I had the pleasure of meeting with Melanie Billings-Yun and a client of hers last week. Melanie’s written a book called Beyond Dealmaking (which I highly recommend) and is an expert on cross cultural negotiations. She’s lived in London, Paris, Bangkok, Hong Kong, Seoul, Indonesia and Singapore and has first hand experience of how tricky it can be to bridge the cultural divide.

Melanie made the point that negotiating success in a global world is all about understanding and respecting people’s both people’s customs and sensibilities. For example, her book includes a story about Choi, a Korean businessman whose meat importing company had been purchasing meat from a single supplier in Texas for many years. The two companies had an excellent, mutually beneficial relationship. Then, in 1997, when the Asian financial crisis hit Korea and the resulting drop in the value of the Korean currency against the dollar, Choi needed an accommodation from his U.S. supplier. He needed to delay acceptance of the merchandise until orders from his customers picked up and his cash flow improved. The supplier refused, responding through a lawyer’s letter that demanded Choi fulfill the contract as written. Shocked and dismayed, Choi consulted with Melanie. She explained that he shouldn’t take the letter personally ─ sometimes companies go into “autopilot” contract compliance mode in situations like this. But Choi did take it personally, particularly because he had welcomed these supplier into his home when they had visited Korea. Melanie helped him to renegotiate the terms of the contract to those he could manage; he fulfilled his obligations but refused to do any further business with the company.

Refusing to make an accommodation for a business partner in a tight spot usually isn’t the smartest thing to do if you want to continue to do business, regardless of the cultural considerations. But, when dealing with someone who holds the perspective that once you’ve been to his home, you’re a friend, adds a whole new layer of expectations.

As the world continues to shrink, do your homework when dealing with people from other countries, regardless of whether they are colleagues or clients. Pay attention to things that can send messages you didn’t intend. For example, in Asian cultures when someone hands you a business card, it is considered rude to put the card away without taking the time to carefully read it first. Asking yourself, “Who knew?” after making a gaffe like this won’t enhance your image!

Readers, what tips can you share with us from your cross-cultural experiences?

TAGS: Books, cross-cultural, global, LinkedIn