Negotiating Across Cultures | Mr. Mathieu Jouve-Villard | TEDxMahindraUniversity

Summary

Matthew Villar shares his insights on negotiating across cultures, focusing on the challenges faced when negotiating between Western and Indian business practices. Drawing on his 27 years of experience living and working in India, Villar identifies three main obstacles: fear, language, and flexibility. He highlights how cultural differences, including communication styles and business expectations, can create misunderstandings. Villar emphasizes the importance of understanding these cultural dynamics to build successful business relationships and create a more collaborative and empathetic global business environment.

Takeaways

• 😀 Understanding cultural differences is key in negotiations, especially when dealing with countries like India, which has distinct cultural practices compared to the West.
• 😀 Fear plays a major role in negotiations: for Indians, it’s the fear of not getting the best deal; for Europeans, it’s the fear of confrontational negotiations, which can feel hostile.
• 😀 Negotiation in India often begins competitively, where both sides try to extract as much as possible before moving to a more cooperative stage. This differs from the more cooperative European approach.
• 😀 The concept of honesty in negotiations differs: in India, aggressive negotiation tactics may not signal dishonesty but rather a respect for the rules of engagement, which may seem confrontational to Europeans.
• 😀 Language is not a barrier in India as English is widely spoken, but cultural differences in body language and negotiation cues can lead to misunderstandings.
• 😀 In Indian negotiations, non-verbal cues play a significant role in indicating when the negotiation is over, a concept that is often missed by Westerners.
• 😀 Flexibility is critical in India’s fast-evolving business environment. Westerners may struggle to understand this, as they tend to value long-term commitments more.
• 😀 European business people often fail to understand that Indian partners may prioritize short-term gains over long-term relationship-building, which can create tension in partnerships.
• 😀 Understanding that agreements in India can evolve even after being signed is crucial. Flexibility during implementation is often necessary for success in the Indian market.
• 😀 Cross-cultural negotiations are a challenge but also an opportunity to build meaningful relationships and broaden perspectives, which can be personally and professionally rewarding.

Q & A

What is Matthew Villar's background and connection to India?

Matthew Villar was born in France, but he moved to India at a young age when his parents started working there. He has visited India annually for the last 45 years, and he has lived and worked in India for the past 27 years. His professional experience spans various industries, including defense, wine distribution, and consultancy focused on foreign businesses entering the Indian market.

What are the main cultural challenges Matthew Villar faced in negotiating across cultures?

Matthew Villar identifies three main obstacles in cross-cultural negotiations: fear, language, and flexibility. Fear manifests differently on both sides, language barriers arise despite English being widely used, and flexibility is needed due to India's rapidly changing environment.

What does Matthew Villar mean by the 'fear' in negotiations in India?

The fear on the Indian side is the fear of not securing the best possible deal, often driven by emotional factors rather than rational ones. On the foreign side, particularly European negotiators, the fear lies in the perception of confrontation and hostility during competitive negotiations, which can make them feel uncomfortable about the future of the relationship.

How does the negotiation style differ between India and Europe according to Matthew Villar?

In India, negotiations tend to be more competitive, with each party focusing on extracting the best deal for themselves, often viewed as a rapport of strength. In contrast, European negotiations usually emphasize cooperation, where both sides work together towards a mutually beneficial long-term relationship. This difference in approach can be unsettling for foreign negotiators.

Why do foreign negotiators struggle with India's competitive negotiation style?

Foreign negotiators, especially Europeans, struggle with India's competitive negotiation style because they expect a more collaborative approach. The competitive phase, which may seem hostile or confrontational, can lead to misunderstandings and make them feel that the relationship is at risk. However, in India, this stage is followed by a cooperative phase, which foreign negotiators may not immediately recognize.

How does Matthew Villar explain the perception of honesty in Indian negotiations?

Matthew Villar suggests that while Europeans may find Indian negotiators aggressive, they are often more honest because honesty is defined by adhering to the local rules of negotiation. In India, these rules are different from those in Europe, and once understood, they can make the negotiation process more predictable and manageable.

What role does language play in cross-cultural negotiations in India?

While English is the common language of business in India, Matthew Villar emphasizes that language issues go beyond just speaking the same language. The non-verbal communication and negotiation cues are deeply coded in Indian culture, and foreign parties often misinterpret these cues, leading to misunderstandings about when negotiations are over or how to proceed.

How can foreign negotiators address misunderstandings in Indian negotiations?

Foreign negotiators can address misunderstandings by being sensitive to the local negotiation codes, including body language and verbal cues. It is crucial to manage expectations and recognize when the negotiation is over. At times, foreign negotiators might need to leave the room or make a clear, respectful statement to signal the end of talks.

Why is flexibility important in negotiating in India?

Flexibility is important because India is a rapidly evolving country where business conditions can change quickly. Foreign business people may be used to long-term stability, but in India, shorter-term goals and adaptations are often necessary. Understanding this fluidity and being flexible in terms of expectations and agreements is crucial for success.

How does the speed of change in India impact business negotiations?

India's fast-changing environment means that business conditions can shift dramatically, affecting long-term plans. This makes it essential for negotiators to have shorter-term targets and remain adaptable. European business people, accustomed to more predictable environments, may find this challenging but must accept it to thrive in the Indian market.

What advice does Matthew Villar offer for building successful business relationships in India?

Matthew Villar advises that building successful business relationships in India requires understanding and respecting the local rules and culture. It’s essential to remain open-minded, flexible, and patient, as well as to invest in the relationship even if it means sometimes making short-term sacrifices. Flexibility in both approach and expectations is key to sustaining long-term partnerships.