OWP liVe REPORT

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Uncover your biases

will need to be aware of differences in communication and hierarchies, as well as individualistic or collectivist cultures that prioritize the “I” or the “we”. Cross-cultural competencies will help in developing an ability to understand implicit messages. “It’s easy to negotiate when people give you clear guidelines. But in a shrewd culture, you won’t get that. In the Middle East, you only get implicit messages,” he explained. Lastly, the professor advised entering a negotiation with an excuse to leave it temporarily, to regather and reassess. “You need a joker card in your pocket. It could be that you need to talk to the board, check with the union, or with compliance and legal functions.” 5 Plan for a dignified exit Otherwise, you may be forced to make concessions. “Round after round, everybody brings the price down, or you can stand up and leave and send the signal that you are lacking authority for that level of negotiation,” said Abadir. This will allow you to resume the negotiation in a stronger position. “You will re-enter the negotiation in the same way you left,” he said. “So you need to leave with dignity to impose respect.”

3

A successful deal involves elements of both economics and psychology; executives need to win the trust of the other party. But they also tend to enter negotiations with underlying biases. One bias is that we are often overconfident and optimistic, especially when it comes to mergers and acquisitions. “We tend to overpay for the good will; the brand, the people, the training and so forth,” Abadir said. “Then, over time, it inevitably fades away. And you bear the cost on your balance sheet, and you lose the added value.” Therefore, executives need to enter negotiations while being aware of their own biases. This awareness will help to eliminate, as much as possible, the prejudices that prevent a good deal being done. Globalization has resulted in ever longer and international supply chains, with companies that manufacture and assemble products in a whole host of different countries across the world. This means that companies’ negotiations with suppliers and customers often involve cross-cultural communication. Executives 4 Develop cross-cultural competencies

#1 Stressmanagement

#2 Be cooperative, not just competitive

#3Uncover your biases

#4 Develop cross-cultural competencies

#5 Plan for a dignified exit