Tell Them And Build Trust

An American cable TV equipment company and a Taiwanese company signed a joint-venture agreement to design and manufacture cable TV equipment for sale in ASEAN countries. The American firm was supposed to supply the technology; the Taiwanese partner would build and market the products. Once per quarter on average, an Australia-based American executive would visit the venture’s operations in Taiwan to share information, review strategies and major decisions with the other side. Between visits, the two teams communicated through occasional phone calls.

Over time, the American company’s strategy changed from developing a broad array of technology to focusing on a relatively small number of products, but the Americans never communicated the change to their Taiwanese partner. As a result, the Taiwanese firm became convinced that the Americans were acting in bad faith – denying the joint-venture the new technology that it needed to stay competitive.

Eventually, the situation evolved into a dispute that led to the liquidation of the joint-venture. Had the two sides discussed and agreed on an information sharing strategy for their partnership during initial contract negotiations, they might have avoided the conflict.

Timely sharing of information to structure other parties expectations is critical to the success of any negotiated relationship. Does the other party understand your issues, needs, and priorities? Beware of making assumptions about what the other parties already know.

The world’s greatest leaders share a common trait? They can negotiate skillfully. While some may be born with natural ability, most leaders sharpen their skills over time, usually only after many years of work experience. Master negotiation skills when you buy and read my book, The World Is A Bazaar – Life Is A Negotiation. Buy here. 

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