Martha's Melting Pot

Coming Together: A Melting Pot Look at Cross-Cultural Negotiating

As the trend toward globalization continues, the middle ground where all differences converge is the business arena and specifically the negotiating table. In every era the impulse to explore, to learn about and do business with foreign cultures has been an important driver of expanding economies.

Ways have always been found to overcome the differences that impede that process. We all prefer to do business with others who respect us as individuals and as a people, who treat us with courtesy according to our customs, who understand what is important to us and what does not matter.

And many things matter - the way time is utilized, for instance. In some cultures time is strictly allocated - punctuality, getting to the point, finishing the deal - are seen as signs of competence. In other cultures time is an important way to get to know one's negotiating counterpart. For these cultures rushing the process seems both discourteous and suspicious.

The things that matter extend to such matters as who speaks to whom, seating arrangements, food as an element of the socializing process, playing games like golf, and variations in business attire.

Dr. Habib Chamoun-Nicolás has written extensively on changing negotiation styles as they are affected by globalization and interaction with foreign cultures. He says: "The action of negotiation is a time consuming effort. It is not a single pointed activity without interrelation; rather, it is a continuous process that needs to be understood fully by all negotiating parties. Sometimes understanding is more important to the process than the substance we are negotiating. Negotiators, having the tendency to focus on substance, can easily forget the process and fail to obtain win/win negotiations."

In relation to negotiating in Mexico, Professor Chamoun-Nicolás continues, "You could be having a 30-minute breakfast meeting in Monterrey and a 3-hour lunch in Mexico City, and be very effective business wise in both cases. If you think you need a long lunch meeting in Monterrey to close a business successfully, you may be surprised. Not every place has the same sense of urgency. The key in negotiating with other cultures is to understand them, tolerate them respectfully and above all, display patience with the timing differences. For instance, in Monterrey, clients are more interested in having lunch with their families and friends, than with service providers. In Mexico City, distances are so great that a lot of business issues are discussed at long lunches. In Guadalajara, business is discussed on golf courses. Generally speaking, in Mexico City and Guadalajara, tradition is more important than business, and in Monterrey, business is more important than tradition. As a rule of thumb before you sell anything, spend some time and resources understanding their particular subculture."

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