Risk and decision-making
Indonesians have a tendency to be open to a moderate amount of risk. Decision-making in Indonesia is highly hierarchical, even paternalistic, may include consensus and is slow and deliberate.
Americans seem synonymous with risk taking; but augment this with a case-by-case consideration. Other broad-brush stroke would include that the bigger the deal, the further up the hierarchy a decision may occur; otherwise, hierarchies tend to be thin or flat. Decisions tend to be quick, and once made usually constitute finality. In the US, business is business, and facts outweigh feelings, and often experience as well.
Summary
Perhaps the most often used acronym associated with negotiation is BATNA; “best alternative to a negotiated agreement”. As a global negotiation exercise, there is hope that the emphasis one may see in BATNA is on “the best”, and not an aspect of resignation; e.g., “I could have done better”. We can always do better, and there are so many moving parts, that assuming negotiation is engaged with as much forethought as possible, then it is surmised that would, in fact, constitute the best that one can do.
In arbitraging a culture from North America, Europe and Asia, one can see that every little jot and tittle can make a difference. As regards possible negotiation fashion: a script in Los Angeles at an outdoor café in a Hawaiian shirt and shorts to having to wear this season's Armani or Prada just to talk about setting up a negotiation in Italy to which subculture within Indonesia has which design of batik on a given shirt. Most Americans do not care about eye contact, one way or the other, Indonesians demure, and Italians appreciate eye contact. Such considerations may seem endless; they may be.
As regards real estate, people say there are three rules: location, location, location. One could similarly say regarding negotiation, it is preparation, preparation, preparation. Add the proviso for international negotiations: translate everything.
As part of these concluding thoughts, this pair of bulleted lists seems worthwhile. They come by way of a 2008 work entitled, Global Negotiation: The New Rules.
10 Rules of Global Negotiating
1. Accept only creative outcomes.
2. Understand cultures, especially your own.
3. Don’t just adjust to cultural differences, exploit them as well.
4. Gather intelligence and reconnoiter the terrain.
5. Design the information flow and process of meetings.
6. Invest in personal relationships.
7. Persuade with questions.
8. Make no concessions until the end.
9. Use techniques of creativity.
10. Continue creativity after negotiations. (Hernández Requejo; Graham, 2008 - 2010)
Persuasive Tactics that Work
1. Ask more questions
2. Educate
3. Silence
4. Informal channels
5. Aggressive tactics (be careful here)
6. Time
7. Intermediary
8. Reconvene top executives (Hernández Requejo; Graham, 2008 - 2010)
References
Anonymous (2008). Negotiating International Business - Italy. Global Negotiation Resources. Retrieved from http://www.globalnegotiationresources.com/
Executive Planet. (2010). Retrieved from http://www.executiveplanet.com/index.php?title=Main_Page
Gladwell, M. (2005). Blink: The Power of Thinking Without Thinking . Boston, MA : Little, Brown and Company.
Global Marketing Strategies. (1997-2010). Global Negotiator [[muscular collection to internal pages with developed information] http://www.globalnegotiator.com/]. Retrieved from : Global Marketing Strategies.
Hernández Requejo, W., & Graham, J. L. (2008 - 2010). . In Global Negotiation: The New Rules (p. ). Retrieved from http://www.globalnegotiationbook.com/
Lewicki, R. J., Saunders, D. M., & Barry, B. (2010). Negotiation (6th ed.). New York, NY: McGraw Hill.
The World Bank Group. (2010). The World Bank Group - Doing Business. In Doing Business. Retrieved from http://www.doingbusiness.org/
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