Chapter 5: FACE-TO-FACE Sizing Up Your Counterparts

CHAPTER 5

Face-to-Face

S IZING U P Y OUR C OUNTERPARTS

FIRST IMPRESSIONS are a big part of society and business as a whole, and they’re even more significant in international business. Starting off “on the wrong foot” can seriously damage negotiations before they’ve even started. It does not take long to create a good impression and even less time to create a bad one. The following tips can spell the difference between a negotiation success and a lengthy, expensive failure.

Impressive Behavior

PUNCTUALITY No one in the history of commerce has ever erred by being on time. Plan on setting out for meetings with time to spare, particularly when unfamiliar with the location. Even when counterparts have a seeming indifference to time, punctuality will always keep the professional ball in your court.

APPEARANCE Often, hosting companies will wish to meet their visitors at the airport.

Regardless of the visitor’s fifteen-hour flight with the four-hour layover, a professional appearance must be maintained. Plan on changing into business attire (or at least a set of fresh clothes) prior to arrival. Wise travelers always carry a change of clothes and their toilet kit with them, just in case their check-in baggage gets lost. Never let your counterparts see you at your worst, especially if it’s the first time they see you. The visitor’s accommodations must have facilities that permit the negotiators to maintain hygiene and laundry. This can sometimes be difficult in the developing economies and may even require equipment (e.g., irons, steamers) to be brought along. Negotiating staff must be capable of looking their best under the bleakest of circumstances. This is another reason why high maintenance personnel shouldn’t be selected as negotiators. Hosting negotiators also need to be concerned about their appearance, particularly when they’re acting as sellers or attempting to attract investors.

Researching their visitor’s business standards and acting in accordance with them is recommended. Stubbornly adhering to “the way we do it here” will only make the negotiations an uphill battle.

ENTHUSIASM Chief negotiators and those working solo must “psyche up” for every round of meetings as if it were the first round. Any feeling of “here we go again” must

be banished. Enthusiasm must flow from the top and every member of the team must feel its effect.

Visitors always have the more difficult time maintaining their level of enthusiasm and even more so as their international experience grows. The charm of travel soon becomes a burden and the long stays away from home wear on one’s personal life. This isn’t just true for negotiators who leave behind families, although the effects are more telling in their cases.

Assigning new duties or allowing subordinates to take key roles (with guidance) during meetings will keep everyone on their toes and force them to focus anew. Another technique for rejuvenation is the inclusion of novices on the team. This can allow the old-hands to hold forth, and giving experienced team members the opportunity to “strut their stuff” can work wonders.

Keeping a good balance between work and play will also serve to maintain a high level of enthusiasm. Make sure enough free time is scheduled and that social events aren’t entirely work related. Team members and solo players will need some time to themselves without being made to feel guilty. Burnout is rampant in international business (particularly for staff with high travel rates) and it’s usually the result of overscheduling.

TEAMWORK When meeting counterparts for the first time, it’s important that an organized, cohesive team spirit be evident. The first meeting with counterparts will indicate to them just how much work lies ahead. The psychological impact of meeting a monolithic team that is both organized and directed can be devastating.

Conversely, disorganized, feuding teams spell success only for the opposition. It’s important that teamwork be demonstrable to some degree at the first meeting (airport or otherwise). Such visual cues as uniformity of dress, prominent company lapel pins, or even matching binders should be linked to a willing deference to the team leader. Counterparts will know that they’ve just met a team with a single purpose. Maintaining this level of cohesiveness will become essential if Divide and Conquer tactics are to be thwarted.

CONGENIALITY Like punctuality, congeniality is conspicuous in its absence. Being affable and outgoing at the first meeting will only serve to ingratiate you to counterparts. If the time comes to take a less cooperative stance, so be it. When necessary, it’s always easier to move from congeniality to a less agreeable posture than in the reverse direction. Be aware that not every culture expresses its friendliness in the same way. Cultural research will provide negotiators with the verbal and visual cues necessary to pick up on (or display) friendly behavior. WARNING: Bear hugs may be demanded one week and polite bows the next. Congeniality wears many faces.

RESPECT The term “respect” is often used but greatly misunderstood. In its literal sense, it means to “look at intently” (though few of us would consider staring a sign of respect). Some equate it with “admiration,” while others construe in it a sense of

“equality.” For the purposes of this book, respect will be viewed as the opposite of contempt.

Treating counterparts with a sense of respect (until they prove otherwise unworthy) is the most positive way to enter negotiations. As with congeniality, moving from respect to contempt is easier than the reverse. Also, if you’re willing to fly halfway around the world to deal with contemptible companies just for the sake of profit, what does that say about your own company?

Often, people are unaware that they’re expressing contempt or that they’re being condescending or patronizing. Visitors who complain about food quality, accommodations, road conditions, local service personnel, or even the weather may cause their hosts to believe that the local culture falls beneath their guest’s standards. Hosts who comment unfavorably on the conditions of the visitor’s homeland or political situation will be causing similar harm. Feelings—and negotiations—can be hurt in a thousand avoidable ways.

How to Host Introductions

AT THE AIRPORT When meeting the visitors at the airport, check in advance to make sure flights are on schedule. Arrive early depending on the degree of difficulty and amount of time forecasted for your visitors to get through customs and immigration. Hosts should make every possible effort to ease both of these processes for visitors especially if specialized equipment is being transported for the negotiations.

Precontacting customs officials (when possible) to give them a “heads-up” can greatly speed the process when specifications have been forwarded by the visitors.

This bit of graciousness will impress the visiting team/negotiator and immediately place them in your debt—a very propitious position for hosts in the selling mode. If the director, president, or general manager cannot be on hand for the greeting, send the next highest official available. Never send just a driver. Host personnel should include a translator if possible (and necessary) as well as a tasteful, professional looking greeting sign to catch the eye of the visitors as they approach. (No marking pen on cardboard signs please.) A computer laser print of the name in extra-large type works well. The sign should also be printed in the visitor’s native tongue regardless of their ability to understand the host’s language.

It is an extra touch that will go a long way. Make sure spellings have been triple checked. If the visitor’s company logo can be included, all the better. If the airport is a mob scene, as most international airports are, an area off to the side or a private room should be set apart for the ceremony (yes, ceremony).

A culturally related presentation is wise as it reinforces the idea that the visitors are entering a new culture not just a business venture. Otherwise, a brief group welcome and wishes for a mutually successful outcome are in order. Individual introductions should be done by a predesignated member of the host team. Do not let the introductions proceed in a haphazard manner. A welcoming packet of information should be distributed to all members of the visiting group at this time. Keep the ceremony brief and make it clear that the visitors will be taken to their hotel ASAP. If it is a morning arrival, it is certainly acceptable to extend a dinner invitation but keep your visitor’s fatigue and jet lag in mind. No actual business

SUGGESTED C ONTENTS FOR I NFORMATION PACKETS

Official governmental welcome • City and country maps Meeting agendas • List of local restaurants Cultural activities list • Shopping information Sight-seeing information • Local events schedule Transportation guide • Logo T-shirt or hat

should be conducted until the visitors are prepared both physically and mentally. Let the visitors control the first day’s agenda. Rushing the process may be interpreted as a tactical maneuver rather than efficiency. Visitors should then be driven to their hotel (at host expense) and their check-in should be facilitated by a member of the host team regardless of who made the reservations. Check back after a short interval to make sure the accommodations and service are adequate. NOTE: A well-treated guest is an agreeable guest and agreements are what negotiations are all about.

AT THE COMPANY FACILITY Welcoming visitors to the company’s facilities is an exercise in graciousness and intimidation. Hosts must simultaneously make the visitor feel welcome and make it clear that this is not neutral turf. Keeping home court advantage is, after all, the reason negotiations are being conducted at the host facility. Hosts should present their company in the best possible light but should not seek to put on airs. A small electronics manufacturer on the outskirts of Caracas cannot pretend to be on equal footing with IBM, and it would be counterproductive to attempt to do so. Hosts need only to be comfortable in their surroundings in order to maintain advantage. A brief formal welcome should be first on the agenda with all pertinent staff members being introduced. (Some cultures move from least important personnel to most important while others do the reverse. Also, some cultures permit a second-in-command to take the lead in these situations.) These introductions should be followed by a short (less than an hour) tour of the facilities. Specialized, detailed tours can be arranged later. Some companies may offer a small welcoming gift at this time, although it is not required. Professionally printed name tags should be offered to visitors and worn by hosts as well. Check the spelling and be capable of making corrections in-house.

How to Make an Entrance

AT THE AIRPORT Foreign visitors must also be prepared to deal with a certain degree of inconvenience upon arrival at airports or frontiers. Often inefficient, officious customs and immigration personnel will add hours to an already long day. Keep frustration to a

minimum as it may only delay the process. Acting indignant or taking a “don’t you know who you are dealing with?” attitude simply won’t work. If particularly sensitive equipment or personnel are brought along, the host company as well as embassy personnel should be alerted in advance in order to facilitate entry. Keep in mind that in many countries, any altercations at the point of entry may result in the host company being held responsible. This will definitely be the case when a formal invitation is involved. Confiscated equipment, limited visas, a fine, and a government reprimand for the hosts is a less than auspicious way to begin negotiations.

Once the passports have been stamped and customs cleared, allow time for the hosts to offer their welcome. If infirm or elderly members of the visiting team require immediate exit from the airport, let the hosts know well in advance. (The airphone or on-board Internet access are the best way to keep hosts updated if there are in-flight delays or special updates.) Beyond the grooming concerns mentioned earlier, visiting staff should be attentive and enthusiastic upon arrival. Though it may be a lot to ask after twenty-four hours in transit, every member of the team must exude a happy-to-be-here attitude.

AT THE HOST FACILITY If the hosts have not chosen to meet at the port of entry, or there are multiple contacts, the first meeting may occur on their turf. Visitors should arrive punctually and be prepared for a certain amount of ceremony before work begins.

Small gifts such as company logo pens should be brought along but only distributed in return for welcoming gifts presented by the host. Do not upstage the host’s generosity or lack thereof. The host may wish to give a tour of facilities prior to the start of formal discussions. Visitors can only hope that the host has read this book and keeps the tour brief, otherwise endure the process with aplomb. Enthusiasm is required but asking too many questions will only extend the tour. Visiting staff under no circumstances should indicate that they find the facility lacking or comment upon employee working conditions in an uncomplimentary or concerned fashion. WARNING: Political or social activists should not be part of the negotiating team. Unsavory working conditions and low wages should have been revealed and discussed during the research process well in advance of travel. If unforeseen and unfortunate circumstances do arise, they should not be discussed within earshot of the host until the team has had a chance to formulate a position. If you are a solo negotiator, do not let knee-jerk reactions to events jeopardize the deal. Take time to think through the problem before stating your objections or opinions.

Visitors should always dress for initial meetings with an intention to err in favor of formality. Business suits should be worn (even in hot climates) as a sign of professional respect until the proper tone of the negotiations has been set by the host. Visitors should be prepared thereafter to work in anything from suits to polo shirts. Some companies ask their hosts in advance regarding dress standards so as to facilitate packing. Business related social events that may require special clothing, such as golf or hunting, may receive this same type of inquiry.

The first meeting may turn out to be a completely social event with little “real work” being done. The cocktail receptions, luncheons, cultural tours, and dinners may all appear as innocent forms of welcoming but they are in fact a means to

take the opposition’s measure. Members of either side may be engaged in idle conversation, but background information will be solicited. Social skills will be assessed and pecking orders delineated. Cultural acumen, marital status, education, strategy, and business sophistication will all be exposed then duly noted. The opposition is looking for chinks in the armor as they pour the champagne. Visitors must keep their guard up, and all team members should be briefed about maintaining their dignity as well as a unified front. Generally, a word to the wise is sufficient, but special care should be taken with younger, inexperienced members of the team. Also keep in mind that turnabout is fair play.

AT THE HOTEL On occasion, the first meeting is held at the visitor’s hotel. Sometimes this is due to a lack of proper space at the host facility or it may be a question of travel time on the first day. Long-term scheduling of meetings at the visitor’s hotel is discussed later. The visitor suddenly finds himself confronted with a duty to be both host and guest for a very important part of the negotiating process. A hotel that reflects the company’s status should have been selected in advance with the needs of this meeting in mind. Some companies will rent meeting rooms while others will utilize the living room space of a suite. When these choices are not available or within budget, the lobby or the hotel dining room is an acceptable substitute as long as some degree of privacy can be found. Visitors will be held responsible to a degree for any shortcomings of the hotel (or its staff) and it should not be selected casually. Appearance, quality, clientele, location, service, and even union representation may all play a part in how the visiting company is viewed by their counterparts. Guests should be welcomed by a member of the visiting team and escorted to the proper area. If traveling alone, the negotiator should not wait to be called from their room but instead anticipate their guest’s arrival in the lobby. Cordiality is appreciated worldwide. If business is to be conducted on the first day, it would ensue after brief introductions and well wishing. Adjournment to the dining room, meeting area, or suite would be in order. Some form of food and beverage should be offered throughout discussions. Regardless of a buying or selling position, the visiting team will be in charge of running the meeting just as if they were back home. They will be judged on how well the discussions progress and the quality of the physical surroundings.

All room amenities (even air conditioning) must be in order and checked in advance. Visitors should not assume that the hotel staff (or the physical plant) will be on par with home market hotels regardless of the classification. When things go wrong, visitors should take full responsibility and never attempt to blame the local staff as this will reflect poorly on the host company. It will also say something about the visitor’s willingness to bear accountability. NOTE: When visiting developing economies, do not be surprised if your counterparts show amazement at the hotel’s facilities. Most will have never been inside such a structure as a result of public edict or finances. If this is sensed, a brief tour by the hotel staff may be arranged. Never approach this as “see how much I can afford” but more from the standpoint of how impressed you are with what their country has to offer.

Personality Tips

Negotiators should not assume that the physical and oral cues that are used to assess personality types are universal. Only detailed cultural research will prevent both sets of counterparts from creating or receiving the wrong impression. The following is a list of personality cues that vary from one society to the next. ■ A smile in one culture denotes pleasure while in another it signifies discomfort. ■ Reticence for one group speaks of shyness but in another it declares wisdom. ■ A strong handshake betokens self-assuredness for some but boorishness for others.

■ Eye contact indicates honesty to many but is a source of disrespect to an equal number.

■ Touching denotes friendship for the outgoing but an invasion of privacy for the introvert.

■ A sullen demeanor for one person covers anger for one but sadness for another. ■ Slouching signifies weariness and boredom in the West but disharmony in the East. ■ Loud speech can mark an authority figure in some cultures but a loss of control in others.

These cultural signals need to be understood in order to be properly utilized.

The greatest mistake that negotiators, and travelers in general, make is that they take a great deal of time to learn and interpret what others are doing without assessing their own actions. Personalities can be appraised quickly and accurately when all of the cues are placed in context. It is the context that requires the greatest research and insight.