Negotiation Styles
Your communication skills will be put to the test during negotiations, especially if those negotiations include people with different personalities, approaches, and comfort levels. In international negotiations, differences in culture and communication styles become even more apparent. Read this article, which gives an example of Chinese and Brazilian companies negotiating an agreement and highlights the importance of finding a common understanding.
Make it a Win-Win
Zhou noted that in addition to knowing the other culture's background, it is also important to know what the other side hopes to accomplish in each individual negotiation. One strategy he found particularly effective was approaching the negotiation with multiple goals in mind rather than one critical issue.
"In a negotiation, we have many issues. Maybe we focus on one, two, three issues; maybe you focus on four, five, six issues. So we can make an agreement eventually. If we all just focus on one or two issues, we can get stuck", Zhou said. "Negotiation is not a zero-sum game. It should be win-win".
The mock negotiation may have started slowly, but as Paulson prompted students to discuss the strengths and weaknesses of the business cultures in the U.S., China, and Brazil, they quickly developed a common understanding and opened up. The simulation intensified, as the executives animatedly exchanged offers and shot down proposals they deemed inadequate. When it was over, many students weren't ready to quit.
"This session was too short", said Petrobras student Marcos Baião. "The results were wonderful, but it could be better with more time".
Paulson says the students' experience in the simulation is likely to translate into practical skills with immediate relevance. Sinopec and Petrobras recently concluded negotiations on a deal to develop offshore oil drilling on the coast of northern Brazil, where Sinopec is rapidly expanding its operations.
"The world is moving fast, and cross-culture negotiations occur every moment, but in many circumstances, culture has become a barrier and reduced efficiency", said An from Sinopec. "Cross-cultural communication skills are vital to business development".