Indonesia's Greasy Palms Will Deter Economic Growth

 

 

 

 

 

By David James

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Negotiation Styles Second, the two executives had very different concepts of time. For the Japanese executive, time is important but it takes a back seat to getting things right. For him, the relationship needed to get off to a good start. This would take as much time as needed. Then, in discussing the terms of the contract, everything had to be fully understood. This too would take as much time as needed. For the American, time is a precious commodity, not to be wasted on golf or nit-picking the terms of a standard contract that was, comprehensible only to lawyers. The bottom line for him was that the contract needed to be signed by the end of the week.

Some international businesspeople take advantage of the cultural ignorance of their counterparts. There are plenty of stories about Asians dragging out business negotiations with an American counterpart until the American concedes points in frustration. Similarly, there are stories about Americans insisting on negotiating schedules that pressure Asians into premature decisions. But negotiating points that are won by this sort of gamesmanship are Pyrrhic victories. They sacrifice long-term success for short-term gain.

For an Asian, plans for the first business negotiation might require suggesting that the negotiating schedule build in more time for social events and longer negotiating sessions. For a Westerner, it might require developing proposals for a more extensive relationship between their two companies.

A party to an international business negotiation, long before its first negotiating session with someone from another culture or country, needs to develop a negotiating plan that will minimize potential conflicts and augment the chances of reaching an agreement – and a business relationship – that will stand the tests of time.

  This excerpt is reprinted, with permission, from The Executive Guide to Asia-Pacific Communications

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