When the name you’ve chosen for your new car launch means “tiny male genitals” in another country
Considering the amount of miscommunication that happens in American business where everybody speaks the same language and lives in similar cultures, it’s no surprise that communication issues between people of different cultures can be magnified in negotiations. Not only can the American style of negotiation be misinterpreted, but it can also be exploited if the American negotiators are unaware of the tendencies of their foreign counterparts.
Companies have to be extremely careful about the protocol, the approach, expectations and the very words they use. We don’t always get it right and sometimes not knowing the language or the nuances of the words we choose can cause problems. When General Motors launched sales of the Chevy Nova in South America, GM failed to understand that in some languages “nova” means “it won’t go.”
When Ford introduced the Pinto to Brazil, they quickly learned that “pinto” is a slang term used to mean “tiny male genitals” in Brazil .
The same inattention to detail can impact negotiations.
Americans are considered aggressive when it comes to negotiating. They tend to be straightforward and try to get down to business quickly. Americans value time, efficiency, and rule of law. The saying “time is money” is more reflective of an American, or Western culture. Americans budget their time as the budget their money. This can lead to misinterpretation when the proper foundation for negotiation hasn’t been laid, which in some cultures means paying attention to ritual and developing the necessary rapport.
Other cultures place a higher value on other considerations than time. Japanese negotiators are well-known for using the American penchant towards time efficiency to exploit Americans during negotiations. Their view of time is more flexible. Russians culture has an even less disciplined approach to time. The culture is very bureaucratic. As such, they rarely move negotiations along quickly unless it is a crisis situation. For both Arabs and Chinese, punctuality is not as important and long delays can be necessary before any action is taken.
Failure to understand and build cultural differences into negotiations can lead to misunderstandings, frustrations, and unfruitful negotiations. Consider the case of Enron and its subsidiary that were negotiating a long-term electricity deal with the government of India. The negotiations were challenging and ultimately the terms of the agreement was canceled. Indian officials said that the deal was put together in “unseemly haste” and subject to “fast track procedures” that avoided established protocols for such projects. Its citizens came to believe their government hadn’t protected their interests because the deal was done so quickly.
Rebecca Mark, Chair and CEO of Enron International at the time, was quoted as saying “We were extremely concerned with time, because time is money for us.”
While there are some rituals to the American style of negotiation, it is relatively small — sometimes as simple as an exchange of business cards and some brief small talk — before plunging in. Chinese, on the other hand, have rituals for greeting and meeting for business. They often will greet people by asking a personal question to show their concern for others. Americans, by comparison, are fairly private and consider it disrespectful to pry into someone’s personal business. By not asking, however, Americans may be seen as disrespectful themselves, or come off as not caring, setting a bad tone for the negotiations. For Americans, calling someone by their first name can be normal, but using the first name of someone in another culture, especially in the first meeting, can be a great sign of disrespect and set things off on the wrong foot).
While Americans can be straightforward, they can also be viewed as informal. It’s not uncommon to make light-hearted comments or joke during a negotiation. This can be seen as disrespectful in some cultures. A gesture as simple as a smile can be misinterpreted. Americans consider it a friendly, open gesture. In other cultures, a smile can be an insult or a way to show embarrassment. Smiling at the wrong time can send a message well beyond what’s been said at the negotiating table. Likewise, shrugging your shoulder or nodding your head may send different messages than intended.
Americans are used to negotiating terms of a deal and putting together a contract that reflects these terms. In some cultures, the contract itself can be considered offensive. Japanese businesses do a lot of business on a handshake and may be insulted by the lack of trust a contract may symbolize to them.
Americans, being fairly straightforward, will say no when they mean no. No is a word most Japanese avoid in negotiations. In fact, they may say “yes, yes” even when they are not in favor or a proposal. They may be signifying they understand what you are proposing and not that the accept it.
These are just some of the examples that show how a lack of understanding of culture, rituals, and expectations can cause conflict with American negotiators. In order to negotiate a good deal, avoid being exploited, and move business forward, it’s critical to understand the differences.
