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Negotiate Correctly With The Japanese
Managers of Japanese businesses prepare for their negotiations with Western partners by means of intensive discussion exercises. This style of negotiating, on the other hand, often presents difficulties to managers of European businesses. Therefore this is a popular subject on sales training courses.
The management consultant and Japan expert Joy Golden, says this is a result of the extreme cultural and national homogeneity of the Japanese (‘Negotiating with the Japanese’, in European Business Review, Vol. 91).
In Japan negotiations are always entered into with a fixed collective opinion; the Japanese detest loud and aggressive discussions. They prefer a way of solving problems in a slow, quiet and very thoughtful process. A Japanese negotiating partner will never express displeasure or rejection and will never publicly distance him or herself from the collective opinion. The verbal negotiation and problem solving style (argument plus counter argument equals compromise) of Western culture is completely foreign to Japanese!
A Japanese negotiation team will therefore appear at the initial meeting with a fixed opinion on their key points. You should always expect your negotiation partners to have informed themselves thoroughly about your company, the products and services, its connections and the financial position of the firm. Never imagine that you can shift the other side from their standpoint with logical arguments.
The following recommendations apply to the key stages of the discussion:
The Opening Stage
Japanese business people prefer a gentle and gradual opening to the discussion. Always start off with a non-business, non-personal, subject to create a pleasant and relaxed atmosphere for the discussion. Sport, for example, is a highly suitable topic.
The Presentation Stage
The business part should start off with a short statement. This should be a brief outline of your organisation’s history, some details about the Japanese company (by doing this you have shown you have done your homework!), a laudatory summary of the dealings and excellent relations so far, and a hopeful look toward your future together. Speak slowly here and without emotion.
As a next step, provide an outline of the negotiation points on the agenda, the negotiating positions up to now and potential issues that will have to be clarified. During your presentation you should never assume, without checking, that you have been understood. Nodding heads and busy note taking or even the presence of interpreters are no guarantee of this! If you are lucky these misunderstandings will delay the negotiation. The worst case scenario the deal will be lost.
The Western European understanding of logical arguments as covered on many sales training courses is ineffective with the Japanese. A lot of Japanese have only a limited knowledge of English therefore ask the interpreter whether any further explanation or detailed clarification is required.
Where possible, support your presentation with visual aids such as diagrams, tables and charts. Hand your negotiation partners a copy of the documentation so their concentration will not be disturbed by note taking. The Japanese value exact information.
The more precise and detailed the presentation is, the fewer doubts your partners will have regarding the accuracy of your preparation and your sincerity.
The Negotiating Phases
In numerous negotiations with the Japanese the Western side made a greater amount of concessions than were originally intended. Why?
Our ability to convince the customer with logical arguments is relied upon too much. The stillness and immobility of Far Eastern negotiation partners continually surprise inexperienced people. They maintain a thoughtful silence, instead of opposing arguments with counter-arguments as is the way West.
The Japanese are only ready to make concessions when their negotiating partner has moved a step: they are never the first to make concessions.
Japanese hate time constraints! They rigidly refuse to conclude their negotiations by a certain time or date. They will take as long as it takes and negotiate rather unsystematically. Our way of crossing off points one by one when completed is completely alien to them.
These differing ideas often lead to serious annoyance or even anger. Remain cool, calm and collected, regardless of the other side demanding a 25% reduction in price! Agitation and consternation are often regarded as personal weaknesses in Japan. Partners in business who fail to keep a tight rein on their emotions during negotiations are judged to be unreliable.
Never attack a member of a Japanese delegation! The Japanese feel and act as a group and have no sympathy for this kind of thing.
The Concluding Phase
The basic stipulations for any successful conclusion are; solid preparation with broad background knowledge, patience and self-control. Even more crucial, though, is the realisation that you will not be able to convince the Japanese with strict logic! Flexibility, the correct interpretation of non-verbal signals and restrained behaviour is appropriate to the situation are far better than any logic! These skills are taught on good sales training courses.
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