Chapter 3 Preparation for International Business Negotiation Learning

Chapter 3 Preparation for International Business Negotiation

Learning Objectives By the end of this chapter, you will know: • How international business negotiation is carefully planned. • How a negotiating team is built up. • What kind of information requires to be collected. • How negotiation brief is drafted. • How to plan a negotiation meeting.

Lead-in Preparation is Key Many negotiations are over before they even begin because a negotiator couldn’t, or didn’t, prepare. This means turning over every rock, examining the client and their needs thoroughly, and giving yourself a chance to build the leverage and confidence that only preparation delivers. Good preparation is key to any successful international business negotiation. The more you adequately prepare beforehand, the more likely you are able to anticipate problems further down the road which might hamper a successful negotiation.

Cont'd Preparation is Key The preparatory stage will allow you to: ü Establish a structure for negotiations and a negotiating team with specific skills and capacities to support successful negotiation; ü Develop a plan for gathering and managing information; ü Gather information about the project context, commodity and company; ü Establish baseline conditions about the community’s socioeconomic and cultural environment and understand what the company and community wants to protect through a negotiated agreement and gain from it; ü Determine how and when to share information with the company and community and consult with the community; ü Assess bargaining positions; and ü Determine objectives and develop a strong negotiating position.

Contents 3. 1 Choosing the Team 3. 2 Gathering the Information 3. 3 Drafting the Negotiation Brief 3. 4 Planning the Negotiation Meeting

3. 1 Choosing the Team 3. 1. 1 Negotiating as a Team When teamwork is the best option Teams can be an effective presence at the negotiating table—but only if team members are able to uncover, leverage, and efficiently coordinate their diverse abilities. Better teamwork through preparation The deep knowledge created through preparation is likely to result in greater flexibility and creativity at the bargaining table.

3. 1 Choosing the Team 3. 1. 2 Team building How big should the team be? Limit the size of the negotiation team. No rigid rules are to be implemented with regard to the size of the NT. Remember to Adapt the size of the team to the changing situations. How is the Negotiation Team staffed? A lead negotiator Secretary Lawyer or Consultant Budget manager/Treasurer Technical Interpreter Administrative Personnel Experts

3. 1 Choosing the Team 3. 1. 3 Negotiation team's preparation phase Discuss the negotiation's substance Assess skills and roles Plan the negotiation process

3. 1 Choosing the Team 3. 1. 4 Major Roles and Responsibilities of a Negotiation Team Technical knowledge Relationship skills Patience Observational skills Behavior analyzing skills

3. 2 Gathering the Information What kind of information should negotiator look for? --Information that will help you define your own objectives and argue for what you want to achieve in the negotiation --Information about those on the other side, their goals and objectives, how they are likely to view you, and what they may want to achieve in the negotiation Objective information which will help you to get familiar with the all-dimensional conditions in an unfamiliar culture. --

3. 3 Drafting the Negotiation Brief Short briefing papers (Analytical papers which aim to assist negotiators in their preparation of negotiation positions and provide recommendations and/or policy options to negotiation stakeholders) and presentations should be prepared providing synopses of knowledge and issues to help in the design of the negotiation position. The focus of briefing notes will constantly change to meet current information needs in the negotiations. All information should be collected to answer specific questions in the form of negotiation brief or presentation.

3. 4 Planning the Negotiation Meeting Agenda The agenda of each meeting of the negotiations should be carefully set to decide what topics will be discussed and in what order. Venue The site of the meetings has an impact on the outcome and there are three alternatives to site selection (1) the negotiator’s place, (2) the other party’s place, or (3) a third place (i. e. , neutral territory). Schedule A schedule allocates time to different items on the agenda. The schedule must be realistic and flexible. Introductions Some societies are very formal; others are not. Make sure whether or not people want to be introduced with their appropriate titles.

Negotiation Dynamics Invisible force behind the negotiation--The Interpreter • What role does the interpreter play in negotiation? • Summarise the best practices of the interpreter in negotiation?

Culture kaleidoscope Tips on negotiating in Japan • What is the key to negotiation in Japan？ • How is negotiation in Japan different from that in America? • How is Japanese culture mirriored in the negotiation style? Give examples.

Key Terms Negotiation Team(NT) Lead negotiator/Chief negotiator(CN) Budget Manager/Treasurer Negotiation Interpreter Technical experts Legal personnel(consultant) Administrative personnel Negotiation brief Confidential agreement(non-disclosure agreement) 谈判小组 首席谈判代表 预算经理，财务主管 谈判口译官 技术专家 法律顾问 行政人员（管理人员） 谈判简报（案情摘要） 保密协议

Chapter Summary • Preparing negotiation is a sophisticated process which involves a host of activities such as choosing the negotiation team, gathering information, drafting the documents and planning the meeting. • Any negotiation calls for a highly-qualified lead negotiator who is able to assess, organize and coordinate the human resources and deploy other members for the negotiation. • Information gathering also determines the whole process and the outcome of the negotiation. • A negotiation briefing memo or power point presentation is usually drafted to inform the negotiators of the specific situation or position they are in before the negotiation. • When everything else is ready, make sure a well-conceived schedule & agenda and carefully-selected venue are ready for use.

Exercises I. Review and Critical Thinking Questions II. Case Study III. Suggested Reading