Negotiating with Russians and Americans

Russians

• It is said that Russians are great “sitters” during negotiations. Traditionally, Russians regard compromise as a sign of weakness. Some even see compromise as morally incorrect. Russians would rather out-sit the other negotiator—and gain more concessions from the other side.
• Be certain that all members of your negotiating team know and agree on exactly what you want out of the deal. Write this down (perhaps adding a few “nice to haves” that can be given away later) and bring it with you. Do not show the Russians anything other than unity among your team.
• Be factual and include all levels of technical detail.
• “Final offers” are never final during initial negotiations. Be prepared to wait; the offer may be made more attractive if you can hold out.
• Until you have a signed a formal agreement, do not get overconfident about the deal at hand. And never expect that you can renegotiate later for a better deal. This contract is as advantageous as you will ever get.
• The Russians may request that some funds be paid to them directly in cash, or to an account in a foreign bank. This may be because of their historic concern over the oppressive Russian tax system and the rarity of being paid in cash. Be prepared to propose various options.
• One Russian tactic is to allow (after long negotiations) the foreign partner to own 51 per cent of a joint venture. However, contracts usually require unanimity among the partners for major decisions anyway, so 51 per cent is not a controlling interest.
• Include a clause requiring the joint venture partners to submit to arbitration in a neutral country if they can’t come to an agreement. Sweden is the most popular choice for third country arbitration.
• Russian regulations represent the biggest liability to a successful joint venture. These regulations are in constant flux (reforms are being made all the time), so don’t count on your Russian partner to have a full grasp of the legal issues involved. Get your own expert in Russian law. Don’t be surprised when something you did yesterday is disallowed tomorrow; some laws are nebulous, and their interpretation is subject to change.
• Appearances can be deceiving. Russian firms may look prosperous and full of potential. Select a partner based upon full knowledge of the assets it owns or controls.
• Since it is not customary for Russians to disclose their home phone, or other personal telephone numbers, no official residential phone books are issued at all. However, various directories are produced, and many of them are accessible free on the Internet.
• In many countries—such as Japan—people tend to respond to a question by saying “yes.” In the USSR the tendency used to be just the opposite; managers and bureaucrats said “no” at every opportunity. However, Russian executives now often say yes to proposals—even if they lack the authority to do so. They make promises to buy time, and expand the contacts they want with foreigners.
• Historically, there were many reasons why Russians said no to business proposals. One was that innovation was traditionally discouraged. Also, Russians were afraid that if they gave the go-ahead and a project failed, they would be held responsible. Another reason had to do with the position of an individual in a rigid, hierarchical bureaucracy. You rarely met a Russian bureaucrat who had the power to push a project forward without the agreement of others. But one individual could cancel a project, all by himself or herself. Often, the ability to say no was the only real power many bureaucrats possessed; not surprisingly, they used it frequently.
• Peace, international relations, the changes in Russia, and difficult economic situations are all common topics of conversation. People will ask what you think of Russia and what life is like in your home country.

Americans

• Business is done at lightning speed in comparison to many cultures. U.S. salespeople may bring final contracts to their first meeting with prospective clients. In large firms, contracts under $10,000 can often be approved by one middle manager in one meeting.
• Send all relevant information electronically to prospects prior to your visit, and be prepared to process invoices through their paperless online systems.
• Appointments are made by e-mail, conferences are broadcast live over the Web, information and presentations are archived on corporate intranets so employees can access them worldwide at their leisure. Speakers and presenters should remember that their recorded words may ring over speakers, through the Web, for years to come.
• Executives should keep up to date with new electronic gadgets and means of communications in the United States. Hot zones (wireless access) are proliferating; you can access e-mail and surf the net from a multitude of locations—including your aeroplane seat. The gadgets will only get faster and smaller, so stay current.
• The use of handhelds, cell phones, and associated devices are common in business meetings. Taking calls while others are in the room can be highly irritating to international visitors—but be aware that it is common practice.
• In response to an increase in the vehicular accident rate, some states (for example, New York and New Jersey) have made it illegal to talk on a hand-held cell phone while driving.
• While knowing the right people and having many contacts in an industry is valuable, it is not seen as being as important for a salesperson as a good history of sales. Sales staff are evaluated and compensated on their “track records” rather than the potential for exploiting their contacts.
• The “bottom line” (financial issues), new technology, and short-term rewards are the normal focus in negotiations.
• U.S. executives begin talking about business after a very brief exchange of small talk, whether in the office, at a restaurant, or even at home.
• Whether a colleague is a man or a woman should be ignored, except when it comes to personal questions. Women should not be asked if they are married. If a woman mentions that she is married, you should simply ask a few polite questions about her husband or children.
• Remember that the United States is the most litigious society in the world. There are lawyers who specialize in every industry and segment of society, from corporate tax attorneys to “ambulance chasers” (personal injury lawyers).
• The standard U.S. conversation starter is “What do you do?”—meaning “What kind of work do you do, and for whom?” This is not considered at all rude or boring. Actually, to many U.S. citizens, you are what you do.
• Compliments are exchanged very often. They are often used as conversation starters. If you wish to chat with someone, you can compliment something that person has (e.g., clothing) or has done (a work or sports-related achievement).
• Until you know a person well, avoid discussing religion, money, politics, or other controversial subjects (e.g., abortion, race, or sex discrimination).
• Some common topics of conversation are a person’s job, travel, foods (and dieting), exercise, sports, music, movies, and books.
• Before smoking, ask if anyone minds, or wait to see if others smoke. Smoking is generally prohibited in public places: in aeroplanes, office buildings, in stadiums, and even in bars. Large restaurants in some states usually have a section where smoking is permitted. Many hotels designate rooms as smoking and nonsmoking.
• While business people always have business cards, they are not exchanged unless you want to contact the person later. Be sure to include your e-mail address, Web site, etc., on your card.
• Your card will probably be put into a purse, wallet, or back pocket. People may write on your card as well. This is not meant to show disrespect.

Taken from the same source as the previous national profiles I've posted here.