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12 VARIABLES OF RUSSIAN NEGOTIATION



1 # BASIC CONCEPT OF NEGOTIATION PROCESS



Russian show great emphasis on knowing their partners if their

counterpart are new to negotiation they can expect to be tested by them.

The Russian only negotiate when they know that other party is serious in

negotiation. They show a lot of patience in negotiation and look at the

whole situation rather than part of it.

Russians see negotiations as win-lose. They do not believe in win-win

scenarios.

Russian generally do not give timelines for delivery of a product or

completion of project. During negotiation when Russian confronts strong

resistance they will back off.



2 # NEGOTIATOR SELECTION CRITERIA



The Russian criteria for selecting the negotiation team include

negotiating experience seneriorty, political affiliation ethnic ties,

technical knowledge and personal attributes. The leader of the team

normally selected on the basis of specialization in a particular field and

his loyalty and trust worthiness.



3 # SIGNIFICANCE OF TYPE OF ISSUES



Defining the issue in negotiation is critical Russian are generally not

fluent in English. Normally services of interpreter are needed. Russian
expects that their counterpart will communicate with them. Keeping in

mind their handicap of English language.

Negotiations in Russian can be conducted by individual or team of

negotiators. Russian expects the meeting schedule to be finalized at least

2 to 3 weeks in advanced. The Russian would prefer to know the detail

about the negotiating team.



4 # CONCERN OF PROTOCOL



Protocol accepted practices of social behavior and interaction rules of

protocol can be formal or informal. Under formal protocols negotiations

stress adherence to strict and detailed rules that govern manner and

conduct .To the contrary under informal protocol, negotiators scarcely

adhere to rules that govern manner and conduct. Russian view compromise

as a weakness and will continue to negotiate until you offer concessions.

Russian may lose their temper, walk out of the meeting or threaten to

terminate the relationship in an attempt to coerce you to change your

position.

Russian expects that meetings are schedule into two to three weeks in

advanced. They want to know whom they will be meeting. It is unlikely

that top executive of an organization will meet the bargaining team. The

meeting schedule needs to be confirming several time. There meeting

canceled or postponed with little or no notice. Russians expect the

visitors to be punctual; being late by more than 10-15 min without having a

valid plausible excuse is considered an offense. However Russians could

be late by an hour or more without any remorse.
Russian negotiators may try to convince you that they have the background

and experience required to be successful, exaggerating their capabilities

.or making questionable promises in order to maintain foreign contacts



Presentations should be short and concise. Making a good first impression

is at least as important as coming with a compelling proposal. It is

characteristic of Russians to be pessimistic, so a lack of enthusiastic

responses should not discourage you. Your presentation materials should

be attractive, with good and clear visuals. Use diagrams and pictures

wherever feasible, cut down on words, and avoid complicated expressions.

Russians may expect to discuss many details, so bring enough background

information. Having your handout materials translated to Russian is not a

.must, but it helps in getting your messages across




5 # COMPLEXITY OF LANGUAGE



In addition to Russian, the country official language, the number of

minority languages exists. Not many business people speak English

fluently. In addition, Russians may insist that they understand everything

you say even when this is not really the case. It may be necessary to have

an interpreter. Ask beforehand whether an interpreter should be present

at a meeting. However, keep in mind that even some interpreters may not

speak and understand English at a fully proficient level. It may be in your

best interest to bring your own interpreter, rather than depending on one

provided by the Russians, to ensure an unbiased translation. When

communicating in English, speak in short, simple sentences and avoid using

slang and Jargon. It will help people with a limited command of English if
you speak slowly, summarize your key points often and pause frequently

to allow for interpretation



6 # NATURE OF PERSUASIVE ARGUMENTS



One way or the another negotiations involves attempts to influence the

other party.

In Russia the primary approach to negotiating is to employ is distributive

and contingency bargaining .The buyer is often in a strongly fairable

position and may try to push the responsibility to reach agreement to the

seller while quite a few Russian are highly skilled negotiator, the majority

of business people in the country have only limited experience in the

field.

Russians can be extremely patient, persistent and stubborn negotiators.

It can be very difficult to obtain concessions from them.

Russian may also claim limited authority, stating that they have to ask for

their manager's approval. More often than not this might be the truth.

However you may not always be able to force the true decision maker to

participate directly in the negotiation meaning that you may have accept

this indirect negotiation approach Russians are often reluctant to take

risk.



7 # ROLE OF INDIVIDUAL ASPIRATION



The emphasis negotiators place on their individual goals and needs for

recognition may also vary. In some cases the position of a negotiator may

reflect personnel goals to a greater extent than corporate goals. In
contrast negotiator may want to prove he or she is a hard bargainer and

compromise the goals of the corporation.

Russian often starts with extreme positions, ignored deadlines and due to

their limited authority frequently check backs with their headquarters.



8 # BASES OF TRUST



Every negotiator at some point must face the critical issue of trust .one

must eventually trust ones counterparts ,otherwise resolution would be

difficult .Trust can be based on the written laws of a particular country

or it can be based on friendship and mutual respect and esteem. Russians

like to establish on general principles first. The first meeting is normally

approached more as a formality. They try to establish the credibility of

negotiator in this meeting. Once the trust is established than the Russian

go for serious negotiating.



9 # RISK TAKING PROPENSITY



Negotiators can be perceived as either cautious (low risk takers)or

adventurous(high risk takers).If a negotiator selects a solution that has

lower rewards but higher probability of success, He or she is not a risk

taker. If the negotiator chooses higher rewards but a lower probability

of success then he or she is adventurous and a risk taker.

Russian often reluctant to take risk , If you expect them to support a

risky decision you may need to find ways for them. To become

comfortable with it first .You are much more likely to succeed. If the

relationship with your counterparts is strong and you managed win their

trust.
10 # VALUE OF TIME



Each culture has a difference way of perceiving and acting upon time.

Monochronic cultures emphasize making agendas being on time for

appointment and generally seeing time as a quantity to be scheduled.

Polychronic cultures stress the involvement of people rather than preset

schedules. The future cannot be firm, so planning takes on little

consequence.

Negotiations with Russians could be very slow and protracted.Thsi is true

during the initial bargaining stages. Russian generally employs a ploy

chronic work style. It is not unusual for them to reopen a discussion over

items that had already been agreed upon. If the Russian appeared to be

stalling negotiation access carefully whether their slowly down the

process indicates that they are evaluating alternatives or that they are

not interested in doing business with you. More often then not this

behavior indicates attempt to create time pressure or wear you down in

order to obtain concessions.



11 # INTERNAL DECISION MAKING SYSTEM



Broadly understood, decision making systems can be authoritative or

consensual. In authoritative decision making individual makers the

decision without consulting with his or superiors. However, senior

executives may overturn the decision. In consensus decision making

negotiators do not have the authority to make decisions unless they

consult their superiors.
Russians expect to work within clearly established line of authority.

Openly disagree with or criticizing superior is unacceptable. Decision

makers are usually senior executive, who consider the best interest of

the group or the organization. They will likely consult with other before

making the call. Subordinates make reluctant to accept responsibility.

Decision makers also rarely delegate their authority .Decision can take a

long time and requires patience.



12 # FORM OF SATISFACTORY ARGUMENT



Generally there are two broad form of agreement. One is the written

contract that covers possible contingencies. The other is the broad oral

agreement that binds the negotiating parties through the quality of their

relationship.

Russian may insist on having a protocol (minutes of meeting) signed by

both parties at the end of the meeting. Its serves to record what was

discussed, is not a contract and should not be mistaken for final

argument. Written contract contract should be clear and concise without

too many detailed terms and conditions. Signing the contract is important

not only from the legal perspective but also as a strong confirmation of

your Russian partners commitments. The Russian may request that the

detailed of the contract may be kept secret.

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12 Factors of Russian Negotiation Style

  • 1. 12 VARIABLES OF RUSSIAN NEGOTIATION 1 # BASIC CONCEPT OF NEGOTIATION PROCESS Russian show great emphasis on knowing their partners if their counterpart are new to negotiation they can expect to be tested by them. The Russian only negotiate when they know that other party is serious in negotiation. They show a lot of patience in negotiation and look at the whole situation rather than part of it. Russians see negotiations as win-lose. They do not believe in win-win scenarios. Russian generally do not give timelines for delivery of a product or completion of project. During negotiation when Russian confronts strong resistance they will back off. 2 # NEGOTIATOR SELECTION CRITERIA The Russian criteria for selecting the negotiation team include negotiating experience seneriorty, political affiliation ethnic ties, technical knowledge and personal attributes. The leader of the team normally selected on the basis of specialization in a particular field and his loyalty and trust worthiness. 3 # SIGNIFICANCE OF TYPE OF ISSUES Defining the issue in negotiation is critical Russian are generally not fluent in English. Normally services of interpreter are needed. Russian
  • 2. expects that their counterpart will communicate with them. Keeping in mind their handicap of English language. Negotiations in Russian can be conducted by individual or team of negotiators. Russian expects the meeting schedule to be finalized at least 2 to 3 weeks in advanced. The Russian would prefer to know the detail about the negotiating team. 4 # CONCERN OF PROTOCOL Protocol accepted practices of social behavior and interaction rules of protocol can be formal or informal. Under formal protocols negotiations stress adherence to strict and detailed rules that govern manner and conduct .To the contrary under informal protocol, negotiators scarcely adhere to rules that govern manner and conduct. Russian view compromise as a weakness and will continue to negotiate until you offer concessions. Russian may lose their temper, walk out of the meeting or threaten to terminate the relationship in an attempt to coerce you to change your position. Russian expects that meetings are schedule into two to three weeks in advanced. They want to know whom they will be meeting. It is unlikely that top executive of an organization will meet the bargaining team. The meeting schedule needs to be confirming several time. There meeting canceled or postponed with little or no notice. Russians expect the visitors to be punctual; being late by more than 10-15 min without having a valid plausible excuse is considered an offense. However Russians could be late by an hour or more without any remorse.
  • 3. Russian negotiators may try to convince you that they have the background and experience required to be successful, exaggerating their capabilities .or making questionable promises in order to maintain foreign contacts Presentations should be short and concise. Making a good first impression is at least as important as coming with a compelling proposal. It is characteristic of Russians to be pessimistic, so a lack of enthusiastic responses should not discourage you. Your presentation materials should be attractive, with good and clear visuals. Use diagrams and pictures wherever feasible, cut down on words, and avoid complicated expressions. Russians may expect to discuss many details, so bring enough background information. Having your handout materials translated to Russian is not a .must, but it helps in getting your messages across 5 # COMPLEXITY OF LANGUAGE In addition to Russian, the country official language, the number of minority languages exists. Not many business people speak English fluently. In addition, Russians may insist that they understand everything you say even when this is not really the case. It may be necessary to have an interpreter. Ask beforehand whether an interpreter should be present at a meeting. However, keep in mind that even some interpreters may not speak and understand English at a fully proficient level. It may be in your best interest to bring your own interpreter, rather than depending on one provided by the Russians, to ensure an unbiased translation. When communicating in English, speak in short, simple sentences and avoid using slang and Jargon. It will help people with a limited command of English if
  • 4. you speak slowly, summarize your key points often and pause frequently to allow for interpretation 6 # NATURE OF PERSUASIVE ARGUMENTS One way or the another negotiations involves attempts to influence the other party. In Russia the primary approach to negotiating is to employ is distributive and contingency bargaining .The buyer is often in a strongly fairable position and may try to push the responsibility to reach agreement to the seller while quite a few Russian are highly skilled negotiator, the majority of business people in the country have only limited experience in the field. Russians can be extremely patient, persistent and stubborn negotiators. It can be very difficult to obtain concessions from them. Russian may also claim limited authority, stating that they have to ask for their manager's approval. More often than not this might be the truth. However you may not always be able to force the true decision maker to participate directly in the negotiation meaning that you may have accept this indirect negotiation approach Russians are often reluctant to take risk. 7 # ROLE OF INDIVIDUAL ASPIRATION The emphasis negotiators place on their individual goals and needs for recognition may also vary. In some cases the position of a negotiator may reflect personnel goals to a greater extent than corporate goals. In
  • 5. contrast negotiator may want to prove he or she is a hard bargainer and compromise the goals of the corporation. Russian often starts with extreme positions, ignored deadlines and due to their limited authority frequently check backs with their headquarters. 8 # BASES OF TRUST Every negotiator at some point must face the critical issue of trust .one must eventually trust ones counterparts ,otherwise resolution would be difficult .Trust can be based on the written laws of a particular country or it can be based on friendship and mutual respect and esteem. Russians like to establish on general principles first. The first meeting is normally approached more as a formality. They try to establish the credibility of negotiator in this meeting. Once the trust is established than the Russian go for serious negotiating. 9 # RISK TAKING PROPENSITY Negotiators can be perceived as either cautious (low risk takers)or adventurous(high risk takers).If a negotiator selects a solution that has lower rewards but higher probability of success, He or she is not a risk taker. If the negotiator chooses higher rewards but a lower probability of success then he or she is adventurous and a risk taker. Russian often reluctant to take risk , If you expect them to support a risky decision you may need to find ways for them. To become comfortable with it first .You are much more likely to succeed. If the relationship with your counterparts is strong and you managed win their trust.
  • 6. 10 # VALUE OF TIME Each culture has a difference way of perceiving and acting upon time. Monochronic cultures emphasize making agendas being on time for appointment and generally seeing time as a quantity to be scheduled. Polychronic cultures stress the involvement of people rather than preset schedules. The future cannot be firm, so planning takes on little consequence. Negotiations with Russians could be very slow and protracted.Thsi is true during the initial bargaining stages. Russian generally employs a ploy chronic work style. It is not unusual for them to reopen a discussion over items that had already been agreed upon. If the Russian appeared to be stalling negotiation access carefully whether their slowly down the process indicates that they are evaluating alternatives or that they are not interested in doing business with you. More often then not this behavior indicates attempt to create time pressure or wear you down in order to obtain concessions. 11 # INTERNAL DECISION MAKING SYSTEM Broadly understood, decision making systems can be authoritative or consensual. In authoritative decision making individual makers the decision without consulting with his or superiors. However, senior executives may overturn the decision. In consensus decision making negotiators do not have the authority to make decisions unless they consult their superiors.
  • 7. Russians expect to work within clearly established line of authority. Openly disagree with or criticizing superior is unacceptable. Decision makers are usually senior executive, who consider the best interest of the group or the organization. They will likely consult with other before making the call. Subordinates make reluctant to accept responsibility. Decision makers also rarely delegate their authority .Decision can take a long time and requires patience. 12 # FORM OF SATISFACTORY ARGUMENT Generally there are two broad form of agreement. One is the written contract that covers possible contingencies. The other is the broad oral agreement that binds the negotiating parties through the quality of their relationship. Russian may insist on having a protocol (minutes of meeting) signed by both parties at the end of the meeting. Its serves to record what was discussed, is not a contract and should not be mistaken for final argument. Written contract contract should be clear and concise without too many detailed terms and conditions. Signing the contract is important not only from the legal perspective but also as a strong confirmation of your Russian partners commitments. The Russian may request that the detailed of the contract may be kept secret.