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By Craig Frank
Your company's entry into the U.S. market will
undoubtedly include strategic partnerships and joint marketing or service
agreements with American companies. The deal you cut with these companies
will be a function of your negotiating skills and your ability to adjust
to the American view and execution of the negotiating process. Here
are some hints:
- Americans conduct business at a rapid
pace. They often want to complete a preliminary understanding at the
first or second meeting. If you want to do business with them, you
need to be able to decide quickly.
- Americans can be blunt and appear to
be abrupt. There is no understanding of the concept of allowing the
other side to "save face" when the negotiations are going
against them.
- Americans are extremely profit oriented
and will place profit before most other considerations. They do not
place protocol, honor, personal status or other principles above profit.
- Americans are risk takers and often strive
to control most business deals. If you require their capital as well
as their contacts, be prepared to relinquish some aspects of control.
- Negotiations are conducted according
to a set policy. The individual negotiator is bound by the confines
of that policy. Nonetheless, Americans enter negotiations with more
than one position and are prepared to be flexible, in accordance with
their perception of the "power" relationship between the
two sides. Americans believe there is always a way to resolve a negotiating
dispute and will seek to explore all options. If you wish to close
a deal, you should have fallback positions as well, since the Americans
will not understand that your stated position is your only position.
Conversely, once the deal is closed, the Americans will not seek to
change it.
- During the negotiations, the Americans
will make their points by pointing out supportive facts. They rarely
use emotion or emotional arguments to make themselves understood.
The goal is either to have the other side agree or admit defeat. Emotions
are not part of the equation.
- Americans do not like long periods of
silence during negotiations. It makes them feel as if scheming or
other unacceptable planning is taking place.
It is within the process and environment detailed
above that non-U.S. companies would seek to negotiate and partner with
American firms. Here are some things you can do to improve your chances
of achieving your negotiating objectives:
- Establish a Good Comfort Level - tense
negotiations make people less accommodating. Establish a good comfort
level by listening to the other party, acknowledging good points made
and making reasonable responses. Americans are aggressive negotiators,
but they are not interested in a negotiating process that spoils the
cooperative relationship that needs to be implemented once the negotiations
are completed.
- Create Trust - credibility in negotiations
is crucial. If you pull a "bait and switch" or backtrack
on a commitment you already made the American side will lose faith
in you and begin taking tougher stances. Always deliver on your promises.
Never over-promise or under-deliver.
- Know What You Want - enter the negotiations
with a clear and realistic expectation of what you want and need to
make the deal worthwhile and practical for you. Be prepared to make
quick decisions, and to do that you need to know where your red lines
are and where you can compromise.
- Understand the Other Side - just as you
have expectations and limitations, so does the other side. Do your
homework. Try to understand what the other party is seeking and try
to estimate what they should be willing to provide in exchange. Also,
understand their limitations. Asking for something outside the other
party's range is a non-starter.
- Make Sure You Have the Right Lawyer -
the United States is the most litigious society in the world and there
are lawyers specializing in just about every industry. Make sure you
have a smart, experienced attorney with you. While you may be expecting
the agreement to simply reflect the clauses agreed upon in the negotiations,
the lawyers will add exits, protection clauses, penalties and a slew
of other legal maneuvers that will come back to haunt you if your
lawyer isn't up to par.
The Americans may negotiate hard and be careless
with the traditions and cultures of others. In trying to access the
richest market in the world, you may indeed need to put some pride aside.
Yet, once the agreement is signed, you can expect the Americans to be
diligent in their fulfillment of the agreement and work together with
you to maximize profits for themselves
and you.
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