Negotiating In Russia

Rachel Feldstein Omolara Onaolapo Justin Rader Maritza Vazquez

Topics of Discussion Influence of Communism Negotiation Styles USA versus Russia

Etiquette Pre-Negotiation Bargaining Reaching an Agreement

Lasting Effects of Communism Negotiations Unique aspect in Russia Effect of communism and the cold war

USSR dissolved Approximately 15 different sovereign states Various aspects from these different countries

*Cyberlink.com

Lasting Effects of Communism Communist Russia Goal was for everyone to be the same Differences threatened the collective society

Current government Officially recognizes and tolerates individuality General population Reacts violently to “above average” Lasting effects of Communism

*http://www.grin.com/ebook/26493/doing-business-inrussia

Lasting Effects of Communism Slow transition Individualism Profit-maximization Personal initiative

Perestroika (restructuring) Mindset regarding western thought Age factor regarding acceptance

*http://www.grin.com/ebook/26493/doing-business-inrussia

Lasting Effects of Communism American persuasion in Russian negotiations must be done tactfully  Motivation  Fair play  Accountability  Goodwill, etc

*http://www.grin.com/ebook/26493/doing-business-inrussia

Lasting Effects of Communism Historically unstable political environment Negotiations Focus on the short term gains Long term gains are not a priority Fear that negotiated contracts may become illegal later

*Sandia.gov

Lasting Effects of Communism Understand some stages of USSR negotiations Prepositioning Intelligence gathering Opening moves Midgame Secrecy Exploitation of entertainment End game

Understand their emotional and historical baggage Be sensitive, but not overly so, of their previous political situation *http://findarticles.com/p/articles/ mi_m0KNN/is_2000_Winter/ai_8030 5813/pg_2/

Differences U.S.A

Russia

Primary Style

Factual: Appeals to logic

Axiomatic: Appeals to ideals

Conflict: Countered with…

Objective facts

Asserted ideals

Making Concessions

Small, early on

Few, if any, made

Response to Other’s Concessions

Reciprocate concession

Viewed as weakness, rarely reciprocated

Differences,

continued

U.S.A

Russia

Relationship

Short term

No continuity

Authority

Broad

Limited

Initial Position

Moderate

Extreme

Deadline

Very important

Ignored

Etiquette Language Barrier Interpreter

Location Historically, formal setting Business meals, more common

Attire Conservative and Quality Foreign women vs. Russian women

Etiquette Gender Traditionally male dominated Workforce 47% women 

Low wage jobs: healthcare, education, office assistants

Physical Contact Handshake Eye contact Social Events Social athleticism

Etiquette Gifts Extensive gifting traditions Be prepared for first meeting Avoid inexpensive gifts 

No vodka!

Bribes Solicited boldly without reserve Organized crime threat

Pre-Negotiation Patience and Flexibility Slow-moving Personal relationships Business cards Intrusions Be prepared Conceal information

Pre-Negotiation Setting up a meeting can be difficult Impossible… To leave messages  Set appointments 

Confirm a meeting Obtain written confirmation

Time and Punctuality Lateness is common Arrive punctually

Bargaining Interpreter Cautious pre-positioning Extreme opening offer Opposing positions Need to look good

Bargaining Slow pace of negotiations Two or three meetings Detect weaknesses Consensus Missed deadlines Rapid conclusions Nothing else to gain

Reaching an Agreement The Negotiating Table  Know the decision makers  Who

has authority to make decisions?

 Display unity E

pluribus unum

 Concessions  When

and how concessions are made

 Consider negotiating away from the

negotiation table

Reaching an Agreement Deciphering what they are saying “I do not have the authority” What does “No” really mean “In principle, it can be done” Influences from the outside Independence Political and economical

Reaching an Agreement Other Important Consideration Feeling versus Facts Taking Risks Building Trust Protokol (meeting minutes) A joint statement or memorandum of

understanding

Reciprocity “I get half, you get half”

The Agreement Different types of agreements Agreement “in principle” Cherry Picking The departure-time decision Ad referendum Agreements Written contracts Legal expertise Language of agreements

After the Agreement Celebration Festive lunch or dinner

Agreements and signed contracts may not

mean that the negotiation stops Dealing after the contract is signed Nurture the relationship

Implementation Legal, political and ideological considerations

After the Agreement Problems after agreements are reached Ignoring the terms Timelines Things offered cannot be done Waiting on others Getting things back on track Reestablishing the relationship Trip to Russia

Recommendations Remember… Be sensitive, but not overly so, to past political

issues Dress conservatively Be prepared to offer authentic gifts Slow pace negotiations, time treated loosely Have patience  Have a good interpreter 

Display group unity Be confident in your demands Don’t ignore relationship after signing