Negotiating Online.
Negotiating in person, not over electronic media, is comfortable and preferred by most people. Negotiating over the telephone is next in line. When using a phone, the speech intensity and tone give some idea of the personality you are dealing with. But how do you negotiate online and build rapport with the other side, especially in cross-culture situations?
The cross-culture negotiation could present unique challenges. You need to study cultural norms (Think Indian Standard Time when attending a meeting in India) and be alert in picking up signals about what you can expect and how to respond. Online negotiators are disadvantaged because listening to spoken words in person differs from words typed on a screen. Often online negotiators need help understanding the other side’s style and reciprocating appropriately. Capital letters, emoticons, or slang can confuse one or both parties.
Online communication is excellent for short, direct messages.
It is acceptable mainly for factual and quantitative information. It often becomes a disadvantage in a negotiation requiring a constructive dialog, picking and giving signals, summarizing, and making well-thought-out proposals. In other words, it could make the negotiation strategy complex.
A U.S. packaged goods company and an Indian IT Company negotiated a customer service contract. The companies negotiated the agreement online in its entirety. Both companies realized their mistake soon after the program trial began.
The Indian IT company was to address Tier I and Tier II technical issues. The U.S. team was to address only the Tier III engineering or design issues. It seems straightforward. Right? Wrong. The negotiators had never met in person. The terminology differences led to confusion about who handles which service calls and how. Throughout the trial, the negotiators felt they didn’t “understand” one another well. The impersonal online communication hindered progress, and the companies halted the”Trial.”
People share information fully in an in-person dialog. The parties structure the other side’s expectations more accurately. When negotiating online, people often tend to hold back some essential information. Trust issues develop when critical information surfaces later. And the relationship becomes strained.
You may write a thoughtful email. But what if the other side needs to read or understand it carefully due to language and terminology differences?
I would love to hear about your experiences! Please share your stories at satishmehtausa@gmail.com. Please forward this knowledge letter to those who could benefit from it. They can subscribe to it here or by clicking on the link below.
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