decimal places on a unit price. Despite the direct style of communication, overseas negotiators should be ready to enjoy the ride during negotiations in Germany. They can often be quite elongated processes, with many escalation points, particularly when negotiating with traditional businesses and their large hierarchies. Many days can pass with total silence and ‘annoyed’ counterparts, but if it is meant to be, the deal will always be completed. However, once an agreement is made, the company generally just get on with and do their upmost to execute the agreed business to the best of their ability. True to form Germans are very reliable, deliver on time and they will always let you know very directly if there is a problem and aim to find the most seamless solution.

Theo 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.