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Successful Negotiation with the British
Michal Zieba
Officially called the United Kingdom of Great Britain and Northern Ireland, the UK comprises England, Scotland, Wales and Northern Ireland. The English form the majority nation, but one should remember that the UK is a nation of great cultural and ethnic diversity.
Negotiating attitude: distributive or integrative bargaining
The final negotiation outcome is influenced by two basic attitudes. Negotiation may be seen as either:
- a competition/conflict in which one side wins and the other loses, or
- a creative approach based on a win-win solution in which deal-making is seen as a collaborative and problem-solving process.
The British attitude towards negotiation leans toward win-win solutions. In their approach to negotiation, they lie somewhere between the Americans, who focus about ¾ of their engagement on mutual satisfaction and win-win solutions; and the Germans, who balance their attitude equally between competition and creative problem-solving.
Time perception
Some people view time as limited and something to be used wisely. The British tend to devote more time than most to the deal-making process. Although one of the goals in negotiation is to create a relationship, they tend to pay minimal attention to the pre-negotiation phase. The relationship is built up during the face-to-face negotiation phase. The English value time highly, and visitors are expected to be prompt. In general, the English have a linear vision of time, and perceive it in terms of money wasted or earned. In oriental cultures including Japan and China, the view of time is completely different. The past, present and future exist as a whole and can affect prospective decisions.
Form of agreement
Generally the British prefer detailed contracts which cover all possible circumstances and eventualities. Be prepared to discuss every detail and create an offer and concession strategy that includes many alternative outcomes and options. You may find yourself dealing with a lawyer negotiating on behalf of the company, or acting as a member of the negotiation team. It is important for the British to start the negotiation process by agreeing on general rules and basic principles that will lead to a potential deal. Such an agreement becomes a framework upon which the final contract is built.
Role of the contract
Expect emphasis on the legal aspects and finer points of the written agreement. Should dispute or disagreement arise later, the British tend to rely on the terms of contract and could become suspicious if their counterpart invokes non-contractual issues, such as the importance of the long-term relationship. The contract will be detailed and will cover every angle. For the British, a contract is something that dictates rules and provides a solution in any unforeseen circumstances; it is something to be followed to the letter. By contrast, in some oriental cultures, for example Japan, a contract is the starting point of a relationship and can be modified and changed if circumstances require.
Risk taking
Certain cultures are more risk-averse than others. In some countries, such as France, India and the United Kingdom, risk avoidance is very low. This means that more innovative and creative alternatives may be pursued during negotiation. You need not focus efforts on proposing rules and activities that will reduce the risk element for the other side, but rather on increasing available benefits in any feasible way. Low risk avoiders such as the British require much less information, involve fewer people in the decision making process, and can act quickly. They create a climate which favours the exchange of information and creates problem-solving orientation.
Power distance
This refers to differences in the acceptance of authority - in other words, the difference between those who wield power and those affected by power. A low power-distance culture, which is characteristic for the U.K., values competence over seniority, with a resulting consultative management style. Outward forms of status such as formality are not considered important.
Individualism/Collectivism
The United Kingdom, the U.S.A and France are highly individualistic countries. This means that a tendency exists to put the task before the relationship and to value independence highly. Within such a culture, negotiating members are independent, promote their own positions, decisions and ideas, and may be expected to have the ability to make decisions unilaterally.
Long-term orientation
The British are rather short-term orientated and you should focus your efforts on showing your counterpart all the possible benefits for the immediate future.
Making contact
It is always important to consider how a meeting should be started or initiated. Initial contacts are very important as the first impression we make can either support our efforts or send us home with lost hopes and empty hands. The way in which people conduct meetings differs from country to country. We need to understand and respect the other side’s approach, however unusual or strange to our norm. For example, it may be difficult for American and English businessmen to establish rapport; the English professional will probably get straight down to business while his American counterpart will be prepared to warm up with small-talk. Britain is a place where recommendations, referrals and testimonials are extremely valuable. You should invest some effort into supporting your presence with information written in English about your company, yourself, your product, and your company’s achievements. Confirm telephonically that your counterpart is interested in meeting you. Only when you are certain that your presence is required is it time to meet face-to-face. It may be helpful to employ a third party to arrange a meeting in Britain.
Communication Style
The English are reserved rather than expressive in their communication manner. This is visible in their use of understated, restrained gestures, poor body-language and their need for greater personal space. One of the characteristic elements of British culture is politeness and courtesy during a conversation.
Verbal communication
Visiting business professionals should be prepared to encounter both direct and indirect verbal styles. The British are usually direct during business meetings. If silence is employed during a negotiation, it does not suggest a lack of directness; it is rather a means of avoiding confrontation and an unpleasant word-battle. In contrast with negotiators from Latin America and certain Southern European countries such as Italy and Spain, the British tend not to raise their voices across the bargaining table and rarely interrupt their counterparts during a conversation. The same behaviour should be reciprocated in pursuit of healthy relations.
Nonverbal communication
The British use relatively few hand and arm gestures. It is worth researching the gestures most commonly used. The ‘V for Victory’ sign must be done with your palm facing outward. Avoid pointing with your index finger as this may be perceived as aggression - use a nod of your head to indicate a direction instead. A good example of differences in body language interpretation among nations is raising eyebrows. Although this is a very common gesture all over the world, its meaning may be surprising when encountered in a different culture.
When negotiating in a foreign country, it is advisable to employ the services of local negotiators whenever possible. Corporate negotiation case history is littered with stories of frustrated and failed negotiations, caused largely by the foreign party flying in a negotiation team lacking in credibility or an understanding of local culture and business etiquette. The Negotiation Academy offers both negotiation team profiling and team composition consulting services specific to cross cultural negotiation.
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