Posts Tagged ‘French’

Negotiating In France & Korea: It’s Like A Whole Different World

Friday, December 9th, 2011
Image Credit Negotiating In A Different Country Is Like Visiting Another Planet

Negotiating In A Different Country Is Like Visiting Another Planet

Got a great email from reader Nadir Benouali the other evening. Nadir has a fantastic set of negotiating experiences and was willing to share them. Nadir is a US citizen of Algerian origin, and speaks Arabic, Spanish, and French. He has spent the last 20 years negotiating business around the world which provided exposure to all of the differences that the world has to offer.

Negotiating In France

Nadir tells the following story about negotiating in France.

“While in Paris, France our distributor took us to a wonderful local restaurant serving “une restauration du terroir” an authentic French cuisine indeed. The next day my French distributor wanted me to ask my boss about his experience in that restaurant. To my dismay, my boss told me how it was the worst meal he ever had, and how that evening he called a cab to take him to Burger King on the Champs Elysées! I almost had a heart attack. I told my French distributor in French how my boss will never forget that experience (I never lied).”

Nadir says that the French negotiation skills are indeed different than ours for one simple and so important reason. They think and act philosophically! Americans think and act mathematically!

He goes on to explain: the French educational system is based on elaborate essays whether in science, math or otherwise. A French student must explain his reasoning. An American student answers multiple choice questions, and he is allowed one hour during his exam whereas the French student is allowed between two and four hours.

History plays a role in French everyday life. The French still feel the effects of Montesquieu, Voltaire and Rousseau. Therefore when negotiating with the French an American should expect a debate rather than a yes or no process.

The French mind and psyche carries a social spirit. Not socialist, but social! They view wealth as a Marie Antoinette syndrome, and tend to favor a middle class approach to business. This view is shared among most small to medium companies whereas the elite French corporations like Loreal, Channel, Michelin etc. not only never share information about their wealth publicly, but also act as royals in private. Nadir believes that the spirit of Louis XVI is still alive.

Negotiating in Korea

Nadir went on to tell stories about negotiating in Korea. Needless to say, it was completely different from his experiences of negotiating in France. Here’s what he had to say.

“In Korea my distributor humiliated my boss by telling him how I was better than him. I knew the reason for such a comment came from the fact that I knew well the history of South Korea, its sacrifices and today’s rewards and achievements. Also that I shared my enthusiasm for his country.

Nadir said that “His key motivation for offering me this complement was that I had helped him achieve more than he had expected. He had been able to gain the respect of his largest customer because I had understood the expectation of this customer.”

Nadir had been able to offer a solution in a form of a consultative selling which had nothing to do directly with his product. Therefore, he created a need for his company’s product in the eyes of his distributor and it took only 5 minutes to turn all the negotiations on prices, products and orders into a real winning recipe for Nadir’s company.

Nadir believes that Asians, whether Koreans, Japanese or Chinese, uphold respect from their customer or boss as the pinnacle of their professional achievement. He uses this “sweet spot” to his advantage by anticipating what would the big bosses want their employee to achieve with him or what would their large customers want and expect from them.

Nadir offers the solution in front of either the big boss or their respected customer, and enjoys watching his distributor get approval. From that moment he not only get the respect he needs, but he can also impose a specific product at a specific price that he was able to explain to their largest customer, and who was enthusiastic about.

What All Of This Means For You

Nadir’s stories drive home a key point that all sales negotiators need to remember. Negotiations are different in every country. Everyone has different negotiation styles and different negotiating techniques.

Nadir’s examples pulled from experiences in France and Korea show that much more than a knowledge of what is being negotiated is needed. A knowledge of the culture and how respect is earned and shown is needed in order to be able to conduct a successful sales negotiation.

It’s stories like the ones that Nadir has shared with us that make us aware that even though the world that we live in is growing smaller, we are all still different. In order to be able to successfully reach a deal during a negotiation, we all need to be able to understand and work with a variety of other cultures.

- Dr. Jim Anderson
Blue Elephant Consulting –
Your Source For Real World Negotiating Skills™

Question For You: What is the best way to learn about a culture that you will be negotiating in?

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What We’ll Be Talking About Next Time

I can only speak for myself, but when I’m headed into a negotiation I like to have as much freedom to do things as possible. That’s why I tend to shudder when I discover that there are regulations or even laws that are going to impact the negotiations. However, maybe I’m not looking at the complete picture.

Sales Negotiators Know That Authority Looks Different Around The World

Friday, July 22nd, 2011
Image Credit
Authority To Negotiate Differs Depending On Where You Are

Authority To Negotiate Differs Depending On Where You Are

When you sit down to conduct a sales negotiation, you need to be assured that the people sitting on the other side of the table have been granted the authority by their company or organization to reach a deal with you. Under normal circumstances this can hard enough to do; however, when the other side is from another country, this gets even harder to determine.

The Difference Between The United States And Everywhere Else

Negotiating between parties that come from the United States and those who come from other parts of the globe can quickly become complicated. One of the reasons for these complications is because different cultures permit their negotiating representatives to have different amounts of negotiating authority.

An example of one style of negotiating authority comes in the form of representatives from the United States. For a wide variety of reasons based on both business structure and social norms, U.S. negotiators are often given a great deal of authority to negotiate and close deals. They don’t have to appeal to a higher authority to get approval for the deal and they are permitted to close deals by themselves.

This allows sales negotiations to move very quickly. Assuming that you can convince a U.S. negotiator to agree to a deal, you have the chance to walk away from the table with a signed deal that you can have confidence will be executed.

How It’s Done In Other Countries

When you start to invite representatives from other countries to the sales negotiating table, things can change quickly. I need to be clear here: not every negotiator from each country behaves exactly the same way. These observations are designed to paint a broad picture of what you can generally expect to encounter.

Based on where the other side of the table is from, here’s what you may encounter when you are conducting a sales negotiation with them:

  • French: when French negotiators are sitting on the other side of the table, don’t expect them to have been given a great deal of authority. Instead, they’ll have to take any deal that you reach back to a central authority for approval.
  • British: British negotiators are often given the same amount of authority as U.S. negotiators and no approval from a higher authority is required.
  • German: once again, German business is fairly well distributed and so German sales negotiators are permitted to close most deals.
  • Chinese: Chinese negotiators have very little authority. To make things worse, they will often put on an appearance of having a great deal of authority; however, in the end they will always have to go back to a higher authority in order to get approval for even the smallest of deals.
  • Japanese: once again, Japanese negotiators have very little authority. The Japanese culture is built on reaching internal agreement and so you should expect the other side to have to go back to their management in order to get internal agreement on the deal that you have reached.

What All Of This Means For You

Successful negotiators have the ability to be aware of their surroundings at all times. It turns out that this needs to include understanding where the other side of the table comes from and how their culture approaches deal making.

The U.S. style of negotiating pushes most of the authority for closing a deal down to the negotiator who is sitting at the table. The British and German cultures operate in much the same way. However, the French, Chinese, and Japanese cultures give very little authority to their negotiating representatives and require all deals to be taken to higher powers in order to get approval.

Negotiators who are aware of how much authority the other side of the table brings with them will always be better prepared. Knowing what will happen after a deal is reached makes reaching that deal that much easier to do.

- Dr. Jim Anderson
Blue Elephant Consulting –
Your Source For Real World Negotiating Skills™

Question For You: Do you think that it would ever be a good idea to insist that a real decision maker be a the table during an international negotiation?

Click here to get automatic updates when The Accidental Negotiator Blog is updated.

P.S.: Free subscriptions to The Accidental Negotiator Newsletter are now available. Learn what you need to know to do the job. Subscribe now: Click Here!

What We’ll Be Talking About Next Time

One of the great myths of sales negotiating is that you always have to know everything about everything. It turns out that even the great negotiators can’t do this. There are a whole bunch of reasons why, but the important fact is that it’s not possible to always be on top of everything. It’s what you do when you find yourself in this situation that will distinguish you from other negotiators.

The Challenges Of Negotiating Internationally

Friday, June 10th, 2011
Image Credit Negotiating Is Done Differently Depending On Where You Are

Negotiating Is Done Differently Depending On Where You Are

Got a great email from reader Nadir Benouali the other evening. Nadir has a fantastic set of negotiating experiences and was willing to share them. Nadir is a US citizen of Algerian origin, and speaks Arabic, Spanish, and French. The last 20 years have been spent negotiating business around the world which provided exposure to all of the differences that the world has to offer.

Americans Negotiating In Different Countries

All too often American negotiators are aware of all of their shortcomings: lack of language knowledge, cultural issues, etc. Nadir points out that being an American is an advantage. Bring a photocopy of Hollywood (Marilyn Monroe), Eisenhower and Kennedy, an F-16, NASA, CNN, Wall Street, GE, HP, Microsoft, General Motors, Exxon, Motorola, Google and so on along with you to a negotiation anywhere in the world and you have instant status.

The point is that when an American travels overseas to negotiate, he/she should not carry a 200 year old cultural inferiority complex when compared to the old world like Asia, Europe or the Middle East. The reason is that people from other countries look at Americans as achievers.

America is viewed as being a country that has introduced many fantastic technologies and solutions to the rest of the world. This is a powerful position to be in when you are negotiating with the Italians, the French, the Chinese, the Algerians. Everyone is looking for a solution and America and Americans are seen as having the solutions that they need.

When negotiating with people from other countries, the other side of the table expects good products, good prices, training etc. However, American negotiators often have a lack of cultural knowledge about the rest of the world, and it can sometimes be a detriment to successfully reaching a deal.

Examples Of International Negotiations Gone Bad

Nadir has a lot of great stories about international negotiations. The president of one of Nadir’s previous employers did not know where Argentina was located, and on another occasion he confused Taiwan as the capital city of Hong Kong to the dismay of his distributors. He knew nothing about the history of any country of the world. Sadly, this was a clear example of what is often the weakest part of an American involved in international negotiations – geographical awareness.

When in Barcelona Nadir’s Spanish distributor insulted his boss and shouted out loud “You have no culture, have no taste, you do not know how to enjoy life, you just work, work, and [want] money, money” This happened when Nadir’s boss put pressure on him to deliver more sales results. The business relationship ended that same day.

Nadir’s Italian distributor treated the negotiating team very well, brought all his distributors from all over Italy for a corporate training, and after one year not a single sale had happened! When they checked on him, they found out that by signing a contract with Nadir’s company as a sole distributor it was also his way to cut the company out from the Italian market, but most importantly kept them from participating in the largest sale that happened during that year.

After some soul searching, Nadir’s company understood that this distributor was ready to spend thousands of dollars for his “spaghetti movie” to lure the company into believing that he was the right choice for us. He succeeded and they lost.

It’s About More Than Just This Deal

In the Middle East, the other side of the table’s American educated managers understand the American expectations and they are also familiar with the American technology. They just want good prices, exclusivity, training etc. They speak English and not French nor Spanish. This allows them to deal smoothly with English speaking negotiators.

Chinese and other Asian countries look at business as a relationship build up process and not just a sales opportunity. They place a major importance in the long term while the short term is part of the buildup process. Americans are just the opposite. More often than not, only large corporations are successful negotiators simply because they have the funding that allows them to participate in extended negotiations – making the deal depends on cash flow limitations!

Another weakest link issue is on the fact that US publicly traded companies must show gains at the end of their operating cycle, thus the pressure from their international operations. Whereas, Asian traded companies like Mitsubishi, Sony, Sumitomo are conglomerates known as Zaibatsu in the past, but still function in the same cultural spirit today can afford what a US publicly listed company cannot. Therefore, negotiating expectations from both sides are different.

On one side, we want results fast, and on the other one we want to build the steps that will take us to a lasting business relationship first. A Japanese executive from Minolta Corporation now Sony whom Nadir met in Osaka told him how he finds Americans culturally ignorant while praising the American way of life and how sophisticated it is.

What All Of This Means For You

Nadir’s stories just go to show that no matter how good you get at negotiating on your home turf, all bets are off when you start to negotiate internationally. Different cultures and different customs can quickly make even the most straightforward negation much more difficult.

If you are an American negotiator, you have strengths and weaknesses that other negotiators may not have. America is a well-thought of country with a great deal to offer; however, all too often American negotiators have not done their cultural homework to prepare for an international negotiation.

It is always possible to be successful when you negotiate internationally. You just need to be aware of the differences and you need to prepare yourself for a negotiation that will be unlike any others that you’ve ever had!

- Dr. Jim Anderson
Blue Elephant Consulting –
Your Source For Real World Negotiating Skills™

Question For You: What’s the best way to prepare for an international negotiation?

Click here to get automatic updates when The Accidental Negotiator Blog is updated.

P.S.: Free subscriptions to The Accidental Negotiator Newsletter are now available. Learn what you need to know to do the job. Subscribe now: Click Here!

C’est La Vie – French Lessons For Sales Negotiators

Tuesday, April 28th, 2009

Sales Negotiations With The French Requires Understanding Of Two Key Differences

Sales Negotiations With The French Requires Understanding Of Two Key Differences

So what is your view of the the French? Is your view of this magnificent county and its people shaped by those Inspector Clouseau movies that you used to watch while you were growing up? If it was, then it’s time to get over it and move on – they negotiate much differently than you do.

As with all things in sales negotiations, there is no right or wrong as long as you are able to eventually reach a successful conclusion to your sales negotiations. The trick when dealing with the French is to realize that they approach negotiations differently than either Americans or British do.

There are two key characteristics that every sales negotiator needs to know when dealing with French negotiators. The first is HOW they approach sales negotiations, and the second is HOW they view concessions.

In all honesty, we Americans always seem to be in a rush when we enter in to a negotiation – we work from the bottom up. We pick the first point, try to hammer out an agreement, and then move on to the next point. The French have a completely different approach – if I had to use a 50 cent word I’d call it a more “holistic” approach.

The French prefer to work on a sales negotiation from the top down. They’ll try to reach agreement on the basis of some broad principles first, and spend time working out the details. While they are working out the details, they will constantly refer back to the central agreement on the broad principles. Since you start from a point of agreement, it always seems like the rest of the work is just sorting out the details and that an agreement will eventually be reached.

When it comes to concessions, the French have a very strong sense of quid-pro-quo: they always want to get something in return. Unlike Americans, the French have no problems tying strings to their concessions – you are going to have to give something up if you want to get them to give in on a point.

There you have it, it is possible to reach a successful sales negotiation deal when the other side of the table is French. You just have to remember that their approach to the negotiation and to concessions will be different than yours and you are going to have to change to make the deal work out.

Have you ever had a chance to participate in a sales negotiation when the other side of the table was French? Did they seem to be approaching the negotiation in a top-down fashion? Did you end up giving up something every time they made a concession? Leave me a comment and let me know what you are thinking.