For, as a rule, interests can be realised by several possible solutions. Widening the acting horizon may enable open negotiations and avoid bargaining for positions. In this context, it is important to know and understand the interests of the negotiation partner and to make clear one’s own interests.
Principle 3: Collecting Possible Solutions “Creative people normally will find different options.” According to this principle, at the next stage possible solutions are compiled together with the negotiating partner. This may happen by brain-storming as this step focuses gathering as many different and creative solutions as possible, especially options that will bring advantages for both sides.
Principle 4: Agreeing on Objective Criteria At the next stage, the collected solution options are being evaluated. It is important that the results of the evaluation shall be based on general and objective decision criteria, e.g. court decisions, expertise, or moral criteria. Thus, it is ensured that both parties share the same understanding and no party feels disadvantaged afterwards. By evaluating solution options according to objective criteria, there will be better chances for a convincing and viable solution.
Principle 5: Comparing the BATNA If the two negotiation parties will agree on a solution package will depend on whether the result is better than the best existing alternative (BATNA). Only if this is true, an agreement will be sensible, and both parties will leave the negotiation table as winners.
Around 70% of all European–Chinese joint ventures fail due to different ways of behaviour and business conduct of the involved partners while only 30% of the problems are caused by financial problems, false strategies, judicial mistakes, or false assessments of the market.4Several studies confirm this fact which proves once again Henry Ford’s saying: “The secret of success is based on the ability to understand others and to see things with their eyes.”
8.6.1 The Ritual of Exchanging Business Cards
Globally acting purchasers especially should intensely look into the cultures of their business partners. For the saying is: “Different strokes for different folks.” And this already starts at the reception with the ritual of exchanging the business cards. In China, the custom is known since the times of the Han dynasty, the second century BCE. At the time, the cards consisted of thin wood or bamboo slats and were called ye (plea for reception). Normally, these cards were used by subordinate or younger persons when being invited for audience by the authorities. On these cards, only the name and the point of origin of the card holder was written; data concerning his social status or his title only rarely were given. This historical custom afterwards had been forgotten for many centuries and reappeared only at the beginning of the 1980s. Since the beginning of China’s economic boom, it has become more and more popular not only in the business world but in all sectors of social life.
Celebrating the exchange of business cards is especially pronounced in Japan, but also in Korea and China it is still of very high importance. For that reason, one should observe the following procedures:
At first, the person highest in rank or the oldest is greeted. The business card is held with both hands, and one bows while the cards are exchanged. During the handing over of the card, the side with the text in Chinese, Korean, or Japanese should be turned towards the receiver. Furthermore, it is advised that the respective translation is printed on the back side of one’s business card.
The business card one receives in exchange will often only be in Japanese, Korean, or Chinese, respectively. It is important that all information such as title, function, and contact data are clearly printed on one’s own card so that the business partner knows which status one has in one’s organisation (for example, see Figs. 8.11and8.12). Because of the enormous importance of the card exchange ritual one should invest in high-quality paper and best print, and always carry sufficient copies in mint condition with oneself. Under no circumstances should one simply put the received cards in one’s pocket. Instead, the cards should be regarded with interest and spread before oneself (ordered according to the seating arrangement) during the meeting. In China and in Korea, a handshake follows, and one learns from the intensity of the handshake who is still part of the “old guard”
and who has been trained in Western manners. Only decades ago, handshakes were
4Wieland (2006, p. 3).
totally unusual, especially in Japan. For that reason, members of the elder genera-tion up to now shake hands very softly. Alternatively, the guest is greeting by bowing.
After the end of the meeting, one puts the business cards carefully in a special wallet or a portfolio. It is always better to bring too much than too less business cards on the voyage. Especially for Japan, the rule is to carry at least thrice as many business cards as usual—if you have no business card you can exchange you could also stay at home.
8.6.2 The Beginning of the Talks
Partners from Japan and Korea invest a lot of time in the preparation of the talks and will show up considerable time before the agreed date. They expect the same regardful behaviour on the part of the other side. To come exactly at the time agreed Fig. 8.11 Chinese business card
Fig. 8.12 Japanese business card
is almost considered rude. In China, at the first meeting with foreigners preferably some standard questions are asked to get in touch with each other. What is your name and where do you come from? Persons of higher age are often asked: “How old will you be this year? How old are your children?” or “Are your children already in business?” Younger persons may be asked: “You are still younger than thirty, I presume?” or “Are you married, do you have children?” and even: “What do you earn per month?” As a rule, praising words concerning the culture (language, script, art, nature, as well as sports or sports legionnaires) will prove helpful for the further course of the discussion.
These questions may seem strange to Europeans, but in China they are quite normal and express politeness. The ensuing negotiation process, as a rule, in Japan, Korea, and also China will proceed as follows: After the small talk subject-related information is exchanged. Afterwards, business persons from Asia tend to explain their standpoints at lengths and to repeat them in all variations in order to convince the negotiating partner. At the end of the negotiation, however, willingness for compromise or for considering the arguments in good faith is expressed.
8.6.3 Laughing: An Asiatic Means of Managing Conflicts
Inapt or awkward statements by a foreign negotiation partner will sometimes cause the negotiator from Asia to become taciturn but sometimes such statements will also answered by laughing loudly. Such a laugh is to be understood as a means of conflict management. In the Chinese conversational behaviour, laughing can be used to avoid or ease conflict situations. For that reason, a critical expression of opinion is also often accompanied by laughter. This is an important technique of leading a conversation that is called “zhuangxie bingju” in Chinese. Successful discussions depend on a harmonious atmosphere for which there is the following Chinese saying: “When meeting a close friend, a thousand glasses will not be enough; when meeting someone with whom you do not share the same language half of a sentence will already be too much.” As important and serious the subject may be, negotiators from China will always discuss it even-tempered and easily.
The most character features are derived from Confucian teachings and can be described as follows:
– Showing modesty and reservation with respect to oneself and one’s accomplishments.
– The targets of companies or departments are regarded as personal aims; individ-ual needs or wishes are subordinated to the need of the company or common welfare.
– The person has a strong sense of belonging to his company or group and is rather uncritical in his belief of the authorities.
– As a rule, he has a strong sense of honour and self-esteem.
– His sense of justice is rather based on emotions than on rational thinking.
– In interpersonal contact, he tends to act warily but also sneakily.
– Due to his self-control he always aims to leave a favourable impression in his social sphere.
8.6.4 Lose One’s Face
The “loss of face” (“diu mianzi”) for many people from Asia is a dramatic event. It may be caused by the person’s neglect of social rules but also by other persons’
unwillingness to allow him to save face in such a situation. Losing one’s face calls the character of the concerned person into question. The damaged or lost face can only hardly be mended or restored. The reputation of the person is damaged and can only painfully be regained and heightened by good deeds. For just that reason, one should avoid singling out specific persons in the view of their group (in confidence, there is no problem) either negatively or positively. In the last years, there is a tendency to break away from this tradition; especially in some Korean companies, a rude conduct can be observed.
8.6.5 Other Peculiarities
According to my experience for Europeans, it is much easier to learn the “right”
way of dealing with people from China and Korea than with people from Japan.
Koreans, however, think their manner more akin to Japan as to China.
The Japanese are decidedly afraid of conflicts. Neither in a letter nor in a meeting, they like coming to the point immediately. For the same reasons, people from Japan do not like to give direct answers. As a rule, one must allow long time for small talk before coming to the point. From a European point of view, one needs exceptional patience and stamina during a negotiation as Japanese but also Chinese people are used to discuss anything in their group intensely and at length. Koreans in this respect are much different from their Asian neighbours, which is one of the keys for their actual success. With strategies such as that of the smart pursuer, they outpace one Japanese corporate group after the other. An actual example is the family-managed conglomerate (also called Chaebol) Samsung that is by now the fifth biggest enterprise in the world. Palli, Palli (quickly, quickly) is lived and practised by Koreans almost excessively. Combined with quick decisions (rather untypical of Asia) and seven workdays a week at least at the top management level (from the 55th year of life onwards the salaries are reduced continually and many Koreans go into retirement then), Korea is unbeatable at the moment.
Almost all meetings with partners from Asia bear the risk of interpreting their gestures wrongly. Due to the language barrier, Europeans soon get the impression of consent while their Asian partners only wanted to show that they were listening attentively. The Japanese do not like to say “No” plainly—for the very good reason to avoid their negotiating partner losing his face. For that reason, one must observe the Asian partner’s nonverbal communication precisely. It is best to ask questions
in the way that they can only be answered by “Yes” or “No”. Decision-making and consensus within the group are important values for Asians. Japanese will often fall in silence for some time. In such situations, one must be patient and must try to find out whether the negotiation partners have really understood what had been discussed. The Japanese, Koreans, and Chinese count on broad agreements and mutual understanding for solving arising problems flexibly. Some people from Japan even shut their eyes when listening intently. They seldom make concessions immediately and expect that both parties come with their best offer to the negotia-tion table. They do not consider contracts as final agreements so that renegotianegotia-tions are always possible. This is, by the way, one of the biggest potentials for conflict in intercultural business relations. While Western business people as a rule come with full deciding authority, put their cards on the table immediately, and signal an instant give and take by dominant negotiating, Japanese especially have only limited negotiating authority. He tends to achieve a long-term mutual give and take and tries to reach it by his restrained conduct of negotiations. How difficult a negotiation may become, one should never lose one’s temper or raise one’s voice.
8.6.6 Conclusion
Be friendly, confident, but never arrogant in dealing with your global partners.
Show adequate appreciation for their accomplishments even if these are not yet perfect. Show interest in the culture of your business partners and their families; eat, drink, and celebrate with them as much as you can answer for or tolerate but be careful with regard to political statements. Develop a feeling for the language (I personally took lessons in Italian as well as in Chinese) and thus for the culture and offer presents to your hosts (but with caution—in China, for instance, never give a watch for that means as much as “Your time is over”). Respect the ritual of exchanging business cards and do not—especially at the first meeting—press too quickly to discussing business details. These will be discussed later or on a lower level. Observe the seniority principle and show sensitivity in interpreting your business partner’s nonverbal signals. Ask closed questions whenever you got the impression that your negotiation partner does not understand you or wants to react elusively. Take part in the time-consuming analyses and discussions of the other party—that will create a sense of togetherness and thus the base for an optimum course of the negotiation. Build contacts and foster them especially when the joint business activity is over.
But the attention for other cultures and the adaptation to them should also have its limits: The German way in which business is done is quite appreciated globally and especially in Asia, and the “new” generation of Asian business people is—according to my experience—well prepared for that way.