Business Culture: Business Negotiating
Introduction
Britons usually conduct themselves in a quiet, understated manner compared to people of many other cultures. Being sensitive to the nuances of their behavior and behaving in a way that follows suit can earn your counterparts’ esteem and may work in your favor during negotiations.
It is essential to shape a negotiating strategy in line with the British culture of courtesy and cooperation in the business setting. Although deception or hard bargaining may work in other cultures, in the UK it is important to focus on reciprocity and fairness at all times.
Goal of Negotiations
Contract | Relationship | |||||||
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The British value solid, trusting business relationships. However, they do not require a well-established relationship in order to initiate business dealings. They may initiate a business deal with someone whom they don’t know very well, expecting that they will get to know them better later on.
The cornerstone of a business relationship in the UK is integrity and honesty. Although your British counterparts may not object if you replace a team member or introduce a new player midway through negotiations, they will insist that your team members are honest. Sending a team of negotiators rather than a single representative will convey that you are serious about doing business together. In addition, choosing older or more senior representatives for your team will help to win over senior British executives, who may distrust younger businesspeople.
It is important to work toward a stronger relationship as negotiations proceed. This includes engaging in brief, polite small talk prior to meetings and sharing an occasional meal or even a weekend at your counterpart’s country home. Britons are often reluctant to get too personal with their business counterparts, so stick to neutral topics of conversation. Don’t introduce business talk at a social meeting unless your counterpart does so.
Attitude
Win/Lose | Win/Win | |||||||
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British negotiators view both sides as equals in a business relationship. They will offer to help with whatever they can in order to ensure that the two sides feel comfortable working together.
Your counterparts will expect you to conduct negotiations in a courteous, polite fashion. It is important to make concessions whenever possible. If you must insist on an item, do so firmly and politely. It is best to avoid confrontation.
In the case of a dispute, it may be possible to reach a resolution through mutual compromise. Your British counterparts may also respond favorably if you appeal to their sense of fairness.
Personal Style
Informal | Formal | |||||||
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British business culture can be quite formal. The British admire refined manners and poised behavior. They often sneer at loud, boisterous, or overly relaxed behavior.
Use a lower tone of voice when conversing, and be polite at all times. Address your British colleagues with their titles and last names. If there is a lord or lady present, address them with their title, but don’t make too much of it. Assume a businesslike posture; slouching is considered rude.
Communication Style
Indirect | Direct | |||||||
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British businesspeople rarely communicate in a direct manner. Though they may get more direct as the relationship develops, be on the lookout for signs that what they say is not what they think. Your counterparts may avoid giving a direct "no" and instead say that they will get back to you. Comments may be understated or ironic. It is important to pay attention to your counterparts’ tone of voice as well as their message. Consider what is not being said almost as much as what is. Facial expressions and hand gestures can also be sparse, so don’t rely on these to clue you in to what your business counterpart is trying to say.
British negotiators are often open about sharing information and will not take offense if you ask questions about sensitive issues. Though they may not wish to answer all your questions, they will probably be interested in maintaining an environment of open communication. It is best to be open with them as well. If you conceal something or surprise them with a piece of information at a later stage of negotiations, you may lose their sense of trust. If this happens, negotiations can become more difficult and your counterparts may be less willing to compromise.
Time Sensitivity
Low | High | |||||||
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Negotiations may take a long time, as your British counterparts will want to thoroughly review information before bargaining can begin. Some younger executives prefer a faster pace of negotiations.
When it comes to details, however, British business culture is sensitive to time. Meetings begin within a few minutes of their scheduled time. You are expected to arrive promptly, though your counterparts will probably allow for a few minutes leeway. They will expect you to be exactly on target when it comes to deadlines, though. If you will be late, you must notify them well in advance. When a deadline is set a few months in advance, you must give at least two to three weeks’ notice if you cannot meet it. Letting them know a few days before will not suffice.
Negotiating sessions are not likely to drag on and on, as the British do not believe in letting business take precedence over meals and sleep. If you insist on a time-frame that requires back-to-back meetings, your British counterparts are not likely to cooperate. On the other hand, it is not a good idea to rush through a session. Take the time to cover the agenda adequately; just don’t take too much time.
Emotionalism
Low | High | |||||||
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The British do not show emotion openly. If they do express a feeling, either positive or negative, it may be understated. Do not assume that an emotion is less significant because your counterpart spoke lightly of it. Be alert for expressions of displeasure; they may mean more than you think.
British negotiators rarely use emotional tactics such as attitudinal bargaining, grimacing, or attempting to make you feel guilty. If your counterparts do use them, however, it is important to stay calm. It is unlikely that they will appeal to your relationship in order to gain a concession.
Avoid open confrontation. British negotiators prefer to work together in a cooperative environment. They will not shy away if confronted, but be aware that an open show of anger is a sign that negotiations are not going well.
Risk Taking
Low | High | |||||||
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British negotiators have varying degrees of risk tolerance. Some are more open to taking risks, while some have only moderate tolerance.
In general, decisions are made based on universal facts and principles rather than on specific situations or personal feelings and experiences. If your counterparts seem reluctant to enter into a risky situation, it may be helpful to outline contingency plans or emphasize additional areas of support to make them feel more comfortable with your proposal.
Team Organization
One Leader | Consensus | |||||||
1.0 | 1.5 | 2.0 | 2.5 | 3.0 | 3.5 | 4.0 | 4.5 | 5.0 |
Companies do not follow a uniform structure. Older, more traditional businesses may have a strict hierarchy, while others have a flat structure. Whether they are at the top level of a company or fairly low down, decision makers usually consult with others before making a decision. In companies where subordinates are given the decision-making responsibility, their decision may require approval by more senior members of the company. This can sometimes lengthen the decision-making process.
It is important to connect with members of the company at all levels, since many of them have a say in decisions regarding your proposal. Be sure to treat everyone with courtesy and respect and do not be picky about the rank of the person you are negotiating with.
Agreement-Building Process
Principles | Details | |||||||
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British negotiators prefer to take time to discuss the main terms of an agreement before getting down to details. Your counterparts will take time to gather as much information as they can before they begin bargaining, preferring to have a general picture of the deal before getting down to business. You can participate in this stage of negotiations by providing written offers, as well as written terms and agreements at the outset. Your counterparts will appreciate the gesture and it can help speed the process along.
Once negotiations begin in earnest, your counterparts will probably prefer to negotiate for items one at a time, following a predetermined order. They may be reluctant to return to a previous item once it has been agreed on. This negotiating style may be difficult for businesspeople from other cultures. If necessary, clarify that agreed upon items are not final, rather they are contingent on other items. Although the British style may seem rigid to some, it is important to remain calm and flexible so that negotiations can proceed in a cooperative and productive manner.
Agreement Form
General | Specific | |||||||
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The British prefer detailed contracts. The written agreements between you and your business counterparts will probably include many details, both short-term and long-term. Often, they will insist on stipulating that the agreement is subject to British law. In that case, make sure that you hire a British solicitor (non-trial lawyer), as opposed to a barrister (trial lawyer).
Negotiations often conclude with an oral agreement before the written contract is signed. Be aware that the agreement is not binding until both sides sign the written document. Oral agreements may be subject to change. Though they may not mention it during negotiations, your British counterparts may need to receive approval from a senior executive or board before signing.
Always review the final contract with a lawyer before signing. There may be legal issues that you are not aware of. A lawyer can always help provide added security from a legal standpoint for your business deal.
The assessments detailed in this article are intended for informational purposes only. They reflect typical attitudes within a given country or culture, and are not intended to describe any specific individual or business. World Trade Press is not responsible for any action taken on the basis of the information contained herein.
World Trade Press would like to acknowledge the research of Jeswald W. Salacuse (“Ten Ways That Culture Affects Negotiating Style: Some Survey Results,” Negotiation Journal, July 1998, Plenum Publishing Corporation) as the basis, with modifications, for the assessment categories described in this article.
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